Trade Facilitation in the New Security Environment

1. Trade Facilitation in the New Security Environment Doing More With Less Through Real Time Integrated Data Holistic View With Command & Control Christopher Hickey Vice President, Homeland Security Honeywell International, Inc.

2. Drivers for Change • Security - Trade Security has been redefined since September 11, 2001 and continues to evolve • Cost - Concerns exist over the economic impact of security solutions at all levels in the organization and commerce in general • Efficiency - Security effectiveness and economic efficiency should be part of all transportation operations, and in the planning and design of all systems • Local View - To date, approaches have focused on supply chain and local facility vulnerability analyses, resulting in point solutions to address local issues • Global View - There is growing recognition that solutions must be global in nature, establishing both security and economic value to all significant stakeholders • Integration – Advance communications make it possible to Share data at a global level providing better accuracy and security while improving cost of operations at the local level Integrating islands of information into a holistic command and control solution with full audit of transactions CAN provide improved levels of security while improving operational efficiencies

3. Global Chain of Custody for Freight • Oceanic Freight • Expedited processing • Carrier Identification • Carrier Employee ID • Cargo ID • Monitor movement • Container Security Initiative • Freight Transaction • Inspected • Electronic Seal • Electronic credentials • Sensing verification • Preprocessing • C-TPAT • Ground Freight • Expedited processing • AVI/AEI • Driver ID • Cargo ID and security • Monitor movement Global Shipping Data • Freight Delivery • Just-in-time • Secure • Insurance Claim • Transaction closed • Transaction Processing • Secure data transmissions • Expedited clearance • Security checked

4. Some Emerging Themes • Security is a daily event, not just for emergencies • Procedures and a chain of command/authority must be explicit and formal • A key component to a successful security strategy for a seaport is a DEDICATED operations center • Seaports should leverage from the strategies in other industries • Oil Refineries, Data Centers, Government, Defense, Airports Security is a Journey, not a destination, and the road to secure environments is Always under construction

5. Trade/Cargo Security Challenges • Efficient use of security technology when processing cargo results in safer commerce and improved port operational efficiencies • How do you identify and track handling of important or dangerous cargoes? • How do you verify container contents match shipping manifest? • How do you verify shipping container contents have not been compromised? • How do you verify shipping container does not contain undocumented hazardous or illegal contents? • How do you provide a history of where the container has been and who has had access to it? • How do you provide physical security of seaport, air terminal, or border entry facility? Inefficient efforts to address container security significantly increase cost of operations and reduces free flow of goods and services

6. Global Data Holistic View of Site • First Responder Support • Access Control • Intruder Detection • Life Safety • Track Assets Graphically • Track Containers • Command & Control of • Facility Operations • Link events with video • Link events to site personnel • Link events to drivers – Vehicles • History and data at your fingertips • Satellite Mapping • Facility Operational View • Digital Video Integration • With Operations • Employee Mgmt. • Contractor Mgmt. • Driver Mgmt. • Carrier Mgmt. • Background Check • Biometric Mgmt.

7. Integrated System Architecture Is The Key • SCADA Strength a must • High availability • Command & Control integration is key to flexibility • Managed risk w/real time data • Doing More With Less! • Common User Interface • Link to HR data • Digital Video tracking • Link to container data

8. Private Sector Call To Action • Technology - Provide advanced technologies to automatically track, assess shipping contents relative to manifest, and verify the integrity of the cargo. • Global View - Develop and adopt a distributed, secure World-Wide, data exchange utility where public/private stakeholders are able to obtain highly secure information for any shipment. • Integration - Deploy a standardized, dynamic open information systems architecture for integrating people, process and technology data into cargo management systems with supply chain security in mind. • Security – Make security a core part of your business process so that it enhances operational efficiencies daily and provides efficient risk management when required.