North American Panel March 19, 2012 UPDATE ON PIRACY JOSEPH ANGELO MANAGING DIRECTOR

PIRACY - Somalia 2010 Statistics (IMB) attempted incidents - 49 hijackings (21% of incidents) 2011 Statistics attempted incidents - 28 hijackings (11% of incidents) 2012 Statistics (Mar 8) - 31 attempted incidents - 6 hijackings (19% of incidents)

INTERTANKO FOCUS Actions members can take to protect themselves Actions we want governments to take to protect our members

FOCUS AREAS - INDUSTRY Best Management Practices (BMP) Citadels Armed guards

BMP Three essential requirements that cannot be over emphasized: Register with MSCHOA Report to UKMTO Implement Self Protection Measures

BMP4 Produced in consultation with EUNAVFOR, the NATO Shipping Centre, MSCHOA and UKMTO Very close cooperation with all military players in the BMP4 revision Funded by Industry and available free of charge

BMP4 Released August 15, 2011 (BMP3 issued 6/2010) Updates in BMP4 include: - Revision to the boundaries of the High Risk Area - Clarification of reporting requirements for MSCHOA and UKMTO - New subsection on “Prosecution of Pirates – Assisting Law Enforcement Authorities”, produced with INTERPOL - Guidance on the assistance provided by INTERPOL. - New section on Armed Private Maritime Security Contractors

COMPLIANCE WITH BMP MSCHOA – currently issuing regular Monthly Compliance Report to Industry Report lists vessels which are not compliant with BMP by either: 1. not Registering with MSCHOA 2. not Reporting to UKMTO 3. having no visible self protection measures

COMPLIANCE WITH BMP Industry is responding by: Contacting Shipping Companies on list Emphasising need for compliance with BMP, in particular the 3 major elements in order to harden a vessel against attack Urging compliance even if armed guards are being carried Requesting feed-back as to why vessels are not complying Offering advice and support

CITADELS Since January 2010 there have been 27 recorded incidents of citadels being used by merchant crews under attack Reporting suggests that the citadel was decisive in foiling 23 of these attacks For 4, not all in citadel and/or no 2-way coms Pirates developing tactics to breach citadels Advise issued by the military regarding the use of CITADELS on MSCHOA web site

CITADELS Key essential elements if citadels are to be used: Everyone on the ship must be in the citadel Must have self-contained, 2 way communication capabilities in the citadel Pirates must be denied access to propulsion Must have food and water provisions for 3 days minimum Use of a citadel does NOT guarantee a military response

CITADELS Industry developed guidance on citadels Describes the construction and use of a Citadel in order to provide effective protection against determined intrusion Guidance does not recommend or endorse the use of a Citadel; aim to present the relevant facts to enable the Ship Owner/Operator to reach a reasoned conclusion as to whether or not to utilise a Citadel Guidance has been approved by NATO, EUNAFOR and CMF and is available on their web sites

ARMED GUARDS 50+ recorded incidents where onboard armed security teams were involved No recorded incidents of vessels with onboard armed security teams being pirated Military report use of armed guards rising If embarked, military request it is reported Military position – decision between shipowners and flag state

ARMED GUARDS INTERTANKO position regarding the use of armed guards INTERTANKO believes it is the responsibility of the international navies to ensure the right of free passage on the high seas including the use of vessel protection detachments on merchant ships INTERTANKO does not advocate the arming ships' crews INTERTANKO believes that the use of private armed guards or private security forces onboard merchant ships has to be a matter for each individual owner or manager to assess as part of their own voyage risk assessment

ARMED GUARDS Recognition of a need for Industry guidance May 2011 – Industry produces a set of Draft Guidelines for the use of Privately Contracted Armed Security Personnel Submitted draft guidelines to IMO Maritime Safety Committee for consideration MSC adopts interim guidance

ARMED GUARDS IMO Maritime Safety Committee MSC.1/Circ.1405 – Interim Guidance to Shipowners, Ship Operators and Ship Masters on the use of Privately Contracted Armed Security Personnel on Board Ships in the High Risk Area MSC.1/Circ.1406 – Interim Recommendations for Flag States regarding the use of Privately Contracted Armed Security Personnel on Board Ships in the High Risk Area MSC.1/Circ.1408 – Interim Recommendations for Port and Coastal States regarding the use of Privately Contracted Armed Security Personnel on Board Ships in the High Risk Area

ESSENTIAL ACTION Register with MSCHOA Report ship position to UKMTO Utilize the Best Management Practices Employ Self Protective Measures

FOCUS AREAS - GOVTS Increased "Government Will" to eradicate piracy off Somalia Cease the use of mother ships Increased prosecution of convicted pirates Increased naval assets in the region Increased public awareness to drive the desired increase in "Government Will“ Action to address the root cause of piracy ashore in Somalia

MOTHERSHIPS Mother ships give the pirates operational range, duration and tactical use of hostages in almost the entire Indian Ocean Motherships must be controlled/immobilised Major concern is reprisals against crew held hostage on motherships Controlling /immobilising action on the high seas is preferred It is for the military to decide on the nature of the action and for politicians to indicate their acceptance of the need for action to be taken.

PROSECUTION Few countries involved in counter-piracy activity have "conspiracy to commit piracy" on their statute books For others, carrying fire arms, grappling hooks, ladders, etc. is not a criminal offence on the high seas Capture and release policy has no effect upon piracy All countries must increase prosecutorial action

ASSETS Currently about 30 assets in the region European Union established an EU Naval Force (EUNAVFOR) Operation Atalanta Combined Maritime Force established CTF 151 China, India, Malaysia, Rep of Korea, Russia and others Standing NATO Maritime Group 1 (SNMG1) For one hour response time – 83 warships How long will the assets remain???

CONVOY ESCORT PROGRAM Pilot project initiated by insurance industry 18 assets to provide convoy service in IRTC Assets under flag of legitimacy Under tactical command of military $27 million initial start-up costs (EU funded?) Average cost for transit $27,500 for three days escort Cost neutral for industry – would include 7 day War Risk Additional Premium and Kidnap/Ransom Insurance Some concerns raised - would military assets remain in the region?? - should industry pay for eradication of piracy?? - is CEP cost-effective - legal implications related to international/territorial waters INTERTANKO Council does not support CEP

SOS CAMPAIGN SOS CAMPAIGN SaveOurSeafarers (SOS) campaign initiated by INTERTANKO. Joined by BIMCO, ICS, ITF and INTERCARGO Contracted with PR firm to increase public, business and government awareness Phase One – - Ad in Financial Times and World Street Journal - web sitewww.SaveOurSeafarers.com - Letters to UN SG, Heads of State and EU President - Interviews with press and news media - Press releases after incidents

SOS CAMPAIGN Phase Two – - Social media (Blog, Twitter, Facebook, etc) - Actively engage policy makers - Further ads, press releases and interviews - Seek high profile name to assist in cause Wider industry involvement, now includes support from 30 maritime associations/organizations Steering committee established to brainstorm ideas, prioritize work items and manage budget Phase Three - More focus on high level politicians

RESULTS Results, thus far – 108,000+ visits to SOS website From 191 countries 31,600+ letters sent in 86 countries 4,100+ Facebook fans and 750+ followers on Twitter

RECENT DEVELOPMENT Feb 23 – London Somalia Conference Hosted by UK PM David Cameron 40+ senior government leaders Focus on seven areas, including piracy Major Concern – Cameron statement “…creating an international task force to discourage the payment of ransoms to pirates and other groups to eliminate the profit motive…”

Thank you!!