Piracy in Sub-Saharan Africa Needs to Addressed on Land

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Given the tremendous social and political conflict occurring in many piracy prone countries in Sub-Saharan Africa, counter-piracy efforts at sea will likely fail, as indicated in a recent research paper of the Office of Naval Research in the United States on the trends in maritime piracy.

Extant research shows state fragility, economic deprivation, population, and geographic opportunity are all related to the incidence of piracy in territorial waters. Similar to the growth of armed insurgencies, political and economic conditions help facilitate corruption and criminality, both of which enable piracy, Brandon C. Prins, Professor of Political Science at the University of Tennessee, notes in the research.

The average fragility score for the nine Sub-Saharan countries examined in the report (averaged across the 2009-2013 time period) is 16.8, which is 2.5 times higher than countries without piracy.

The average fragility score for countries without piracy during the 2009-2013 time period is 6.6. Somalia, with an average score of 24, represents the closest thing to a failed state in the international system. The political improvement Somalia witnessed from 2011 to 2012 (and likely into 2013 although the data for 2013 are not yet available) appears to have helped counter-piracy efforts in the Greater Gulf of Aden.

Given that trade in the greater Gulf of Aden is valued at nearly one trillion US dollars a year, it is clear why would-be pirates gravitate toward these waters. Further, Somalia despite having only five deep-sea ports, sits only five kilometers from where the Red Sea empties into the Gulf of Aden, and approximately twenty thousand ships transit through the Greater Gulf of Aden each year. These vessels represent in many cases easy targets for would-be pirates.

Economic deprivation within countries also helps to facilitate piracy and illegal markets more generally. Unemployed youth (especially males) provide the foot soldiers both for insurgencies and pirate gangs.

Some of the most piracy-prone countries remain some of the poorest places on Earth. Somalia had an average per capita GDP in 2009-2013 of only $562. Nigeria was slightly higher at $1,013.

Convincing individual fishers or farmers to forego the opportunity of a lucrative payoff (typically several thousand US dollars) remains difficult when there are few employment alternatives. And, monies from pirate operations tend to depress job growth in the legal economy.

The research shows that efforts to increase wages and job growth in piracy-prone countries must be part of an effective counter-piracy strategy.

Although pirate attacks dropped dramatically off the coast of Somalia in 2013, they increased significantly in the Gulf of Guinea. Counter-piracy naval operations and improved security onboard ships likely contributed to the decline in the greater Gulf of Aden.

Some strengthening in Somali governing institutions also likely had an effect even as armed conflict continued to create difficulties for the new regime. In the Gulf of Guinea, a deteriorating security environment and continued fragility in many West African governments provided space for pirate groups to operate.

China-Earmarks-USD-40-Bn-for-Silk-Road-Fund

China plans to invest USD 40 billion to establish a Silk Road Fund, as announced by the country’s president Xi Jinping at the Asia-Pacific Economic Cooperation conference last week, Xinhua news agency reported.

The meeting was attended by representatives from Bangladesh, Cambodia, Laos, Mongolia, Myanmar, Pakistan and Tajikistan along with the United Nations Economic and Social Commission for Asia and the Pacific and the Shanghai Cooperation Organization.

The fund is intended to revive maritime and land trade links between Asian countries by financing construction of infrastructural solutions and industrial and financial cooperation to reduce bottlenecks, Xunhua said.

The fund, controlled by the Chinese government, would be open to investors from both Asia and abroad.

The Chinese president introduced the “Belt and Road” initiatives to build a Silk Road Economic Belt and a 21st Century Maritime Silk Road in 2013, in an attempt to  revive the historic trade routes between China and other Asian nations.

China is already investing strenuous efforts to bring stability to its sluggish shipbuilding and shipping industry, predominantly state-owned, by encouraging mergers and foreign investment.

Within the framework of boosting its shipping industry China has also established two banks: the New Development Bank and the Asian Infrastructure Investment Bank.

 

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Royal Caribbean International’s newest cruise ship, Quantum of the Seas, arrived into her homeport of Cape Liberty Cruise Port in Bayonne, New York on Monday, November 10.

The cruise ship, also referred to by its owner as the world’s first smartship, features a myriad of first-at-sea features and amenities, including the world’s first robotic bartenders, a skydiving simulator, bumper cars and futuristic entertainment.

The 16-deck, 213-foot high vessel is scheduled to set sail on her official maiden voyage on November 23 from Cape Liberty, New Jersey to the Bahamas.

“The latest United Nations projections see a nearly 11% growth in Latin America’s population to 690 million by 2025, nearly 200 million more than the current combined population of the European Union countries.

The total container throughput for Central and South America, in comparison, grew by only 1% in 2013, to 45.7 million TEUs. Brazil, Latin America’s largest economy, handled 8.6 million TEUs in 2013, approximately the same number as the Port of Antwerp, the 3rd-busiest container port in Europe,” said Mr. Laursen.

He added that “this underperformance will only become more acute without a new and invigorated strategy to address and promote necessary infrastructure investment”.

The cost of this port and transportation infrastructure will require significant amounts of Foreign Direct Investment (FDI) as Latin American nations develop new strategies for the infrastructure to catch up with current and projected future requirements.

The importance of developing master plans covering ports as well as the roads and rail connections needed to efficiently link the ports with main population centers was also emphasized, as otherwise these hinterland connections will only create more bottlenecks in the future.

Latin America attracted FDI, excluding offshore financial centers, of $182 billion in 2013, or 12.9% of total global FDI of $1.4 trillion last year. The World Economic Forum’s 2014 assessment of port infrastructure ranked major Latin American economies Brazil, Colombia and Argentina 131st, 110th and 99th, respectively, out of 148 nations within their annual survey.

“Successful strategies to promote investment and partnerships with the private sector will become significantly more important to address these port and transportation infrastructure opportunities, with realistic and practical concession terms an increasingly crucial component of this process,” said Mr. Laursen.

APM Terminals owns a 50% share in Brasil Terminal Portuário, which opened last year in Santos, Brazil, Latin America’s busiest container port, and currently has new terminal development projects underway at Moin, Costa Rica, and Lazaro Cárdenas, Mexico, as well as a major terminal expansion and upgrade in Callao, Peru.

Press Release, September 05, 2014;Image: APM Terminals

The struggling company has accrued losses of around USD 323 million over the past decade despite subsidies from the state.
Coupled with the recent ruling, repayment claims surge totaling in USD 612 million.
According to the ruling, the European Commission had been wrong to approve the aid package as the circumstance under which the financial aid was given to the firm were not in accordance with that applicable to a private investor.
Workers are urging the state to keep the company afloat and have been stagging strikes since June.
Earlier this year, Baja Ferries, Mexican ferry company voiced intention to buy 66 percent stake in SNCM from Transdev. The company said that the talks to close the deal were underway and that a decision might be in before the end of the year.
As explained by Baja Ferries’ director, if acquired, the company would cover routes between Marseille, Corsica and north Africa.
World Maritime News Staff, September 05, 2014; Image: SNCM

Commissioned by the Petroleum Safety Authority Norway, SINTEF has compiled a report on capacity and competence in the rig industry in order to assess the potential consequences for HSE of inadequate competence. The background to the report was a high and increasing level of activity in the rig industry, with pressure on access to qualified personnel.

According to the report, capacity in the rig industry is not seen as a challenge, either by rig company employees or the industry organisations that participated in the project. Many of the stakeholders interviewed were finding that advertised positions in the rig companies attracted many applicants.
The challenges largely relate to a lack of competence and experience, manifesting itself in the fact that many of the applicants are not properly qualified, many applicants lack work experience and experience of the NCS or professional certification, and in some cases, language is also a barrier.

Nowadays, the rig companies want their new hires to have gained professional certification and maritime training. In periods when unqualified and inexperienced recruits are hired en masse, a safety risk may arise. The challenge is greatest if the employee is new to both the rig industry and the job.
At the same time, more new rigs are arriving on the NCS. According to the report, these new rigs, incorporating new technology and with a combination of experienced and inexperienced personnel on board, will help promote safe working practices.

The combination of new series-production rigs using new technology and under long-term contracts may therefore have a positive impact on the safety level on the NCS.

With over 20,000 Sq Feet of Workshop we can provide fast, economical and reliable solutions to problems associated with machinery, maintenance, and repair.

Rosneft President Igor Sechin held talks with the Minister of Popular Power for Oil and Mining and President of Petróleos de Venezuela, SA (PDVSA ), Rafael Ramirez Carreno.

The parties discussed a wide range of issues regarding current cooperation between the companies, Rosneft activities in Venezuela and the outlook of development of new projects.

Currently Rosneft and PDVSA cooperate in the realization of 5 Joint Ventures in the upstream sphere in Venezuela. These include:

Project Carabobo-2,4 (JV Petrovictoria). CVP (PDVSA subsidiary) – 60%, Rosneft – 40%
JV PetroMonagas. CVP (PDVSA subsidiary) – 83.3%, Rosneft – 16.7%
Project Junin-6 (JV PetroMiranda). CVP (PDVSA subsidiary) – 60%, NOC – 40%
JV Boqueron. CVP (PDVSA subsidiary) – 60%, Rosneft – 40%
JV Petroperija. CVP (PDVSA subsidiary) – 60%, Rosneft – 40%

Total geological oil reserves of these projects are estimated more than 20.5 bln t.

The Argentinean Coast Guard has restricted entry/departure of vessels with LOA over than 80m at the Port of Necochea, due to an extraordinary downstream current of the Quequen River of 4 knots and winds exceeding 25 km per hour.

For information about operations in Argentina or elewhere in the Americas contact the GAC Houston Hub Agency Centre at hub.us@gac.com

COSCO (Guang Dong) Shipyard Co. Ltd is going to build a further two platform supply vessels of the ULSTEIN PX121 design for Vroon Offshore Services, the Netherlands. Ulstein has entered into an agreement with COSCO on delivering ship design, power & control equipment and on-site follow-up services.The first of totally six vessels in this series, VOS Pace, was launched on 30 June.

“The PX121 design is becoming increasingly attractive to oil companies as it offers a competitive combination of fuel-efficiency and cargo capacities/deadweight,” comments Sigurd Viseth, Managing Director of Ulstein Design & Solutions. “This translates to a performance level that is usually expected from larger PSVs, but at a medium-sized PSV cost – delivering excellent value-for-money for the owner and operator. We’re delighted that Vroon sees the compelling benefits of this vessel.”

Each of Vroon’s six PSVs is scheduled for delivery in 2015 and intended for operation in European waters. Measuring 83.4 metres in length, with a beam of 18 metres, they boast a rectangular cargo deck of 830 square metres and a load capacity of 4,200 tonnes (dwt).

Thanks to flexible tank capacities, the PX121 is set up to support drilling activities with longer and deeper boreholes and activities further from shore. In addition to tanks for oil, water and drilling fluids, the vessel also has two stainless steel tanks for flammable liquids or corrosive chemicals. Each ship will be equipped with dynamic positioning system Class II and meets the requirements of ‘Clean Design’, according to ABS class.

The PX121, which has a maximum speed of approximately 15 knots and modern accommodation for 23 people, also comes with the iconic ULSTEIN X-BOW®. The X-BOW offers efficiency over a wide draught range, which is important for PSVs as they often operate with varying loads. Furthermore, the X-BOW has unique, advantageous qualities in terms of motion and propulsion efficiency in moderate and heavy seas. Its innovative shape eliminates wave slamming and bow impact delivering better performance, while reducing noise and vibration, which in turn translates to enhanced crew comfort and safety levels.