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How Somalian pirates create crorepati businesses

Updated on: 06 March,2011 07:56 AM IST  | 
J Dey |

The recent spate of incidents of merchant ships being hijacked off the Somalian coast points to a new maritime business module that spins a few hundred billion business across the globe annually

How Somalian pirates create crorepati businesses

The recent spate of incidents of merchant ships being hijacked off the Somalian coast points to a new maritime business module that spins a few hundred billion business across the globe annually.

Experts point out that the situation is going out of hand due to lack of political will across the world , and because governments dislike getting dragged into hostage situations.



The crisis off the Somalian coast actually began with intent to prevent illegal fishing in the littoral waters a decade ago. Today, the hijacking of a ship can bring a windfall of few hundred crores for insurance companies and security agencies supplying guards, advisers and negotiators.

A decade ago, fishermen were at a loss when trawlers sailed across the Indian Ocean to fish in the marine life-rich Somalian waters. They then sold a huge haul of blue-finned Tuna to countries like Thailand, Taiwan.

Initially, Somalian fishermen were successful in preventing intruding foreign trawlers from fishing in their waters.

Later, cash-rich fishing companies returned with armed guards to take on the Somalian fishermen. The fishermen retaliated by enlisting the help of armed militia groups in the troubled country. Soon, the militia and fishermen realised that they could earn more money from ransom than fishing.

With each hijacking, Somalian pirates learned new tricks like building pressure and anticipating the posturing of ship owners. They sought the help of skilled negotiators, many of whom have spent time on the streets of Mumbai.

A glaring case in point is the Somalian negotiator of hijacked ship Marida Margarete. Some of the released seafarers told their union that the negotiator used to drive taxis between Mumbai and Pune for four years before returning to his country.

National Union of Seafarers of India (NUSI) member Abdulgani Serang, who counselled the family members of nine hijacked ships, told Sunday MiD DAY that the pirates demanded their negotiator of choice soon after a ship was hijacked. A large number of high-profile negotiators and advisers are based in Europe and the US.

"The pirates have become shrewd. Many refuse to come online and some even say they are busy dropping their children to school to gain time," Serang added.

Once pirates realise that the owners have agreed to a figure, they raise their demands. The price for release is raised several times over before the hijacked crew members are released. Negotiators and advisers inform the Somalian pirates about the status of the companies whose ships are hijacked. The company's balance sheet is also a pointer to how much money can be paid by the victims.

The Indian navy is one of the few navies in the region that has launched a campaign to apprehend pirates in the Exclusive Economic Zone -- 200 nautical miles off theu00a0 country's coast.

Possible solutions
No Sail Zone:
NUSI is spearheading a consortium of nine countries like India, Bangladesh, Sri Lanka, Ukraine, Indonesia, Philippines and Thailand to ban ships sailing near Somalia. These countries are the largest suppliers of seafarers.
Building Citadel: Some of the ships are being fitted with strongrooms where the seafarers can hide themselves until help arrives.
Political will: Trying to influence governments with maritime interests to deploy their armed forces in the troubled waters of Somalia.
Military operation: Opening fire on skeifs sailing towards merchants ships in the area.

HOW THE PIRATES OPERATE
>Armed pirates board trawler or merchant vessels cruising off the Somalian coast. The kingpins use the hijacked ships as 'mother vessel' to venture into deep seas.
>Since the NATO aligned ships US, England, France are patrolling the Suez Canal and the nearby areas, the pirates are forced to venture deep into the India Ocean near Lakshadeep and Maldives.
>Once on board, they take the crew hostage. The kingpin negotiates with the owners of the shipping company for a handsome Ransom.
>The ships and some cargo is returned if they arrive at an agreement.
>The pirates have informers in sensitive ports like Dubai and Singapore. They provide information like crew on board of target vessels and the cargo she is carrying.
>The negotiators collect the ransom on behalf of the pirates and payments are payed after retaining their commission. Payments are received in a third country.




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