Macro to Micro:Implementing Security in Logistics

Bob Heiss, U.S. Customs & Border Patrol

Peter Shelley, Siemens One, Inc.

Joe Pfender, Cargo Express, Inc.

Cargo Express, Inc.Yardley, Pennsylvania USA

Department of Homeland Security License No. 15534

Customs Broker

Federal Maritime Commission

License No. 14352N

Ocean Transportation Intermediary

“I think we can scale this”

1997 Baltimore 1998 New York 1999 Portland 2000 Long Beach 2000 Detroit 2001 Dallas

Revenues

1996 $461,8182000 $20,841,656

2001 Inc Magazine “Inc 500”: Fast Growing Private Companies in America (#52)

Disaster Recovery:Back to Basics Mea Culpa

Centralized Operations

SBA

China, China, China

THREAT ASSESSMENT

West Coast Port Shutdown:Preview to Disaster

ILWU v. PMA 29 major ports closed $250 billion/goods $1-2 billion per day Over 300 vessels idled

Post 9/11 Legislation:

Homeland Security Act Aviation & Transportation Security ActThe Trade Act of 2002Maritime Transportation Security ActBio-Terrorism Protection ActThe Patriot Act

24 Hour Rule

CBP “NO-LOAD” order– Invalid cargo descriptions– No address, incomplete address– Fields left blank– To order, to order of shipper– Inconsistent documents

4% Inspections

Container Security Initiative

Hong Kong LeHavre GothenburgSingpaore Hamburg Tanjung PelepasRotterdam La Spezia NagoyaPusan Felixstowe AntwerpBremen Algercias HalifaxTokyo Kobe VancouverGenoa Yokohama Shenzhen

Montreal

Customs & Trade PartnershipAgainst Terrorism (C-TPAT)

Cargo Storage Facility Security PersonnelTerminal/Facility Access Security EducationCargo Reception & AwarenessStorage & Delivery Personnel ScreeningConveyance Lading Identification System

C-TPAT Survey Form:Security & Compliance

1. Does the facility have an alarm system?2. What are the hours of operation?3. When are security guards on duty?4. Is cargo stored outside the building?5. Is exterior fencing adequate?6. Do adequate locking devices protect doors?7. Are gates under surveillance by security?8. Is lighting adequate for general cargo areas?

9. How are visitors controlled?10. Is there a gate house?11. Who controls gatehouse?12. Are visitor records or logs kept?13. Is there an employee I.D.?14. Are visitors subject to search?15. Is there a visitor pass system?16. Is there a gate pass system for truckers?17. Is private vehicle parking permitted?18. Are all packages weighed/marked?19. Are photo ID’s required?20. Are restricted ares marked?

21. Are these procedures double checked?22. What documents are used to receive cargo?23. Are descriptions and counts verified?24. Is cargo secured to prevent tampering?25. Is import and export cargo segregated?26. Is a cargo location system utilized?27. Is hazardous cargo labeled?28. Is hazardous cargo stored separately?29. Are there frequent shortages of cargo?30. Are packages weighed prior to delivery?

31. Are piece counts and weights verified?32. Are seals placed on arriving containers?33. Are seals reconciled upon departure?34. Is there a seal control record procedure? 35. Are last minute shipments accepted?36. Is there a Security Director designated?37. Who employs manages security guards?38. Are close circuit TV’s utilized?39. Is access to monitors controlled?40. Are security patrols conducted?41. Are drug detector dogs available?41. Is drug screening required?