Global Cargo Theft SUPPLY CHAIN Risk Assessment INTELLIGENCE CENTER 2018

INTELLIGENCE CENTER

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The Unit

sensitech.com Greetings from the SensiGuard ™ Table of Contents Supply Chain Intelligence Center (SCIC). North & South America How quickly time flies! Fall is upon United States...... 3 us, which means it is time for Canada...... 5 our annual Global Cargo Theft Risk Assessment. This 2018 Mexico...... 7 edition has undergone a number Paraguay...... 9 of formatting changes to simplify Bolivia...... 11 the information we are providing, Colombia...... 13 and make it more digestible. We believe the new format allows Peru...... 15 for easy navigation and the ability to focus quickly on regions or countries of interest to the reader. Chile...... 17 Argentina...... 19 Our global team of experienced supply-chain security experts Guatemala...... 21 have worked hard to identify supply chain risk around the world Panama...... 23 and summarize it into this comprehensive report. Our goal is to provide you with a high-level overview of issues that affect Venezuela...... 25 supply chains around the world. This report outlines the risk of Brazil...... 27 cargo theft on a global level, highlighting countries where risks EMEA are particularly high, and assists industry decision makers in Belgium...... 29 determining their supply chain security needs. France...... 31 Happy Reading! Germany...... 33 Italy...... 35 Russia...... 37 South Africa...... 39 Spain...... 41 Sweden...... 43 Scott Martino The Netherlands...... 45 Director, Global Intelligence Sensitech Inc. United Kingdom...... 47 APAC China...... 49 India...... 51

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 2 North & South America United States

At a Glance INTELLIGENCE CENTER The United States (U.S.) covers 3.8 million square miles of the North American continent, stretching from the Atlantic Ocean in the east to the Pacific Ocean in the west, and bordered by Canada on the north and Mexico on the south. It has numerous land ports of entry along the southern border with Mexico and the northern border with Canada, which make for a large and diverse supply chain infrastructure.

Capital Washington, D.C. Area 3.8 million mi.2 Population 325.7 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $19.39T 2.9% 3.9% -$46,348M

Source: Trading Economics

HIGHWAYS SEAPORTS The highway system in the United States consists The United States has 926 coastal, Great Lakes, of over 164,000 miles of roadways and is the and inland ports which can handle 82,000 vessels largest highway system in the world. and $4.6 trillion in economic activity each year.

Highway Description Length Direction Seaport State Coast Annual (mi) Capacity (TEUs) I-10 Los Angeles, CA to 2,416 E/W Los Angeles CA West 9.3 million Jacksonville, FL Long Beach CA West 4.9 million I-35 Laredo, TX to Duluth, MN 1,559 N/S New York & New Jersey NY/NJ East 4.5 million I-40 Barstow, CA to Wilmington, NC 2,477 E/W Savannah GA East 4 million I-90 Seattle, WA to Boston, MA 3,052 E/W Seattle WA West 2.1 million I-95 Miami, FL to Houlton, ME 1,835 N/S

RAILROADS The rail system in the U.S. spans over 140,000 mi., and carries over two billion tons of freight each year.

Railway Region Border Connections Seaport Connections Union Pacific Western U.S. 2 6 BNSF Western & Central U.S. 5 8 CSX Eastern U.S. 3 17 Norfolk Southern Eastern U.S. 3 24 sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 3 North & South America United States

Cargo Theft Trends

Cargo theft is centralized around the intersection of major seaports or rail depots and interstate highways, such as in Southern California, Atlanta, Florida, East Texas, Chicago and New England. HIGH RISK HIGH RISK MODUS OPERANDI STATES PRODUCTS Thefts are primarily perpetrated when a shipment is stationary and unattended and tend to target high value merchandise State % Total Product % Total or non-serialized products for ease of liquidation. Typically the Thefts Category Thefts entire tractor and/or trailer are stolen while unattended at a truck California 27% Electronics 19% stop or rest area. Pilferages have been recorded outside of Texas 16% Home & Garden 16% destination facilities and can be indicators of a larger scale theft Florida 12% Food & Drinks 15% to come. New Jersey 9% Building & 13% Resources Weapons Location Georgia 8% Industrial Miscellaneous 10% Technology; N/A Truck Stops; Rest Areas; Inside Information Unattended

Peripheral Risks Cargo Theft Risk Rating: 4

While organized crime dominates the cargo theft landscape, corruption CORRUPTION & ORGANIZED CRIME 3 stemming from these organizations is minimal.

The U.S.’s varied geography and climate make for a wide variety of weather and natural disaster events. Many examples have occurred in the previous WEATHER & NATURAL DISASTERS 4 twelve months.

There is no war and little to no large scale terrorism events that disrupt the WAR & flow of cargo. TERRORISM 1

While uncommon, labor disputes at key freight hubs such as sea and airports have caused disruption in the past and have the ability to do so in the future. LABOR DISPUTES 2

While not as prolific as in other areas of the world, the sophistication with CARGO THEFT 4 which the U.S. cargo thief operates raises the risk level.

While protests and demonstrations are frequent, they rarely block the flow of cargo for any extended time. CIVIL UNREST 2

Despite some areas of disrepair, the U.S. has the largest and most expansive INFRASTRUCTURE 2 national highway system in the world.

General Overview

Over the last 12 months, the SCIC has observed an increase in thefts of Electronics and Mixed Retail loads, as well as advanced theft methods such as Fictitious Pickups and Facility Thefts. The organized cargo thief in the U.S. will continue to be risk averse as more states adopt cargo theft specific legislation. As newer cargo thieves are trained in these advanced methods, the SCIC expects these increases to continue.

The outcome of NAFTA renegotiations is unlikely to have much of an impact on cargo theft trends or hotspots within the United States as most theft activity is not focused around land border crossings. sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 4 North & South America Canada

At a Glance INTELLIGENCE CENTER Canada covers 3.9 million square miles to the north of the United States, with whom it shares its only land border. It is bordered on the west by the Pacific Ocean and on the east by the Atlantic Ocean. Its physical geography limits the international flow of cargo to a few major seaports and land border crossings with the United States.

Capital Ottawa, ON Area 3.9 million mi.2 Population 37.1 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $1.847T 3% 5.8% -$626M CAD

Source: Trading Economics HIGHWAYS SEAPORTS The highway system in Canada is maintained The 18 ports that make up the National Ports majority by the provinces, consists of over System in Canada handle more than 310 million 38,021 kilometers of roadways, including the tons valued at over $400 million each year. Trans-Canada Highway, which travels through all 10 Canadian provinces. The federal government has little authority over Seaport Province Coast Annual the maintenance or expansion of roads and highways as this Capacity (TEUs) is typically handled by the province or territory transportation Montreal Quebec East 9.3 million department. Toronto Ontario East 4.9 million Highway Description Length Direction Metro Vancouver British West 4.5 million (km) Columbia ON-401 Windsor, ON to Quebec border 823 N/S TCH Victoria, BC to St John, NL 7,821 W/E

RAILROADS The rail system in Canada spans over 49,422 km, and is primarily used to transport freight due to the seasonal conditions that can make highway travel dangerous.

Railway Region Border Connections Seaport Connections Canadian National National & Mississippi River 5 9 Canadian Pacific National 5 2

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 5 North & South America Canada

Cargo Theft Trends

Cargo theft is clustered along the ON-401 highway from the U.S. border to Montreal, with the greater Toronto area being the riskiest area in the country for cargo theft. HIGH RISK HIGH RISK MODUS OPERANDI PROVINCES PRODUCTS Thieves in Canada operate in a very similar manner to those in the U.S., with advanced use of technology and fictitious Province % Total Product % Total schemes, as well as the use of inside information. Additionally, Thefts Category Thefts news of organized crime groups infiltrating major seaports under Ontario 78% Home & Garden 33% the guise of legitimate employment for illicit purposes has been Quebec 11% Food & Drinks 24% reported. Data Range: Q3-2017 to Q2-2018 Metals 9% Resources Weapons Location Inside Information; N/A Truck Stops; Major Seaports; Criminal Network Unattended

Peripheral Risks Cargo Theft Risk Rating: 4

Traditional organized crime plays a large role in the cargo theft landscape, but corruption is minimal. CORRUPTION & ORGANIZED CRIME 3

While natural disasters are not frequent, seasonal weather patterns are extremely disruptive to the flow of goods in Canada and can cause significant WEATHER & NATURAL DISASTERS 4 delays if not properly planned for.

There is no war and little to no large scale terrorism events that disrupt the WAR & flow of cargo. TERRORISM 1

Labor disputes that cause delays at freight hubs are rare in Canada. LABOR DISPUTES 1

Cargo theft sophistication and advanced methods match what is seen in the CARGO THEFT 4 United States.

Protests and demonstrations are typically peaceful and roadblocks are not the preferred method of protest. CIVIL UNREST 2

While the national highways system spans the country, the remote nature of much of the country means that infrastructure support can be lacking in INFRASTRUCTURE 3 areas.

General Overview

Quantitative data collection for cargo thefts in Canada remains a challenge. However, analysis of available data and detailed incident reports reflects that the organized cargo thief in Canada is just as sophisticated and prolific as those in the United States.

Without additional cargo theft specific legislation and penalties, advanced theft types and product targeting will likely increase in Canada.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 6 North & South America Mexico

At a Glance INTELLIGENCE CENTER Mexico is a federal republic in the southern portion of North America. Its geographic location and expanding transportation network facilitate its supply chain connections with the rest of the world.

Capital Mexico City Area 761,610 mi.2 Population 132.4 million RISK LEVEL: SEVERE LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $2.34T 4.81% 3.4% USD -$897M

Source: Trading Economics

HIGHWAYS SEAPORTS The roadway network in Mexico is extensive, The inauguration of the new port of Veracruz in covering all areas in the country. upcoming months will bring Mexico’s total port capacity to 530 million tons in 2018.

Highway Description Length Direction Seaport State Coast Annual (km) Capacity (tons) MEX-150D Mexico-Veracruz 388 E/W Manzanillo Colima Pacific 44 million MEX-57D Mexico-Nuevo Laredo 1,174 N/S Lázaro Cárdenas Michoacán Pacific 47 million MEX-15D Mexico-Tijuana 288 NW/S Altamira Tamaulipas Gulf 21 million MEX-180D Coatzacoalcos-Cancun 2,240 N/SE Veracruz Veracruz Gulf 96 million MEX-45D Queretaro-Ciudad Juarez 1,920 N/S

RAILROADS The railway system spans over 26,000 km of the country, connecting industrial zones to sea and land ports.

Railway Region Border Connections Seaport Connections Ferromex North / Central & West 4 7 KCSM North East / Central & West 2 3 Ferrosur Central / South East 0 3

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 7 North & South America Mexico

Cargo Theft Trends

Cargo theft is most prevalent in the central region, with the states of Mexico and Puebla accounting for 46% of all registered thefts in the nation. Overall incidence has increased by approximately 20% in the first half of 2018, with a total of 7,906 recorded events. Criminal groups are becoming increasingly violent. HIGH RISK HIGH RISK MODUS OPERANDI STATES HIGHWAYS Over 70% of thefts occur In-Transit, where cargo vehicles are intercepted by groups of armed men. Criminals employ tactical State % Total Highway % Total jammers to block GPS signals while they unload cargo in nearby Thefts Thefts warehouses. Puebla 24% MEX-150D 21% State of 22% CEM 9.9% Resources Weapons Location Mexico MEX-57 9.8% Tlaxcala 11% GPS Jammers; Police Radios; Hand Guns; In-Transit MEX-136 6.0% Fake Police Cars Rifles Michoacán 10% MEX-14D 5.5% Nuevo León 8%

Peripheral Risks Cargo Theft Risk Rating: 5

Highly susceptible to corruption, with a score of 29 out of 100 on Trading Economics’ Corruption Index (0-Highly Corrupt to 100-Very CORRUPTION & ORGANIZED CRIME 5 Clean). Strong presence of organized crime throughout the country.

Mexico has suffered at least 4 major earthquakes in the last year. Extensive sea coasts make it vulnerable to tropical storms and flooding. WEATHER & NATURAL DISASTERS 4

Little to no incidence. WAR & TERRORISM 1

Occasional strikes by labor unions. These events rarely affect traffic circulation. LABOR DISPUTES 2

Significant rise in cargo theft in the past year, both on roadways and railroads. 2018 is expected to close with a 20% rise in cargo theft as CARGO THEFT 5 compared to 2017.

Frequent road blocks and protests in the states of Oaxaca, Michoacán, Chiapas, and Guerrero. CIVIL UNREST 4

Extensive network throughout, although roadways lack maintenance and INFRASTRUCTURE 4 surveillance in some areas.

General Overview

Although cargo theft has been on the rise in recent years, the upcoming change in the Federal government could provide added stability to the country as a whole, with the main objectives of the incoming administration being to fight corruption and insecurity.

Additionally, uncertainty as to the outcome of NAFTA negotiations is a topic of concern nationwide. If favorable for Mexico, the agreement would certainly result in increased stability and foreign investment in the country. However, a negative outcome would significantly change the landscape of supply chain related services.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 8 North & South America Paraguay

At a Glance INTELLIGENCE CENTER Paraguay is a constitutional republic in the central portion of South America.

Capital Asunción Area 252,798 mi.2 Population 7.1 million RISK LEVEL: ELEVATED LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $72.9B 4% 7.6% USD -$317,484

Source: Trading Economics

HIGHWAYS RIVERPORTS The roadway network in Paraguay is extensive, Paraguay is a landlocked country in which river covering all areas in the country. ports are split between state and private ownership. The country’s twenty private ports handle nearly 90% of soybean exports. Highway Description Length Direction (km) Riverport Department River Annual HWY-7 Asunción-Ciudad del Éste 329 W/E Capacity (tons) HWY-6 Encarnación-Minga Guazú 246 SW/NE Asunción Metropolitan Paraguay 30 million HWY-1 Asunción-Encarnación 374 NW/SE Villeta Central Paraguay 20 million HWY-3 Asunción-Bella Vista Norte 459 SW/NE San Antonio Central Paraguay 15 million HWY-9 Asuncion-Chiquisaca 758 SE/NW Encarnación Itapúa Paraná 14 million

RAILROADS The railway system consists primarily of a 971 km throughout the country connecting to Argentina, Brazil, and Bolivia, as was specified in the International Rail Transport (TIF).

Railway Region Border Connections Seaport Connections Ferrocarriles del Paraguay Northeast / Central, Southwest & West 3 0

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 9 North & South America Paraguay

Cargo Theft Trends

Cargo theft is most prevalent in the central region, with the Asunción and Central departments accounting for 83% of all registered thefts in the nation.

HIGH RISK HIGH RISK MODUS OPERANDI DEPARTMENTS HIGHWAYS Most thefts occur In-Transit, where cargo vehicles are intercepted by groups of armed men, which in some cases Department % Total Highway % Total pretend to be cops, making use of jammers. Also, criminals Thefts Thefts steal cargo from warehouses, restraining security guards to Asunción 44% HWY-7 35% commit the crimes. Central 39% HWY-9 28% Resources Weapons Location Alto Paraná 9% HWY-1 26% GPS Jammers; High power weapons & In-Transit & Canindeyú 2% HWY-6 9% Fake Police Cars Grenades Warehouses

Peripheral Risks Cargo Theft Risk Rating: 3

According to Transparency International, Paraguay is the 135th least corrupt nation out of 175 countries. Insight Crime points out the presence CORRUPTION & ORGANIZED CRIME 5 of organized crime throughout the country as it is an important route for drugs and illegal weapons among South America. Paraguay had a strong flooding from Paraguay River in January 2018, affecting main roads. During the last three years, the country suffered six low WEATHER & NATURAL DISASTERS 4 earthquakes.

According to Trading Economics, the Terrorism Index in Paraguay decreased to 3.60 in 2016, from 3.84 in 2015. WAR & TERRORISM 3

Constant strikes due to nonpayment and against changes in law. LABOR DISPUTES 3

Decrease of 40% in cargo theft in the past year in roadways. The main products stolen are grains, minerals, and Cash-in-Transit. CARGO THEFT 3

Frequent road blocks and protests in the main roads to Asunción, the capital. CIVIL UNREST 3

Extensive network throughout, although roadways lack maintenance due to flooding and surveillance in some areas. INFRASTRUCTURE 4

General Overview

Paraguay is a small and open economy, which has had a 5% growth in its economy during the last decade, greater than that of its neighboring countries, although very volatile due to its strong dependence on natural resources.

Its stable macroeconomic bases, a solid financial system, poverty reduction, and other policies of recent years are paving the way for economic growth with social inclusion in Paraguay.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 10 North & South America Bolivia

At a Glance INTELLIGENCE CENTER Bolivia is a constitutional republic in the western-central portion of South America.

Capital La Paz Area 682,773 mi.2 Population 11.2 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $88.5B 3.17% 3.1% USD -$4M

Source: Trading Economics

HIGHWAYS SEAPORTS The roadway network in Bolivia consists of Bolivia is a landlocked country with maritime port 70,000 km, of roads of which about 10,000 km agreements with Peru and Chile in the Pacific are paved. Mainly the cities of the central axis Ocean, and with Argentina, Brazil and Paraguay in and some other important cities are integrated by the Atlantic Ocean through the Paraguay-Paraná asphalted road structures. waterway.

Highway Description Length Direction (km) HWY-4 Paso Chumgara-Puerto 1,635 NW/SE Suárez HWY-1 Desguesadero-Aguas 1,160 NW/S Blancas HWY-9 Yacuíba-Marbán 888 S/N

RAILROADS The railroad system is divided into two networks: the Oriental Network (FCO) with 1,244 km that connect with Brazil and Argentina, and the Western Network (FCA) with 2,318 km in length that connect with Chile and Argentina.

Railway Region Border Connections Seaport Connections Oriental West / Central, Southwest, Northeast 3 0 Western South / Central & Southeast 2 0

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 11 North & South America Bolivia

Cargo Theft Trends

Cargo theft is most prevalent in the west and central region, with La Paz, Cochabamba and Santa Cruz departments accounting for 84% of all registered thefts in the nation.

HIGH RISK HIGH RISK MODUS OPERANDI DEPARTMENTS HIGHWAYS Criminals take advantage of the slow speed of cargo vehicles on slopes or passing the speed reducers to climb on it from trees, Department % Total Highway % Total cutting the tent to then throw the load to the road without the Thefts Thefts drivers noticing. La Paz 34% HWY-4 45% Santa Cruz 27% HWY-3 31% Resources Weapons Location Cochabamba 23% HWY-1 10% Romanian Roll Knives In-Transit Oruro 6% HWY-12 6%

Peripheral Risks Cargo Theft Risk Rating: 4

According to Transparency International, Bolivia is the 112th least corrupt nation out of 175 countries. Insight Crime points out the presence of CORRUPTION & ORGANIZED CRIME 5 organized crime in the country as it is the air bridge for Peru cocaine and the third world producer of cocaine. Heavy rains caused flooding in February 2018, generating the fall of trees and damaged vehicles. Bolivia suffered frequent medium earthquakes. WEATHER & NATURAL DISASTERS 4

According to Trading Economics, the Terrorism Index in Bolivia decreased to 0.02 in 2016, from 0.04 in 2015. WAR & TERRORISM 2

Protests against changes in the penal system code. LABOR DISPUTES 3

Cargo theft on roadways remains stable. The main products stolen are grains (specifically soybeans), electronics and clothing. CARGO THEFT 4

At the beginning of the year, carriers and doctors blocked main roads in protest of changes in the penal system code. CIVIL UNREST 3

85% of highways are made of gravel or sand, only the cities of the central axis: La Paz, Cochabamba, Santa Cruz and some other INFRASTRUCTURE 5 important cities are integrated by paved roads.

General Overview

The development of the labor market in Bolivia has been hampered in recent years due to economic setbacks and governance.

The main income of the country comes from the export of natural gas, which has collapsed, negatively affecting the budget of the State.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 12 North & South America Colombia

At a Glance INTELLIGENCE CENTER Colombia is a constitutional republic in the northwest portion of South America.

Capital Bogotá Area 709,600 mi.2 Population 49.7 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $750.27B 3.12% 9.1% USD -$0.9B

Source: Trading Economics

HIGHWAYS SEAPORTS The roadway network in Colombia consists of Considered the gateway to South America as its 206,727 km of roads, including National Primary strategical location has become a must for those Network (great highways), National Secondary vessels that need to reach the nations that are Network (department’s roads) and National Tertiary located in the east and west of the country. Network (dirt roads).

Highway Description Length Direction (km) Seaport Department Coast Annual HWY-25 Barranquilla-Ipiales 1,740 NE/SW Capacity (tons) HWY-45 Cienega-San Miguel 1,630 NE/SW Bolívar La Guajira Atlantic 20 million HWY-90 Paraguachón-Moñitos 753 NE/NW Buenaventura Valle del Cauca Pacific 16 million HWY-40 Buenaventura-Puerto 1,570 W/E Carreño

RAILROADS The railroad system is divided into two networks: the Atlantic Network with 1,493 km that connects Bogota with Santa Marta, and the Pacific Network with 498 km in length that connects Buenaventura port with Cali.

Railway Region Border Connections Seaport Connections Atlantic Central / North 0 0 Pacific West / Central 0 0

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 13 North & South America Colombia

Cargo Theft Trends

Cargo theft is most prevalent in the central region and ports, with the Cundinamarca, Cesar, Antioquia, Valle de Cauca and Cauca departments accounting for 67% of all registered thefts in the nation.

HIGH RISK HIGH RISK MODUS OPERANDI DEPARTMENTS HIGHWAYS Criminals puncture the tires of the cargo units or pretend to have a broken down vehicle to steal cargo, which is loaded Department % Total Highway % Total in three small trucks that arrived at the site with the help of a Thefts Thefts motorcycle, while others distract the driver. Cundinamarca 19% HWY-25 34% Cesar 13% HWY-45 19% Resources Weapons Location Antioquia 13% HWY-50 8% Sharp object; clamps Hand Guns In-Transit Valle de Cauca 13% HWY-40 5% Cauca 9% HWY-62 5%

Peripheral Risks Cargo Theft Risk Rating: 4

According to Transparency International, it is the 96th least corrupt nation out of 175 countries. Insight Crime points out the presence of organized CORRUPTION & ORGANIZED CRIME crime in Colombia with approx. 2,000 structures, from which 32 are the main 5 generators of urban violence and transnational drug trafficking networks.

Last year, Colombia suffered the overflow of three rivers, as well as an WEATHER & NATURAL DISASTERS 4 avalanche that left significant damage. The last fifty earthquakes have been medium.

According to Trading Economics, the Terrorism Index in Colombia decreased to WAR & TERRORISM 4 5.6 in 2016, from 5.95 in 2015.

Strikes due to salary increase and against changes in Labor Code. LABOR DISPUTES 3

Although cargo theft on roadways remains stable, it has recently been CARGO THEFT detected that some drivers form alliances with criminal organizations to 4 facilitate cargo unit theft.

A common form of protest in Colombia is the closure of the main access roads to Bogota, Cartagena and Sucre. CIVIL UNREST 3

The 2018 budget for the construction of new roads, as well as INFRASTRUCTURE the maintenance of the national road infrastructure, is $2.1 billion 5 Colombian pesos.

General Overview

The economic expectation in Colombia is that GDP will grow 3% in 2018. This speculation was made without considering the escalation in oil prices.

South America has not been a relevant factor in the administrative policy of the United States regarding the trade deficit and its global growth; so there are no direct pressures in terms of FTAs that have been signed with member countries of the Pacific Alliance, such as Colombia.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 14 North & South America Peru

At a Glance INTELLIGENCE CENTER Peru is a unitary presidential republic in the western portion of South America.

Capital Lima Area 798,767 mi.2 Population 32.6 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $450.1B 1.62% 6.2% USD $1.164B

Source: Trading Economics

HIGHWAYS SEAPORTS The roadway network in Peru totals almost Most shipping is through Lima’s port of Callao. 70,000 km, including about 7,500 km of paved There are seventeen deep-water ports, mainly in roads, 13,500 km of gravel, and 49,000 km of northern Peru, including Salaverry, Pacasmayo, and unimproved earth. Paita and in the south, including the iron ore port of San Juan. Highway Description Length Direction (km) Seaport Department River Annual HWY-1 Zarumilla-Concordia 2,945 N/S Capacity (tons) HWY-3 Vado Verde-Desaguadero 3,193 N/SE Lima Callao Pacific 19 million HWY-5 Nambale-Atalaya 1,861 N/E

RAILROADS The railroad system in Peru consists of 1,884 km of roads, including 1,584 km of standard gauge and 300 km of narrow gauge track. The national railway network consists of two major systems.

Railway Region Border Connections Seaport Connections Central West / Central 0 1 Southern Southwest / Southeast 1 1

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 15 North & South America Peru

Cargo Theft Trends

Cargo theft is most prevalent in the western region and ports, mainly in Lima and Callao departments, accounting for 60% of all registered thefts in the nation.

HIGH RISK HIGH RISK MODUS OPERANDI DEPARTMENTS HIGHWAYS Most thefts occur In-Transit, where cargo vehicles are intercepted by groups of armed men using jammers to block Department % Total Highway % Total GPS signals. Also, warehouse burglary is a frequent mode of Thefts Thefts operation in Peru. Lima 32% HWY-1 50% Callao 28% HWY-3 24% Resources Weapons Location Loreto 12% HWY-5 22% GPS Jammers Hand & Machine Guns In-Transit & Ica 8% HWY-30C 3% Warehouses Ucayali 8% HWY-34C 1%

Peripheral Risks Cargo Theft Risk Rating: 4

According to Transparency International, Peru is the 101st least corrupt nation out of 175 countries. Insight Crime points out the presence of CORRUPTION & ORGANIZED CRIME organized crime in Peru, which most important criminal activities are 5 the trafficking of cocaine, gold and wood. Last year, Peru suffered the overflow of the Piura and Chira Rivers due to a stormy session, from which the damage generated had not yet been totally WEATHER & NATURAL DISASTERS 4 repaired.

According to Trading Economics, the Terrorism Index in Peru decreased to 2.54 in 2016, from 2.98 in 2015. WAR & TERRORISM 3

During the year, there were a number of stoppages, marches and strikes due to social conflicts. In the last months, the number increased from 51 to 202. LABOR DISPUTES 4

An increase in the smuggling of goods is expected due to the increase in the CARGO THEFT 4 Selective Consumption Tax (ISC) approved in June of this year.

A common form of protest in Peru is the closure of the main access roads to Lima, Cusco and Arequipa. CIVIL UNREST 3

The 2018 budget for the construction of new roads (20 national and INFRASTRUCTURE 149 local) is $5.1 billion Peruvian pesos, with an additional $1.5 billion 5 for the reconstruction of bridges and roads in 13 regions.

General Overview

The economic expectation in Peru, according to the International Monetary Fund (IMF) is that GDP growth for will be 3.7% in 2018 and 4.1% in 2019 due to the government’s recent fiscal and macroeconomic policies. The policies are aimed at accelerating the growth of the local economy, which has generated a strong economic recovery in the April-May bimester, where there was a 7.1% growth.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 16 North & South America Chile

At a Glance INTELLIGENCE CENTER Chile is a South American country occupying a long, narrow strip of land between the Andes to the east and the Pacific Ocean to the west.

Capital Santiago Area 291,930 mi.2 Population 18.2 million RISK LEVEL: ELEVATED LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $434B 2.7% 7.2% USD $380M

Source: Trading Economics

HIGHWAYS SEAPORTS Made up of more than 82,000 km, Chile’s Along its 6,435 km of coastline, Chile has a total extensive roadway network spans the entire of 26 sea ports through which 80% of its exterior country. commerce is conducted.

Highway Description Length Direction (km) Seaport Region Coast Annual RN-5 Pan-American Highway 3,363 N/S Capacity (tons) RN-7 Austral Highway 1,240 N/S San Antonio Valparaíso Pacific 17.9 million RN-68 Valparaíso-Santiago 110 E/W Valparaíso Valparaíso Pacific 11.8 million RN-78 Autopista del Sol 133 E/W Antofagasta Antofagasta Pacific 2.5 million

RAILROADS With only 6,782 km of railways, the rail system currently plays a minimal role in cargo transport, however, there are plans to develop railway corridors for the country’s main ports in upcoming years.

Railway Region Border Connections Seaport Connections FEPASA Central/South 0 9

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 17 North & South America Chile

Cargo Theft Trends

While there are no exact records of cargo theft incidence in the country, authorities have identified the area between the ports of San Antonio, Valparaíso, and the city of Santiago as the “Bermuda Triangle” of cargo theft. It is estimated that there are up to 3 incidents per day, with daily losses averaging between 70 and 100 million pesos.

MODUS OPERANDI Criminals have been known to use drones to monitor trucks as they are being loaded within ports, allowing them to identify and track the vehicles they will be targeting. They operate in large groups of 15-20 armed males, intercepting cargo units In-Transit.

Resources Weapons Location GPS Jammers; Drones; 1–2 Vehicles Hand Guns In-Transit

Peripheral Risks Cargo Theft Risk Rating: 3

Corruption Index score of 67 according to Trading Economics (0-Highly Corrupt CORRUPTION & to 100-Very Clean). Little presence of local organized crime. ORGANIZED CRIME 2

Highly susceptible to extreme natural events such as earthquakes, volcanic eruptions, and tsunamis. WEATHER & NATURAL DISASTERS 4

Small-scale domestic terrorist activity, aimed primarily at damaging buildings to make political statements. WAR & TERRORISM 3

Strong laws protecting worker and union rights make the country susceptible to labor strikes. LABOR DISPUTES 3

Cargo theft is mostly prevalent near the capital, Santiago, and surrounding CARGO THEFT 3 port cities.

Frequent protests and political gatherings in major cities like Santiago, specifically around dates of significance (September 11, March 9, May 1). CIVIL UNREST 4

Road conditions among the best in Latin America. INFRA- STRUCTURE 1

General Overview

Chile’s stable democracy, exceptional roadway conditions, and extensive sea coast offer an attractive setting for supply chain networks.

With relatively low incidence of cargo theft as compared to other Latin American countries, areas of concern may include a growing presence of criminal organizations from neighboring countries, as well as its susceptibility to protests, labor strikes, and political demonstrations, which have the potential to interrupt the flow of traffic.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 18 North & South America Argentina

At a Glance INTELLIGENCE CENTER As the second largest country in South America, Argentina shares borders with five other countries and has a South Atlantic sea coast of over 5,000 km.

Capital Buenos Aires Area 1,056,641 mi.2 Population 44.7 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $920B 31.2% 9.1% USD -$789M

Source: Trading Economics

HIGHWAYS SEAPORTS The roadway network in Argentina is comprised 90% of Argentina’s exterior commerce is conducted of over 600,000 km, of which 37,000 km belong through its numerous seaports. to the national highways that connect the capital, Buenos Aires, with other major cities. Highway Description Length Direction (km) Seaport Province Coast Traffic Jan-May RN-1 Au Dr. Ricardo Balbín 50 NE/SE 2018 (tons) RN-3 Buenos Aires-Ushuaia 3,045 NE/S Bahía Blanca Buenos Aires Atlantic 5.7 million RN-9 Pan-American National 1,967 CE/NW Quequén Buenos Aires Atlantic 4.4 million Route Buenos Aires Buenos Aires Atlantic 2.8 million

RAILROADS The country boasts the largest roadway network in Latin America. The freight division in particular connects 13 of the 27 provinces, and reaches all neighboring countries, but is currently only being used to transport 5% of the cargo moving through the country. There are plans to revamp the more than 45,000 km of railway in existence in order to lower freight costs.

Railway Length (km) Region Border Connections Seaport Connections Belgrano 4,897 North 2 2 San Martín 2,899 Central 0 2 Urquiza 1,486 North East 4 3

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 19 North & South America Argentina

Cargo Theft Trends Among the public security objectives for 2018 are the following points aimed at combatting this type of criminal activity: Public crime statistics do not separate cargo theft into its • Finalizing the law banning the use and sale of GPS jammers. own category, making it difficult to obtain concrete figures; • Standardizing the classification of the crime as “Truck Piracy” however, the Inter-company Board of Truck Piracy reported nationwide. that on average, there are four reported cargo thefts daily, the • Creating specialized prosecutors in the city of Buenos Aires, main target being Food & Drinks, followed by Appliances and where 23% of cargo thefts are concentrated. Electronics. HIGH RISK AREAS HIGH RISK HIGHWAYS MODUS OPERANDI Department % Total Highway % Total Cargo theft criminals are referred to as “Asphalt Pirates”, who Thefts Thefts most often work in pairs, targeting smaller cargo units between Buenos Aires 60% RN-9 42% the hours of midnight and 04:00 a.m. Province RN-40 38% Resources Weapons Location Autonomous 23% RN-7 10% GPS Jammers Hand Guns; First/Last-Mile Courier City of Buenos Rifles while Loading/Unloading Aires (CABA) RN-11 5% Interior of 17% Argentina

Peripheral Risks Cargo Theft Risk Rating: 4

Corruption Index score of 39 according to Trading Economics (0-Highly Corrupt CORRUPTION & ORGANIZED CRIME 4 to 100-Very Clean). Drug trade related violence.

Occasional flooding and heavy rains along the eastern sea coast. WEATHER & NATURAL DISASTERS 2

Moderate threat, with a resurgence in the use of small explosive devices in the WAR & TERRORISM 2 last year, particularly in Buenos Aires.

Labor unions and groups of unemployed or underemployed are prone to protest in major cities. LABOR DISPUTES 3

High incidence of cargo theft, particularly on the highways connecting to CARGO THEFT 4 Buenos Aires.

Frequent protests in major cities related to economic and political issues. Road blocks at highway access points are the most frequently used tactic employed CIVIL UNREST 4 by social activist groups.

A large percentage of roads are unpaved, and there is little adherence to/ INFRASTRUCTURE 3 enforcement of traffic laws.

General Overview

Projects to improve the country’s infrastructure over the next five years have the potential to make cargo transport through Argentina more efficient and affordable.

However, cargo theft and organized crime continue to pose a threat to supply chains. The country’s location makes it a prime transnational shipping point for drugs from neighboring countries, and while authorities are taking steps to target cargo theft, particularly in Buenos Aires, criminals often act on inside information, targeting specific shipments to fulfill specific orders. sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 20 North & South America Guatemala

At a Glance INTELLIGENCE CENTER Guatemala is Central America’s largest country and economy. With Mexico at its north and western borders, access to both the Atlantic and Pacific oceans, and Honduras and El Salvador to the southeast, its geographic location creates great potential for trade partnerships.

Capital Guatemala City Area 42,040 mi.2 Population 17.2 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $131.7B 3.79% 2.3% USD -$841M

Source: Trading Economics

HIGHWAYS SEAPORTS Only 45% of Guatemala’s 16,860 km roadway Guatemala has five main seaports, it’s most network is paved. Much of the developed important being Santo Tomás de Castilla, which sits infrastructure is concentrated in major cities, on its Atlantic Coast and moves more than 8 million with connections to other regions of the country tons of cargo annually. remaining predominately unpaved and in poor condition. Seaport Department Coast Cargo Volume Highway Description Length Direction Jan-Jun 2018 (km) (tons) CA-1 Pan-American Highway 691 NW/SE Santo Tomás Izabal Atlantic 4.2 million CA-2 Pacific Highway 339 NW/SE Barrios Izabal Atlantic 2.3 million CA-9 Atlantic Highway 396 NE/SW Quetzal Escuintla Pacific 6.5 million

RAILROADS There are currently no running freight trains in Guatemala. Though there are plans to reopen railways in the future, Ferrocarriles de Guatemala would first have to rehabilitate the largely deteriorated infrastructure. Years of exposure to the elements and theft of railway components have left it inoperable in its current state.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 21 North & South America Guatemala

Cargo Theft Trends

The National Civil Police reported only 37 cargo thefts in the first half of 2018. This represents a 54% increase as compared to the same period of 2017. Though it is likely that cargo theft incidence does not reach the levels of other Latin American countries, it is likely that the low figures are attributed more to underreporting than an actual lack of thefts.

HIGH RISK HIGH RISK MODUS OPERANDI DEPARTMENTS HIGHWAYS Cargo thieves in Guatemala are prone to hijack vehicles In-Transit, threatening drivers with hand guns. Stolen Department % Total Highway % Total merchandise is distributed among the criminal participants and/ Thefts Thefts or sold in local markets and businesses. Escuintla 65% CA9A 53% Guatemala 29% CA-9 41% Resources Weapons Location Quetzaltenango 6% RN-1 6% Cell Phones; 1–2 Vehicles Hand Guns In-Transit

Peripheral Risks Cargo Theft Risk Rating: 4

Corruption Index score of 28 according to Trading Economics (0-Highly CORRUPTION & ORGANIZED CRIME Corrupt to 100-Very Clean). Drug trade related violence and strong 5 presence of local and foreign criminal organizations.

Susceptible to hurricanes and tropical storms along the Caribbean coast that can cause mudslides, landslides, and flooding. Location on the Ring of Fire WEATHER & NATURAL DISASTERS 4 makes it vulnerable to volcanic and seismic activity.

Little to no incidence. WAR & TERRORISM 1

Ineffective enforcement of labor laws with a low rate of unionization make labor strikes extremely rare. LABOR DISPUTES 2

Official records show cargo theft incidence is on the rise, though there is an CARGO THEFT 4 issue of underreporting.

Propensity for large demonstrations with the potential to turn violent. Often disrupt traffic with roadblocks. CIVIL UNREST 3

Largely underdeveloped. Poor road conditions outside of major cities that are INFRASTRUCTURE highly vulnerable to inclement weather, specifically during the rainy season 4 from April to October.

General Overview

The major threats to supply chains in Guatemala are the high levels of drug related criminal activity and the largely underdeveloped infrastructure.

Roadways, in particular, are vulnerable to environmental factors as a large portion of the network remains unpaved. Much more alarming, however, is the strong presence of criminal groups, both local and foreign, which make the country subject to drug and gang related violence. While the threat of cargo theft may be low, shipments may be exposed to drug contamination, and businesses are often subject to extortion. sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 22 North & South America Panama

At a Glance INTELLIGENCE CENTER Panama is located on the narrow bridge of land that connects North and South America. Bounded by the Caribbean Sea and the Pacific Ocean, its well-known Panama Canal connects the two bodies of water, making it a crucial sea route.

Capital Panama City Area 29,120 mi.2 Population 4.17 million RISK LEVEL: ELEVATED LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $100B 1.3% 6.1% USD -$1.1B

Source: Trading Economics

HIGHWAYS SEAPORTS The roadway network covers more than 15,000 With almost 3,000 km of coast line, Panama km, only a third of which is paved. The Pan- hosts a number of natural harbors, the two most American Highway spans the length of the country important being Balboa and Cristobal, which lie on up to Yaviza. With the highway stopping short of either end of the Panama Canal. the Darien Gap, there is no road that crosses the border into Colombia. Seaport Province River Cargo Volume Highway Description Length Direction Jan-June 2018 (km) (tons) CA-1 Pan-American Highway 777 E/W Balboa Panamá Pacific 7.9 million CA-9 Panama-Colon Expressway 59 N/S Manzanillo Colón Atlantic 7.2 million CA-4 La Chorrera Highway 44 E/W Charco Azul Chiriquí Pacific 5.8 million Cristobal Colón Atlantic 5.5 million

RAILROADS Currently, the only functioning railroad is the Panama Canal Railway. Although it only stretches 76 km in length, it has historically been of vital importance to the safe transport of both passengers and freight across the Isthmus of Panama.

Railway Region Border Connections Seaport Connections Panama Canal North / South 0 2

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 23 North & South America Panama

Cargo Theft Trends

Though official crime reports in Panama do not specify the incidence of cargo theft, the National Chamber of Cargo Transport (CANATRACA) has reported a rise in thefts in the Chiriquí province on the Costa Rican border. Traditionally, cargo theft has been most prevalent in the central provinces of Colón and Panama; however, in recent months CANATRACA has noted the expansion of this criminal activity to other provinces connected by the Pan-American Highway.

HIGH RISK HIGH RISK MODUS OPERANDI PROVINCES HIGHWAYS The most commonly used M.O. is the impersonation of police officers to detain vehicles, at which point a group of armed men Province % Total Highway % Total threaten and restrain drivers. However, recently there have been Thefts Thefts reports of incidents in which a woman drugs the driver so he Panama 39% HWY-1 81% can be beaten and robbed by her accomplices. Veraguas 12% HWY-3 11% West Panama 11% HWY-11 4% Resources Weapons Location Colon 11% HWY-50 2% Police Uniforms; Drugs Hand Guns In-Transit Chiriquí 10% HWY-2 2%

Peripheral Risks Cargo Theft Risk Rating: 3

Corruption Index score of 37 according to Trading Economics (0-Highly Corrupt CORRUPTION & ORGANIZED CRIME to 100-Very Clean). Strong presence of criminal organizations and drug trade 4 related violence.

Susceptible to earthquakes. Heavy rains between October and December can cause road closures due to landslides and flooding. WEATHER & NATURAL DISASTERS 3

Little to no incidence. WAR & TERRORISM 1

Labor protests and strikes occur frequently due to inadequate enforcement of labor protections. LABOR DISPUTES 3

Cargo theft incidence is expanding to atypical regions of the country. CARGO THEFT 3

Protests are common. Roadblocks in particular can last days and often result in violent confrontations with police. CIVIL UNREST 4

Highways are well maintained, but smaller roadways are mostly unpaved and INFRASTRUCTURE 3 in poor condition.

General Overview

Panama offers many supply chain advantages in terms of geographic location, serving as a bridge between oceans and continents; however, these very characteristics make it attractive to criminal organizations as well. Similar to other Central American countries, cargo theft takes a back seat to drug trafficking and corruption as supply chain risks.

The country has long served as a key transit point for a variety of illicit trade activities, a situation that has flourished under the high levels of corruption. This makes for an increased risk of cargo contamination, particularly in land and sea ports, and drug related violence. sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 24 North & South America Venezuela

At a Glance INTELLIGENCE CENTER Venezuela is a federal republic on the northern coast of South America, consisting of a continental landmass and a large number of small islands in the Caribbean Sea.

Capital Caracas Area 912,050 mi.2 Population 31.43 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade $482B 200,000% 7.3% USD -$782M

Source: Trading Economics

HIGHWAYS SEAPORTS The roadway network in Venezuela totals almost The most important ports are in the Caribbean Sea. 96,000 km, concentrated in the center-north of the country.

Highway Description Length Direction (km) Seaport Department River Annual Caracas-La Caracas-La Guaira 17 N/N Capacity (tons) Guaira La Guaira Vargas Atlantic 584,000 Troncal 9 Caracas-Miranda 106 N/E Maracaibo Zulia Atlantic 2,190,000 Troncal 1 Caracas-Valencia 155 N/W Troncal 5 San Carlos-Barinas 250 N/SW Centro Morón-Veragacha 125 N/W Occidental

RAILROADS Rail transport has developed little compared to other countries, given the low cost of fuel.

Railway Region Border Connections Seaport Connections Ferrocarril Simón Bolívar Puerto Cabello-Barquisimeto 0 1

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 25 North & South America Venezuela

Cargo Theft Trends Cargo theft and looting have increased in the country. All kinds MODUS OPERANDI of products are stolen by criminals, but food are particularly Criminals throw objects, such as metal, trunk bars, or interlaced critical. In some cases, criminals can take advantage of parts of nails, on the road to force drivers to stop. They also throw rocks highways where there are problems of cellular communication at windshields or threaten drivers with firearms. Sometimes and satellite location. Some of the high risk level areas are: cities armed criminals approach alongside in another vehicle and of Maracay and Maracaibo, avenue Circunvalacion Norte de force the driver to stop. In some cases, groups of armed bikers Barquisimeto, and Lara-Zulia highway. surround the truck until it stops; other times they wait for the truck to slow down. There are records of crowds surrounding trucks like a swarm during a rest stop or some repairs. There is also record of fake police.

Resources Weapons Location Motorcycles similar to police; Hand Guns In-Transit Radio Communicators

Peripheral Risks Cargo Theft Risk Rating: 4

Highly susceptible to corruption at all government levels. Local crime organizations and crime organizations from other countries have been CORRUPTION & ORGANIZED CRIME 5 involved in drug trafficking, smuggling etc.

Venezuela suffered at least five major earthquakes last year. Hurricanes are rare. WEATHER & NATURAL DISASTERS 4

Little to no incidents. WAR & TERRORISM 1

Protests have become commonplace and can affect traffic circulation. LABOR DISPUTES 4

Cargo theft and cargo looting have increased. CARGO THEFT 4

Demonstrations against the government have become commonplace. Many protests block roads, and looters attack shops, warehouses, and CIVIL UNREST 5 vehicles in transit.

Many highways are deficient in signage, lighting, and control points. Many INFRASTRUCTURE 4 have potholes/pits and asphalting problems.

General Overview

The economic crisis in the country is aggravated. Cargo theft and looting are driving up food prices and transportation costs in an already hyperinflationary environment. Population living conditions have deteriorated, causing migration of many Venezuelans to neighboring countries that are looking for employment, access to food and medicines. Unless there are major improvements in the economy, shortages can raise the level of violence and crime in the country.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 26 North & South America Brazil

At a Glance INTELLIGENCE CENTER Brazil is a federal republic in eastern South America, bordering the Atlantic Ocean with a vast coastline. It is the fifth largest country in the world in terms of size. It is a supplier of important raw materials and buys many industrialized products for its consumption.

Capital Brasília Area 8,515,770 mi.2 Population 205.8 million RISK LEVEL: SEVERE LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $2.056B 4.48% 12.3% USD $4.2B

Source: Trading Economics

HIGHWAYS SEAPORTS Despite being responsible for 60% of cargo The most important ports of the country are on transportation in the country, the density of the Atlantic coast. Most national ports are run by the road network is still small when compared with government. other countries of similar dimensions. Highway Description Length Direction Seaport State River Annual (km) Capacity (tons) BR-116 Jaguarão – Fortaleza 4,513 S/NE Santos São Paulo Atlantic 106.5 million BR-101 São José do Norte – Touros 4,772 S/NE Itaguaí Rio de Janeiro Atlantic 52.9 million BR-364 Limeira – Rodrigues Alves 4,324 SE/N Paranaguá Paraná Atlantic 45.6 million BR-381 São Paulo – São Mateus 1,220 SE/SE BR-040 Rio de Janeiro - Brasília 1,178 SE/W

RAILROADS Railway system spans over 29,000 km of the country, connecting mainly areas of mineral extraction and agricultural production to sea and land ports. The extension is considered small compared to the size of the country—rail transport is only responsible for 20% of the country´s cargo transportation.

Railway Region Border Connections Seaport Connections EF-315 North-Northeast 0 1 EF-262 Central - East 0 1 Rede MRS Central - East 0 4 sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 27 North & South America Brazil

Cargo Theft Trends

Cargo theft is most prevalent in southeast region of Brazil, with the states of São Paulo and Rio de Janeiro accounting for more than 80% of all thefts recorded in the country. They are more common in urban areas, committed by small gangs, taking loads worth up to USD $25,000. But there are also very well-planned actions, consisting of large gangs, driver Kidnapping and high losses.

HIGH RISK STATES HIGH RISK MODUS OPERANDI PRODUCTS Most thefts occur by Hijacking, when the load is In-Transit or being unloaded at its destination. Drivers are approached by State % Total Product Type % Total armed men, and the truck is either taken or the drivers are Thefts Thefts forced to follow them to a deserted place where the cargo is São Paulo 41% Miscellaneous 28% transshipped. Rio de Janeiro 41% Food & Drinks 24% Resources Weapons Location Electronics 9% GPS Jammers; Police Radios; Hand Guns; In-Transit; Tobacco 7% Fake Police Car Rifles Final Destination

Peripheral Risks Cargo Theft Risk Rating: 5

Highly susceptible to corruption at all government levels. Strong CORRUPTION & ORGANIZED CRIME 5 presence of organized crime throughout the country.

WEATHER Excessive rains can cause floods in the summer. & NATURAL 1 DISASTERS Little to no incidence. WAR & TERRORISM 1

Occasional strikes by labor unions. These events eventually affect traffic. LABOR DISPUTES 3

There was a 5.7% increase in cargo theft last year, both on roadways CARGO THEFT 5 and urban areas.

Denunciations of corruptions in government caused many protests and block CIVIL UNREST 3 roads.

Extensive network throughout, although roadways lack maintenance and INFRASTRUCTURE 4 surveillance in some areas.

General Overview

Cargo theft has been on the rise in recent years. In 2017, political instability and economic crisis have increased violence and triggered some crime rates, among them, cargo theft. Many reports of corruption have hit government at different levels. The new government was unable to solve the problems of decreased police resources and the growth of organized crime.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 28 EMEA Belgium

At a Glance INTELLIGENCE CENTER Belgium is one of the smallest and most densely populated European countries, and it has been, since its independence in 1830, a representative democracy headed by a hereditary constitutional monarch.

Capital Brussels Area 30,528 km2 Population 11.5 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $42,659 2.17% 6% €2.004B

Source: Trading Economics

HIGHWAYS SEAPORTS Belgium has a total of 154,012 km of road and a Belgium has multiple seaports, as well as inland high accident rate. ports that are important for trade.

Highway Description Length Direction (km) Seaport Department River Annual A1 Hoogstraten to Brussels 81 N/S Capacity (tons) A2 Maasmechelen to Leuven 85 E/W Oostende West Flanders North Sea 1.3 million A3 Liege to Brussels 83 E/W Bruges- West-Flanders North Sea 40 million A4 Brussels to Arlon 188 NW/SE Zeebrugge A10 Ghent to Oostende 55 SE/NW A14 Antwerp to Menen 100 NE/SW

MONTHS TARGETED Month Cargo Theft Percentage Belgium saw the most incidents recorded in October October & November 16% and November, which would be in line with the fact December 15% a lot of companies ship product for the Christmas January 14% market at that time of the year, making it a target for criminals.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 29 EMEA Belgium

Cargo Theft Trends

Unsecured Parking is targeted the most via the M.O. Pilferage, including Curtain Slashing. Most recently there are some reports of criminals disguising themselves as police/customs officials in order to stop trucks with the intention of hijacking them.

HIGH RISK STATES HIGH RISK MODUS OPERANDI PRODUCTS Pilferage (including Curtain Slashing) is the most commonly used M.O. in Belgium. State % Total Product % Total Thefts Thefts Resources Weapons Location Hainaut 45% Miscellaneous 10% Criminal Gangs; Disguises; Sharp Cutting Objects/ Unsecured Antwerp/Liege 8% Personal Care / 9% Blue Lights; Migrants Knives; Bolt Cutters Parking Namur/West 7% Home & Garden / Flanders Clothing & Shoes Food & Drinks 8% Attempted Theft 24% Unknown Product 12% Peripheral Risks Cargo Theft Risk Rating: 4

A growing problem, especially in Brussels, is theft from vehicles, both moving CORRUPTION & ORGANIZED CRIME 4 and parked.

Flooding is a threat along rivers and in areas of reclaimed coastal land, protected from the sea by concrete dikes. WEATHER & NATURAL DISASTERS 3

Terrorists are very likely to try to carry out attacks in Belgium. WAR & TERRORISM 4

Labor strikes occur with some frequency and can cause delays or LABOR DISPUTES 4 cancellations of services for several days at a time.

Most thefts occur at Unsecured Parking and the most stolen product type CARGO THEFT is Personal Care. The preferred M.O. is Pilferage including Curtain Slashing. 4 Criminals are also disguising themselves as police/customs officials to rob trucks. Prior police approval is required for all public demonstrations, and police CIVIL UNREST are present to ensure adequate security for participants and passers-by. 3 Nonetheless, spontaneous demonstrations do take place in response to world events or local developments. Traffic is fast and Belgium’s accident rate is high mainly due to speeding. INFRASTRUCTURE 3 Roads are up to main European standards.

General Overview

Belgium is often ranked as one of the top countries where most cargo thefts are reported partially due to excellent reporting of the Belgian police. It would be considered a transit country through which shipments must pass if on the United Kingdom route to/from certain other countries in Europe. Awareness of the presence of criminals that disguise themselves as police or customs officials is a must. Migrants of late are causing major concerns at parking areas in the country where not only are they trying to force their way onto trucks, but violence seems to be escalating amongst different groups from different countries, having recently led to fatalities and the closing of certain parking locations.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 30 EMEA France

At a Glance INTELLIGENCE CENTER France is a country in Western Europe that borders Andorra, Belgium, Germany, Italy, Luxembourg, Spain, and Switzerland. It has a great infrastructure which benefits the supply chain.

Capital Paris Area 547,557 km2 Population 65.2 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $38,606 2.3% 9.1% €6.248B

Source: Trading Economics

HIGHWAYS SEAPORTS France has 1,028,446 km of highway. France has many seaports with some of the largest being Brest, Calais, Dunkerque, Le Havre, Marseille, and Nantes.

Highway Description Length Direction Seaport Department River Annual (km) Capacity (tons) Northern Motorway Paris-Lile 211 N/S Brest Brittany Celtic Sea 54.8 million Eastern Motorway Paris-Strasbourg 482 E/W Calais Hauts-de-France Strait of 44 million Motorway of the Sun Lyon-Marseille 302 N/S Dover La Provençale Aix-en-Provence- 224 E/W Dunkerque Hauts-de-France French 20.3 million Cote d’Azur North Sea Le Havre Seine-Maritime English 70 million Channel

MONTHS TARGETED Month Cargo Theft Percentage France saw the most incidents recorded in November & December 14% November and December. This is a time of July 13% the year where shipments are in transit for the March & August 11% Christmas period, and darkness falls early, so criminals have more opportunity to operate with less chances of being seen.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 31 EMEA France

Cargo Theft Trends

Unsecured Parking is the most targeted location in France. Tobacco is the most stolen product type.

HIGH RISK HIGH RISK MODUS OPERANDI REGIONS PRODUCTS Pilferage is the most commonly used M.O. in France.

Region % Total Product % Total Resources Weapons Location Thefts Thefts Criminal Gangs; Disguises; Sharp Cutting Unsecured Ile-de-France 28% Tobacco 18% Blue Lights; GPS Jammers Objects/Knives; Parking; Auvergne- 12% Miscellaneous 14% Bolt Cutters; Guns In-Transit; Rhône-Alpes / Auto & Parts 13% Warehouse/DC Pays de la Loire Attempted 10% Normandy 11% Theft Unknown 13% Product

Peripheral Risks Cargo Theft Risk Rating: 4

Transnational organized crime (TOC) operatives reside in France. TOC CORRUPTION & ORGANIZED CRIME syndicates are technically savvy and conduct many of their schemes via 3 cyber platforms.

Forest fires can occur anywhere in southern France during the summer months but especially along the Mediterranean coast and on Corsica. WEATHER & NATURAL DISASTERS 4

Terrorists are very likely to try to carry out attacks in France. WAR & TERRORISM 4

Strikes are a commonly used method in labor disputes in France and can disrupt the supply chain for extensive periods of time. LABOR DISPUTES 4

Reports of burglaries taking place while truck drivers sleep in their vehicles. CARGO THEFT Also, attempts by illegal migrants to enter trucks while stationary or in slow 4 moving traffic.

Protests and demonstrations routinely occur throughout France, especially in major cities. These protests range from concern over work conditions/wages to CIVIL UNREST the environment. While protests are generally non-violent, some have resulted in 4 property damage and minor injuries.

France has excellent ratings for its road, rail, and air infrastructure, putting it INFRASTRUCTURE 2 amongst the EU top performers for these indicators.

General Overview

The number of cargo theft incidents reported in France remains low. This is most likely due to underreporting, instead of a lack of incidents actually occurring. Of the known incidents in France, Unsecured Parking is the location where drivers should be most vigilant and Pilferage occurs the most. Hijacking also occurs here. Migrants have been seen to attempt to gain entry to trucks at parking areas across France, not just in the northern parts.

Apart from theft, the supply chain in France can easily be negatively affected by terrorist attacks, forest fires, and strikes by the workforce. sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 32 EMEA Germany

At a Glance INTELLIGENCE CENTER Germany is located in the north- central part of Europe. One of the world’s leading exporters, Germany has consistently maintained a surplus with its trading partners.

Capital Berlin Area 357,021 km2 Population 82.3 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $45,229 2% 3.4% €21.792B

Source: Trading Economics

HIGHWAYS SEAPORTS Germany has 645,000 km of highway. Germany The German seaports are of vital importance for the is considered a transit country; many of the country’s industry and economy, handling almost a highways are important for freight transport. quarter of Germany’s imports and exports.

Highway Description Length Direction Seaport Department River Annual (km) Capacity (tons) A1 Heiligenhafen to 749 N/S Rostock Mecklenburg- Baltic Sea 26.9 million Saarbrücken Vorpommern A2 Oberhausen to Werder 473 W/E Wilhelmshaven Lower-Saxony Weser 26.2 million A4 Aachen to Goerlitz 583 W/E Hamburg Hamburg Elbe 136.5 million A7 Handewitt to Füssen 961 N/S A44 Dortmund to Fuldabrück 157 E/W

MONTHS TARGETED Month Cargo Theft Percentage Germany saw the most incidents recorded in November 18% November, January, and February, which are January 15% months when darkness falls early, allowing February 11% criminals to operate with less fear of being seen.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 33 EMEA Germany

Cargo Theft Trends MODUS OPERANDI The most commonly used M.O. in Germany is Curtain Slashing, Unsecured Parking is the most targeted location in Germany. which occurs at the many Unsecured Parking areas across the Auto & Parts is the most stolen product type. country. The lack of secure parking is a major issue throughout the whole of Europe. Other M.O.’s seen are Pilferage (also from HIGH RISK HIGH RISK Unsecured Parking) and Facility Thefts. Rolling thefts have also STATES PRODUCTS been seen to occur in the country. There has been an increase in the level of violence towards drivers by criminals this year, State % Total Product % Total including reports that drivers have been gassed while asleep in Thefts Thefts their trucks. Lower Saxony 24% Auto & Parts 15% Resources Weapons Location Bavaria 16% Electronics/Home & 4% Criminal Sharp Cutting Unsecured Parking at laybys, North Rhine- 13% Garden/Clothing & Shoes/Miscellaneous Gangs Objects/Knives; roadside, industrial estates, Westphalia Bolt Cutters; Gas unattended rest areas Building & Industrial 3% and truck stops; Warehouse/DC Attempted Theft 51% Unknown Product 7%

Peripheral Risks Cargo Theft Risk Rating: 4

Reported crime being at its highest level since 2005. CORRUPTION & ORGANIZED CRIME 4

Germany is favoured with a generally temperate climate, especially in view of its northerly latitudes and the distance of the larger portions of its territory WEATHER & NATURAL DISASTERS 3 from the warming influence of the North Atlantic Current.

Terrorists are very likely to try to carry out attacks in Germany. The German government has announced that increased security has been put in place as a WAR & TERRORISM 4 precaution at public buildings, major events, transport hubs, and large public gatherings. Germany has a reputation for industrial peace when compared to other EU Member States; however, strikes do occur in different sectors every year. LABOR DISPUTES 3

Most thefts occur at Unsecured Parking via Curtain Slashing. The preferred CARGO THEFT 4 stolen product type is Auto & Parts.

Many well-planned and publicized demonstrations protesting government CIVIL UNREST policies draw thousands of participants, and spontaneous demonstrations 4 concerning education and other socio-economic issues occur almost daily.

Roads in Germany are generally of a good standard, but can experience deep and uneven rutting, causing grooves to form on seemingly flat and level road INFRASTRUCTURE 4 surfaces. This often results in a hard and unexpected steering pull, which can lead to accidents for some drivers.

General Overview

Germany does not register cargo theft in a central database yet, making it difficult to get an accurate picture of the depth of the problem. However, it is known that Curtain Slashing is very common in the country and causes many losses in the supply chain.

The most targeted goods are Auto & Parts and most thefts occur at Unsecured Parking. On many occasions curtains are slashed, but because the cargo is not what the criminal is looking for, nothing is stolen. This still has a negative impact to the supply chain through cost of curtain repairs and shipment delays.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 34 EMEA Italy

At a Glance INTELLIGENCE CENTER Italy is located in south-central part of Europe. Jutting out deeply into the Mediterranean Sea, the country occupies a position of strategic importance, enhancing its trading potential not only with eastern Europe but also with North Africa and the Middle East.

Capital Rome Area 301,340 km2 Population 60.6 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $35,220 1.5% 10.9% €5.071B

Source: Trading Economics

HIGHWAYS SEAPORTS Roads are relatively well maintained, and extensive Because of the way Italy is positioned in Europe, lighting exists. Vehicle accidents are common. seaports are present along almost the entire border. Due to the collapse of a bridge, causing multiple fatalities, the Italian government is re-evaluating the conditions of the bridges in the country.

Highway Description Length Direction Seaport Department River Annual (km) Capacity (tons) A1 Milan to Naples 386 NW/SE Augusta Sicily Mediterranean Sea 33.9 million. A3 Naples to Reggio Calabria 487 N/S Cagliari Sardinia Tyrrhenian Sea 55 million A4 Turin to Trieste 519 W/E Genoa Liguria Ligurian Sea 57 million A14 Bologna to Taranto 736 NW/SE Livorno Tuscany Mediterranean Sea 18 million A16 Naples to Cerignola 184 W/E

MONTHS TARGETED Month Cargo Theft Percentage Italy saw the most incidents recorded in July, May July 17% and January. May 14% January 10%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 35 EMEA Italy

Cargo Theft Trends

Underreporting and the lack of data sharing create some difficulty of obtaining a clear picture of cargo theft trends in Italy. Based on the data gathering of the SCIC, Facility Theft, followed by Theft of Full Truckload, Hijacking and Vehicle Theft were the main M.O.’s.

HIGH RISK HIGH RISK MODUS OPERANDI STATES PRODUCTS Italy is one of the few countries in the region where Hijackings occur. Hijacking often involves violence. Criminals are known State % Total Product % Total to use stolen vehicles in order to steal trucks, sometimes using Thefts Thefts GPS jamming equipment. Facility Theft is a commonly used Apullia 16% Auto & Parts 20% M.O as well. Lombardy 12% Food & Drinks / Metals 16% Campania/ 11% Miscellaneous 7% Resources Weapons Location Emilia- Attempted Theft 9% Criminal Gangs; Guns; Vehicles Warehouse/DC; In-Transit; Romagna Unknown Product 7% GPS Jammers (Usually Stolen) Unsecured Parking

Peripheral Risks Cargo Theft Risk Rating: 4

There are multiple organized crime rings active in Italy that also use CORRUPTION & ORGANIZED CRIME cargo crime either as a way to facilitate other criminal activities or as 5 a target.

Many parts of Italy lie on a major seismic fault line. Minor tremors and earthquakes are a regular occurrence. Major earthquakes have occurred with WEATHER & NATURAL DISASTERS 4 multiple fatalities.

Terrorists are likely to try to carry out attacks in Italy. WAR & TERRORISM 4

Strikes are permitted in practice, but typically short-term to draw attention to specific areas of concern. In addition, workers (or former employees) commonly LABOR DISPUTES 4 participate in demonstrations to show opposition to proposed job cuts or facility closings, but these demonstrations have not threatened investments.

The most targeted location is Warehouse/DC and the most stolen product type is Auto & Parts. Most thefts occur by Facility Theft. CARGO THEFT 4

Public demonstrations happen frequently. Some factions have organized protests that have turned violent. CIVIL UNREST 4

Roads are relatively well maintained, and extensive lighting exists. Vehicle accidents are common, and accidents involving pedestrians are also common. INFRASTRUCTURE 3

General Overview

Italy is one of many countries in the region where underreporting occurs. However, the incidents that are reported show a high rate of violence being used in cargo theft with Hijacking being amongst the highest M.O.’s used in the region.

Most thefts are recorded at Warehouse/DC; Auto & Parts is the most targeted product type.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 36 EMEA Russia

At a Glance INTELLIGENCE CENTER Russia extends across the whole of northern Asia and the eastern part of Europe, incorporating a great range of environments and landforms. It has varied market segments spread across eleven time zones. Capital Moscow Area 17.1 million km2 Population 143.9 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $24,766 2.5% 4.7% $15.555B

Source: Trading Economics

HIGHWAYS SEAPORTS Thoroughfares marked as major routes on maps In order to handle the sheer tonnage of trade can be two-lane roadways, and some routes have turnover, Russia’s Baltic, Arctic, Pacific and Black heavy truck and bus traffic, while others have poor Sea coasts have world-class ports. or nonexistent shoulders. Asphalt quality varies widely, and roads outside of cities are often poorly illuminated. Seaport Department River Annual Capacity (tons) Highway Description Length Direction (km) Kaliningrad Northwestern Baltic Sea 7.6 million M2 Moscow-Crimea 720 N/S Nakhodka Far Eastern Sea of Japan 13.5 million M4 Moscow-Novorossiysk 1550 N/S Novorossiysk Southern Black Sea 131.4 million District M5 Moscow-Ural Mountains 1879 E/W

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 37 EMEA Russia

Cargo Theft Trends

The amount of cargo theft reported in Russia is very limited but that doesn’t mean that cargo theft is not a problem in Russia. In fact, it is believed to be a major problem with violence involved on many occasions. Hijackings, Deceptive Pickups, Pilferage, Theft of Full Truckloads, and Facility Thefts all occur but are either not reported or the incident is not shared outside of law enforcement.

HIGH RISK STATES HIGH RISK MODUS OPERANDI PRODUCTS Based on the incident data during the timeline used (Oct. 2017 to Sept. 2018) gathered by the SCIC, Facility Theft is the M.O. State % Total Product % Total that occurred most, followed by Theft of Full Truckload. This is Thefts Thefts a very limited data set, so it should be noted that many other Central District 67% Food & Drinks 67% M.O.’s are also believed to occur. Northwestern 33% Miscellaneous 33% province Resources Weapons Location Criminal Gangs Guns; Knives Warehouse/DC; Unsecured Parking

Peripheral Risks Cargo Theft Risk Rating: 4

Russia’s judicial system remains heavily biased in favor of the state, CORRUPTION & ORGANIZED CRIME which often leaves investors with little recourse in the event of a 5 legal dispute with the government. High levels of corruption among government officials compound to this risk. There are occasional occurrences of flooding in southern regions, and forest fires, mainly in the far eastern areas and Siberia. WEATHER & NATURAL DISASTERS 3

Terrorists are very likely to try to carry out attacks in Russia. WAR & TERRORISM 4

In recent years, the number of labor protests in Russia, including various forms of work stoppage, has increased significantly compared to previous years, LABOR DISPUTES 3 but the number of legally constituted collective labor disputes and strikes has remained very low.

Cargo theft is still largely underreported in Russia. Limited incidents recorded CARGO THEFT show Warehouse/DC is the most targeted location and Food & Drinks is the 4 most stolen product type.

While numerous public demonstrations do take place, local officials selectively CIVIL UNREST deny permission to assemble or offer alternate venues that are inconveniently 3 or remotely located.

Thoroughfares marked as major routes on maps can be two-lane roadways, INFRASTRUCTURE and some routes have heavy truck and bus traffic, while others have poor 4 or nonexistent shoulders. Asphalt quality varies widely, and roads outside of cities are often poorly illuminated.

General Overview

Like many countries in the EMEA region, Russia has massive underreporting when it comes to cargo theft. Despite the lack of data, it is believed to be one of the countries with a high amount of cargo crime. This is likely due to the large volumes of cargo crossing the country, through large desolated areas. There are also reports of the use of violence during thefts, even leading to the killings of multiple truck drivers throughout the years.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 38 EMEA South Africa

At a Glance INTELLIGENCE CENTER South Africa is located at the southern tip of the African continent. It enjoys relative macroeconomic stability and a largely pro-business environment.

Capital Cape Town Area 1,22 million km2 Population 57.4 million RISK LEVEL: SEVERE LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $12,295 5.1% 27.2% ZAR 11.99M

Source: Trading Economics

HIGHWAYS SEAPORTS South Africa has 747,014 km of highway. The South African Government views the country’s ports and terminals as key engines for economic growth.

Highway Description Length Direction Seaport Department River (km) Cape Town Western Cape South Atlantic Ocean N3 Johannesburg-Durban 577 N/S Durban KwaZulu Natal Indian Ocean N2 Cape Town-Ermelo 2,255 S/NE Port Elizabeth Eastern Cape Indian Ocean Richards Bay KwaZulu Natal Indian Ocean

RAILROADS South Africa has 20,986 km of railroads.

Railway Region Border Connections Seaport Connections North-South corridor KwaZulu-Natal 8 3

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 39 EMEA South Africa

Cargo Theft Trends

Cargo theft in South Africa is usually committed with the use of a high level of violence with most of the incidents occurring In-Transit. Criminals also pose as Fake Police to coerce truck drivers to stop, to facilitate them stealing both the truck and cargo.

HIGH RISK STATES HIGH RISK MODUS OPERANDI MONTHS The use of heavy firearms and explosives is common practice and drivers are often shot. State % Total Month % Total Thefts Thefts Resources Weapons Location Gauteng 43% March 16% Criminal Gangs; Vehicles; Firearms and In-Transit KwaZulu-Natal 18% August 13% Disguises; Blue Lights explosives Eastern Cape 14% June 12%

Peripheral Risks Cargo Theft Risk Rating: 5

Criminals may target vehicles on the highways—seldom during daylight hours—typically by placing debris in the road and waiting for a vehicle to stop after hitting the object. In another CORRUPTION & ORGANIZED CRIME 5 frequently used tactic, an individual (or several working together) with a vehicle on the side of the road with an apparent mechanical problem may attempt to flag down passing traffic for help. During the rainy season, thunderstorms, lightning strikes, or water damage often disrupt power to alarm systems, traffic lights, and other electronic WEATHER & NATURAL DISASTERS 4 equipment.

Terrorists are likely to try to carry out attacks in South Africa. WAR & TERRORISM 4

Labor strikes and protests occur frequently and can be violent and disruptive. LABOR DISPUTES 4

The most targeted location is In-Transit and the most stolen product type CARGO THEFT is Cash-in-Transit. The preferred M.O. is Hijacking. Violence is frequently 5 used.

Protests against the government occur frequently and can be violent and disruptive. CIVIL UNREST 4

South Africa’s Economic Development Minister says infrastructure INFRASTRUCTURE development is a key driver of growth prospects, with rail and water 4 infrastructure the focal areas.

General Overview

Where the SCIC is able to record cargo theft data, South Africa has the highest amount of violence used. Criminals do not shun from using heavy firearms and explosives.

The number of incidents are underreported but when losses occur, it often involves full truckloads or large parts of loads. There has also been a large increase in the number of Cash-in-Transit thefts.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 40 EMEA Spain

At a Glance INTELLIGENCE CENTER Spain is located in the southwest of Europe on the Iberian Peninsula, which also consists of Portugal. Spain is the fourth-largest economy in the Eurozone, post-Brexit.

Capital Madrid Area 505,990 km2 Population 46.7 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $34,272 2.2% 15.3% €2.448B

Source: Trading Economics

HIGHWAYS SEAPORTS The road network in Spain spans over 683,000 km Spain ports play an important role in the export and with over 16,000 km being motorways/highways. import trade of the country.

Highway Description Length Direction Seaport Department River Annual (km) Capacity (tons) A-1 Madrid-Irun 371 N/S Algeciras Cádiz Bay of Gibraltar 50.8 million R-1 Madrid-El Molar 61 N/S Barcelona Barcelona Balearic Sea 61 million AP-1 Burgos-Eibar 87.35 N/S Bilbao Vizcaya Bay of Biscay 34.2 million A2 Madrid-Barcelona 504 SW/NE Valencia Valencian Balearic Sea 57.5 million AP-7 Figueres-Estepona 1007 NE/SW Community

MONTHS TARGETED Month Cargo Theft Percentage Spain saw the most incidents recorded in July, July 18% February and April based on the incident data February 14% collected by the SCIC. April 12%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 41 EMEA Spain

Cargo Theft Trends

Pilferage from Unsecured Parking and Facility Thefts from Warehouse/DC occur the most based on the limited cargo theft data available in Spain. Cargo theft is very underreported in Spain. Rolling thefts have been known to occur as have Deceptive Pickups. Many parking areas on the routes to and from Madrid are known to be targeted by cargo theft gangs.

HIGH RISK STATES HIGH RISK MODUS OPERANDI PRODUCTS Pilferage including Curtain Slashing from Unsecured Parking. State % Total Product % Total Thefts Thefts Resources Weapons Location Castile and 16% Auto & Parts 28% Criminal Gangs Sharp Cutting Unsecured Parking at León/Valencian Metals 16% Objects/Knives; laybys, roadside, industrial Community Electronics 12% Bolt Cutters estates, unattended rest Community of 14% areas and truck stops Madrid/Catalonia Attempted 12% Theft Extremadura/ 7% Asturias Unknown 18% Product Peripheral Risks Cargo Theft Risk Rating: 4

The Catalan capital is one of the preferred destinations for the Mafia, which has historically chosen Barcelona as a place to live given its proximity to Italy, CORRUPTION & ORGANIZED CRIME 4 and the fact that they can go unnoticed there. The Catalan coast has also historically been a place where the Mafia launder their ill-gotten gains. Forest fires occur frequently in Spain (including Spanish islands) during the summer months. WEATHER & NATURAL DISASTERS 3

Terrorists are likely to try to carry out attacks in Spain. Attacks could be WAR & TERRORISM 4 indiscriminate.

Labor disputes can be accompanied by strikes or threats to the labor force. This can disrupt the supply chain. LABOR DISPUTES 4

Highly underreported. The known incidents consist mostly of Pilferage at CARGO THEFT Unsecured Parking and Facility Thefts from Warehouse/DC. Auto & Parts is the 4 most stolen product type.

General strikes can cause disruptions to public transportation, a temporary shutdown in public services, and large street protests. These events typically CIVIL UNREST 4 have the greatest effect on public transportation and the industrial sectors; traveling is difficult within areas near the protests.

Spain has an excellent network of roads and highways. INFRASTRUCTURE 2

General Overview

Like many countries, there is massive underreporting in Spain. This undermines the ability to abstract cargo theft trends.

There are organized crime groups active in Spain and for at least some of these groups, cargo is a target. Of the known incidents, Pilferage at Unsecured Parking occurs the most followed by Facility Thefts from Warehouse/DC. Auto & Parts seems to be highly targeted. There have also been reports of rolling thefts and Deceptive Pickups.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 42 EMEA Sweden

At a Glance INTELLIGENCE CENTER Sweden is located on the Scandinavian Peninsula in northern Europe. Sweden’s high living standards result from an economy that performs optimally because of regulatory efficiency and open-market policies that enhance flexibility, competitiveness, and large flows of trade and investment. Capital Stockholm Area 447,435,000 km2 Population 10.1 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $46,949 2.1% 7.2% SEK -500M

Source: Trading Economics

RAILROADS SEAPORTS Sweden has 14,127 km of railroad. Major seaports in Sweden are Brofjorden, Goteborg, Helsingborg, Karlshamn, Lulea, Malmo, Stockholm, Trelleborg, and Visby.

Railway Region Border Seaport Seaport Department River Annual Connections Connections Capacity (tons) Western Multiple East & North- Ports of Stockholm & Gothenburg Port Västra Göta älv 41 million Main Line West Gothenburg Götaland Southern Multiple None Copenhagen Malmö Helsingborg Skåne Øresund 9 million Main Line Port AB Copenhagen Copenhagen Øresund 15.5 million East Coast Multiple East border Ports Stockholm & Malmo port Line Sundsvall

MONTHS TARGETED Month Cargo Theft Percentage The incidents were evenly distributed over the June 17% months, with the exception of the end of 2017, February 15% which had relatively low numbers of incidents January 15% recorded. sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 43 EMEA Sweden

Cargo Theft Trends

The M.O.’s that were most recorded in Sweden are by far Pilferage and Vehicle Theft. Almost all incidents were recorded at Unsecured Parking and the most targeted product type was Auto & Parts. Criminals have also used the M.O. Rolling Theft.

HIGH RISK STATES HIGH RISK MODUS OPERANDI PRODUCTS Pilferage is the most common M.O. in Sweden. State % Total Product % Total Thefts Thefts Resources Weapons Location Skåne 26% Auto & Parts 14% Criminal Gangs; Vehicles Sharp Objects Unsecured Parking Stockholm 25% Electronics 1% Västra Götaland 15% Food & Drinks 1% Unknown 84% Product

Peripheral Risks Cargo Theft Risk Rating: 4

Crime levels are low although there is some petty crime. Violent crime does CORRUPTION & ORGANIZED CRIME occur; instances of gang related crime, including shootings and explosions, 3 have been reported in Malmö and Gothenburg.

A lot of Sweden is forested and major forest fires and storms can be a threat to timber production. The vulnerability of society in the face of natural WEATHER & NATURAL DISASTERS 4 disasters is expected to increase as a result of climate change, population increase, and urbanisation. The overall terrorist threat to Sweden is assessed to be elevated. The elevated threat level includes the possibility of a terrorist attack in 2018. WAR & TERRORISM 3

The Swedish model implies that the social partners are responsible for wage LABOR formation without any interference from the state. In collective agreements they 1 specify the labour market conditions. This way of working has avoided severe DISPUTES labour market disputes for a long time.

Unsecured Parking is the most targeted location; Pilferage is the most used CARGO THEFT 4 M.O.; Auto & Parts was the most stolen product type.

There is little to no civil unrest in Sweden. Demonstrations can occur but they are seldom violent. CIVIL UNREST 2

Sweden possesses a modern transportation network, regarded as a vital INFRASTRUCTURE 2 component of equitable wealth distribution.

General Overview

Sweden is a relatively safe country, but still comes up in the top five of highest numbers of cargo crime recorded. This is because of excellent reporting by the Swedish police. The trends that can be seen are that all thefts recorded are at Unsecured Parking and the most targeted product type is Auto & Parts.

Another M.O. that was located in Sweden was Rolling Theft.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 44 EMEA The Netherlands

At a Glance INTELLIGENCE CENTER The Netherlands is among the most prosperous countries in the world, with an excellent infrastructure and a special unit within the police force that focuses on mitigating cargo theft.

Capital Amsterdam Area 41,543 km2 Population 17.1 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $48,473 2.1% 4.9% 56.9

Source: Trading Economics

HIGHWAYS SEAPORTS The Netherlands has 139,124 km of highway. Next to sea ports, The Netherlands also has multiple major ports located at rivers like the Port of Rotterdam and the Port of Amsterdam.

Highway Description Length Direction Seaport Department River Annual Capacity (km) (tons) A13 Rijswijk-Rotterdam 17 N/S Port of North Ijmeer 81.3 million A10 Beltway Coenplein 32 Beltway Amsterdam Holland A12 The Hague-German Border 137 W/E Vlissingen Zeeland WesterSchelde 66.6 million A16 Rotterdam-Breda 58 N/S Port of South- Maas 232.8 million Rotterdam Holland (first 6 months 2018) A2 Amsterdam-Limburg 217 N/S

RAILROADS The Netherlands has 3,058 km of railway.

Railway Region Border Connections Seaport Connections Rotterdam-Genua South Holland 3 2

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 45 EMEA The Netherlands

Cargo Theft Trends

The most recorded M.O.’s in the Netherlands are Curtain Slashing, Pilferage and Vehicle Theft. Most incidents were recorded at Unsecured Parking. with the most targeted product type being Auto & Parts. There have been reports of criminal gangs that apply Rolling Theft.

HIGH RISK STATES HIGH RISK MODUS OPERANDI HIGHWAYS Curtain Slashing is the most commonly used M.O., accounting for 48% of the incidents recorded. State % Total Highway % Total Thefts Thefts Resources Weapons Location North Brabant 39% A67 7% Vehicles; Firearms; Unsecured Parking South Holland 20% A2 4% Armed Criminals / Violence Sharp Cutting Limburg 17% A1 3%

Peripheral Risks Cargo Theft Risk Rating: 4

In 2017, the Dutch National Police reported at least 28 drug-related murders CORRUPTION & ORGANIZED CRIME and eight murders connected to corruption and organized crime. The police 3 are widely seen as professional and have low tolerance for corruption.

Mild earthquakes occur in the northern part due to gas winning and since The WEATHER & NATURAL Netherlands is below sea level, flooding occurs occasionally. DISASTERS 2

The threat level is being maintained at 4 (on a 1 to 5 scale). Level 4 indicates that the threat of an attack is real. WAR & TERRORISM 4

An average of 8 strike days/year. LABOR DISPUTES 2

Unsecured Parking is the most targeted location; Curtain Slashing is the most CARGO THEFT 4 used M.O.; Auto & Parts is the most stolen product type.

Civil demonstrations, which range from small groups to thousands of participants, are common and are often directed at the government, focusing on CIVIL UNREST 3 matters involving foreign relations, domestic policy, or economic developments.

Marks for its infrastructure across all modes are the highest across the EU. INFRA- The Netherlands also scores highly for the timeliness of shipments. STRUCTURE 1

General Overview

Even though the cargo theft rates in The Netherlands are dropping, it still remains a highly targeted area due to the large volumes that are being transported through it, being a transport hub.

Auto & Parts was the most recorded product type stolen and Unsecured Parking remains a highly targeted location.

The Netherlands has also seen the rise of illegal migrants hiding in trucks to travel on to the U.K. and other countries in the EU.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 46 EMEA United Kingdom

At a Glance INTELLIGENCE CENTER The United Kingdom is a leading trading power and financial center and is the third-largest economy in Europe after Germany and France. However, there might be some negative changes linked to Brexit.

Capital London Area 242,495 km2 Population 66.6 million RISK LEVEL: HIGH LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $39,753 2.5% 4% -£1.861B

Source: Trading Economics

HIGHWAYS SEAPORTS The U.K. has 394,428 km of highway. Approximately 96% of the volume of all U.K. import/ export trade enters the U.K. through its ports.

Highway Description Length Direction Seaport Department River Annual (km) Capacity (tons) M3 London-Leeds 94.3 N/S Immingham Yorkshire and Humber 59 million M5 Great Bar-Exminster 262.2 E/W the Humber M6 Rugby-Gretna 373.7 N/S Port of London Greater London Thames 45 million M1 London-Leeds 311 N/S Tees & North East Tees 33 million Hartlepool M11 London-Cambridge 88.5 N/S Felixstowe East England Orwell 17 million

MONTHS TARGETED Month Cargo Theft Percentage The United Kingdom saw the most incidents January 14% recorded in January, July, June, and November. July 12% June/November 11%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 47 EMEA United Kingdom

Cargo Theft Trends

Unsecured Parking is mostly targeted via Curtain Slashing in the U.K. There is a severe lack of secure parking in the U.K., like the rest of Europe, and criminals maximise these opportunities then to target trucks when parked in unsecured places. There have also been incidents reported recently of drivers being gassed.

HIGH RISK STATES HIGH RISK MODUS OPERANDI PRODUCTS The most used M.O. by criminals in the U.K. is Curtain Slashing from Unsecured Parking. There have also been reports of rolling State % Total Product % Total thefts, and recently there has been an increase in Deceptive Thefts Thefts Pickups. East Midlands 48% Auto & Parts 21% South East 22% Food & Drinks 10% Resources Weapons Location England Home & Garden 8% Criminal Sharp Cutting Unsecured Parking at laybys, Gangs Objects/Knives; roadside, industrial estates, East England 14% Attempted 13% Bolt Cutters; Gas unattended rest areas and Theft truck stops; Warehouse/DC Unknown 20% Product Peripheral Risks Cargo Theft Risk Rating: 4

Violent criminal confrontations and the use of weapons are still relatively rare, CORRUPTION & although serious incidents are possible and do occur. Most violent crimes, ORGANIZED CRIME 2 including those involving firearms, typically occur between members of rival criminal gangs. The British Isles have variable weather that changes from day to day between WEATHER & NATURAL DISASTERS different regions and within different regions. Consequently it is very difficult 3 to predict or forecast the weather.

The current threat level for international terrorism in the U.K. is Severe. WAR & TERRORISM 4

There were 276,000 working days lost due to labour disputes, the sixth lowest annual total since records began in 1891. LABOR DISPUTES 4

Unsecured Parking is the most targeted location; Curtain Slashing is the most CARGO THEFT 4 used M.O.; Auto & Parts is the most stolen product type.

Given the diversity of the population, political events that take place around the globe can often precipitate demonstrations and protests in the U.K., particularly CIVIL UNREST 4 in London.

The quality of transport infrastructure in the UK is rated positively across all INFRA- modes of transport. The timeliness of shipments is well above EU average. STRUCTURE 1

General Overview

The U.K. is one of the countries in the region that has excellent reporting on cargo thefts. It therefore becomes clear that the most targeted area is Unsecured Parking, via Curtain Slashing. The most stolen product type in the U.K. is Auto & Parts.

There have also been other M.O.’s identified, like drivers being gassed inside their cabin in order to steal the cargo.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 48 APAC China

At a Glance INTELLIGENCE CENTER China is located in the eastern part of Asia that has world’s largest population. The country consists of 54.7% of agricultural land and 22.3% is forest. Though ranked first in the world in total population, overall density is less than that of many other countries in Asia and Europe.

Capital Beijing Area 9,388,211 km2 Population 1.4 billion RISK LEVEL: ELEVATED LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $15,309 2.1% 3.83% USD 280 HML

Source: Trading Economics

MONTHS TARGETED SEAPORTS Most incidents were recorded in November and Seven of the top ten largest ports in the world are June, with the latter possibly corresponding with located in China, with the port of Port of Shanghai the Dragon Boat Festival. being the busiest in the world.

Month Cargo Theft Percentage Seaport Department River Annual Capacity (tons) November 16% Dalian Hebei Bohai Sea 380.6 million June 14% Ningbo Zhejiang East China 1 billion January, February, April & December 12% Sea Qingdao Shandong Yellow Sea 340.47 million

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 49 APAC China

Cargo Theft Trends

China had three M.O.’s recorded: Facility Theft, Hijacking and Pilferage. Warehouse/DC was the location with most thefts recorded. The product type recorded that was mostly stolen by far is Electronics.

HIGH RISK STATES HIGH RISK MODUS OPERANDI PRODUCTS Facility Thefts at Warehouse/DC were recorded in China. Electronics is the most frequently targeted product type. State % Total Product % Total Thefts Thefts Resources Weapons Location Hong Kong 86% Electronics 67% Criminal Gangs; Sharp Cutting Objects/Knives; Warehouse/DC Fujian 8% Personal Care 9% Vehicles Bolt Cutters; Guns Jiangsu, 6% Alcohol, 20% Sichuan Auto & Parts, Zhejiang Food & Drinks Unknown 2% Product

Peripheral Risks Cargo Theft Risk Rating: 3

There is a risk of attack from armed criminals in remote areas. The areas CORRUPTION & ORGANIZED CRIME bordering on Siberia, Pakistan, Kazakhstan, Vietnam, Laos and Burma are 3 poorly policed.

China is subject to various natural disasters, including earthquakes, flooding and typhoons. WEATHER & NATURAL DISASTERS 4

Terrorists are likely to try to carry out attacks in China. Most attacks take place in the Xinjiang Uyghur Autonomous region and, according to the Chinese WAR & TERRORISM 4 government, are carried out by Uyghur separatists with possible links to the East Turkestan Islamic Movement (ETIM). Preventing a person from leaving a location due to a commercial or business dispute is not viewed as kidnapping by Chinese law enforcement. In some cases, labor disputes have resulted LABOR DISPUTES 4 not only in protracted stoppages, but in temporary detention of expatriate managers by workers demanding continued employment or enhanced severance packages.

Mariners should avoid the disputed territory between China and other countries in the East China Sea. There have also been incidents of piracy and CARGO THEFT 3 armed robbery against ships in the area.

Most violent incidents have taken place in ethnic minority areas, such as Tibet and XUAR, where grievances over human rights abuses and discriminatory CIVIL UNREST 3 policies have resulted in spontaneous outbursts of violence targeting the government and Han Chinese interests. Accidents are common in China due to the poor quality of roads, high INFRASTRUCTURE 5 volumes of traffic and generally low driving standards.

General Overview

Obtaining data from China is an arduous task. The Chinese government is known for painstakingly monitoring all forms of communication, in an attempt to avoid any negative information leaving the country.

However, there are still reports of cargo thefts in China. One method that has been reported is the use of rolling theft. China also deals with gang activity, so there is a great possibility of their involvement in cargo theft. Although actual numbers are hard to get, it seems likely that a country of this magnitude and volumes of cargo shipped is prone to similar types of cargo theft as other parts of the globe. sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 50 APAC India

At a Glance INTELLIGENCE CENTER The IMF estimates that India will continue to grow at between 7 & 8% in 2017-2018. Spurred by further market liberalization and reforms addressing its ease of doing business, an active Government driven campaign to increase local manufacturing, grow the agricultural sector, and attract greater levels of inward foreign direct investment. Capital New Delhi Area 2,973,190 km2 Population 1.3 billion

RISK LEVEL: ELEVATED LOW MODERATE ELEVATED HIGH SEVERE

GDP (PPP) Inflation Rate Unemployment Rate Balance of Trade USD $6,427 4.17% 3.52% USD -$18.02B

Source: Trading Economics

HIGHWAYS SEAPORTS India’s roadway network covers about 4,699,024 India has 13 major seaports and around 200 non- km. major and intermediate ports.

Highway Description Length Direction Seaport Department River Annual (km) Capacity (tons) NH44 Srinagar-Kanyakumari 3,745 N/S Chennai Tamil Nadu Bay of 50.21 Million NH48 Delhi-Chennai 2,807 N/S Bengal NH16 Kolkata-Chennai 1,711 N/S Jawaharlal Maharashtra Arabian 62.02 Million Nehru Port Sea NH27 Porbandar-Silchar 3,507 E/W Kandla Gujarat Gulf of 105.44 Million Kutch

MONTHS TARGETED Month Cargo Theft Percentage Most incidents were recorded in September and November/September 15% November. February, March, May & December 10% October 8%

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 51 APAC India

Cargo Theft Trends

Criminal groups operate mostly in or near major cities, and India is home to the second-largest civilian firearm stockpile.

HIGH RISK STATES HIGH RISK MODUS OPERANDI PRODUCTS Criminals mainly seem to target trucks In-Transit via Hijackings.

State % Total Product % Total Thefts Thefts Resources Weapons Location Maharashtra 15% Miscellaneous 21% Firearms Firearms; Unsecured Parking Uttar Pradesh 13% Auto & Parts 17% Sharp Cutting Gujarat, 11% Food & Drinks 15% Tamil Nadu Attempted Theft 2% Unknown 2% Product

Peripheral Risks Cargo Theft Risk Rating: 3

India continues to be among the most corrupt countries in the world. CORRUPTION & ORGANIZED CRIME Police officers have been involved in crimes & have been bribed to turn 5 a blind eye.

Flooding, landslides, cyclones, tropical storms and earthquake can occur in India. WEATHER & NATURAL DISASTERS 4

Terrorists are very likely to try to carry out attacks in India. Terrorist attacks are carried out by a number of terrorist and insurgent groups. WAR & TERRORISM 4

Labor unrest occurs throughout India, though the reasons and affected sectors vary widely. A majority of the labor problems are the result of workplace LABOR DISPUTES 4 disagreements over pay, working conditions, and union representation.

Most thefts in India occur In-Transit; Hijacking is the most preferred M.O.; Auto CARGO THEFT 3 & Parts is the most targeted known product type.

Spontaneous demonstrations & incidents of violence can disrupt traffic flow & cause damage to property before police are able to respond. CIVIL UNREST 4

Travel by road is dangerous. India leads the world in traffic-related INFRASTRUCTURE 5 deaths.

General Overview

Due to underreporting of cargo theft, little is known about this phenomenon in India. The data that SCIC is able to collect shows that the majority of the incidents occur in Maharashtra and Uttar Pradesh. Hijacking is a commonly used M.O. by criminals.

In case of a theft, assistance from the police is difficult because police officers are often ill-equipped and lack training. Some police officers have been involved in crimes and have been bribed to turn a blind eye.

sensitech.com SCIC Global Cargo Theft Risk Assessment 2018 52 The information contained in this document is the property of Sensitech Inc. This information may not be sold, licensed, or used for business development in any capacity without the prior written consent of Sensitech Inc. Sensitech Inc. encourages recipients to use this information for cargo theft prevention activities and to share this information in its entirety with colleagues who may also benefit in a theft prevention capacity. Global maps illustration credit: Vecteezy.com. Individual country maps by FreeVectorMaps.com. sensitech.com 11 Oct 2018 @sensitech

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