Controlling Imports and Transportation

1
Controlling Imports and Transportation

• International Trade Policy
• Presented by
• Ed Badolato
• President CEO
• Integrated Infrastructure Analytics, Inc.
• September 23, 2007

2
Overview

• I. Introduction
• II. International Trade Homeland Security
• III. Transportation Crime and Terrorism
• IV. Conclusions

3

• I. Introduction

4

• Trade Border Security is the underpinning for
  nations economy and the continuity of business.
• U.S Homeland is vulnerable to terrorism
  originating beyond the borders.
• A well-organized attack on targets around the
  borders may result in economic catastrophe a
  high number of casualties.
• Most countermeasures to mitigate border
  terrorism risks are very costly.
• Multiple stakeholders are involved in border
  security.

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• The main objective of protecting the security of
  our trade and borders is to minimize the
  potential casualties and economic losses due to
  contraband smuggling, theft, and terrorism, while
• ensuring flow of commerce,
• Maintaining the continuity of business,
• conserving the environment,
• supporting international multi national
  partnerships

6

• Transportation is one of the US Critical
  Infrastructures
• Transportation
• Energy
• Water
• Telecommunications
• Agriculture Food
• Banking and Finance
• Public Health
• Emergency Services
• Defense Industrial Base
• Chemicals and Hazardous Materials
• Postal and Express Shipping

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• 2. International Trade Homeland Security

8

• Ports Maritime Trade
• Coasts Borders
• Airports
• Borders of USA
• Pipelines
• Intermodal

9

• Ports
• Introduction
• Threat
• Vulnerability
• Consequences
• How to protect Ports

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Maritime Carriers

• Ships
• Container Ships
• Tankers--oil chemicals
• LNG Carriers
• Bulk Carriers
• Ro-Ro
• Tug Barge
• Passenger Vessel

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Terminals

• Terminal Types
• Air
• Sea
• Train
• Truck
• Pipeline
• Sub-type
• Mixed/Intermodal

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Warehouses

• Large buildings used as a storage location
• Bonded Warehouse
• Warehouse where goods are held until their duty
  or tax is paid

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Ports Maritime Trade (cont)

• International Worlds Top 20 Mega-Ports

• 1. Hong Kong 9.8
• 2. Shanghai 5.8
• 3. Singapore 5.8
• 4. Kaohsiung 5.6
• 5. Rotterdam 5.1
• 6. Pusan 5.0
• 7. Bremerhaven 4.5
• 8. Tokyo 2.8
• 9. Genoa 2.1
• 10. Yantian 2.0

• 11. Antwerp 2.0
• 12. Nagoya 1.9
• 13. Le Havre 1.9
• 14. Hamburg 1.8
• 15. La Spezia 1.7
• 16. Felixstowe 1.7
• 17. Algeciras 1.6
• 18. Kobe 1.6
• 19. Yokohama 1.5 20. Laem Chabang
  1.4

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Ports Maritime Trade (cont)

• US Strategic Military Ports

• New York New Jersey
• Philadelphia
• Charleston, SC
• Corpus Christy, Texas
• Beaumont, Texas
• Norfolk, Virginia
• Tacoma, Washington

• Long Beach, California
• Oakland, California
• San Diego, California
• Jacksonville, Florida
• Silvana, Georgia
• Morehead City, NC
• Wilmington, NC

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Ports Maritime Trade (cont)

• Top 10 Economically Important Ports

PORT TEUS LAX 3,425,000 LB 3,199,000 NY 2,332,0
00 CHLSTN 1,156,000 OAKLAND 960,000
PORT TEUS SEATTLE 824,000 NORFOLK
815,000 SAVANNAH 813,000 HOUSTON
778,000 MIAMI 717,000
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Border Security System
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• Ports and Maritime Trade

• USA Annual Imports Arrive Via
• 6,200,000 Maritime CONTAINERS
• Customs targets 2 - 5 for inspection
• 95 of overseas U.S. trade by weight and 75 by
  value moves through U.S. ports.
• The value of U.S. trade maintained an average
  growth rate of 10.2 between 1970 - 2003.

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• Ports Maritime Trade (cont)

• US Maritime Trade
• 50 of the goods entering the US are made
  overseas
• 48 of world vessels call at USA ports
• 99 of the goods are shipped in containers
• 90 travel by ocean freight
• 2.5 million US employees are involved

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• Maritime Threat

• Shipment of cargo that has been tampered with.
• Support of international terrorist operations
• Low risk, high payoff targets
• Natural hazard threats
• Human Incidents/Operational accidents

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Threat to Ports

• Cargo Safety, Port Security, and
  Counterterrorismthe backbone of the US
  international safety and security transportation
  system
• "The theft of cargo has become
• so widespread that it constitutes
• a serious threat to the flow of
• commerce in the United States.
• (FBI Internal Report)

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KUWAIT OILFIELDS Terrorists Understand Critical
Infrastructure
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Protecting Our Critical Infrastructure
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Piracy Threats

• Four Types of Pirate Attacks
• Crime of Opportunity
• Armed Robbery
• Armed Assault and Robbery
• Hijacking
• Todays Piracy Threat
• Sophisticated syndicates
• Target shipping, ships and cargoes.
• Gather pre-attack intelligence, conduct
  surveillance, and subvert people.
• Steal ships and reflag, using them either for
  their own purposes or to sell.
• Kidnap Ransom

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Threat (Cont)

• Indigenous Threats because of Drugs.

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Threat to Ports (Cont)

• Transfer of cargo that has already been tampered
  with.
• Support of international terrorist operations
• Low risk, high payoff targets
• Natural Threats
• Human Accidents

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Threat to Ports (Cont)

• Ports are vulnerable to use by sophisticated
  smuggling gangs specializing in
• Drugs
• Arms
• Money
• High Value Cargo
• Aliens

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Terrorism International Shipments

• Understanding of How International Transportation
  Worksand the Vulnerable Points that Terrorists
  Seek to Exploit.
• Shipping of export cargo.
• Cargo in transit
• Oil Chemical Tankers
• Dry Bulk carriers
• LNG
• Refineries

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Vulnerability of Ports

• Following characteristics of maritime ports make
  them potential target for terrorists
• Ports of encompass a large operational area and
  is hard to secure either from water or land.
• It is practically impossible to check 100 of
  cargo.
• Many critical coastal targets are located around
  the ports.
• Number of stakeholders is high, with usually
  conflicting priorities.
• Ports employ a high number of people.
• Transportation facilities with high passenger
  concentration are located near ports.

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Vulnerability of Ports(Cont)

• Steps Used by Organized Crime in Cargo Theft
• Locate High Value Shipments--Insiders
• Seize Control--Crews
• Remove and take to drop site--Crews
• Profitably Dispose of CargoFences/Gray Markets
• Split profits--Mob

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Consequences Of Port Attacks

• Direct and indirect economic consequences
• Loss of lives and psychological impact.

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How to protect seaports, cargo and vessels

• Joint cooperation between the U.S. and Foreign
  Governments
• Key megaports will be able to screen containers
  for nuclear, radiological
• weapons of mass destruction, Biological
  contamination

• U.S. DOE provides and installs radiation
  detection monitors and related equipment at no
  cost to the Foreign Government
• DOE provides training to enable Foreign
  Governments to operate the equipment and respond
  to alarms

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How to protect seaports, cargo and vessels (cont)

• US Customs Service Spot-checks International
  Cargo
• Cargo Security Technology
• Tracking Systems
• Containers, locks and seals
• Non-intrusive inspection systems
• Integration of Physical Security Systems

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How to protect seaports, cargo and vessels (cont)

• Protecting Against Security Incidents
• Weapons of Mass Destruction
• Sabotage
• Bombing
• Penetration of facility
• Attack on critical components personnel

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How to protect seaports, cargo and vessels (cont)

• Some current checking containers
• Perimeter Security
• Access Control
• Process Improvement
• Integration infrastructure

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How to protect seaports, cargo and vessels (cont)

• USCG requires ships to report cargoes and crew
  names 24 hours before arriving
• Flying armed marshals on helicopters to board the
  most hazardous ships
• Escorting some ships with a Coast Guard vessel.

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• Section 2.
• Coasts Borders
• Introduction
• Threat
• Vulnerability
• Consequences
• How to protect Coasts Borders

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Introduction

• Annual Imports Arrive Via
• 2,000,000 RAILCARS (Canada Mexico)
• 11,000,000 TRUCKS (Canada Mexico)

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Introduction (Cont)

• U.S. waters host 134 million passengers on
  ferries, and 5 million cruise ships per year.
• Threat of Armed Attacks
• Piracy attacks rose by 57 in 2005
• 257 actual and attempted pirate attacks and
  incidents were recorded throughout the world
• In 2003, 445 attacks in which 21 crew members
  were killed, 71 reported missing and 359 were
  taken hostage. In 2004, number of attacks dropped
  to 325 with a death toll of 30.

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Threat

• Terrorists
• Terrorist cross border activities
• Cross-borders Drugs, Money laundering, smuggling
• Clandestine Support Operations
• Traffic in humans

Terrorism attack in Spain (Madrid)
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Vulnerability

• Critical Coastal Targets
• Bridges, national icons, oil refineries, nuclear
  plantsetc
• Pleasure and Fishing Boats
• Historically used for drug and illegal human
  smuggling.
• Weapons, explosives smuggling, and terrorist
  infiltration
• Waterways and Underwater Security
• Mines
• Hazardous cargo
• Automated Information System

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Vulnerability (Cont)

• By Piracy
• Terrorist attacks against maritime targets take
  place in areas where piracy is also
  prevalentStraights of Malacca, Yemen, and the
  Philippines.
• Common denominators are
• Geography that yields advantages to attackers
• Insufficient maritime law enforcement
  capabilities
• Environment of lawlessness
• Maritime equivalent of a liberated zone

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Vulnerability (Cont)

• The al Qaeda Terrorist Model
• The AQ model for past attacks has also been used
  for maritime attacks.
• Coordination of multiple, simultaneous attacks
• Long-term sophisticated planning and surveillance
  on the part of the perpetrators
• An effective global logistics support
  infrastructure
• The ability to mount attacks using unconventional
  tactics and weapons
• Following the course of least resistance so that
  they have a high chance of success