Germany is not planning to deploy military or police on merchant vessels as requested by shippers to protect them from pirates operating off Somalia, a senior defence official said.

The idea, floated by trade associations as another way to aid German ships in some of the world's most dangerous waters, is impractical and would require too many troops, Deputy Defence Minister Thomas Kossendey told Reuters.

"A system where all German-flagged ships in particular danger would be protected by soldiers on board is, however, not feasible from a logistic, legal, and administrative point of view," he said.

German forces are working to address the rising threat from piracy in the European Union's Operation Atalanta -- launched in 2008 in the region to deter attacks and protecting shipping, he added.

Shipping companies entered talks with the government last year with the hope of convincing them to deploy military or federal police on merchant shipping in key areas.

The idea, championed by the Bremen-based Beluga Group of shippers, would involve setting up operational bases on land or at sea around the Horn of Africa.

Pirates in the area are increasingly using hijacked merchant vessels with hostage crews as giant motherships to attack shipping deeper into the Indian Ocean.

Gangs preying on shipping lanes typically target large merchant ships, with oil tankers the prize catch, but kidnapping foreigners can also yield high ransom, with some 700 currently being held.

Experts estimate piracy now costs insurers several billion dollars annually, as pirates expand far from the Gulf of Aden, making tens of millions of dollars in ransoms.

With insurance costs expected to rise, some shipping companies and a growing number of mariners are backing the use of private armed guards on board vessels -- a solution Kossendey said has split German shipping operators.

The view from Berlin for now is little can be done to advance national efforts as police and defence ministry budgets and resources are tight. Internationally, there is a lack of political will to boost the EU Atalanta mission.

"I don't really know where a larger number of units could come from," said Kossendey. "Many of the Atalanta partners are rather frugal in terms of making units available ... I don't see much inclination for a dramatic increase." (Reuters)