Hazardous Materials Transportation Security

1
Hazardous Materials Transportation Security

• Best Practices in Security Plan Implementation
• Henry Ward
• The Dow Chemical Company
• January 13, 2004

2
Discussion Outline

• Perspective
• Private Sector Initiatives
• Responsible Care Security Code
• Dow Implementation
• Analysis of Threats, Vulnerabilities
  Consequences
• Implementation of Security Measures
• Closing Thoughts

3
Perspective

• Transportation of hazardous materials is vital to
  our nations economy critical infrastructure.
  We must consider
• The essential role of risk assessment risk
  management in defining solutions to the threat of
  terrorism
• The need for collaboration to draw upon the
  strengths of the public private sectors
• The potential economic consequences of
  over-zealous command-and-control regulations
• Existing safety, security risk management
  programs provide a solid foundation for
  addressing the threat of terrorism
• Private sector initiatives are improving security
  reducing risk
• Government actions should continue to foster a
  strong cooperative environment, build on private
  sector initiatives promote best practice
  solutions to achieve a prudent level of
  security without hindering safety, productivity,
  trade or economic growth

4
Private Sector Initiatives

• American Chemistry Council (ACC) Responsible
  Care Security Code
• Transportation security guidelines
• Site security value chain implementation guides
• Guidance for transportation of poison-by-inhalatio
  n materials by rail
• Carrier, terminal warehouse security guidance
  assessment protocols
• Association of American Railroads (AAR) Terrorism
  Risk Analysis Security Management Plan
• Chlorine Institute Transportation Security
  Management Plans for Road, Rail Barge
• Fertilizer Institute Security Code the Be
  Aware for America / Be Secure for America
  initiative

5
Private Sector Initiatives(continued)

• ACC-AAR Rail Security Task Force guidelines for
  communications, storage in-transit site access
• CHEMTREC the Chemical Sector Information
  Sharing Analysis Center (ISAC)
• AAR Operations Center, Rail Alert Network
  Surface Transportation ISAC
• American Trucking Association (ATA)
  Anti-Terrorism Action Plan, Highway Watch
  Trucking ISAC
• Chemical Sector Cyber Security Information
  Sharing Forum CIDX cyber security practices
  standards
• American Waterways Operators Model Security Plan
• TRANSCAER community emergency plans
• Smart Secure Trade Lanes initiative

6
Responsible Care Security Code(Adopted 2002
Full Implementation 2005)

• Leadership Commitment
• Analysis of Threats, Vulnerabilities
  Consequences
• Implementation of Security Measures
• Information Cyber Security
• Documentation
• Training, Drills Guidance

• Communication, Dialogue Information Exchange
• Response to Threats
• Response to Incidents
• Audits
• Third Party Verification
• Management of Change
• Continuous Improvement

7
Dow Implementation

• Leadership Commitment
• Crisis management team
• Global emergency services security network
• Global supply chain rapid response team
• Analysis of Threats, Vulnerabilities
  Consequences
• Site, supply chain product stewardship-driven
  security vulnerability assessments
• Business distribution risk reviews
• Implementation Documentation of Security
  Measures
• Multi-level intelligence- risk-based security
  plans
• Business supply chain contingency communication
  plans
• Partnerships with suppliers, carriers,
  distributors customers
• Collaboration with law enforcement emergency
  responders
• Operating Discipline Management System
  Order-to-Cash Work Process

8
Dow Implementation(continued)

• Information Cyber Security
• Access to security-sensitive information
• CIDX cyber security practices standards
• Communication, Dialogue Information Exchange
• Outreach through trade associations to improve
  industry awareness preparedness
• Support for collaborative government-industry
  initiatives
• Educating policy makers
• Training law enforcement emergency responders
• Participating in security vulnerability studies
• Establishing communication networks
• Joint security reviews with supply chain partners
• Community Advisory Panels (CAPs) community
  awareness
• 24-hour emergency response protocols

9
Dow Implementation(continued)

• Training, Drills Guidance
• Employee security awareness training, using
  Learn_at_Dow
• Joint training workshops, tabletop drills
  simulated live-action events with local, state
  federal law enforcement emergency responders
• Coordination with LEPCs, CAER TRANSCAER
  activities
• Response to Threats Incidents
• Security alert network threat level action
  plans
• Reporting systems to capture, evaluate respond
  to unusual suspicious activities incidents
• 24-hour emergency response network protocols
  for incident response, investigation follow-up
• Coordination information sharing with value
  chain partners, law enforcement emergency
  responders

10
Dow Implementation(continued)

• Audits Third Party Verification
• Internal Corporate audits of Dow operations, with
  Event Action Tool corrective action tracking
• Dow third-party assessments of supply chain
  partners
• Responsible Care Management System verification
  audits
• Security Code implementation verification by
  third parties
• Government reviews inspections
• Coast Guard port facility vessel security
  regulations
• U.S. Department of Transportation security
  regulations for carriers shippers (HM-232)
• Customs-Trade Partnership Against Terrorism
  (C-TPAT)

11
Dow Implementation(continued)

• Management of Change Continuous Improvement
• Business distribution risk reviews
• Audits, benchmarking, best practice workshops
  information sharing networks
• Learnings from drills incidents
• Collaborative government-industry projects
• National Hazmat Safety Security Operational
  Test
• High-priority chemicals transportation study
• Operation Safe Commerce

12
Analysis of Threats, Vulnerabilities
Consequences

• Basic threat types
• Direct attack on a chemical shipment, resulting
  in the release of hazardous material
• Theft or hijacking of a chemical shipment,
  resulting in subsequent misuse of a hazardous
  material as a weapon of mass destruction
• Container tampering product contamination
• Screening prioritization of products raw
  materials
• Bulk shipments of poison-by-inhalation hazard
  materials
• Bulk shipments of flammable explosive materials
• Products destined for sensitive end-use
  applications
• Other hazardous nonhazardous cargo (bulk
  package)
• Life cycle analysis vulnerability assessment,
  considering the full range of terrorist tactics
  capabilities

13
Implementation of Security Measures

• Identification of available security measures to
• Detect unusual suspicious activities
• Prevent or deter an attack
• Reduce the probability or magnitude of a
  catastrophic event if an attack should occur
• Respond effectively to an event to reduce impact
• Selection of the best combination of baseline
  alert level security measures to achieve the
  desired objective, considering
• Effectiveness
• Timeliness of implementation
• Technical feasibility
• Reliability
• Cost
• There is no silver bullet there is no such
  thing as zero risk or 100 protection

14
Implementation of Security Measures(continued)

• Multi-level security plan identifies the actions
  to be taken for each product grouping each mode
  of transportation, with increasing stages of
  security tied to increasing threat levels
  compatible with complementary to chemical plant
  carrier security plans
• Communications network ensures timely effective
  implementation of countermeasures, as dictated by
  threat level
• Need for feasibility of additional security
  enhancements is assessed on an ongoing basis

15
Closing Thoughts

• Chemical companies their supply chain partners
  are taking responsible action to improve security
  reduce the risks associated with hazardous
  material transportation
• Continued collaboration between government
  industry will help ensure continued progress in
  protecting this key component of our nations
  critical infrastructure
• As we look at options to further enhance
  security, we must strike a balance that achieves
  a prudent level of security without unnecessarily
  hindering productivity, trade or economic growth
  if we fail to do this, the terrorists will have
  won