YEMEN STRIKES BACK AS PIRACY HURTS ECONOMY

C O N F I D E N T I A L SANAA 000936

SIPDIS

FOR NEA/ARP AMACDONALD

E.O. 12958: DECL: 05/13/2019
TAGS: EWWT PREL PTER MCAP YM
SUBJECT: YEMEN STRIKES BACK AS PIRACY HURTS ECONOMY

REF: A. SANAA 068

B. SANAA 274

Classified By: Ambassador Stephen Seche for reasons 1.4(b) and (d).


1. (C) SUMMARY. As a result of piracy's negative economic
impact on Yemen and its links to human and arms smuggling,
the ROYG has stepped up its counter-piracy efforts in the
Gulf of Aden in recent months. Yemen would like to take on a
regional leadership role in combating piracy, but its efforts
are limited by shortages in funding, equipment and expertise.
The Yemeni Coast Guard has begun a program of providing
on-board escorts for commercial ships traveling in Yemeni
coastal waters, and this may offer the ROYG a constructive
role to play in the short term. END SUMMARY.


2. (C) In early 2009, Yemen's Security Council approved a
national strategy to combat piracy, led by the Ministry of
Transportation (MOT) and including the Ministry of Interior
(MOI),Yemeni Coast Guard (YCG),Ministry of Defense (MOD),
Yemeni Navy (YNAV) and Maritime Affairs Authority (MAA). A
national information-sharing center nearing completion in
Sana'a will coordinate domestic counter-piracy efforts in
cooperation with local offices in Hudeida, Aden and Mukullah.
The YCG has implemented a "Ship Riders" program that
furnishes armed escorts for commercial ships traveling
through Yemeni waters. (Note: The YCG charges companies
2,000 USD per day for the escort, in addition to individual
fees of 200 USD for enlisted men and 300 USD for officers.
An average five-day escort mission, therefore, would generate
10,000 USD in income for the YCG and more than double
individual salaries. End Note.) The ROYG currently has
custody of 40 Somali pirates, who will be tried in Yemeni
courts, according to the MOT's Deputy Minister for Maritime
Affairs, Captain Ali Mohamed al-Subhi.


3. (C) Piracy's impact on Yemen's fragile economy has
provoked concern in the business community. Rashad Hayel
Saeed Anam, Regional Manager of the HSA Group, Aden,s
largest manufacturer, told Econoff on May 12 that piracy
incidents had made operating costs at his wheat mill and
cement factory skyrocket. In the last two months alone,
insurance prices for internationally-flagged vessels have
risen from USD 2 per ton to USD 5 per ton. The list of
shipping companies that refuse to dock at Aden has also
grown, including French, Australian, and U.S. shipping lines.
Container ship traffic was down 16 percent in March and
April due to increased ship insurance costs and re-routing of
shipments to avoid the Gulf of Aden, according to Abdul Galil
Shaif al-Shaibi, Chairman of the Aden Free Zone.


4. (C) Piracy's links to illegal maritime trade are also a
serious issue. The MOT's Assistant Deputy Minister of
Maritime Affairs, Dr. Yasser M. Zomany, told PolOff on May 12
that the ROYG was very concerned about the links between
piracy and arms smuggling. Francois-Xavier Jubi, Maritime
Security Coordinator for Yemen Liquefied Natural Gas Company
(YLNG),told Emboffs that he believed piracy in the Gulf of
Aden is increasingly linked to Somali refugee traffic. He
claimed that pirates ferried refugees to Yemen and returned
to Somalia, mounting attacks on vessels in the Gulf along the
way.


5. (U) Since international attention has become more focused
on piracy in the Gulf of Aden over the past 18 months, the
ROYG has attempted to portray itself, in the media at least,
as a central player in anti-piracy operations. The ROYG has
called publicly for the establishment of an international
counter-piracy center in Sana'a. It takes the opportunity to
highlight its cooperation with foreign militaries confronting
piracy in and near Yemeni waters, specifically the U.S.,
France and Russia. When the Yemeni navy launched a
successful operation to free the Qana, a Yemeni oil tanker,
from pirates in April, the official media carried the story
prominently for several days, lauding the navy and the ROYG's
commitment to protecting Yemeni ships. (Note: Despite
official media reports to the contrary, the ROYG's
shortcomings were obvious in the Qana operation; several crew
members drowned and the ship was seriously damaged during the
exchange of fire. End Note.)


6. (C) In a meeting with PolOff on May 12, Subhi urged the
United States to support ROYG plans to host a regional
counter-piracy center in Sana'a (Ref A). "We have plans for
how Yemen can play its role, but we can't do it 100 percent
without more support," MAA Executive Chairman Captain Abdulla
Ibrahim Abkar told PolOff on May 12. Officials said the YCG
lacks the equipment ) including suitable boats ) and
training to be fully effective in combating piracy (Ref B).

COMMENT
--------------


7. (C) Due to its limited capacity, Yemen would be
best-served by limiting its near-term role in counter-piracy
efforts to escorting commercial vessels through Yemeni waters
via its "Ship Riders" program. In addition to providing
value to international vessels, such a program would also
generate income which the ROYG could then re-invest in the
YCG and YNAV. END COMMENT.
SECHE