MARITIME TRADE SECURITY IN IOR: SCOPE OF MULTILATERAL COOPERATION Presented by: Rear Admiral M Khaled Iqbal, BSP, ndc, psc Commander Bangladesh Navy Fleet
Opening Remarks Indian Ocean - The Great Connector
Opening Remarks Sea Lines of Communications
Opening Remarks Maritime governance today demand flexible and multipronged response strategies
Scope Issue 1.The geo-economy of IOR will continue to influence the global trade and commerce Issue 2.Prevailing threats and challenges demand multilateral cooperation in the region for enhancing maritime trade security Issue 1.The geo-economy of IOR will continue to influence the global trade and commerce Issue 2.Prevailing threats and challenges demand multilateral cooperation in the region for enhancing maritime trade security
Significance of Trade and Commerce in IOR Historical Context An arena for colonial supremacy and great powers rivalry
Geo-economic Importance of IOR In addition to huge oil and gas reserve, IOR is hub of coal, copper, iron, nickel, cobalt, gold, diamond and other strategic raw materials
Geo-economic Importance of IOR About two-thirds of the world’s oil 50 per cent seaborne container traffic One-third of bulk cargo World’s highest tonnage in seaborne transportation of goods Magnitude of Trade in IOR
Strategic Petroleum Streams Conduits and connectors between sites and nodes of oil and gas export activity, strategic refining hubs, way points and consumer markets
IOR Choke Points Suez Canal Bab el-Mandeb Cape of Good Hope Strait of Hormuz Malacca Strait 3.3 m bbl/d 17 m bbl/d 15.2 m bbl/d 4.9 m bbl/d 3.8 m bbl/d
Impact of IOR Trade on Global Economy 70 per cent of China’s imported energy pass through IOR China – An Economic Power House
US, EU and Australia’s Economic Interest in IOR Italy percent UK - 66 percent Germany - 62 percent France - 51 percent US -15 percent Australia - 69 percent Flow of Gulf Oil
Emergence of Asia-Pacific Japan imports 90% oil from the Gulf More than two-thirds oil of Thailand, Singapore, Philippines, Taiwan and South Korea originate from Gulf
India – A Rising Economic Power Increasing reliance on imported energy from Middle East and massive trade surplus indicate profound influence of maritime trade in India’s economic matrix
Steady Progress of Developing Countries Developing countries of South Asia and South East Asia have generally displayed improving trends of GDP growth, per capita income, PPP and social and economic indicators
3 Emerging Indo-Pacific Regime Maritime connectivity between Indian Ocean and Pacific Ocean will gain momentum and their Geo economics will remain intertwined
Emerging Indo-Pacific Regime US Strategic Rebalance and Asia Pivot is a well anticipated recognition of the Indo-Pacific regional economy
BRICS-Emerging Economic Power Blocks
Strategic Impact of North Sea Route on Indian Ocean Trade North Sea Route Evolution of North Sea Route into a viable high-volume maritime trading route remains as a matter of distant future An Offshoot of Global Warming
HORN OF AFRICA MALACCA STRAIT
Piracy in Malacca StraitsPiracy in Horn of Africa
Non-state Actors and Asymmetric Threats French super tanker Limburg after attack USS Cole after attack
Pirate - Terror Nexus
Anti Piracy Coalition NATO Operation
Impact of Regional Geo-politics – Hotspots in IOR with Ideological and Social Fault lines leading to Geo-political instability Influence of Geo-strategy
Impact of Regional Geo-politics – Hotspots in IOR with Ideological and Social Fault lines leading to Geo-political instability Influence of Geo-strategy - Stakes and interests of major powers from within and outside the region may cross roads in IOR which may have consequential effect on Maritime trade Vulnerability of Choke Points - Any disruption of the chokepoints due to piracy, terrorists’ acts or inter-state conflict may have disastrous consequence
2700 NM additional distance Additional Shipping/Insurance Cost Energy Shortage Impact on Global Economy
Diversity and lack of capability – The region has stark diversity and contrast in littoral countries’ politics, culture, ethnicity, economics and environment. Diversity and lack of capacity may hamper cooperative solutions Lack of information sharing - Results in poor situational awareness in IOR Lack of trust and confidence - Lack of adequate confidence building measures has prevented the creation of overarching security architecture
May lead to legal issues as Italian Marines case with India
Lack of Ministerial level effective Regional Forum to address wider Maritime security issues of entire IOR
Scope of Multilateral Cooperation We need to adopt a holistic and layered approach with comprehensive multinational coordinated efforts involving political, military and societal measures A cooperative regional approach and multilateral collaborative partnership between states A Holistic Multilayered Approach
Maritime Surveillance and Enforcement Regional Maritime Coordination Centres
Scope of Multilateral Cooperation Capacity building in the fields of information exchange, surveillance and maritime law enforcement Trust and Confidence Building and resolve bilateral disputes
Compliance of Port and Trade Security Regulations AIS ISPS SUA SOLAS CSI
Best Management Practices Ship protective measures Bridge protection Ship lock system Enhanced vigilance
IORA SAARC GCC ASEAN SADC IONS CTF
Maritime Coordination Centre Information sharing and MDA Regional Maritime Trade Security Structure Regional Stability Confidence Building Measures Surveillance Resource Sharing Joint Patrol MDA Surveillance Resource Sharing Joint Patrol MDA Threats Piracy Terrorists A B Safe Corridor CTF
Maritime Cooperation for Trade Security Concluding Remarks