Practical consequences of new rules in harbour operation

1
Practical consequences of new rules in harbour
operation and goods traceability after 9-11
2
Wilh. Wilhelmsen ASAHead office at Lysaker

• Wallenius-Wilhelmsen Lines
• Eukor
• Wilhelmsen Maritime Services
• Barwil
• Barber Ship management
• Barber Marine Consultants
• Wilhelmsen Bunker
• Wilhelmsen Insurance
• DockWise

http//www.ww-group.com/
3
The Barwil global network Port coverage
227 Offices in 58 Countries
http//www.barwil.com/
4
The Barwil global network The key activities
Port Marine Services Handling 42.000
port Calls p.a. Representing leading Liner
operators
Affiliated Services Wilhelmsen Bunkers Abeer
Marine Offshore Utility Boats
Freight Logistics Stevedoring and
Warehouse Freight Forwarding Supply chain
logistics
5
The Barwil global network Regional Organisation
Corporate Head office Oslo
Region Africa, Black Sea and The Middle East
Region Asia and Oceania
Region Europe
Region Americas
Canada Chile Brazil Panama U.S.A Peru.
Belgium Finland France Germany Gibraltar Greece It
aly Latvia Netherlands Norway Poland Portugal Russ
ia, Western Spain United Kingdom
Australia Bangladesh China Hong
Kong India Indonesia Japan Malaysia New
Zealand Philippines Russia, Eastern Singapore Sri
Lanka S. Korea Taiwan Thailand Vietnam
Bahrain Iran Iraq Jordan Kuwait Oman Qatar Pakista
n Saudi Arabia U.A.E. Yemen
Algeria Armenia Bulgaria Egypt Georgia Kenya Leban
on Romania Russia, Southern South
Africa Sudan Syria Tanzania Turkey Ukraine
6
Background
A new type of terrorism, aiming to destabilize
the global economy, with long term focus, well
financed and high degree in sophistication in
planning and execution.
7
Maritime Security - Issues of Complexity
Cargo
Vessels

• Using the vessel as a weapon
• Using the vessel to launch an attack.
• Sinking the vessel to disrupt
  infrastructure

• Using cargo to smuggle people and/or weapons.
• Using cargo to transport conventional,
• nuclear, chemical or biological
• weapons.

ExternalImpacts

• Loss of life and damage to property.
• Disruption to trade flows.
• Additional cost of transport due to
  additional security measures

People
Money

• Attacking the ship to provoke human
  casualties.
• Using the cover of seafarer identities to
• insert terrorist operatives.

• Using revenue from shipping to fund
  terrorist activities.
• Using ships to launder illicit funds for
  terrorist organisations.

8
Strategies to encounter new terrorism

• CSI (USC container security initiative)
• C-TRAT (USC trade partnership against terrorism)
• CSP (Crew security plan)
• Homeland security act
• AMS (Automated manifest system)
• ISPS (International Ship and Port facility
  Security Code)
• Safe Sea Net
• AIS (Automatic identification system)

In short Transparency, clarification of
responsibilities and proactive intelligence, seems
to be the key strategies.
9
Security in Maritime Trading Systems
What are the Challenges?

• Approx. 90 of world trade moves in shipping
  containers
• - Any reduction of throughput is likely to have
  a significant impact on regional and national
  economies.
• Global business enterprise, and trading systems
  in particular, are vulnerable to terrorist
  incidents
• - Perturbation of maritime supply chains will
  impact on movements of material across large
  sections of the network.
• The asymmetry of approach in modern terrorism can
  make use of systems of commerce
• - Maritime trade as a vector for terrorism.

10
Security Initiatives across Supply Chains
Composition
Decomposition
Buyer
Producer
Trans
Trans
Maritime
Customs (Port)
Customs (Port)
ISPS
CSI
C-TPAT
11
ISPS International Ship and Port facility
Security Code

• Initiated by IMO (International Maritime
  Organization) in December 2002.
• Part of the 1974 SOLAS convention (148
  Contracting Governments)
• Implemented from 1st July 2004

Considered to be of crucial significance not
only to the international maritime community but
the world community as a whole, given the
pivotal role shipping plays in conduct of world
trade
12
ISPS the requirements

• Mandatory
• Ship Security plans
• Ship security officers
• Company security officers
• Certain onboard equipment
• Port facility security plan
• Port facility security officer
• Certain security equipment
• Monitoring and controlling access
• Monitoring the activities of people and cargo
• Availability of security communication
• (Marsec level 1,2 and 3)
• Non-mandatory
• Guidelines on how to meet the requirements

ISPS is risk management of ports, offshore
terminals or when underway at sea, with objective
to reduce the vulnerability related to the threat
of terrorism.
13
ISPS implementation

• 90 of all ships and ports certified already
  August 2004
• Huge variation in how the ISPS is implemented in
  the Ports
• Bare minimum approach most common.
• US and Panama more strict
• Huge variation in how the ISPS is implemented
  onboard the vessels
• Bare minimum approach most common
• Chemical, container, Ro/Ro cruise more strict.
• Limited experience related to impact on
• changes in security level
• Marsec 2 or 3 is expected to have serious
  negative impact on operations.
• In general Now considered to be a part of the
  normal business.

The implementation of ISPS took only 18 months,
against the usual 6 to 8 years for other IMO
adoptions.
14
Countries Currently not in Compliance with ISPS

• Albania
• Benin
• Dem. Rep. of Congo
• Equatorial Guinea
• Guinea
• Guinea-Bissau
• Kiritbati
• Lebanon
• Liberia

• Madagascar
• Mozambique
• Nauru
• Nigeria
• Serbia and Montenegro
• Sierra Leone
• Solomon Islands
• Suriname

There are no penalties or black list of
countries not complying with ISPS. Its expected
that market force and economic factors will drive
compliance.
15
Consequences of non-compliancy to various
security measures

• Cargo / containers rejected for loading
• Vessels to be denied berthing
• Terminals declined as option for port call
• Ports excluded as option for port calls
• Countries to be found too risky and thus not
• preferred as trade partner.

The consequences of either failing to comply or
failing to maintain continuous compliance with
IMOs special measures to enhance security, could
be serious and far reaching
16
Future?
How will the terrorists success in the
future? How effective are the security measures
implemented? What kind of impact will the
security regulation have on trades?
The effect of fear driven security regulation
to ensure stable operations environment would
need to be balanced against the negative impact
these regulations might have on the global trade.
17
Thank you for the attention!