1 00:00:00,720 --> 00:00:04,520 Become very, very pleased that we succeeded in Europe. 2 00:00:04,550 --> 00:00:09,750 Peter Cook here to Oxford to speak to our on the topic. 3 00:00:11,760 --> 00:00:18,960 At first glance it looks rather simple, but the closer you look at it, the more complex and interesting it actually becomes. 4 00:00:19,350 --> 00:00:24,000 Everyone seems to know about Somali pirates and what the issue is, 5 00:00:24,390 --> 00:00:32,580 and most people in the field agree that private security companies are at least part of the solution. 6 00:00:33,300 --> 00:00:37,770 The most famous one liner is No Ship Secure Fire. 7 00:00:38,010 --> 00:00:43,170 Private security has never been hijacked. It's still valid at this point, I think. 8 00:00:44,850 --> 00:00:49,860 Well, not all as well in the field of private maritime security. 9 00:00:50,070 --> 00:00:54,570 An industry like this unregulated, brand new attracts cowboys. 10 00:00:55,770 --> 00:01:03,450 The clients often have no means of finding out who is this private security company I'm dealing with in my hiring. 11 00:01:03,450 --> 00:01:14,100 Yet to get on board my ship with a couple of guns and they don't know how these companies have acquired their own public transport them. 12 00:01:15,300 --> 00:01:24,690 What precisely the rules of engagement are, especially regarding the use of force on international waters in various territorial waters. 13 00:01:24,960 --> 00:01:33,180 Working under various criminal law jurisdictions. Some of you will have heard of the incident off the Indian coast May, February of last year, 14 00:01:33,480 --> 00:01:45,000 where Italian security guards shot allegedly shot Indian fishermen off the of the Indian coast. 15 00:01:45,000 --> 00:01:47,610 And the Indians were quite enraged about this. 16 00:01:48,330 --> 00:01:57,540 And it turned into a state affair almost immediately because in this case, the Marines were were part of the Italian army. 17 00:01:58,170 --> 00:02:06,210 So now the dispute is at the point where Italy is pondering whether to sue India in front of the International Court of Justice. 18 00:02:06,810 --> 00:02:13,830 Now, we can imagine that a private security company would be in a much weaker position if engaged in a similar dispute. 19 00:02:15,030 --> 00:02:20,370 So it is more and more recognised that there is a real need for regulation. 20 00:02:21,000 --> 00:02:27,890 And and the Security Association for the Maritime Industry found that in May 2011 21 00:02:29,000 --> 00:02:34,260 he is leading the case for regulation to be developed from within the industry. 22 00:02:35,250 --> 00:02:42,120 That of course is no easy undertaking because of the IMO and a large number of nation states are drafting regulations. 23 00:02:42,390 --> 00:02:48,480 At the same time, sometimes jointly, sometimes completely independently of each other. 24 00:02:48,690 --> 00:02:56,370 So we're not really listening to a man who is living a political science regulation case study every day of his life. 25 00:02:58,230 --> 00:03:04,650 So who is Peter Cook? Peter Cook was the student at the nautical school before joining the Royal Marines in 1981. 26 00:03:05,070 --> 00:03:09,000 Spent 24 years as a Royal Marine rising to the rank of major. 27 00:03:09,750 --> 00:03:16,890 Peter was involved in all aspects of maritime security, from maritime counter-terrorism to formulating counter-piracy policy and procedures. 28 00:03:18,000 --> 00:03:27,930 Left the coast in 2005, briefly worked for a hedge fund and then formed his own consultancy and worked in maritime security. 29 00:03:30,150 --> 00:03:37,710 One interesting fact is that Lloyd's recently published the list of the 100 most influential people in the shipping industry, 30 00:03:38,010 --> 00:03:45,370 and Peter Cook ranked 19th. So are we are we happy tonight? 31 00:03:45,390 --> 00:03:51,930 We're having someone who knows what he's talking about and knows the industry from the inside and who is at the very cutting 32 00:03:51,930 --> 00:04:00,700 edge of the current developments regarding regulation of private maritime security companies and looking forward to be useful. 33 00:04:01,290 --> 00:04:10,060 Thank you very much. Well, thanks very much for that introduction, ladies and gentlemen. 34 00:04:10,070 --> 00:04:14,900 And it's actually a great pleasure for me to come here and talk this afternoon, and I've been looking forward to it. 35 00:04:15,650 --> 00:04:23,120 Now, what I'm going to aim to do is talk really for about half an hour, because I think in a situation like this, we have a lot more questions. 36 00:04:25,190 --> 00:04:28,700 Maritime security, on the face of it is very simple. 37 00:04:30,050 --> 00:04:35,960 But actually, once you begin to scrape away what is happening, it becomes amazingly complex. 38 00:04:36,590 --> 00:04:40,780 And I'm going to try and make sure that I bring that out. 39 00:04:40,790 --> 00:04:49,610 And when I was looking at the website and I noticed that the purpose of these talks is to elucidate, 40 00:04:49,880 --> 00:04:54,710 explicate, explicate and educate about a new subject. 41 00:04:55,070 --> 00:05:01,160 I'm going to endeavour to do that as I go through the presentation today and for the bits that I missed. 42 00:05:01,460 --> 00:05:06,200 We can leave that for questions. Okay. So what am I going to talk about? 43 00:05:07,040 --> 00:05:14,239 I'm going to give you a quick background about the maritime security industry and then talk about the maritime industry, 44 00:05:14,240 --> 00:05:22,340 because it is absolutely key that once you start talking about maritime security, you understand the client and their drivers, what makes them work? 45 00:05:22,340 --> 00:05:29,330 Why do they do what they do and then talk about the differences between land security and maritime security, 46 00:05:30,770 --> 00:05:36,500 the evolution of the process, and where we stand in the evolutionary process right now. 47 00:05:38,270 --> 00:05:41,450 How will international compliance be achieved? 48 00:05:42,140 --> 00:05:48,440 And another hot topic, and there are lots around at the moment, rules of engagement versus rules, the use of force. 49 00:05:49,220 --> 00:05:55,130 Right. So without further ado, three key facts here that people tend to forget. 50 00:05:56,420 --> 00:06:01,610 Now, when I was in the Royal Marines, we got told this all the time. And it's something you can't have. 51 00:06:01,610 --> 00:06:07,580 Sea blindness, 70% that's over two thirds of the surface of the globe is covered in sea. 52 00:06:09,230 --> 00:06:12,590 Most of that is the high seas. 53 00:06:13,520 --> 00:06:18,830 That means it is in many ways ungoverned state, ungoverned space. 54 00:06:19,550 --> 00:06:24,710 80% of the population of the world live within 60 miles of 100 kilometres a day of the sea. 55 00:06:25,520 --> 00:06:34,370 Bearing in mind that the population has passed 7 billion on its way to 90 and 90 plus percent of all trade moves by sea. 56 00:06:35,720 --> 00:06:40,070 So the sea is absolutely key to everything that we do. 57 00:06:42,680 --> 00:06:49,700 Oops. She just got back. Right. 58 00:06:49,700 --> 00:06:52,550 The permanent maritime security industry. Is it the new industry? 59 00:06:52,580 --> 00:06:58,160 Well, I think it must be, because when I was doing a bit of research, I thought, well, let's see what Wikipedia says about it. 60 00:06:58,430 --> 00:07:05,149 They don't they haven't actually identified the maritime security industry as existing, even though, 61 00:07:05,150 --> 00:07:10,160 interestingly enough, it brings approximately £50 million into this country every month. 62 00:07:11,100 --> 00:07:15,650 That's half a billion pounds a year more than. So it is is there. 63 00:07:15,740 --> 00:07:19,010 It's happening, but it is. 64 00:07:19,010 --> 00:07:25,700 And, you know, the first real private maritime security companies did exist and started up in the 1970s. 65 00:07:26,000 --> 00:07:30,470 One of the oldest one starts then, but they really worked in kind of Nigeria's. 66 00:07:30,830 --> 00:07:36,290 Rather than them having a big chunk of the market, there wasn't really that much of a requirement for them. 67 00:07:36,500 --> 00:07:45,610 And the kind of things that they did was providing security or security guidance for cruise liners, providing people that went on board there. 68 00:07:45,620 --> 00:07:53,269 Because once you put 2000 people into a very small enclosed space, keep them there for three weeks and feed them lots of alcohol. 69 00:07:53,270 --> 00:07:54,620 You get the inevitable problems, 70 00:07:55,400 --> 00:08:03,980 but also the clearance of unexploded ordnance under water and little things like that that really required in this area. 71 00:08:04,400 --> 00:08:07,580 However, as a result of the terrorist attacks in 911, 72 00:08:09,170 --> 00:08:15,709 the International Maritime Organisation decided that they needed to draft a new set of regulations 73 00:08:15,710 --> 00:08:21,710 so that a similar kind of thing couldn't happen with a large oceangoing ship going into a port. 74 00:08:22,040 --> 00:08:32,840 And so they drew up very swiftly the international ships and port security code, the ISP's, which came into action in 2004. 75 00:08:33,260 --> 00:08:36,709 And this was really the first explosion of maritime security companies where we saw 76 00:08:36,710 --> 00:08:41,420 them establish so they could train people in what to do in this particular area. 77 00:08:42,860 --> 00:08:48,559 And then really the most recent explosion of companies that we have seen is all to do with the increase in piracy, 78 00:08:48,560 --> 00:08:57,640 particularly off the east coast of Africa. Now, in summary, we estimate that there are in excess of 200 companies out there. 79 00:08:58,030 --> 00:09:03,310 At the moment we have 178 companies from 37 countries on our books. 80 00:09:04,390 --> 00:09:09,700 But it is a bit difficult to tell because companies appear and disappear like contacts on a radar screen. 81 00:09:09,850 --> 00:09:11,620 There is no consistency about it, 82 00:09:12,400 --> 00:09:17,680 and people will start one company out and then it will disappear because they can't get trade or for whatever reason. 83 00:09:20,350 --> 00:09:32,200 Is that too many? Yes, it is. My prediction is that this is a very conservative one, but that 200 companies will be around about 50 within 18 months. 84 00:09:33,040 --> 00:09:37,210 So I think we are going to see a significant reduction and that I'll be able to 85 00:09:37,330 --> 00:09:40,600 link that line with another problem that we'll have later on that I'll touch on. 86 00:09:41,410 --> 00:09:44,350 So we do see a maturation of the industry. 87 00:09:44,650 --> 00:09:52,060 Everything has been happening very quickly in the maritime security industry and so therefore I see that shrink happening quite quickly as well. 88 00:09:55,870 --> 00:09:58,090 But maritime security is a growth industry. 89 00:09:59,590 --> 00:10:07,200 The International Chamber of Shipping, which is an organisation that represents most of the main nation chambers of shipping, including the UK, 90 00:10:07,220 --> 00:10:11,890 U.S. and lots of others predict that over the next 20 years the volume of 91 00:10:11,890 --> 00:10:18,250 trade moving by sea is going to increase by 50% over the same period of time, 92 00:10:18,790 --> 00:10:23,469 the Western Navy is going to shrink by 30%. You don't need to be a mathematician to work out why the capability gap. 93 00:10:23,470 --> 00:10:30,970 Is there a cruise line? A fleet between 2620 ten increase their capacity to carry passengers by 50%. 94 00:10:31,270 --> 00:10:37,150 Today, there are more than 520,000 people on cruise liners at sea. 95 00:10:37,890 --> 00:10:44,860 Okay. Some of them are ashore in various locations, but you get what I'm saying, that's growing the cruise liner industry. 96 00:10:44,860 --> 00:10:51,670 And I've recently been talking to a whole bunch of company security officers for Carnival and Royal Caribbean, 97 00:10:52,990 --> 00:10:56,740 and they are more or less overwhelmed with business right now. 98 00:10:57,340 --> 00:11:04,900 Very, very popular. You don't just have cruise liners for the Silver Generation, shall we say. 99 00:11:05,380 --> 00:11:09,070 But you have to do the honours that cater for all kinds of things, families. 100 00:11:09,790 --> 00:11:13,660 Many of them are casinos out in the Far East, floating casinos. 101 00:11:13,930 --> 00:11:21,790 There's all kinds of things that they have around the world. There are also more than four and a half thousand superyachts. 102 00:11:23,770 --> 00:11:29,290 200 of those are helicopter capable and the largest ones are bigger than Type 45 destroyer. 103 00:11:32,050 --> 00:11:37,360 And the top jobs for building superyachts right now are at capacity. 104 00:11:38,830 --> 00:11:42,490 And the second hand market is, if you will excuse the pun, buoyant. 105 00:11:43,630 --> 00:11:49,390 So that's there, the money is there, it's moving. And each of those particular customers, whether you're talking about a commercial ship, 106 00:11:49,690 --> 00:12:00,670 a cruise liner or ferry or a superyacht, requires very different kinds of security from the offshore oil and gas business. 107 00:12:00,700 --> 00:12:03,970 Well, the global first oil and gas is unquenchable. 108 00:12:05,440 --> 00:12:12,700 And as the price of oil goes up, inevitably the of some of the offshore reserves are going to be tapped. 109 00:12:13,780 --> 00:12:21,770 When you look at the 52 nations that are currently undeveloped, 67% of which have a coastline and where they lie. 110 00:12:22,900 --> 00:12:26,710 And you then put that template over the next one, which is where the reserves are. 111 00:12:27,130 --> 00:12:32,860 And there's a lot of overlap. And last, by no means least port facilities. 112 00:12:33,730 --> 00:12:40,870 There are over 8000 ports around the world. Population is growing, as we all know, scarcity of resources. 113 00:12:41,020 --> 00:12:45,790 The easiest place to get hold of the cargoes in the port before goes on the ship after it's just come off. 114 00:12:46,930 --> 00:12:52,330 On the other interesting statistics about the way the population is growing right now with a population of 7 million, 115 00:12:53,020 --> 00:12:56,260 the middle class around about 1 billion. 116 00:12:56,980 --> 00:13:01,240 By the time we get to 9 billion, the middle class will be 3 billion. 117 00:13:02,020 --> 00:13:11,020 In order for middle class to grow at that speed, they need two things to be move around in significant quantities, both by sea. 118 00:13:11,050 --> 00:13:19,110 One is steel, iron ore, and the other one is coal and gas to make steel and electricity. 119 00:13:20,290 --> 00:13:25,430 All of that has to be moved by sea. But it is global. 120 00:13:25,850 --> 00:13:29,900 These are the acts of piracy and robbery at sea for 2012. 121 00:13:31,400 --> 00:13:44,090 Of the 278 that are identified there, only 71 of them were actually in the Indian Ocean or the Northwest Indian Ocean. 122 00:13:44,120 --> 00:13:47,630 Should I say the high risk area, which is this area here? 123 00:13:48,110 --> 00:13:56,030 Okay. The Somali pirates in the two hot spots right now where more is going on than anywhere else which is being reported. 124 00:13:56,370 --> 00:13:57,830 And that is a key phrase here. 125 00:13:58,490 --> 00:14:06,890 South China Sea, from West Africa to areas of very different kinds of legislation and challenges that have to be overcome. 126 00:14:07,790 --> 00:14:16,850 One thing I would mention, though, here in this particular area is there is a concern, a significant concern that there is a lack of reporting. 127 00:14:17,540 --> 00:14:20,610 I think there's always been a lack of reporting, but I think that's increasing. 128 00:14:21,460 --> 00:14:26,360 Among the reasons why that is increasing is because of the and really looks. 129 00:14:26,600 --> 00:14:33,650 She was taken alongside her alongside seven waves, but only did not get any money back for that costing more than $3 million. 130 00:14:35,030 --> 00:14:44,930 Okay. When I was talking to a bunch of shipowners a few weeks ago about the concern about underreporting after a couple of glass of wine, 131 00:14:45,320 --> 00:14:49,160 and they've been saying, oh, yes, you know, this happened but haven't ever happened, have a glass of wine. 132 00:14:49,850 --> 00:14:56,509 Why would you report? We've got nothing to gain out of report and put the insurance on it. 133 00:14:56,510 --> 00:14:58,400 It means that we'll have to pay more for security. 134 00:14:58,700 --> 00:15:04,070 And if we report an incident, we may have to go into a port and they will be held that an investigation to be carried out. 135 00:15:04,310 --> 00:15:07,910 We lose a cargo, we lose all kind of things. It just costs us money. 136 00:15:08,660 --> 00:15:18,139 And right now, the maritime industry is under significant financial stress and the container market is just one example. 137 00:15:18,140 --> 00:15:24,320 And this is meant to be one of the best barometers. The container market is one third over by burdened with capacity. 138 00:15:26,090 --> 00:15:29,630 All right. Many of those companies are fighting for their lives. 139 00:15:29,780 --> 00:15:35,000 And so whenever you begin to fight for your life, you make decisions that will mean you'll be able to continue being at sea. 140 00:15:35,840 --> 00:15:39,770 So therefore, that's why they have this attitude of want to report. 141 00:15:41,240 --> 00:15:46,640 You'll never get completely accurate reporting anywhere. There is no way that I think you can force them to do that. 142 00:15:50,060 --> 00:15:52,860 So what are the drivers for the commercial shipping industry? 143 00:15:52,860 --> 00:15:58,400 And let's just look at the commercial shipping industry at the moment, because these are the guys that are hit really by piracy. 144 00:16:01,270 --> 00:16:04,750 There are three stakeholder groups at the head. 145 00:16:05,320 --> 00:16:10,210 You have the shipping companies, so the ship owner, the operator and manager on the charterers. 146 00:16:10,450 --> 00:16:14,800 So the guy that owns the box runs the box and fills the box. 147 00:16:15,850 --> 00:16:22,929 Okay. Then you have the flag states, the vast majority of which are open registries. 148 00:16:22,930 --> 00:16:29,350 They are commercial entities and not necessarily nation states. I'll give you a couple of examples here. 149 00:16:30,880 --> 00:16:41,290 The third largest flag state is the Marshall Islands have $85 million on their books, which is just over two and a half thousand homes. 150 00:16:43,960 --> 00:16:49,450 Marshall Islands itself geographically is 5000 square miles in the Pacific Ocean to the northeast of Australia. 151 00:16:50,320 --> 00:16:53,680 Like 80% of their GDP. From the registry. 152 00:16:55,720 --> 00:17:00,850 The registry is run from an office in a place called Reston, which is just outside the beltway in Washington. 153 00:17:01,600 --> 00:17:02,770 It is a commercial company. 154 00:17:03,880 --> 00:17:14,800 While the example, there was a Danish company that was hit by power ups in 2008, end of 20 1944, then they were only held for six weeks. 155 00:17:15,400 --> 00:17:22,180 But at the end of that, that particular company, quite a large company, said, Right, okay, we're not going to have that happen again. 156 00:17:22,570 --> 00:17:27,190 How security officer, do we ensure that none of our ships get taken ever again? 157 00:17:27,970 --> 00:17:31,540 Because the catastrophic effect on the company is so great. 158 00:17:31,540 --> 00:17:36,310 We just cannot afford and we don't want that to happen again. We don't want our CFO or staff to go through that again. 159 00:17:37,390 --> 00:17:38,770 And the security officer said, Well, 160 00:17:38,770 --> 00:17:43,960 the only way that we know that we can guarantee or disclose guarantee as possible is to have armed guards on board. 161 00:17:44,380 --> 00:17:50,680 And they said, fine. Now, unusually for this particular company, every single one of those ships was flagged on the same flag. 162 00:17:51,770 --> 00:17:56,650 And so the company went along to the flag and said, right, okay, 163 00:17:56,980 --> 00:18:03,530 as a result of what happened, we're going on the flight said, you can't we don't allow it. 164 00:18:04,480 --> 00:18:07,250 Somebody said, we're changing flight, which the other thing you can do, 165 00:18:07,270 --> 00:18:14,110 just like changing from the air to the icing and the flying chat room, it was 24 hours. 166 00:18:14,800 --> 00:18:18,430 They changed the laws and commercial entities. 167 00:18:19,510 --> 00:18:25,059 And the third area down here is marine insurance. Everybody is trying to cut costs. 168 00:18:25,060 --> 00:18:27,820 And this one, the areas that they can cut costs by doing things right. 169 00:18:29,290 --> 00:18:34,480 Now, the interesting thing about all of these, those three main points, not one is a government. 170 00:18:37,290 --> 00:18:42,170 This is all about making money. All right. 171 00:18:43,280 --> 00:18:47,510 And that is one of the big differences that people find quite difficult to to 172 00:18:47,600 --> 00:18:51,740 understand and be very interested to hear what Richard has to say about this. 173 00:18:52,190 --> 00:18:56,540 I'm trying to be slightly controversial here, but really just trying to push something. 174 00:18:57,010 --> 00:19:06,589 And the thing is, when I talk to shipowners and these guys about this, they agree on right now, 175 00:19:06,590 --> 00:19:10,730 the glue that holds this thing together is the International Maritime Organisation. 176 00:19:11,690 --> 00:19:15,560 That's an agency of the United Nations. I'll talk about them more later on. 177 00:19:15,980 --> 00:19:20,650 There are other factors that are important coastal states. They obviously have an influence on what happens. 178 00:19:20,960 --> 00:19:26,360 The master crew and the biggest union in the world called the International Transport Workers Federation. 179 00:19:26,520 --> 00:19:32,540 And yet as a membership by 100,000 people, they do influence things as well. 180 00:19:32,750 --> 00:19:36,440 But these are the main three, by the way. 181 00:19:36,450 --> 00:19:40,579 So let's enclose CDW, a nice piece of talk that was later on. 182 00:19:40,580 --> 00:19:46,940 There are a set of regulations. But maritime security is not the same as land security. 183 00:19:47,420 --> 00:19:54,890 Interestingly enough, this is a direct quote from one of the main land security companies in the United Kingdom. 184 00:19:55,880 --> 00:19:59,330 They made lots of money out of being in Iraq. I'm not going to tell you which one it was. 185 00:19:59,330 --> 00:20:02,630 You might be able to guess. One of the main directors said this to me. 186 00:20:04,820 --> 00:20:11,150 They don't even appear in maritime security because they do not understand the maritime industry. 187 00:20:11,810 --> 00:20:19,130 I'm going to return to that quite a few times. But land security, single jurisdiction, maritime security, multi jurisdiction. 188 00:20:19,400 --> 00:20:26,660 You get onto a ship in Singapore, you go to Rotterdam, you go through 16 different jurisdictions, including the flag that you're saving on. 189 00:20:28,040 --> 00:20:33,740 That makes things very complex on land, limited stakeholders on a container ship. 190 00:20:34,380 --> 00:20:42,500 And you've got to if you want a container ship that holds 15,025 to use with over 14,000 different 191 00:20:42,500 --> 00:20:47,060 business interests makes it quite complex if you think about things in a different way. 192 00:20:48,140 --> 00:20:54,980 And with land is a political drive to get a desired end state, whether it be Afghanistan or whatever. 193 00:20:56,120 --> 00:21:00,949 In shipping, they just want a commercial continue. They don't want anything to stop, they just need to keep it going. 194 00:21:00,950 --> 00:21:07,339 That's how globalisation will keep going. We, we don't have a warehouse culture anymore. 195 00:21:07,340 --> 00:21:11,150 We need stuff to be continually moving into the country by sea. 196 00:21:13,680 --> 00:21:22,200 There are significant number of government contracts after we are in the 10th anniversary year of the second Gulf War and 197 00:21:22,200 --> 00:21:26,970 the number of government contracts that were handed out to main security companies as a result of that war was significant. 198 00:21:27,720 --> 00:21:32,700 There are no government contracts and I'm saying that all private or commercial contracts. 199 00:21:34,230 --> 00:21:35,220 These are the differences. 200 00:21:35,880 --> 00:21:46,170 And it does actually paint a very, very different picture if you're walking into it, which is why none of the big companies G4's Control Risks Aegis. 201 00:21:46,800 --> 00:21:54,240 Those kind of companies are really in the area of maritime security because they find it very challenging. 202 00:21:54,240 --> 00:22:02,750 It's a very different area. Many of them have offices where they deal with governments all the time, certainly for us, and control risks to. 203 00:22:03,390 --> 00:22:14,490 And they have they find it very difficult to comprehend exactly how this whole thing works and they will not get a place at the table at the IMO. 204 00:22:14,970 --> 00:22:23,160 They will not be listened to because they're a commercial company. Now the evolution of maritime security regulation structure. 205 00:22:23,910 --> 00:22:35,700 Ashley Whilst the maritime industry is one of the most litigious, if you look at everything in a comparison, it didn't start until things sank. 206 00:22:38,050 --> 00:22:41,350 15th April 1912, the Titanic sank. 207 00:22:42,190 --> 00:22:45,669 They then decided, Right, okay, we're going to have some regulations for what we do on ships. 208 00:22:45,670 --> 00:22:48,790 Like we better have enough lifeboats for everybody on the ship. 209 00:22:49,390 --> 00:22:53,890 We better have a 24 hour watch going on with the wireless new bit of care. 210 00:22:54,520 --> 00:22:59,860 But that's what we're going to need. That was the first time that regulation was really introduced at sea. 211 00:23:00,640 --> 00:23:07,150 And so it has gone on. And every single time that we've had a major event at sea has introduced a new piece of legislation. 212 00:23:07,870 --> 00:23:14,530 So actually legislation is quite new in the maritime industry in comparison to what happens on land anyway. 213 00:23:15,550 --> 00:23:21,040 But because it is all commercially driven, then that is why it's all about money. 214 00:23:21,040 --> 00:23:27,750 And so that's why it got so litigious, so quick. But I've talked about 911. 215 00:23:28,020 --> 00:23:32,070 We know what happened there as a result of which the ISP's code was introduced. 216 00:23:32,730 --> 00:23:36,270 And that was really when maritime security was recognised. 217 00:23:36,270 --> 00:23:39,990 It's actually coming on to then coming onto onto the radar screen. 218 00:23:42,450 --> 00:23:49,200 But concurrent with that and as a result of the introduction of all the private military companies and private security companies, 219 00:23:50,040 --> 00:23:59,370 there were a number of initiatives. And the first one was really the Montreal document issued on the 17th of September 2008. 220 00:23:59,970 --> 00:24:05,070 That was right around about the time that we had the Blackwater incident in in Iraq. 221 00:24:05,760 --> 00:24:11,670 However, and people say, well, why don't you use the Montreal document for this because of that. 222 00:24:14,910 --> 00:24:19,720 Only to be used at times of armed conflict. Now the ethos works pretty well. 223 00:24:19,740 --> 00:24:26,040 But but that's that's one of the main problems that piracy an instance at sea. 224 00:24:26,040 --> 00:24:29,400 See, it is not armed conflict. Okay. 225 00:24:30,060 --> 00:24:32,250 So many of the things that don't work. 226 00:24:33,060 --> 00:24:42,000 The next document that came along in 2010 was the International Code of Conduct for Private Security Service providers. 227 00:24:42,450 --> 00:24:52,320 Rather unfortunately nicknamed iconic. And the problem with Ikoko was that it doesn't cover maritime security. 228 00:24:52,650 --> 00:25:00,600 Initially, they were going trying to encompass everything commercial air, land, maritime security and the training of personnel and everything. 229 00:25:01,590 --> 00:25:07,230 But from the end of paragraph seven, there you can see it will do that later on. 230 00:25:08,820 --> 00:25:20,250 And whilst people were invited to go and sign it from the 9th of November 2010, you that actually they have no teeth at the moment. 231 00:25:21,190 --> 00:25:28,450 One of the problems that they have it I have no criticism of the ethos of the document itself. 232 00:25:28,470 --> 00:25:32,760 It's spot on. And indeed, when we were forming something, you had to be a signatory. 233 00:25:33,210 --> 00:25:40,200 So we fully support it. However, in order for you to lay down something, you've got to be able to enforce it. 234 00:25:40,230 --> 00:25:43,950 They have no way of enforcing this at the moment, and they have said, 235 00:25:44,190 --> 00:25:52,020 we're going to set up a body to do this and the security companies are going to pay for it and we require a budget. 236 00:25:52,440 --> 00:25:56,850 It was significant. I think it was 12 million CHF a year or something like that. 237 00:25:58,290 --> 00:26:05,880 And the exchange rate is not not that different, which was, again, you know, they were expecting the security companies to pay for it. 238 00:26:08,040 --> 00:26:15,000 So I don't know exactly where that stands at the moment, but it is unlikely that that will be moving forward particularly quickly. 239 00:26:15,090 --> 00:26:21,180 So that seems to be, to be honest with you, pretty much dead in the water, certainly as far as maritime security is concerned. 240 00:26:24,300 --> 00:26:29,730 So this is the place that actually makes the big difference as far as the maritime industry is concerned. 241 00:26:30,510 --> 00:26:35,209 The IMO. One of the things, 242 00:26:35,210 --> 00:26:41,960 because I've been to the United Nations and one of the big differences between the ILO and the United Nations 243 00:26:41,960 --> 00:26:47,570 is that you get the normal kind of semi-circular area where all the flags like to sit was 167 of them, 244 00:26:48,320 --> 00:26:55,310 and they will sit on the top table. But then you get a box at the back, about five rows of seats. 245 00:26:55,730 --> 00:27:01,640 Each row is about 40 seats long, and that is what is filled up by industry. 246 00:27:02,510 --> 00:27:10,460 So all the main shipping associations and the Shipping Association for Entertainer go in Chicago cruise liner, international association, 247 00:27:10,640 --> 00:27:21,650 the parcel tankers the guys who look after Dutch tankers and the terminals, the oil company, 248 00:27:21,650 --> 00:27:26,240 International Maritime Forum, Nautical Institute, each of the unions is there. 249 00:27:27,050 --> 00:27:31,850 It's a big chunk. And most only observers, they do have a significant influence. 250 00:27:32,540 --> 00:27:38,870 So it's quite a different dynamic that plays in the way that decisions are made. 251 00:27:39,650 --> 00:27:49,910 But it is absolutely key. And so in May of 2011 Sum, he was very fortunate in so much as we were actually there whilst these were being written, 252 00:27:50,690 --> 00:27:57,140 two circulars were written as a way of countering piracy 1405 and 1406. 253 00:27:57,170 --> 00:28:03,800 Now this is the way that the IMO works and you can get hold of all these particular documents if you need them from that website. 254 00:28:04,580 --> 00:28:10,399 But this was entering guidance for 1405 of ship operators, 255 00:28:10,400 --> 00:28:16,010 ship managers and masters on the way that they should employ privately contracted armed security personnel. 256 00:28:16,700 --> 00:28:24,960 1406 was to give guidance for the flagstones. So they came out with that first document or first set of documents that gave them, 257 00:28:26,150 --> 00:28:30,410 as far as the IMO is concerned, significant amount of guidance to everybody. 258 00:28:33,180 --> 00:28:36,930 And then last year they came out with a further two documents, 259 00:28:37,800 --> 00:28:43,410 1443 1444 and these were designed to tell maritime security companies or private 260 00:28:43,410 --> 00:28:47,190 maritime security companies how to behave and what to do and how to do it. 261 00:28:48,570 --> 00:28:59,040 They also decided at that particular NSC Maritime Safety Committee that they were they were not going to accept any form of self regulation, 262 00:28:59,790 --> 00:29:06,990 and it had to be done centrally. And so because they have a long history of utilising the international organisation standards, 263 00:29:07,410 --> 00:29:12,330 they asked ISO to create a standard that they could then take forward. 264 00:29:13,320 --> 00:29:18,480 So between and there were several documents that were also going to go along with 1443. 265 00:29:18,750 --> 00:29:25,530 And so there was a core drafting team established that had two members of industry to two of the main shipping associations, 266 00:29:25,740 --> 00:29:27,570 PIMCO and the International Chamber of Shipping. 267 00:29:28,380 --> 00:29:37,260 And also Sammy was involved and a UK focussed organisation called Skegg, which stands for Security in Complex Environment Group. 268 00:29:37,890 --> 00:29:43,890 So the four main players there that were inputting into this that was finalised 269 00:29:44,550 --> 00:29:50,520 in September of last year and was then pushed forward to the next NSC in 91. 270 00:29:52,170 --> 00:30:02,370 I just got back on, I think that was in second and was welcomed by the IMO, which is their way of endorsing it and taking it forward. 271 00:30:02,400 --> 00:30:05,520 But there's more to that story which I got to talk about in a minute. 272 00:30:05,970 --> 00:30:15,420 But concurrently with that, there have been a whole load of other publications, this first one half specimens from practices to explore federation. 273 00:30:15,480 --> 00:30:21,750 What this does is it actually gives guidance to the ship owners on how to make their ship look harder. 274 00:30:21,810 --> 00:30:25,690 It's a bit like if you've got a house, the first thing you do is have good luck on your door. 275 00:30:25,710 --> 00:30:31,080 Then you put a line that comes on when people come down the path, etc., etc. Well, 276 00:30:31,080 --> 00:30:35,040 it's so that you can put protective measures on your ships, whether it be barbed wire, 277 00:30:35,040 --> 00:30:39,450 fire hoses using evasive manoeuvres whilst you have sea full speed ahead, 278 00:30:39,460 --> 00:30:43,260 all those kind of things that will make your ship a more difficult target to hit. 279 00:30:45,370 --> 00:30:49,860 BENKO And I'll keep on talking about Bimco because the Baltic International Maritime Council, 280 00:30:50,130 --> 00:30:59,640 it represents approximately 65% of the world's tonnage and is one of the biggest and most influential shipping associations around today. 281 00:31:00,090 --> 00:31:07,350 And they have made all of their money by putting in contracts that are accepted by the industry and used from then on, 282 00:31:07,350 --> 00:31:13,860 which they did a lot of work and they came up with a particular document called Guardian, 283 00:31:14,610 --> 00:31:18,120 which was an evolutionary document that was introduced at the beginning of last year. 284 00:31:18,570 --> 00:31:22,080 Whilst not perfect, nothing ever is. But it is. 285 00:31:22,320 --> 00:31:28,620 It was a it was a landmark document and a piece of foundation for maritime security. 286 00:31:30,420 --> 00:31:33,930 And then we have been working very hard on making sure that the private maritime 287 00:31:33,930 --> 00:31:37,470 security companies understand what they have to do to get Garcon right. 288 00:31:37,860 --> 00:31:41,550 But also insurance for those companies is absolutely key. 289 00:31:42,930 --> 00:31:48,629 And we can talk more later on about getting insurance for private maritime security companies. 290 00:31:48,630 --> 00:31:57,930 Basic and bearing in mind that you are employing private individuals to possibly shoot and kill other private individuals is illegal. 291 00:31:57,930 --> 00:32:03,239 Is illegal, and it's illegal. You know, your insurance is null and void and you therefore won't be taking onboard ships. 292 00:32:03,240 --> 00:32:10,200 There's a whole load of legal and insurance complexities there, but we are working with the largest marches. 293 00:32:10,200 --> 00:32:15,959 Is the largest ship broker or marine insurance broker. 294 00:32:15,960 --> 00:32:19,140 So we work with them on that. So here we are. 295 00:32:19,140 --> 00:32:22,470 We've got ISO what's called ISO 28,007. 296 00:32:22,650 --> 00:32:25,350 I've talked about how it was how it came about. 297 00:32:26,070 --> 00:32:35,520 ISO 28,000 covers supply chain security, which is why it's the natural fit to go in there and parse what that means. 298 00:32:35,520 --> 00:32:42,510 There are two kind of ISOs that I'm going to talk about. I'm going to become a bit of a spotter now with regards to accreditation and regulation. 299 00:32:43,500 --> 00:32:51,329 When you introduce a an ISO, whether it be 9001, which is what most people are familiar with, it can come in two versions. 300 00:32:51,330 --> 00:32:55,710 It can either just pop out as an ISO. And what has to happen is that in order to be able to do that, 301 00:32:56,010 --> 00:33:01,680 you have to go to the technical committee and lock them away, as it were, for three years. 302 00:33:01,860 --> 00:33:07,670 At the end of that three years, an ISO would pop out. If you need something much faster than that, 303 00:33:07,890 --> 00:33:17,250 a short cut or swept through to do it is that you formulate a standard between interested players, which is exactly what we did. 304 00:33:17,610 --> 00:33:24,839 And you then called a publicly available specification that then has a life of three years from when it's issued, 305 00:33:24,840 --> 00:33:31,050 which was 26th of November last year. During that period of time, it can be amended, adjusted, improved or whatever. 306 00:33:31,700 --> 00:33:38,900 End of that three years, you can either get rid of it. If it hasn't been used, you can extend it for another three years or it can become an ISA. 307 00:33:39,530 --> 00:33:46,130 Okay, so what we're hoping is that it will improve, it will evolve over the three years and then it will be adopted. 308 00:33:49,340 --> 00:33:56,749 Meanwhile, inevitably and this is one of the things that Dan touched on, there are other people doing other things, 309 00:33:56,750 --> 00:34:00,410 and the Americans really don't want to be left out in the cold on this one. 310 00:34:00,980 --> 00:34:08,750 And so the American National Standards Institute and the American Society for Industrial Security Issues, 311 00:34:09,080 --> 00:34:13,820 which whilst being international and does have a significant international representation, 312 00:34:14,570 --> 00:34:21,950 still has quite an American slant on it and are working on producing what's 313 00:34:21,950 --> 00:34:25,370 called PSC as private security companies particularly document that come out. 314 00:34:25,820 --> 00:34:32,420 PSC one came out at the beginning of last year and the idea behind this is that the there will be a standard 315 00:34:32,430 --> 00:34:38,990 set for the way in which private security companies and private military companies go about their business. 316 00:34:39,650 --> 00:34:44,780 Now they come more of the pedigree of the Montoro document and the Ikot, because again, 317 00:34:44,780 --> 00:34:49,400 a lot of it was based on what companies do in times of armed conflict on land. 318 00:34:51,010 --> 00:34:53,480 So that's the kind of pedigree line that they have taken. 319 00:34:54,920 --> 00:35:05,060 They're also drawing up PSC for and I'm not sure exactly what the drafting status of that is, but that's going to cover maritime security. 320 00:35:05,990 --> 00:35:12,740 My question is to what end? Because we've already got everything working by the IMO and it is unlikely 321 00:35:13,520 --> 00:35:18,770 that the this will be adopted by the IRA because they've already got the arms. 322 00:35:18,770 --> 00:35:22,820 So that works exactly for them. So not quite sure what is happening there. 323 00:35:23,300 --> 00:35:32,720 And to be honest with you, I don't think anybody is. Next stages with the ISO because, okay, we've got this standard. 324 00:35:33,050 --> 00:35:38,480 You can go and buy it. 116 CHF and you have it in your little palm. 325 00:35:38,930 --> 00:35:46,520 34 pages worth of information. And that lays out very clearly what private maritime security companies should do. 326 00:35:47,510 --> 00:35:52,040 It was welcomed by the IMO MSI 91 last year, 327 00:35:53,600 --> 00:36:00,559 but now it is up to the International Accreditation Council and the various national accreditation bodies 328 00:36:00,560 --> 00:36:07,730 to decide upon how this standard is going to be turned into something against which you can audit. 329 00:36:10,700 --> 00:36:18,140 Now there's a problem here because the way that that has happened previously, if we're talking purely land, 330 00:36:18,500 --> 00:36:23,360 is that you would get the standard and then you would give it to your accreditation bodies that are nationally accepted. 331 00:36:23,750 --> 00:36:32,420 So for instance, in the United Kingdom, you can say, okay, you know, Abbey Jones can do it, black and white Smith can do that. 332 00:36:32,420 --> 00:36:46,040 And this and the other key difference is here, that the flag states will only accept certain authorities to do their certification for them. 333 00:36:46,310 --> 00:36:54,469 And what they normally do is they go to the classification societies, because if you can imagine what classification societies are, 334 00:36:54,470 --> 00:36:58,640 the guys that give ships their ammo to use to their seaworthiness certificate. 335 00:36:59,480 --> 00:37:06,830 So the last the default setting, that is where they go. And many of the companies that are claiming that they will be able to do accreditation of 336 00:37:06,980 --> 00:37:14,630 maritime security companies have got no track record as far as the flag states themselves. 337 00:37:16,520 --> 00:37:22,460 But the next problem is you you remember I was talking about this shrinking market, got down to about 50 companies. 338 00:37:23,180 --> 00:37:33,890 There are 90 and I'm sorry, 13 classification societies that are in the market at the moment that are regarded to be top ten and. 339 00:37:36,050 --> 00:37:39,410 If there's only 50 companies out there. That's not many. 340 00:37:39,860 --> 00:37:45,409 Lloyd's Register, for instance, which is one of the biggest, has 19% of the market. 341 00:37:45,410 --> 00:37:50,330 As far as shopping is concerned, 19% of 50 companies is ten. 342 00:37:51,590 --> 00:37:56,090 Are they going to have a whole department doing that for ten companies? I don't think so. 343 00:37:56,540 --> 00:37:57,380 The likelihood is, 344 00:37:57,390 --> 00:38:06,080 although there's a strong possibility that none of the classification societies will see the business case or the merit or the worth in doing it, 345 00:38:06,800 --> 00:38:11,930 and nobody can tell them to do so. That is a problem that has to be overcome. 346 00:38:11,930 --> 00:38:18,860 And indeed, I was speaking to Lloyds. Sorry, I was speaking to Newcastle about this particular problem yesterday and I'm seeing 347 00:38:18,860 --> 00:38:22,400 Lloyds register in a few weeks just to see if there is any traction there. 348 00:38:25,250 --> 00:38:31,820 And also the other one is lack of experience of auditors because most of them are actually working and doing the job. 349 00:38:32,810 --> 00:38:36,650 We haven't had long enough for people to come out and say, Right, okay, now I want to go and audit people. 350 00:38:36,650 --> 00:38:42,410 Now, I don't see that as a significant problem because I think if they can see consistency of work and experience, I think that will work. 351 00:38:43,250 --> 00:38:48,829 But there are challenges ahead, and having the document in your hand is not the answer to this whole thing. 352 00:38:48,830 --> 00:38:53,690 It may well be that it will take another year before we've actually got the next set of challenges resolved. 353 00:38:55,730 --> 00:38:59,660 And then the last topic I'll touch on and I'm then going to stop and we can go 354 00:38:59,660 --> 00:39:05,810 through questions is rules for the use of force versus rules of engagement? 355 00:39:08,510 --> 00:39:12,320 Clear difference here are Europeans defensive are of a is offensive. 356 00:39:13,160 --> 00:39:20,270 But in order for because nation states will use ROV whereas what the guys are doing at the moment 357 00:39:20,270 --> 00:39:27,290 on the on the high seas they use IVF but there is no one single IRF each company has its own. 358 00:39:28,280 --> 00:39:39,049 And so one of the things that we're working very hard on is actually formulating a standardised set of are you a benchmark? 359 00:39:39,050 --> 00:39:48,680 iRF that can be used using utilising many of the best legal brains we can find, understand this kind of thing again. 360 00:39:49,040 --> 00:39:54,620 So in summary, prime maritime security is a growth industry. 361 00:39:55,280 --> 00:39:59,389 It's not just a short term opportunity because people moving things might stay. 362 00:39:59,390 --> 00:40:02,719 As long as people move things by sea, there is going to be a security concern. 363 00:40:02,720 --> 00:40:11,360 And with the Navy's disappearing, it's that the dynamics between commercial and commercial shipping stakeholders are extremely complex. 364 00:40:12,560 --> 00:40:20,060 When you talk about maritime security, you have to understand that it's to be able to do that better. 365 00:40:20,060 --> 00:40:26,810 So if you don't if you don't understand the supermarket and if you don't talk to them on a regular basis, it won't work. 366 00:40:28,640 --> 00:40:34,610 The comment that was sent by that big security company, the difference between land security and maritime security is the land blue. 367 00:40:35,000 --> 00:40:44,050 So wrong. Evolution of maritime security has moved swiftly, but it isn't there. 368 00:40:45,280 --> 00:40:47,620 And I up, I believe, will be the next step.