APEC Second Air Cargo Security Workshop Summary Report Presented by: Mr. Lonnie Kishiyama United States

1. 33rd APEC Transportation Working Group Tokyo, Japan October 10-14 2010 APEC Second Air Cargo Security Workshop Summary Report Presented by: Mr. Lonnie Kishiyama United States

2. Program Overview • On June 2-4, 2010, the 2nd APEC Air Cargo Security Workshop, co-sponsored by the United States, Singapore and Australia, was held at the Singapore Aviation Academy in Singapore. The APEC Technical Assistance and Training Facility (TATF) provided logistics and funding assistance. • Representatives from 15 APEC Economies, together with 16 speakers totalling approximately 120 government and industry participants participated in the Workshop. • The objectives of the Workshop were to • promote further exchange of best practices and lessons learned in the area of air cargo security, • facilitate the establishment of capacity building relationships between contributing economies and economies seeking to establish or improve air cargo security, and. • to explore available technological solutions to the unique challenges of air cargo security.

3. Background • Security of air cargo is fundamental to facilitating trade and an important part of an economy’s effort toward achieving counter-terrorism goals. • An incident affecting air cargo could be extremely costly to the global economy. Air cargo generates about $50 billion a year in revenue on average and transports 35 percent of the value of goods traded internationally. •  In the Asia Pacific region, air carriers ship nearly half of global freight. Moreover, it is a critical part of the civil aviation industry which, as a whole, supports 32 million jobs and $3.5 trillion of economic activity, according to the International Air Transport Association. • Improved air cargo security would substantially benefit APEC economies by reducing the likelihood that gaps or vulnerabilities in air cargo security can be exploited to conduct successful acts of terrorism by those with malicious intent.

4. Outcomes • The 2nd APEC Air Cargo Security Workshop in Singapore was very successful with 15 Economies and over 120 participants from government and industry. • Specific focal points for the 2010 Workshop and those topics included information sharing, capacity building and technology. • Included a field visit to the SATS Air Cargo Terminal at Changi International Airport, Singapore • Participants had an opportunity to see one of Singapore’s major air cargo terminal operators implement air cargo security measures and to speak directly to the security experts.

5. Outcomes – Continued • Included a unique networking session that provided voluntary one-on-one expertise, advice and capacity building assistance for economies seeking to establish or improve air cargo security arrangements. The networking session was hugely successful.

6. Outcomes - Continued • The Workshop scope and structure provided opportunities for: •  Focused exchange of air cargo security practices and recommendations; • Wider availability of information on air cargo security technology (including both high and low-technology solutions); • Greater dissemination of best practices that enhance the security of air cargo as an integrated part of the overall supply chain in the APEC region; and, • Improved information exchange between economies that have established air cargo supply chain security regimes with those economies seeking to implement or improve their air cargo security efforts.

7. Key Issues Discussed • The 2nd APEC Air Cargo Security Workshop specifically focused on the top three areas of interest identified by air cargo security experts at the 1st APEC Air Cargo Security Workshop in 2008. • These areas of interest include information sharing, capacity building and technology. • The Workshop featured speakers and experts from a wide range of APEC economies that provided participants with a broad view of the experiences and challenges faced by economies throughout the Asia-Pacific region. • Active participation from the private sector and their sharing of their perspectives and concerns also added to the success of the Workshop.

8. Presentations – Information Sharing Information sharing; Sharing best practices and lessons learned in areas of air cargo security such as increased volume/commodities during major events; implementation of supply chain security regimes; and 100% air cargo screening. •  Objectives of Workshop and Working Towards APEC Commitments, USA • Intelligence Threat and Risk Brief, USA • Update on U.S. 9/11 Act – 100% Scanning of U.S.-bound Air Cargo Carried on Passenger Aircraft, USA • Aviation Authorities – Regulated Cargo Agent Regime (RCAR) Presentation, Singapore • Malaysia’s Secure Freight Programme, Malaysia • China’s Air Cargo Security Management System, China • A Secure Air Cargo System – An Australian Perspective, Australia • Implementation of WCO SAFE Framework – Singapore’s Experience, Singapore

9. Presentations – Capacity Building Capacity building - Presentation(s) on successful capacity development programs were followed by a networking session where economies with subject matter expertise were available to answer questions from those economies seeking assistance and clarity. •  IATA Air Cargo Security – Secure Freight, IATA • Understanding the Air Cargo Industry – The Air Cargo Supply Chain, SATS Cargo, Industry Representative • Public-Private Sector Collaboration for More Effective and Efficient Air Cargo Security – The Air Cargo Industry’s Concerns, DHL Global Forwarding, Industry Representative • Field Visit to the SATS Air Cargo Terminal at Changi International Airport, Singapore • Networking session with experts available for one-on-one advice/capacity building

10. Presentations – Technology Technology (including high and low-level solutions) Highlighting relevant security technologies and best practice solutions with an emphasis on low technology / low cost options •  Application of Air Cargo Security Technologies – A Holistic Approach, TNT Worldwide Express, Industry Representative • The RA Regime in Japan Toward Further Enhancing Air Cargo Security, Japan • Managing the Security Risk – An Industry Perspective, Qantas, Industry Representative

11. Key takeaways Key takeaways from these presentations and panel discussions included: • The need to have harmonized air cargo security measures to provide clarity to industry as this will have a significant impact on the cost and efficiency of their operations. • Participants proposed that measures such as the IATA Secure Freight Program, the ICAO Regimented Cargo Agents program and the WCO Authorised Economic Operator program be reviewed to assess how these could all be aligned for a more holistic approach to air cargo security. • The need for more focused capacity building programs within the APEC Transportation Working Group (TPTWG) to discuss technical details of existing programs and specific sharing of experiences in the development of an air cargo security program as well as in the implementation of such programs.

12. Conclusion and Recommendations • The Workshop concluded with a discussion of possible future workshops and continuing work to improve air cargo security measures and sharing best practices. • Recommendations for future workshops included: •  The addition of practical exercises and focused breakout sessions as part of an extended agenda. • A formal POC experts list (informal contact information was exchanged at the 2010 Workshop) and a possible internet web board where best practices could be listed. • Continued focus on air cargo security in the APEC TPTWG Aviation Security Experts Sub-group. • Continued government / industry collaboration and cooperation in the field of air cargo security.

13. Heads of Delegation and Presenters

14. JAPAN 2010 33rd APEC Transportation Working Group, Tokyo, Japan, October 10-14 2010 Questions?