Lloyd’s List has reported that the International Code of Conduct’s (ICoC) draft charter for private maritime security companies estimates that accreditation and supervision will cost $3.5m-$5.1m a year.
The ICOC draft charter is open for consultation until March 30.
Lloyd’s List has reported that the International Code of Conduct’s (ICoC) draft charter for private maritime security companies estimates that accreditation and supervision will cost $3.5m-$5.1m a year.
The ICOC draft charter is open for consultation until March 30.
Costs for PMSCs seeking certification fall into two categories: they will pay for an independent audit directly, then they will then pay costs incurred by the ICOC oversight mechanism for verifying and issuing the certification. The costs depend on company size and the draft charter predicts that firms that employ fewer than 25 staff will pay $9,000 in all. Companies with 276-625 personnel will pay $15,000. The figures are based on the premise that around 300 companies will seek certification and will repeat the process every three years.
In addition to certification fees, signatory and member PMSCs will also pay a levy towards annual operating costs. The draft charter says that the amount will depend on how many PMSCs want to become certified, offset by contributions from the host nation and voluntary donations from others.
The draft charter also said the annual dues would compare in scale to those charged by existing industry associations.
Costs of performance assessments and third-party complaints have been budgeted at $1.3m-$2m.
The draft charter estimates that the oversight mechanism will make around 50 missions a year, involving three assessors making transits not longer than 10 days and with 60-80% of monitoring missions contracted out to independent players who will charge $500-$600m per day. In such cases, the PMSC will provide security protection for monitors free of charge.
The Temporary Steering Committee (TSC) for the ICOC says it drew up the draft charter based on several assumptions. One is that costs for the oversight mechanism relate to its initial years of operation and do not reflect gradual escalation of the budget over time. It is also working on the premise that roughly 300 PMSCs will seek certification and that the oversight mechanism will be based in a European city.
However, the TSC said that the draft charter did not include information about assumed revenue levels available through annual dues from member companies or voluntary sources such as governments. Nor does the draft factor in contributions from the host nation, for which the TSC is soliciting expressions of interest. The government of Switzerland has made a formal offer that could significantly offset costs relating to administration and staff overheads.
Lloyd’s List has reported that the International Code of Conduct’s (ICoC) draft charter for private maritime security companies estimates that accreditation and supervision will cost $3.5m-$5.1m a year.
The ICOC draft charter is open for consultation until March 30.
Costs for PMSCs seeking certification fall into two categories: they will pay for an independent audit directly, then they will then pay costs incurred by the ICOC oversight mechanism for verifying and issuing the certification. The costs depend on company size and the draft charter predicts that firms that employ fewer than 25 staff will pay $9,000 in all. Companies with 276-625 personnel will pay $15,000. The figures are based on the premise that around 300 companies will seek certification and will repeat the process every three years.
In addition to certification fees, signatory and member PMSCs will also pay a levy towards annual operating costs. The draft charter says that the amount will depend on how many PMSCs want to become certified, offset by contributions from the host nation and voluntary donations from others.
The draft charter also said the annual dues would compare in scale to those charged by existing industry associations.
Costs of performance assessments and third-party complaints have been budgeted at $1.3m-$2m.
The draft charter estimates that the oversight mechanism will make around 50 missions a year, involving three assessors making transits not longer than 10 days and with 60-80% of monitoring missions contracted out to independent players who will charge $500-$600m per day. In such cases, the PMSC will provide security protection for monitors free of charge.
The Temporary Steering Committee (TSC) for the ICOC says it drew up the draft charter based on several assumptions. One is that costs for the oversight mechanism relate to its initial years of operation and do not reflect gradual escalation of the budget over time. It is also working on the premise that roughly 300 PMSCs will seek certification and that the oversight mechanism will be based in a European city.
However, the TSC said that the draft charter did not include information about assumed revenue levels available through annual dues from member companies or voluntary sources such as governments. Nor does the draft factor in contributions from the host nation, for which the TSC is soliciting expressions of interest. The government of Switzerland has made a formal offer that could significantly offset costs relating to administration and staff overheads.
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