PortPort SecuritySecurity ––TheThe NewNew RealityReality Presented by Leonard C. Cross Director, Business Development PresentationPresentation OutlineOutline •• MaritimeMaritime IndustryIndustry OverviewOverview •• ThreatsThreats toto SeaportsSeaports •• ComplianceCompliance RequirementsRequirements •• MitigationMitigation StrategyStrategy •• EconomicEconomic ImpactImpact ofof IncidentIncident MaritimeMaritime IndustryIndustry OverviewOverview USUS Maritime Infrastructure •• 361361 CommercialCommercial SeaportsSeaports inin U.S.U.S. • 50 represent 90% of all cargo by tons • 25 represent 98% of container traffic (less than 6% are inspected) • 16 represent 98% of all international cruise ship passengers •• 95,00095,000 MilesMiles ofof NavigableNavigable WaterwaysWaterways •• 20,00020,000 OceangoingOceangoing VesselsVessels •• 3,2003,200 CriticalCritical MaritimeMaritime FacilitiesFacilities • Oil refineries (both on and offshore) • Nuclear power plants • Liquid natural gas facilities • Hundreds of waterfront sites that use or store hazmat •• 8,5008,500 Ferries,Ferries, CargoCargo Ships,Ships, andand BargesBarges SeaportSeaport SizesSizes andand InternalInternal OperationsOperations VaryVary PortPort toto PortPort Ports of Los Angeles and Port of Miami, Florida Long Beach, California TypesTypes ofof SeaportSeaport ActivitiesActivities Bulk Container Cargo Container Cruise Petroleum Cruise AdditionalAdditional PortPort ActivitiesActivities Military Waterfront Development Military Museum/Cruise Ballpark PortPort ofof Georgetown,Georgetown, CaymanCayman IslandsIslands AlternateAlternate PortPort UsesUses Local/RegionalLocal/Regional SpecialSpecial EventsEvents • Super Bowl — New Orleans, Jacksonville • Tall Ships — San Juan, New York, Boston InternationalInternational SpecialSpecial EventsEvents • OAS — Port Everglades • Olympics — Sydney, Vancouver ContainerContainer OperationsOperations -- GrowthGrowth •• CargoCargo ShippingShipping MethodMethod 1999: 55% general cargo by container 2010: 90% (projected) •• CargoCargo ShipShip GroupGroup 1999: 3.6% of world fleet 4,000-6,000+ TEU (92 ships) 2010: 33% world fleet 4,500+ TEU (9.5% in 6,000-9,000 TEU) CruiseCruise IndustryIndustry -- InfrastructureInfrastructure GrowthGrowth •• ShipShip ConstructionConstruction 20012001--2006:2006: 6161 newnew shipsships @@ $21.5$21.5 billionbillion 2004:2004: 1010 newnew shipsships @@ $4$4 billionbillion 20052005--09:09: CarnivalCarnival fleetfleet increasesincreases byby 1313 shipsships 2006:2006: RCCLRCCL “Freedom”“Freedom” shipsships $828$828 millionmillion •• ShipShip SizeSize 60,00060,000 toto 113,000113,000 tonstons 2,0002,000 toto 5,0005,000 passengers/crewpassengers/crew CruiseCruise IndustryIndustry –– PassengerPassenger GrowthGrowth 19701970--88:88: 2525 millionmillion passengerspassengers ((1818 yearyear periodperiod)) 19891989--98:98: 4242 millionmillion passengerspassengers ((99 yearyear periodperiod)) 19991999--02:02: 2727 millionmillion passengerspassengers ((33 yearyear periodperiod)) 2003:2003: 1313 millionmillion passengerspassengers 2004:2004: 10+10+ millionmillion passengerspassengers 2005:2005: 1111 millionmillion passenpassenggersers (predicted)(predicted) (Caribbean Basin is the #1 Cruise Market) Note:Note: OverOver 80%80% ofof allall cruisecruise passengerspassengers areare AmericanAmerican ThreatsThreats toto SeaportsSeaports ThreatsThreats toto SeaportsSeaports ThreatThreat dictateddictated byby typetype ofof portport activityactivity •• AlienAlien SmugglingSmuggling •• CargoCargo TheftTheft •• InternalInternal ConspiraciesConspiracies •• LaborLabor DisputesDisputes •• NarcoticsNarcotics •• OrganizedOrganized CrimeCrime •• TerrorismTerrorism CargoCargo TheftTheft ActivitiesActivities • Estimated $30$30--5050 billionbillion loss worldwide • Infiltration of air/seaports transportation hubs in Asia & Europe • Tapping information sharing networks to ID HIGH VALUE cargo (computers, pharmaceuticals, high value clothing) • Highly mobile HighHigh ProfitProfit vs.vs. LowLow RiskRisk OrganizedOrganized CrimeCrime TraditionalTraditional United States based InternationalInternational Russian Italian Mexican Colombian Chinese Vietnamese Israeli NarcoticsNarcotics Drug smuggling at 12 seaports (FY 1996-98) • 1,217 drug seizures: 300,320 lbs. • 48% of all drug seizures nationwide (cargo) • 69% of all cocaine seizures nationwide • 55% of all heroin seizures nationwide CapabilitiesCapabilities -- Narco Terrorists • Established smuggling routes, methods, and means • Supported by FARC and ELN • Motivated by money • Ruthless • Access to large quantities of explosives and experience in assembling large devices GoalsGoals ofof TerroristsTerrorists ¾Maximize Damage ¾Maximize Casualties MaritimeMaritime TerrorismTerrorism IncidentsIncidents 1985 – Egypt 2001 – Singapore Hijacking of Achille Lauro Planned multiple bombings, including maritime targets 1988 – Greece Attack on City of Poros 2002 – Morocco Planned bombing of US/British warships 1998 – Africa Use of ships to transport explosives for bombings of US Embassies 2002 – Yemen Bombing of the MV Limburg 2000 – Yemen Bombing of USS Cole 2004 – Philippines Abu Sayyef Bombing of the Superferry 14 in which 100 died 2000 – Philippines Bombing of Our Lady of Mediatrix 2004 – Israel Port of Ashdod double bombing 2001 – Italy killing 10 and injuring 18 Attempted smuggling of al-Qaeda member in cargo container to Toronto, Canada alal--QaedaQaeda TrainingTraining ManualManual EspionageEspionage –– InformationInformation GatheringGathering UsingUsing CovertCovert MethodsMethods MethodsMethods UsingUsing CovertCovert Means:Means: •• FootFoot SurveillanceSurveillance •• VehicleVehicle SurveillanceSurveillance •• DrawingsDrawings •• PhotographyPhotography •• Recruitment:Recruitment: •• SmugglersSmugglers •• WorkersWorkers atat coffeecoffee shops,shops, restaurantsrestaurants andand hotelshotels •• PeoplePeople inin needneed •• EmployeesEmployees atat borders,borders, airportsairports andand seaportsseaports alal--QaedaQaeda TrainingTraining ManualManual InformationInformation onon strategicstrategic buildings,buildings, importantimportant establishments,establishments, andand militarymilitary basesbases Examples:Examples: •• DefenseDefense ministriesministries •• AirportsAirports •• SeaportsSeaports •• EmbassiesEmbassies •• RadioRadio && televisiontelevision MaritimeMaritime AttacksAttacks MVMV LimburgLimburg PetroleumPetroleum TankerTanker ComplianceCompliance RequirementsRequirements Domestic/InternationalDomestic/International MaritimeMaritime SecuritySecurity RegulationsRegulations • Maritime Transportation Security Act 2002 (MTSA) • International Ship and Port Facility Security Code (ISPS) • Reducing Crime and Terrorism at America’s Seaports Act of 2005 • Homeland Security Presidential Directive 13 MTSAMTSA 20022002 •• FacilityFacility SecuritySecurity AssessmentAssessment •• FacilityFacility SecuritySecurity PlanPlan •• AnnualAnnual FacilityFacility SecuritySecurity PlanPlan AuditAudit •• Quarterly/AnnualQuarterly/Annual TrainingTraining RequirementsRequirements •• NonNon--compliancecompliance consequencesconsequences ISPSISPS CodeCode TwoTwo PartsParts • Part A – Mandatory • Part B – Recommended • Facility Security Assessment • Facility Security Plan • Annual Facility Security Plan Audit • Quarterly/Annual Training Requirements • Non-compliance consequences ReducingReducing CrimeCrime andand TerrorismTerrorism atat America’sAmerica’s SeaportsSeaports ActAct ofof 20052005 •• StrengthensStrengthens existingexisting lawlaw •• CreatesCreates newnew criminalcriminal lawlaw applicableapplicable toto portsports andand maritimemaritime vesselsvessels HomelandHomeland SecuritySecurity PDPD -- 1313 •• PreventingPreventing terroristterrorist oror criminalcriminal actsacts inin MaritimeMaritime DomainDomain •• EnhancingEnhancing U.S.U.S. nationalnational securitysecurity andand protectionprotection ofof ports,ports, harbors,harbors, etc.etc. •• ExpeditingExpediting recoveryrecovery andand responseresponse fromfrom attackattack •• MaximizingMaximizing awarenessawareness ofof securitysecurity issuesissues inin thethe MaritimeMaritime DomainDomain •• EnhancingEnhancing internationalinternational relationshipsrelationships •• EnsuringEnsuring seamless,seamless, coordinatedcoordinated responsibilitiesresponsibilities MitigationMitigation StrategyStrategy ObjectivesObjectives ofof SeaportSeaport SecuritySecurity ProgramProgram Prevention Minimization Identification AccomplishmentAccomplishment ofof ObjectivesObjectives • Comprehensive Security Assessment • Development of Security Plan • Training • Proper Integration of Technology ObjectiveObjective ofof AssessmentAssessment • Identification of port facility operation • Identification of threats/vulnerabilities • Mitigation strategies • Blueprint for future security enhancements ElementsElements ofof thethe SecuritySecurity PlanPlan • Incorporates findings of security assessments • Establishes mitigation strategy on threats/vulnerabilities identified in security assessment • Establishes procedures on access control, restricted areas, training, cargo handling/passenger processing, background checks, etc. 3333 CFRCFR PartPart 105105 -- FacilityFacility SecuritySecurity Security Incident Procedures Each facility owner or operator must develop security incident procedures for responding to transportation security incidents. The security incident procedures must explain the facility’s reaction to an emergency, including the notification and coordination with