ࡱ> 241M (!bjbj== .*WW(l>>>> JjjjjjjjjLNNNNNN NjjjjjNjjcjjjLjLV LLj^ 4IH> LLy0LOlOLArticle for Digital Ship Smart and Secure Trade Lanes and Savi Technology General John Coburn, the chairman of the US Strategic Council on Security Technology, is unequivocal. We are at war. War is about risk and what we are working on is how to mitigate that risk. Economics and Security For Coburn and others, 9/11 highlighted the dangers faced by the US and instilled the desire to do something about them. In October 2002, the first gathering of what would become the Strategic Council on Security Technology was held to identify areas of vulnerability and to work out plans to fix them. The Council decided to focus its attention on seafreight security, which it felt was in danger of neglect while public attention was focused on the threat from the air. Coburn sees the need to strike a balance between protecting US citizens and maintaining free trade. Only 2-3% of containers coming into the US are inspected now. Inspecting all of them will slow down trade and cause immense economic damage. That would hand victory to the terrorists. He believes that the technology is now available to strike that balance. As former Commanding General of the United States Material Command, Coburn is familiar with large-scale logistical challenges. In the aftermath of the Gulf War, he led the development of the Total Asset Visibility (TAV) system for the Department of Defense. This now covers more than 35 countries, more than 400 seaports, airports, depots around the world, and manages the status and security of some 250,000 transportation conveyances. It allows the US military to track consignments in real time and has improved operational efficiency while reducing inventory. Central to TAV was RFID hardware and software for item level tracking in containers shipped to military installations. This was provided by Savi Technology. Coburn believes that the same technology can contribute to improved security. The challenges we face in improving supply chain security are very similar to what we solved in the military. So now is the time to take what we have learned from the public investments weve already made in Total Asset Visibility and leverage it for commercial applications and help us solve the immediate problem. Smart and Secure Trade Lanes The Strategic Council on Security Technology, whose members include Hutchinson Port Holdings, P&O Ports, the PSA, Savi as well as experts from relevant fields, decided to take the initiative. The first concrete steps came on 11th July with the formal announcement from Capitol Hill of the Smart and Secure Tradelanes Initiative (SST). At the press conference, Patty Murray, US Senator (D-Washington) described what the initiative would do Today, we are here to announce that the Port of Seattle is to enter into a formal agreement with the Ports of Singapore and Hong Kong to dramatically improve cargo security. This new system will help catalogue and inspect U.S. bound cargo at foreign ports. It will also allow U.S. authorities to track the shipment through their entry into the U.S. and onto the final destination. This new partnership sends a very clear message. It will tell terrorists that we will protect our cargoes and our ports and close the gaps that leave us vulnerable. And it tells residents in the Puget Sound area that when cargo arrives in Seattle and Tacoma we will know what is inside, where it has been and where it is going. This is truly a model for how our nation can improve port security. How it will work There are two main aspects to the initiative; the first deals with the challenge of knowing what is inside the box. Carriers today do not inspect or certify the contents of any full load containers and simply take the shippers word for the contents. To deal with this there will be a shipper certification programme, as Lance Trebesch, Vice President of Security and Productivity explains. We will be examining very closely how things work at the point of loading and point of origin. Loading processes will be carefully reviewed to ensure they are secure and documented. This will include specific roles being clearly assigned to authorised staff, for example for certifying the contents of a container. Trebesch points out, as an example, that for large computer manufacturers with dedicated plants, this work would not be difficult. He agrees though that tackling more fragmented parts of the market will be challenging. Toy and clothing importers typically buy from a large number of small manufacturers. In this case we need to go up the supply chain to see where consolidation takes place and put controls in at those key points. With tight controls at origin, the challenge is then one of tracking the box through its journey. This is where the Savi RFID technology comes into play. Trebesch says, The electronic seal is the fundamental element in this. It acts as an RFID tag that can be read at key nodes and it also shows when the box has been tampered with. He points out too that these seals will become progressively more sophisticated allowing more elements of the containers status to be monitored. It is worth noting that the use of these seals avoids the necessity of installing tags on the whole global box fleet for the purposes of this initiative. A Huge Task Trebesch, whose career has included a stint with APL, is well aware the size and complexity of the task. We know that this is not a complete solution; but it is part of a solution. What we are doing now is what Senator Patty Murray calls reducing the size of the haystack in other words helping customs and other security authorities focus their efforts in the right areas. He envisages an escalating level of inspection of suspect boxes. If an inspection of the consignment data led to suspicion, a gamma ray or similar device might be used to carry out a non-invasive inspection. If suspicions were confirmed, customs or another security body would unpack the box. Since the announcement of SST, Savi has been working with PSA, Hutchinson and P&O Ports to prepare for implementation. This work has included site surveys for equipment location as well as discussions with major shippers who will participate in the initiative. The plan is for the pilot to start with traffic moving between Singapore, Hong Kong and Seattle. Other ports such as Antwerp, Rotterdam and New York/New Jersey will follow thereafter. Costs and Benefits One of the intriguing aspects of SST is that it is based wholly on private enterprise and has no government funding. One cant help thinking that, if the focus of the threat were Europe, everyone would be waiting for action by governments; this is evidently not the American way. There is of course an element of enlightened self-interest. Everyone involved agrees that we need to get back trust in the system and no-one in the maritime trade community wants to see an equivalent of what happened to the airlines post 9/11, explains Trebesch, The economic impact would be huge. For organisations using the technology, there are likely to be economic benefits too. Tools that improve supply chain visibility allow companies to reduce inventory, utilise warehouses better, meet customer demand more efficiently and improve profitability. Despite this, take up of these tools to date has been surprisingly slow. Security just might be the issue that pushes the market to realise their full potential. ) "5(! H*OJQJ6OJQJ]OJQJMN)hi< = ;<cd!"5{|(!| !!!"!#!$!%!&!'!(! ,1h. 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