16 December 2008
National Iranian Tanker Company (NITC) is currently in discussions on placing private armed security teams aboard ships passing through the pirate-infested Gulf of Aden as the raiders continue to undermine the security of its fleet's operations.

"We are in discussions. But that is not only for us. This is for the whole industry. Our ships need to be armed," Mohammad Souri, Chairman and Managing Director of the NITC, told Emirates Business on the sidelines of Seatrade Middle East Maritime conference.

To challenge the piracy and to secure the safety of merchant vessels, he proposed vessels could be escorted by Coalition Naval Forces or establish their own armed security teams at the east and west entrances to the Gulf of Aden.

He said some of the crew could also be equipped with armament for self defence such as machine guns, barbed wire, flares, high-pressure water or long-range acoustic devices. There could also be internationally organised armed security teams, stationed at the two ends of the Gulf of Aden - Salalah and Djibouti - for the security of passing vessels, Souri added.

Asked whether NITC has found allies for this proposal, Souri said: "Not many are in favour of this."

He said the total number of pirate threats, which frequently happened in major choke points, have reached 330 this year so far.

Souri said five of his company's ships have been chased and threatened but had escaped by outrunning the fast attack boats of the Somali pirates.

Saleh Al Shamekh, President Oil and Gas of the National Shipping Company of Saudi Arabia (NSCSA), said some of his company's vessels had also come under attack off the Somali coast but had escaped, in one case under the protection of an Indian Navy warship.

"Tankers are vulnerable targets," Souri said. "They have relatively slow speed and are cumbersome to manoeuvre away from pirates' attacks as they are big targets. They also do not have any protection and have nowhere to hide."

He said piracy in the Gulf of Aden has become a substantial detriment to the shipping industry. Diverting from the passage around the Cape means higher operating cost, extra fuel consumption and extra pollution. Piracy also increases marine insurance cost. The damage to property and more so to seafarers' lives are significant, he said. "Piracy causes tension and stress for shipping companies, consumers, seafarers families and insurance firms. The ransom rates are high and there are issues related to possible injury and death of crew on board the vessels," he added.

Tankers need to pass through one or more of three choke point entrances - the Red Sea (Bal Al Mandeb), Arabian Gulf (Strait of Hormuz) and the Malacca Strait (between Indonesia and Malaysia) to transport oil.

Oil production in 2007 totalled 85 million barrels per day and one-half of this crude was moved by tankers. A quarter of the world trade passes through the Strait of Malacca, including half of all sea shipments of oil bound for East Asia and two-third of global liquefied natural gas shipment.

Souri believes the recently announced European Union naval force of six warships and three aircraft to protect merchant vessels by forming convoys in Bab Al Mandab could help. But he added that his company was in talks on the possibility of putting armed security teams on board their own vessels as they traverse the dangerous waters of the strait.

Private security companies from the United Kingdom are offering teams armed with guns, flares and tear gas to defend vessels against attack, he said. Other protection measures include ringing ships with barbed wire to prevent boarding by pirates.

"The armed teams consisting four or five men would also train some of the crew in anti-piracy measures," Souri said.

However, most countries do not allow the arming of merchant vessels that sail under their flags and insurance companies also oppose the proposal. "I think that if the European Union forces can protect the ships this issue will be settled, otherwise we would need to have armed forces on our ships and we are negotiating at the moment," said Souri.

"The level of hijackings has reached unprecedented levels and present an enormous challenge to both the maritime industry," said Christopher Hayman, Chairman of Seatrade, organisers of Seatrade Middle East Maritime.

By Karen Remo-Listama

© Emirates Business 24/7 2008