Border Security Issues After 911

1
Border Security IssuesAfter 9/11

• November 5, 2003

2
The Border is Complex

• Passenger traffic through numerous international
  airports
• Goods and commercial traffic through national
  ports
• Traffic over land borders
• Summary observations

3
We Worry about a Variety of Things

• Actions
• Crime, including people smuggling and drug
  smuggling
• Terrorism
• Goods and people
• Weapons, particularly weapons of mass destruction
  and disruption
• Contraband, including drugs, stolen goods and
  goods evading taxes
• People, including potential terrorists

4
Airports
5
Key Airport Issues

• Work done on
• Physical security (including hardening doors,
  arming pilots, transfer of the security function
  to public sector)
• Passenger screening and profiling (before airport
  entry or boarding plane)
• More work needs to be done on
• Passenger screening and profiling (before
  entering the country)
• Air cargo and airport personnel security measures
• Cost effective positive identification
  (biometric) issues
• Contraband detection

6
Ports
7
Cargo Containers Have Revolutionized Global Trade

• Cargo containers are the standard for shipping
  merchandise
• Millions of containers in use
• Ports optimized to handle container ships
• Easy transition to ground transportation modes
• The number of containers passing through US ports
  is expected to increase 2-3 fold over the next
  15-20 years

8
Cargo Containers Have Revolutionized Global Trade

• US logistics costs dropped from 16.1 of GDP in
  1980 to 10.1 in 2000
• Annual savings in logistics of foreign trade
  approximately 150B
• Security threats and US countermeasures could
  reverse these savings
• Shipping costs are sensitive to container costs
  and security measures
• Inventories costs are sensitive to supply
  uncertainty

9
Key Port Issues

• Work done on
• Projecting the border outward
• Know your customer programs
• Much remains to be done on
• Port personnel
• Contraband detection
• Inspection rates, regimes
• Cost effectiveness analysis
• Understanding how the pieces work together
  through simulation modeling

Commercial shipping will be transformed by 9/11
in the same way air travel was transformed by
hijackings
10
A Common Vision of Secure Ocean Commerce

• Trusted suppliers at origin of cargo being placed
  in containers
• Secure container locks, with tamperproof alarms
• Accurate manifests, suitably protected
• Improved visibility of cargo containers
  throughout supply chain
• Vetted personnel at all transshipment locations
• Secure warehouses
• International cooperation on security procedures
  and practices
• International sharing of intelligence data
• Assertion Security motives might enable supply
  chain improvements that can reduce current
  logistics costs, even up to 20-30 percent - a
  win-win scenario

11
Land Borders
12
Key Land Border Issues

• Land borders have most of the same issues as
  ports and airports, plus
• Problems of wide open spaces to patrol and
  control
• Research from criminal justice shows that a very
  large percentage of deported criminals reenter
  the US within a year

13
Lessons from Drug Policy

• History suggests border control will be very
  difficult
• Drug prices and availability difficult to affect
  with border control efforts
• Integration of border control with other
  strategies (defense in depth) is necessary
• Economic concerns are valid and very large

14
Summary Observations
15
Focus on More Effective Resource Allocation
16
Focus on More Effective Resource Allocation
17
There are Also Questions of Relative Resource
Allocations

• With limited resources, where are our dollars
  best spent?
• Preventing attacks
• Hardening targets against attacks
• Improving response against attacks
• We can mis-allocate resources if we think about
  threats too generically or the port problem in
  isolation. For example
• In absolute terms, it makes little sense to think
  about inspecting cargo for smallpox because of
  the difficulty in finding and identifying it
• In relative terms, better and less expensive
  policies such as vaccination of health care
  workers are available

18
Challenges Can Only be Met Collectively

• National governments
• Concerns trade flows, attacks, security
  measures
• Data threats level of effort security
  procedures
• Local governments
• Concerns facility revenues, consequences of
  attacks
• Data users price sensitivity and willingness to
  substitute security procedures

• Private sector
• Concerns security costs and impact on business
• Data profit margins, security expenditures
• Trade associations
• Concerns impact on members government
  regulation
• Data industry procedures and trends
• Public
• Concerns ease of travel and movement, cost of
  goods
• Data travel patterns

19
Challenges Can Only be Met Collectively

• National governments
• Concerns trade flows, attacks, security
  measures
• Data threats level of effort security
  procedures
• Local governments
• Concerns facility revenues, consequences of
  attacks
• Data users price sensitivity and willingness to
  substitute security procedures

• Private sector
• Concerns security costs and impact on business
• Data profit margins, security expenditures
• Trade associations
• Concerns impact on members government
  regulation
• Data industry procedures and trends
• Public
• Concerns ease of travel and movement, cost of
  goods
• Data travel patterns

No single party controls all of the relevant
information. Parties need to collaborate to
support an integrated assessment