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Piracy pushes up project logistics costs

05 Oct 2012 - by Liesl Venter
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Piracy remains one of the
biggest threats to vessels
moving project cargo along
Africa’s West and East
coasts.
Crew and cargo are often
held hostage for long periods
of time with the result that
projects either come to a
halt until the cargo can be
delivered or they have to
be re-sent from the point of
origin.
This increases costs
tremendously and can
ultimately lead to business
pulling out of the continent.
According to David Butler,
managing director of Control
Risks Southern Africa,
piracy off the African coasts
is far from under control.
“There have been 93
incidents – including 20
hijackings – this year alone,”
he said. “In fact, around the
Horn of Africa, piracy seems
to be on the increase. We
have also seen a significant
increase in piracy further
down the coast as far as
Mozambique.”
According to Butler,
piracy has become a
multimillion-dollar business
in Africa. “The ransoms
are high and they are being
paid. The gains are therefore
very lucrative. If the vessel
and cargo owners don’t pay
the ransoms demanded they
run the risk of crew and
cargo being held hostage for
months and even years in
some cases.”
One vessel and its crew
has been held captive by
Somalian pirates now for at
least two and a half years
and counting, said Butler.
The bigger risk, however, is
death.
“The pirates are getting
more violent and less
tolerant. We are seeing an
increase in the violence
against crews with some
pirates even reneging
on deals struck through
negotiations.”
He said while there had
been fewer incidents of
piracy off the Somalian coast
in 2012, this could change in
the very near future. “There
has been less piracy as
security has been at an alltime
high, with many navy
vessels patrolling the area.
But as Europe continues
to face economic woes,
this could mean they will
recall their navy vessels to
save costs. That will have a
negative impact.”

CAPTION
David Butler … ‘Piracy off the
African coasts is far from under
control.’

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