Paul A. Belella Washington, DC June 10, 2002

1. Deploying Technology For Security And Efficiency In Intermodal Freight TransportationResults from the Intermodal Freight Security and Technology Workshop Paul A. Belella Washington, DC June 10, 2002

2. Background Workshop Event Workshop Objectives Workshop Results Conclusions Recommendations Next Steps Appendix: Detailed Workshop Results Contents

3. Background… The IFTWG Supports the Application and Use of Technology for Freight Efficiency to Improve US Global Competitiveness • Group Focus • Primary goal: "...explore the common interest in developing a process to harmonize and deploy freight information technology in order to advance and improve the United States' global economic competitiveness and its ability to meet security and other important domestic needs.“ • Key imperatives • Identification of practical solutions • Cooperative/collaborative approach • Group Accomplishments • Documentation of the freight process • Development and initiation of field tests • Establish essential stakeholder relationships

4. Background… The Execution of Pilots, or “Field Tests” of Promising Technologies has been an Important Milestone • Focused on specific portions of the intermodal process • Identified needs from process map analysis • Explored issues in depth • Formulated project concepts • Refined in concert with USDOT • Funding identified and committed • Solicitations and awards • Projects currently underway • Public/private partnerships with shared results The group’s activities reflect a priority on tangible results, consistent with real-world business needs

5. Background… Pilot Tests the IFTWG is Engaged In or Monitoring • IFTWG Pilots Currently Underway • Asset and Cargo Visibility Test • Objective: Improve the efficiency of intermodal freight movement system-wide through the application of technologies that provide real-time asset and cargo location and status information • Status: Awarded 11/2001, to be completed in 5/2003 • Terminal Dray Operations Test • Objective: Expedite cargo processing and transfer between freight transfer facilities in the Chicago area through the use of enhanced intermodal data transfer on shipments inbound from the Port of Tacoma • Status: Awarded 11/2001, to be completed in 7/2002 • Other Tests/Demonstrations monitored by IFTWG • Electronic Supply Chain Manifest Test • State of Washington E-seal Test • Cargo*Mate Test

6. Background… Since 9/11, the Group’s Focus has Evolved to Address Homeland Security Needs in Addition to Efficiency • The key question became: “How can technology be applied to improve the efficiency and security of the intermodal freight transportation system?” • Do we have a good understanding of the threats to and vulnerabilities of the system? • How can we best improve security throughout the system? • Can efficiency and security be addressed in a complementary fashion? • How can technology be used to minimize adverse “indirect secondary impacts?” • A workshop was conceived with this challenge in mind

7. Workshop Event… A Workshop Was Held in April 2002 in Long Beach to Explore Freight Security and Efficiency Technology Applications • More than 140 participants • Public and private sector • Carriers, technology vendors, agency representatives, consultants • Focused on identifying technology needs • Captured observations • Defined issues • Formulated potential initiatives • Breakout groups • Focused on specific topic areas • Solicited input from experts and others The Primary Workshop Objective: Develop forward thinking technology initiatives to address security and efficiency priorities

8. Workshop Objectives… Breakout Groups Were Tasked to Identify Issues and Define Initiatives to Address Those of Highest Priority • Cargo and the Conveyance Loading Process: The focus of this topic was on the processes and technologies that can assure the integrity of loads and documentation, up through placing the seal on the container. • Conveyance Monitoring and Visibility: The focus of this topic area was on minimizing risks of tampering in transit, efficiently assuring the chain of custody, and improving control and accountability. • Crews, Staff, and Access Control: The focus of this topic area was on assuring that only qualified and authorized personnel have access to the cargo and conveyances. The groups were also asked to offer recommendations regarding the initiatives

9. Workshop Results… Cargo and Conveyance Loading Process - Group Summary:

10. Workshop Results… Conveyance Monitoring and Visibility - Group Summary:

11. Workshop Results… Crews, Staff and Access Control – Group Summary:

12. Workshop Results… Risk Management Was the Underlying Theme for the Majority of the Issues Identified • System vulnerabilities must be better understood to define technology needs • Information quality and timeliness must be improved to enable risk assessment • Intrusion detection and inspection solutions need immediate evaluation to quantify sensor technology capabilities • Public and private sector security responsibilities need to be defined and distributed to widen the security “net” • Security-related information sharing across organizational and system domains needs to be expanded

13. Workshop Results… The Proposed Initiatives Suggest a Set of Progressive Actions • Perform System-wide and location specific vulnerability assessment • Leveraging existing process analysis work • Identify roles/responsibilities • Identification/certification of trusted agents • Define a risk assessment/management process • Using available technology and improved information • Identify and test technology components • Comparative analysis where possible/appropriate • Integrate technologies and practices • Evaluation under practical applications • Integrate multiple systems • Development and testing of standards

14. Conclusions… Workshop Results Demonstrate the Value of the IFTWG in Advancing Freight Technology, and Its Strategic Approach • Some very solid potential initiatives were identified • Support was strong for several • Participants indicated that some should start immediately • Freight community accountability needs to be defined • Distribution of responsibilities among public sector agencies • Definition of private sector security role • Still more group diversity is needed • Additional rail and trucking segment representation • Expanded/enhanced relationship with U.S. Customs •  Current initiatives should be better publicized • Discussions illustrated need for better understanding within freight community • Activities outside IFTWG offer opportunity •  A coordinated strategy will be needed • Results reinforce value of an IFTWG strategic plan

15. Recommendations… Specific Recommendations • Immediately commence planning for high-priority initiatives • System-wide vulnerability assessment • Development of a revised import shipment data set • Site-specific physical and information access control pilot • Comparative RF communications evaluation • Cargo verification technology scan • Identify and lend support to parallel initiatives • Operation Safe Commerce • Customs Trade Partnership Against Terrorism • Others… • Continue development of the IFTWG Strategic Plan • Incorporate results from Long Beach • Coordinate with U.S. Customs •  Expand outreach efforts • Publicize group activities more actively (e-mail lists, web content, journal articles, brochures, etc.) • Identify means to motivate participation by rail and trucking segments

16. Next Steps… IFTWG Leaders Met on June 10, 2002, to Define Next Steps • Long Beach workshop results were reviewed • It was agreed that the following initiatives were of highest priority • A system-wide vulnerability assessment • Filed testing of container contents and integrity sensors • Specific next steps were identified and assigned to the attendees • Workshop results materials were approved for distribution • The need for expanded coordination with other freight initiatives was discussed • FHWA will explore options • Concept of a “summit” of initiative leaders was considered • The IFTWG strategic planning approach was reviewed • Booz Allen was directed to continue as planned • Future meeting dates and locations were discussed • ITS America and the IFTWG co-chairs will finalize plans

17. Appendix: Detailed Workshop Results The pages that follow contain detailed results from each of the four workshop breakout groups

18. Detailed Workshop Results… Cargo and the Conveyance Loading Process –Issues • Issue 1: Currently there is insufficient detail on container contents, shipper, consignee, and routing information in order to properly assess the security risk in the movement of cargo from origin to destination • Issue 2: There is a limited knowledge base regarding available technologies that can be used for process-driven cargo verification • Issue 3: No agreed upon process currently exists to verify the contents of shipments originating in the U.S. that will provide for reciprocity with trading partners

19. Detailed Workshop Results… Conveyance Monitoring and Visibility –Issues • Issue 1: Need end-to-end supply chain vulnerability assessment for cargo containers, to identify risks and gaps, and requirements and measures to address them • Issue 2: Need to facilitate access to and manage wide range of data for security, including determinations regarding purposes, users, sources, methods of exchange, and standards required for data exchange • Issue 3: Need to accelerate progress on sensors, clarify needs and capabilities, and establish standards

20. Detailed Workshop Results… Conveyance Monitoring and Visibility –Issues (cont’d) • Issue 4: Need to establish accountability related to transportation planning and technology, including required time to react to security threat • Issue 5: Need assessment of potential threats and risk assessment or cost-benefit analysis of security threat versus investments, with input from insurance industry • Issue 6: Need systematic approach to the security challenge - hardware, software, and process/business practices, international cases, communications, and tracking technology

21. Detailed Workshop Results… Crews, Staff and Access Control –Issues • Issue 1: Need to assess critical points of vulnerability related to personnel security and access control • Issue 2: Need to address physical access control for the entire transportation chain • Issue 3: Need to address human factors – identification, authorization and verification (counterfeiting/conspiracy) • Issue 4: No security systems architecture exists to ensure qualified personnel have access to cargo, infrastructure and data • Issue 5: Need a security reporting system for anonymous feedback on performance • Issue 6: Need to provide appropriate education/outreach

22. Detailed Workshop Results… Cargo and the Conveyance Loading Process – Initiatives • Initiative 1: Develop uniform data requirements, methods of collecting data, and a system providing uniform and secure information to appropriate users so they can make educated risk assessments • Initiative 2: Perform an international technology scan, based on an understanding of process requirements, that captures information about available and developing technologies for cargo inspection • Initiative 3: Develop and test a process which will assure that ocean export cargoes are accurately described, legal, safe, and secure when they enter the ocean terminal for export

23. Detailed Workshop Results… Conveyance Monitoring and Visibility – Initiatives • Initiative 1: Perform an end-to-end assessment of security risks and gaps throughout the intermodal freight system • Initiative 2: Define elements and steps necessary to implement security data management systems and identify applicable standards • Initiative 3: Identify performance advantages and disadvantages of each frequency band now in use or proposed for use in various world locations for both passive and active communications • Initiative 4: test available technologies for external sensing of explosive or radioactive materials in containers • Initiative 5: Test alternative technologies for detecting unauthorized entry into freight containers

24. Detailed Workshop Results… Conveyance Monitoring and Visibility – Initiatives (cont’d) • Initiative 6: Study of Weaponizable Shipments -- Bulk, LCL/LTL shipments across borders • Initiative 7: Develop a plan to better understand state of freight movement data methods, sensor technologies, command and control, conveyance procedures • Initiative 8: Involve stakeholders, identify containers (e.g., flatracks), materials to track, ensure data security/enforcement, and have equipment that can track, seals that protect, sensors that can detect, and communication • Initiative 9: Identify minimum set of compatible technology (hardware and software to begin with, then market driven to ensure security), provide info to smaller firms or states, and develop linkages to backroom systems.

25. Detailed Workshop Results… Crews, Staff and Access Control – Initiatives • Initiative 1: Conduct a site-specific personnel security/access control vulnerability assessment of the entire transportation chain in a defined geographic area with intermodal/multi-modal activity • Initiative 2: Conduct a demonstration of an integrated physical access control approach to gain a better understanding what technologies and physical security strategies would improve physical security at a specific site • Initiative 3: Deploy positive, dynamic personnel identification, authorization, verification (physical and virtual access management) and supporting information architecture and management at a specific site • Initiative 4: Develop and demonstrate an anonymous security reporting system at a specific site location • Initiative 5: Educate and provide outreach to all participants, stakeholders, and general public in the pilot project concerning the importance crew, staff and access control

26. Detailed Workshop Results… Workshop Participants Offered Recommendations for the Prioritization of Initiatives