Political Risks. Implications on Global Transport Chains and Business Ventures. Steel in Transit 2013 Global Views

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1 Political Risks Implications on Global Transport Chains and Business Ventures Steel in Transit 2013 Global Views MRQ Marine Risk & Quality

2 Geoeconomical facts from a German point of view 97%of the oil 86%of the gas 79%of the coal 100%of iron ore = imported = imported = imported = imported Sources: Deutsche Rohstoffagentur (DERA), BMWi, BMU, as of 03/2012

3 German ressource import Source: Deutsche Rohstoffagentur (DERA)

4 World Wide Threat-Map Source: Heidelberg Institute for International Conflict Reserch; Conflict Barometer 2012)

5 In Amenas

6 How do we answer? Level 1: Analysis of global regional risks for businesses or organizations MRQ in collaboration with BWUM and CSET - Macro-Analysis of geopolit. trends and polit. risks - Micro-Analysis of regional & comunal trends - description and evaluation of trends on each level feedback Level 2: Development of solutions Measures, structures and concepts on how to manage the risk MRQ in collaboration with IFKK - development of efficient security solutions - from prevention to response -Counsel and advice for our client Level 3: Implementation of the security solutions taylored to the needs of our client MRQ in collaboration with ATC - implementation of solutions and concepts developed in level raising exclusive local intel (Level 1)

7 Working Example: Piracy and Maritime Terrorism DateTime: 10/04/ :21:54 UTC Area: Asia Status: PIRATE_ATTACK Lat: 10 34'0 N Lon: 107 1'0 E Detail: (Robbery) Robbers boarded a bulk carrier at berth unnoticed between LT in position 10:34N 107:01E: Ho Chi Minh Port, Vietnam. Robbers stole ship s properties and escaped unnoticed. Reported (via IMB) 9 Apr. Source: UNID: 2421 Action: NEW ReportedBy: OL BRAVO DateTime: 09/04/ :10:24 UTC Area: Horn of Africa Status: SUSPECT_ACTIVITY Lat: 13 27'1 N Lon: 50 8'9 E Detail: Panama-flagged tanker was approached by a suspected PAG around 1100UTC in position 13:27.1N - 050:08.9E, Gulf of Aden approx 90nm SSE of Mukalla City Yemen. 1 mother vessel and two skiffs trailed the tanker for around 20 minutes. displayed weapons, forcing the suspected PAG to abort the approach. Reported 9 Apr.. Source: UNID: 2418 Action: DELETED ReportedBy: OL BRAVO DateTime: 09/01/ :48:39 UTC Area: West Africa Status: PIRATE_ATTACK Lat: N Lon: E Detail: Container ship underway 85 nm south of Bonny Island, Nigeria, was chased and fired upon by eight pirates armed with AK47s in a single skiff launched from a nearby from a fishing trawler. The Master increased speed, took evasive maneuvers, and crew mustered in the citadel, prompting the pirates to abort the attack and move away Source: IMB

8 Analysis Improved intelligence, communication, armament, tactics and skills Increased efficiency: lesshijacks moretotal ransom paid Less piracy incidents since 2011, but risk implications remain high Recent developments in piracy New hotspot West Africa: high intensity of violence Extension of operational area Today, a misunderstanding of risk plausibility exsists, where the perception of security is quite different to the actual risk situation. This gap between reality and perception results in insufficient security concepts being employed.

9 Threats & Risks Private Maritime Security Companies (PMSCs) Approx. 250 PMSCs on the international maritime security market. Deployment of PMSCs has been very effective: No armed guarded vessel has been hijacked jet. BUT! NO adequate tool to assess and assure the qualityof security services by PMSCs employed. NO international standardsof regulation, certification and auditing established, as well as no independent body. Shipping companies, insurance providers and charterers need appropriate advice concerning the employment of armed guards when sailing through the HRAs.

10 Solutions On-Board Performance Auditing Systemic Assessment of PMSC incl. ISO Certification & Performance Auditing Assessment of all legal requirements, including firearms regulations, insurances, etc. Assessment of all operational-tactical skills Medical-Psychological assessment for teamleaders and operators Assessment of all maritime, nautical and technical skills

11 East Africa

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15 EUNAFOR

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18 West Africa

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21 Maritime Terrorism

22 Contact Gesellschaft für maritime Risikobewertung und Qualitätsbemessung mbh Herrlichkeit Bremen, Germany Mr. Georg Klöcker MRQ General Manager Phone: Mobile: Mr. Sebastian Hons MRQ General Manager Phone: Mobile:

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