Hutchison Port Holdings and its Commitment to Supply Chain Security

E. Devisch – WCO December 8-9, 2005 HPH Security Initiatives

Objectives - Reduce risk - Reduce impact - Improve the industry Poland

     Felixstowe Gdynia Shanghai Veracruz    Thamesport Shanghai Pudong Ensenada    Ningbo Manzanillo  Yantian  Lazaro Cardenas  Xiamen  Shantou   Jiangmen  Nanhai Bahamas  Jiuzhou  Gaolan Freeport  Kwai Chung  Tuen Mun  Willebroek Korea  Gwangyang  Alexandria  El Dekheila Thailand

Saudi Arabia  Laem Chabang Panama  Dammam  Cristobal  Balboa  Thilawa

 Dar es Salaam  Port Klang

HPH Ports Around The World

March 2005 Facility

Implementation of the IMO – ISPS Code Trusted Parties

• Authorised Economic Operators • C-TPAT • Red/Black Shipper • etc. Container Information

• 24-hour rule • EC / WCO data model • Bayplan • Manifest • Purchase Order • etc. Radiation Detectors - Felixstowe – Radiation Detectors Freeport Imaging Equipment Latest Developments • World – WCO Framework of standards – ISO e-Seal standard • EU Regulation amending EU Customs Code • Hong Kong green customs seal • China red shipper concept • Seal verification (US Department of Homeland Security DHS) • HPH – Data provision to authorities – Non-intrusive inspection capabilities – Building RFID network – Pilot project SST between China and EU ISO standards

• ISO 10374 Permanent Container Tag • ISO 17363 Supply Chain Tag • ISO 18185 e-Seal Shipping-Line Tag RFID in transport

• 3 types of tags

• 1 frequency 433.92 mhZ = 1 reader Smart & Secure Tradelanes

Supply Chain Security Industry participation

Bring together partners & participants for joint development and testing – government authorities – shippers – service providers – ports – ocean carriers – other carriers – technology providers Project Goals

• Demonstrate the usage of technology for container security monitoring and tracking by all parties involved • Demonstrate information availability • Demonstrate information exchange • Demonstrate the usage of technology for non-intrusive inspection for every container • Demonstrate the operational workings of the Authorized Economic Operator concepts Project Technology

Technical Infrastructure

• The Transport Security System (TSS) system located in , collects all relevant information, regularly checks container security status and alerts parties when necessary. • Handheld Terminals (GSM/GPRS) at origin and destination locations to secure the consignment /container and supply information to the system. • Fixed position readers on strategic locations along the container route establish container security status. • Non-intrusive gamma-ray scan information and radiation scan information is stored. • Internet web-forms for parties to supply the required information about the respective secured consignment. • Container Terminal EDI-information sent to provide cross-check information. Infrastructure Requirements RFID-based monitoring devices • One seal tag on each container Container security

“ ” US Customs suggests high security bolt seals be placed at the base of the locking bar. This will ½ require a inch hole be drilled to insert the seal. “ ” Smart Container Devices Readers at gates Readers on quay cranes Non-Intrusive Inspection Project

The Integrated Container Inspection System (ICIS) Demonstration Project at Kwai Chung container terminals

• Portal ICIS system installed at Modern Terminals and HIT to screen containers at the entry gate area started in September 2004 & in January 2005, respectively • Mobile ICIS system installed at Modern Terminals as initial approach for screening export containers arriving at the barge quay started in February 2005 • The aim is to deploy sufficient capacity to ensure that all containers which enter the yard for export are screened through the systems Scanning equipment layout

Radiation Portal

Gamma-ray Portal OCR Portal 4 m

5 m 4.25 m

• 75 m Detects spectrum of radiation (special nuclear materials like • plutonium, cesium, uranium) Low radiation power • Can distinguish normal High penetration radiating materials Combined Image Infrastructure at South China and Hong Kong

白雲

廣州 廣州關區 東莞 南海 黃埔關區 FFaaccttoorryy

深圳關區 沙田 CCoonnssoolliiddaattiioonn CCeennttrree

保安 鹽田 中山 皇崗 福田 蛇口 落馬洲 拱北關區

珠海 葵涌 Hutchison HKG Ports Airport 赤蠟角 SST Cargo

RF Infrastructure Radiation Scanning and Gamma-ray Imaging … in Hong Kong quay side

Relocatable RPM

Mobile VACIS + OCR Securing the supply chain Benefit

C-TPAT – Manufacturer – Consolidation Factory Data for targeting

Road Transport Supply chain efficiency benefits Consolidator • / Distribution inventory management Center • asset utilisation Road Transport

Port of Loading

Monitor at Key Choke & Vessel Transit Points Transit Commercial security benefits Port • Vessel Mfg Brand protection Distribution • Center Reduce pilferage, damage • “ ” Port of Positioned for green lane (reduced Discharge inspections) • Road/Rail Retail Audit trail“s for isolation, reco”v–ery and Transport Store learning ( inspected already quicker re- starts)

National security benefits Retail • Distribution Reduce terrorism threats Center “ ” Authorized Supply Chain

• Deploy a secured factory / freight forwarder premises where the container is loaded and locked for transport. • Use of electronic monitor to guard and report the security status of the container during transport. • Provide gamma-ray scan data of the shipment. • Provide radiation scan reporting. • Gather Security information during trip in the global SST-system from Modal Change points. (accessible for relevant parties only) • Gather information to provide to the Authorities; TradeLink (HK), Hong Kong-Customs, China Customs, Dutch Customs (Rotterdam) and UK Customs. • Deploy a secured delivery destination where the consignment is received and unlocked, satisfying the requirements for the electronic monitoring of the goods. Customs Inspection Process and Alerts

Customs Inspection Process TSS Non-Secured Message Alerts

Non-Intrusive Inspection • Inspect container Container e-seal is read by TSS as • Update TSS with inspection results not secured

Intrusive Inspection • Physically inspect container • Alert message is TSS steps performed before inspection: sent to Customs • Unlock Seal Tag and Clear Tamper • Unbolt Seal Tag • Delayed alert Delayed alert Update TSS with inspection results Customs tracks message sent to message sent to suspect container • freight forwarders shippers TSS steps performed after inspection: • Bolt Seal Tag • Relock Seal Tag Delayed alert • Update TSS with inspection results message sent to terminal operators • Perform Customs exception procedures (need to discuss) Pilot Information

Customs exchange Rotterdam/Felixstowe Far-East data Shipper Shipper Consignee Consignee UK / Dutch China / H.K. SO BL Customs Customs SO BL 13 data fields Forwarder 24 hours before load Forwarder

SO BL Export data Security, X-ray, Export Data SO BL Clear to load Radiation data Clear to load Carrier Carrier Booking Data Booking Data

SO BL SO BL Vessel/Voyage Vessel/Voyage data data

Container Booking, Gate-log, TSS Booking, Gate-log, Container Terminal Security, X-ray, System Security, X-ray, Terminal Radiation data Singapore Radiation data Our Mission

To be the global market leader in port development, operations and logistics services