Thursday, April 30, 2015

Truth about the Galle Floating Armoury;

From Lanka Herald

The Role played by Sri Lanka in International Maritime Security Industry

The Beginning and spread of Somali Pirates

After the second civil war in Somalia, Piracy started around 2005 in the Indian Ocean. By about 2007, Somali pirates had become a threat to international merchant vessels plying in the Indian Ocean. In order to meet this growing threat, USA, EU, China, India, Iran and several other countries started patrolling the vulnerable ocean area. However, due to complexities of Piracy, the naval ships were unable to curb the menace of piracy completely.

Implementation of additional measures to curb Piracy

By about 2007, the Pirates expanded their activities in almost entirety of Western Indian Ocean costing the shipping companies  a huge Insurance Premium for ships operating in this area.  On Board Armed Security Guards, one of the measures introduced to address the issue of piracy became most successful in the long run. The American, British and European private maritime Security Companies(PMSC) were the pioneers in implementing this concept. Meantime, the International agencies promulgated a High Risk Area(HRA), as shown in the map, to demarcate the area of heightened piracy activities. The major entry and exit points to this High Risk Area are; Red Sea, Fujairah near United Arab Emirates and South of Galle in Sri Lanka.

In this concept armed security guards(PCASP) are introduced to merchant ships when they enter HRA. When the ship leaves the HRA the PCASP are required to be taken off from the ship. In order to facilitate this transfer at the entry & exit , the Floating armoury system became an essential part in protection of merchant vessels in HRA.

To cater for this requirement, some foreign companies established floating armouries at various locations including sea area off Galle, without the knowledge of the Government of Sri Lanka. However no country recognized the presence of Floating armouries neither took the responsibility for the regulating of these floating armouries. This complicated situation and gray areas of responsibility, posed a grave national as well as regional security threat to littoral states in the area. 

Establishment of an Armoury off  Galle for counter piracy operations

In order to prevent this threat to national security and to fulfill the obligations as a responsible member in the United Nations, as urged by the United Nations Convention of the Law of the Sea (UNCLOS), clause 100, the Ministry of Defence decided to establish an armoury in the naval base at the port of Galle to support the ongoing counter piracy operations. This safe keeping operation continued for almost two years. However, there were some legal issues regarding storing of foreign weapons in a naval armoury, and the Ministry of Defence wanted to introduce an alternative mechanism to handle this issue. The task was entrusted to Rakna Arakshaka Lanka Limited (RALL).

Entry of Avant Garde Maritime Security Service (AGMS) to the International Maritime Security field.

By this time, Avant Garde Maritime Services (AGMS) and Rakna Arakshaka Lanka Limited (RALL),the government owned security Company, had commenced a joint venture to provide on board security to foreign long liner fishing vessels in the Western Indian Ocean.

In expanding above international operation, AGMS established its presence in the merchant vessel protection programme too, by positioning a Floating armoury in the Gulf of Oman near United Arab Emirates. At this time, there were few other floating armouries operating in this area.However AGMS was the first Asian Company to operate a Floating armoury in  counter piracy operations in the Indian Ocean. It is pertinent to note here that AGMS expanded the Floating armoury operations by introducing another Floating armoury in  Red Sea in August 2012.

The Beginning of the Galle Floating Armoury

As a result of years of studies undertaken and experience gained by AGMS and RALL in the maritime security industry, RALL suggested,  for the AGMS to submit a proposal to set up a Floating armoury in Galle area, since a well regulated Floating armoury under the close supervision of state agency would be the best way to address the issues arising out of unregulated Floating armoury off the Sri Lankan shores.

AGMS, consequently, made a project proposal to RALL in this regard. MOD being the line ministry on the subject, after careful study, in consultation with the Sri Lanka Navy decided that most appropriate solution for the issues & concerns with regard to running of safe keeping armoury in Galle is, the establishment of a Floating armoury off Galle. Accordingly, in October 2012, a floating armoury was established off Galle under the direct supervision of the Sri Lanka Navy to be managed by RALL and AGMS.

Major  reasons for Setting up of Galle Floating armoury

There were serious doubts concerning the state approval  of the weapons kept in the armoury by foreign companies and hence storing these weapons was a serious concern.
Some companies did not like to deal with the Navy directly and were hesitant to deposit their weapons in the navy run armoury and tried to maintain floating armouries around the seas off Galle, without any approval from the government of Sri Lanka.
Some friendly foreign countries were showing a keen interest in maintaining Floating armouries just outside the Sri Lankan territorial waters seizing this opportunity. GOSL was finding it difficult to reject those request because of the diplomatic complications and freedom of Navigation in UNCLOS.
Since all PMSCs using the safe keeping facility at Galle were private Companies from western countries and used to work with customer oriented user friendly business process elsewhere, they were reluctant to work with the Government bureaucracy and they were considering alternatives locations. Continuation of this conflict may have caused PMSCs shifting their Galle operations to alternative locations like Maldives, etc.

The Benefits to Sri Lanka By the Floating Armoury

AGMS was able to earn more than three times the foreign exchange hither to earn by Sri Lanka Navy, for the country after establishing Galle floating armoury. 40% of this income,3.2 billion Rupees was paid to GOSL. In addition, to this direct income, AGMS was able to realize following indirect benefits through this project;

To provide job opportunities for nearly 3000 retired military officers and other ranks with a respectable salary.
To provide internationally recognized training to Sri Lankan Sea Marshalls in order for them to compete with Sea Marshalls of any Country.
Establishing Sri Lanka as the hub for training international maritime security professionals. As of now, AGMS has trained more than 1500 such security personnel from many Nations.
Increased the number of Galle operations from 500 a month to about 850 a month by improving the facilities and conducting aggressive marketing campaign.

International recognition

After taking over this venture from the navy, AGMS was able to turn it into a highly transparent, accountable and organized venture, functioning under best management practices and international laws and conventions. Therefore, this venture won high praises from Admiral DK Joshi, then Chief of Indian Navy, and Mr. Peter Cook, CEO/Director of Security Association for Maritime Industry (SAMI), and a host of other key personnel in the maritime industry as a “perfect Model for Entire world”.

In recognition of professionalism in management & administration AGMS was awarded ISO 9001:2008 certification by Sri Lanka Standards Institution and ISO 28000:2007 by Lloyd’s registry quality assurance of UK. AGMS is the only PMSC  that has been awarded with the coveted ISO 28000:2007 for Long Liner Fishing Vessels in the whole World. Further AGMS is the only ISO 28000:2007 certified Maritime Security Services provider in Sri Lanka. Accordingly AGMS is the only company in the whole of Asia to operate 03 Floating Armouries in support of anti-piracy operations. In addition Avant Garde group has been awarded International Quality Crown Award London 2012, International Star for leadership in Quality Award (business initiative directions principles of the QC100 total quality management model) (2013, Paris), European Awards for Best Practices 2014 (The European Society for quality research, Brussels, Belgium), International Diamond Star Award for Quality 2014 – ISAQ (Geneva, Switzerland) and The new Era award for Technology, Innovation and quality, Rome, Italy 2014.

Venturing into new  projects

With the experience gained in the Indian Ocean, AGMS was able to commence discussions with Ministers of Defence and senior armed forces officials in countries such as Nigeria, Togo, Benin, Ghana and Senegal to deal with maritime security in the Gulf of Guinea, which now, is the region with the highest number of incidents of piracy in the world. These discussions were almost at the final stage. When implemented, these projects will be able to provide employment opportunities for more than 3000 retired military officers and bring in 500 hundred millions of US Dollars as income to the country. During these deliberations, AGMS was able to promote Arrow craft and Wave Rider craft produced by Sri Lanka Navy, which are proven designs in battles against the suicide boats of the Sea Tigers, to the Nigerian Navy. Agreements have been signed for this project too, and once commenced, it will bring in about 385 million US Dollars in foreign exchange to the country and create a large number of jobs in the naval and maritime sector. 

Effective Management

In order to maintain effective management with a high degree of professionalism, AGMS obtained the service of a large number of senior military officers who had rendered exemplary service to the country. There are retired senior SLA officers, two retired Chiefs of Defence staff, two retired Chiefs of the Navy, two retired army Chiefs of Staff, two retired Director General of Coast Guard, one retired Commandant of the STF, retired Major Generals, retired Rear Admirals and a host of other retired military and Police officers working as advisers and consultants and senior managers with AGMS.

Earning of Foreign Exchange

Financially, from the time AGMS started Galle operations, more than seven billion rupees have been earned by the country as foreign exchange. Out of this income, 40% has been given to the government. This percentage is much higher than the amount AGMS would have paid if AGMS was allowed to pay usual taxes as in the case of any Sri Lankan conglomerate. It is noteworthy that GOSL, MOD or RALL have not invested a single cent in this project.

Challenges and Competition

At the beginning, only British and European guards were deployed as armed security guards and they were paid as much as 3000 USD for a month. But now, due to the competition amongst PMSCs and the entry of Indian, Nepalese, Philippines and eastern European Sea Marshalls, some companies provide Sea Marshalls for as low as 700 USD a month. Despite fierce competition and sharp reduction of salaries in the wider industry, AGMS has been able to maintain a minimum wage of USD 1000 per month to the Sri Lankan Sea Marshalls, by using business expertise, professionalism better training and combining the network of floating armouries  to design total service packages.

Also AGMS had to deal with many crisis situations in the process. One recent example was the bankruptcy incident of  GOAGT of UK. When this  leading PMSC collapsed overnight, leaving many Sri Lankan Sea Marshalls stranded in various overseas locations, AGMS had to step in to repatriate them back to Sri Lanka and pay them their unpaid salaries costing over 50 million rupees.

Employee Welfare and Social Responsibility

Sea Marshalls because of their nature of duty stay away from their families for prolonged periods, sometimes running into many months. In order to look after their families whilst the father/ husband is away from the home, AGMS maintains regional welfare centers in every province. In addition to this in house welfare system, AGMS as part of its social responsibility has carried out following charitable and compassionate activities on a regular basis;

  • Spending more than 215 million Rupees for heart and other major surgeries for those who are unable to afford the expenditure
  • Functioning a residential facility named “Sahana Piyasa” in Borella, to accommodate mothers of children, who are receiving treatment and arriving from distant places, at Lady Ridgeway Children’s hospital
  • Payment of monthly wages to the entire staff at Vajira Children’s home, Kotte.
  • Paying of monthly salaries to the staff of Gnanarathana Ayuruvedic School at Sunethra Ramaya, Pita Kotte.
  • Supporting 236 families which do not have a steady income and suffering from poverty, on a monthly basis.


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