VZCZCXRO9245
RR RUEHDE RUEHROV RUEHTRO
DE RUEHYN #1330/01 2101342
ZNR UUUUU ZZH
R 291342Z JUL 09
FM AMEMBASSY SANAA
TO RUEHC/SECSTATE WASHDC 2369
INFO RUCNSOM/SOMALIA COLLECTIVE
RUEHKO/AMEMBASSY TOKYO 0116

UNCLAS SECTION 01 OF 02 SANAA 001330 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR NEA/ARP AMACDONALD AND OES/MSN 
 
E.O. 12958: N/A 
TAGS: ECON EWWT JA PGOV PHSA PREF YM
SUBJECT: RED SEA PIRACY: HUDAYDAH'S PUBLIC AND PRIVATE 
SECTORS HIT HARD 
 
¶1. (SBU) SUMMARY.  In a July 21 visit to Hudaydah, political 
figures, business leaders, and the local Coast Guard 
commander described how piracy is driving up business and 
security costs for public and private sector alike, at a time 
when both are are feeling squeezed by the international 
financial crisis.  While the ROYG is devoting more resources 
to combating piracy, various interlocutors agree that piracy 
cannot be eliminated until the situation in Somalia 
stabilizes.  END SUMMARY. 
 
PIRACY MOVES NORTH INTO THE RED SEA 
----------------------------------- 
 
¶2.  (U)  International efforts to combat piracy in the Gulf 
of Aden and Bab-al-Mandab straits have pushed piracy 
northward into the Red Sea.  While no vessel transiting the 
Red Sea has yet been captured by pirates, Yemeni forces 
thwarted three attempted attacks against Hudaydah-bound 
vessels in the month of July.  In fact, on July 21, the same 
day that EmbOffs visited Hudaydah, Yemeni forces fought off a 
fierce attack by 14 pirate boats against a Yemeni oil tanker 
en route to Hudaydah, Yemen's largest Red Sea port. 
According to the International Maritime Bureau, attempted 
hijackings in the Red Sea have increased from zero last year 
to four so far this year, with another two attempts at the 
northern reaches of the Bab-al-Mandab. 
 
PIRACY'S IMPACT ON HUDAYDAH 
--------------------------- 
 
¶3.  (SBU)  During their day trip to Hudaydah, EmbOffs heard 
from political figures, business leaders, and the Yemeni 
Coast Guard (YCG) about how piracy is affecting the 
governorate.  Hudaydah Chamber of Commerce head and General 
People's Congress (GPC) Member of Parliament Abduljalil 
Thabet told EconOff that piracy attacks had taken a severe 
toll on port calls at Hudaydah in the past year.  A 
roundtable of Hudaydah businessmen said all aspects of the 
local economy had been negatively affected by the reduced 
number of ships in the area and the arrival of hundreds of 
Somali immigrants every year.  Hudaydah Governor Ahmed Salem 
al-Jabali echoed those concerns, telling EmbOffs that piracy 
is driving up insurance rates, transportation rates, and port 
operational costs, and "putting more financial burdens on the 
government," which is already feeling the strain from the 
international financial crisis.  Representatives of the 
opposition Joint Meeting Parties (JMP) also included piracy 
among the problems plaguing Hudaydah governorate.  Hade Hayj 
of the Islah Party told EmbOffs that piracy "is an example of 
our interconnected world" and that the solution is ultimately 
political: resolving the situation in Somalia. 
 
ROYG ANTI-PIRACY EFFORTS 
------------------------ 
 
¶4.  (SBU) The Hudaydah branch of the YCG has an area of 
responsibility that stretches north from Hudaydah to Midi, 
about 557 kilometers of coastline.  "We do a lot with a 
little," said Hudaydah Coast Guard General Manager Colonel 
Jamal Shaif when describing his force's anti-piracy efforts. 
He said their greatest needs are larger boats and better 
weapons that do not corrode at sea.  Shaif said the YCG is 
feeling the effect of recent budget cuts and is slashing its 
expenses on everything but fuel and maintenance.  (Note: 
According to Major Amen al-Ansei, YCG Director of Public 
Relations, the YCG's budget for 2009 was cut by half, except 
for its fuel budget, which was cut by 25 percent.  End Note.) 
 The Hudaydah Coast Guard has also begun providing 
international commercial vessels with shipriders for a fee. 
(Note: According to Ansei, the YCG expects to generate about 
$200,000 per year from the shipriders program; this money 
will be used to cover operational expenses.  End Note.)  The 
Yemeni Navy (YNAV) is also fighting piracy in the Red Sea, 
and has joined 10 Arab nations (the GCC plus Djibouti, 
Jordan, Egypt, and Sudan) in an all-Arab Maritime Task Force, 
led by the Saudi Navy. 
 
¶5.  (SBU) To help address the YCG's equipment needs, the USG 
is providing two mid-sized (28-meter) boats.  YCG Commander 
Ali Ahmed Rassa told PolOffs on July 13 that the Japanese 
government may provide an additional three mid-sized ships 
and the ROYG may purchase others.  With them, said Rassa, "We 
will be able to participate with international forces in 
international waters."  However, Rassa acknowledged that 
"eliminating piracy will be impossible without solving the 
Somalia problem." 
 
COMMENT 
 
SANAA 00001330  002 OF 002 
 
 
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¶6.  (SBU)  Piracy in the Gulf of Aden - and increasingly in 
the Red Sea - is hurting Hudaydah businesses and stretching 
the already limited resources of one of Yemen's poorest 
governorates and the YCG.  While the Coast Guard has managed 
to prevent any pirate captures thus far, if piracy continues 
to increase in the Red Sea, it is only a matter of time 
before an attack is successful.  END COMMENT. 
BRYAN