ESCGS Chief Operating Officer Madis Madalik said: “The geographical reduction to the Indian Ocean HRA from 1st December is good news for shipping but my main concern is what will happen to the arsenal of very sophisticated weapons that bankrupt PMSCs have stored in floating armouries.”

It has been common practice for private maritime security companies to rent from or store weapons aboard floating armouries operating in international waters, but with more security firms expected to close in coming months their weapons could remain unaccounted for.

“The past four years has seen the number of licensed PMSCs more than halve, as companies reel from a reduced requirement for security aboard vessels transiting the Gulf of Aden, and more are expected to go under,” said Madalik.

The International Maritime Bureau reported in July that in the first six months of 2015 no vessels had been attacked in the Gulf of Aden or Red Sea. “If the floating armouries go out of business or if their clients are unable to pay to get their weapons back for decommissioning or proper disposal, then what will these armourers do with them: throw them overboard, sell them? This is a major concern,” Madalik said.

“The lack of regulation here has the potential to irrevocably damage the reputation and credibility of the entire PMSC industry.”

The maritime storage of weapons is currently unregulated and while it is difficult to know exactly the number of floating armouries in operation or the security risks they pose, a number of the vessels used in this opaque sector of the industry will be flagged with registers that are blacklisted or, indeed, unlisted.

“There is certainly no register of vessels or barges operating as armouries and no inventories of the weapons they store,” said Madalik, who estimated that about 15,000 weapons and four million rounds of ammunition could be stored in Indian Ocean armouries alone. The weapons stored are typically small arms and semi-automatic, long-range rifles. “This is a serious issue and one that is being addressed at an international level,” said Peter Cook, Chief Executive Officer of the Security Association for the Maritime Industry (SAMI).

“There are several voluntary standards such as the UK’s Open General Trade Control Licence Maritime Anti-Piracy (UK OGTCL MAP), ISO 28000 (Specification for security management systems for supply chain) and ISO 28007 (Ships and marine technology – Guidelines for Private Maritime Security Companies (PMSC) providing privately contracted armed security personnel (PCASP) on board ships) in place but mechanisms need to be developed to ensure that all floating armoury owners adhere to best practice.”

On a reported basis gross volumes grew by 3.7%. According to the operator growth in the nine months was largely driven by Europe and UAE terminals. The UAE handled 11.9 million TEU, representing growth of 4%. Their European portfolio continues to be robust despite the difficult market conditions. The Indian subcontinent delivered an improved performance as it benefitted from the recent capacity addition at Nhava Sheva (India). Performance in the Americas has remained challenging due to continued weak economic conditions.

DP Worlds portfolio of consolidated terminals handled 21.9 million TEU during the first nine months of 2015, a 3.2% improvement when compared with the same period last year. On a like-for-like basis, consolidated volumes increased 2.5%.

[1] Like for like gross container volume growth adjusts for new capacity at Nhava Sheva (India), Prince Rupert (Canada) and Rotterdam (Netherlands)
[2] Consolidated terminals are those where they have control as defined under IFRS.
[3] Like for like consolidated volume growth adjusts for new capacity at Nhava Sheva (India) and Prince Rupert (Canada)