London: In a fascinating, in depth interview with one of the world’s most experienced maritime security professionals Maritime CEO hears the following: as soon as the naval presence in the Middle East wanes, piracy will return in force; how security personnel are vetted varies massively country by country; security firms have dropped their prices dramatically as competition has heated up, but agents are to blame for fees still being high; and the increasingly in focus Gulf of Guinea piracy region suffers from the fact Western security companies cannot carry weapons.
Will McManus, 47, is the ceo of REDfour Security Group. He served in the British armed forces and the French Foreign Legion and has worked in hostile environments for the past 27 years from Iraq to Afghanistan, both in a military and civilian role, running land based and amphibious operations worldwide. He started REDfour in 2004, becoming one of the first companies to embrace maritime security in 2007. REDfour now has offices in London, Singapore and Sri Lanka.
McManus has that British army sense of humour and eyebrow-raising frankness when interviewed.
“If you look at the peaks and troughs of the client requests for armed maritime security since 2007,” he says, kicking off the interview, “you don’t need to have a degree in medieval mathematics in Cantonese to see that there has been a distinct drop in the requirement.”
When REDfour started out in the Gulf region there was just three warships. Nowadays, the naval presence has seen piracy situation off Somalia drop off dramatically.
“Combined with this, the proliferation of armed security, led by British companies,” McManus says, “has also made pirates think twice about attacking a vessel especially when the security team onboard makes a great show of making the pirates realise that there are people on this ship with weapons and who know how to use them, and more importantly, have the right to use them.”
The real threat to shipping, McManus says, is that everyone will start to think the risk has passed, and that is “simply not the case”, he stresses.
“If naval operations in the region are being reduced or some circumstances, pulled completely, then I will expect to see the pirates taking advantage of that and will probably start their piracy once again,” says the man who spent eight months in Puntland.
McManus's concerns are backed up by EU Naval Force, Rear Admiral Bob Tarrant, who warned this week: “I am very concerned that seafarers and nations will lower their guard and support for counter piracy operations in the belief that the piracy threat is over. It is not; it is merely contained,”
McManus has advice to owners seeking private maritime security firms, a checklist of what they need to be asking, something vital in today’s shark-infested sea of unscrupulous security offerings.
When REDfour started in 2007 there were five known UK-based companies. These firms had to become correctly insured, latterly in line with BIMCO’s Guardcon contract. REDfour also had to obtain various government licenses, both UK and foreign, as well as make sure all contractors were suitably qualified and vetted.
“The list is endless,” admits McManus, “and grows on a weekly basis, but it is something that those in this for the long run should welcome.”
When a shipowner or manager wants to appoint a security firm McManus reckons they must check that the firm owns the weapons to be used in transit, if not they are illegal and the liability then risks being passed to the owner. Owners should also check a security firm’s insurance documentation, as well as its standard operating procedures for rules of engagement and rules for the use of force. Owners or managers should also demand proof that the security team personnel are qualified and experienced. This is important for many reasons, including insurance. The shipowner must also ask for testimonials from previous or current clients.
While McManus is happy to comply with all of the above, he is concerned at what he sees is an unlevel playing field.
“There is no doubt legislation and ISOs for us all to follow,” he admits. “And for the vast majority of the British companies this is welcomed and should be embraced as it make us look all grown up and in line with what P&I clubs, insurance entities, governing bodies and the like expect of us.”
At the same time, McManus reckons the rules do not seem to be as stringent for non-UK companies. For instance, for a UK security firm to operate on UK-flagged vessels the company in question must have a section 5 firearms license. “It seems that foreign security companies do not,” he says.
With regards to agency fees, some clients wish to pay this direct to the agents themselves, but more frequently shipowners are looking for a lump sum amount from the security firm which includes flights and agency fees and everything else.
In 2008 REDfour was charging double what it is charging now. The agency fees, claims McManus, used to be a third of what they are today. Since the piracy problem off Somalia has been dramatically reduced, companies like REDfour have had to become more competitive and cost effective to owners in order to remain in the game.
“In the last two years,” recounts McManus, “I have twice reduced our day rates to shipowners but at the same time, the agencies have increased their charges from what they were in 2008 to what they are today. They won’t listen to a mere security company executive like me, but they would listen, if enough voices were brave enough to say anything, or could be bothered even to say anything, from the shipping industry itself. To put pressure on agencies to reduce their fees would make the cost of hiring a security company slightly more palatable.”
REDfour is currently operating in the Gulf of Guinea, now arguably the world’s hotspot for piracy. It is also one of the places where Western security companies cannot carry weapons. Instead they have to provide advisors unarmed who manage a locally recruited naval contingent.
“Hopefully the developments in place now will see this change slightly,” concludes McManus. [15/05/13]
