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International Forum on Trade Facilitation 15 th May 2003

International Forum on Trade Facilitation 15 th May 2003. Hutchison Whampoa. Core businesses: Ports and related services Telecommunications Property and Hotels Retail and Manufacturing Energy and Infrastructure. Hutchison Port Holdings.

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International Forum on Trade Facilitation 15 th May 2003

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  1. International Forum on Trade Facilitation 15th May 2003

  2. Hutchison Whampoa Core businesses: Ports and related services Telecommunications Property and Hotels Retail and Manufacturing Energy and Infrastructure

  3. Hutchison Port Holdings • World’s leading port investor, developer and operator • In 15 countries: Asia, • Middle East, Africa, • Europe and • the Americas • Operates 175 berths in 31 ports • Handled 35.8 million TEU in 2002

  4. HPH Global Logistics Network

  5. Benefits of supply chain security • Secures the integrity of the supply chain • Increases the visibility into the status of shipments • Drives operational efficiencies • Improves businesses’ ability to manage all global inventory in real-time

  6. Shipping Costs UK port costs represent 2-3% of entire logistics costs

  7. Achieving supply chain security 3 key elements: • Transparency and Visibility of Supply Chain -Development of a single, common-user system for enhanced operational clarity • Physical Security -Provision of an effective barrier to prevent loss and act as a deterrent - Ability to detect any breach immediately and feed information automatically to the appropriate authorities • Forensics - Ability to collect historical data to provide an audit trail for each container move

  8. Implementing supply chain security 3 key requirements: • Improvements to practices and procedures - combination of people, process and technology • Collaboration between all supply chain participants and regulatory bodies • Sell the benefits of security enhancements and “best practice” to all supply chain participants

  9. How Smart & Secure Trade Lanes Works • Clear procedures for loading containers begin at the point of origin • To ensure the integrity of upstream security, background screening carried out on authorised individuals • Authorised personnel affix an electronic seal (E-seal) onto • the container and digitally certify that they have verified the • content of the sealed container • Data capturing hardware and software infrastructure has been installed at ports and other SST participants e.g. mobile handheld “readers” • SST participants have the capability to monitor all activity in real-time at strategic checkpoints and • in-transit from point of • loading until final • destination

  10. Our Mission To be the global market leader in port development, operations and logistics services

  11. Extra Security Costs • Security Fencing • Access Controls • Security Guards • Port Security Officer • Storage • Insurance

  12. Security Acronyms • SST – Smart & Secure Trade Lanes Initiative • CSI – Container Security Initiative • ISPS code – International Ship & Port Facility Security code • C-TPAT – Customs-Trade Partnership Against Terrorism • AIS – Automatic Identification System • Transec – Transport security • SOLAS – Safety of Life at Sea • SCST – Strategic Council on Security • Transport

  13. Hutchison Whampoa • Multi-National conglomerate based in Hong Kong • Operates in 41 countries • Originally a British “hong” registered in 1863 • Publicly quoted • Invested over £5,500 million in UK to date • UK interests include: Hutchison “3”, Superdrug, Savers, • Property, Ports….. • Chairman: Li Ka-Shing

  14. Smart & Secure Trade Lanes Participants

  15. US Port & Marine Security Act 2002 • 1)Mandates that all ports, facilities and vessels instigate comprehensive security/incident response plans, coordinated between all relevant authorities • 2) Mandates a regional Area Maritime Transportation Security Plan, developed by the Coast Guard • Directs the US DOT to develop regulations to create secure areas in ports, and to limit access to sensitive areas e.g. through the issuance of identity cards, and background checks of employees • Establishes local port security committees to • coordinate federal, state, local and private law • enforcement agencies • 5) Provides for supply chain security by allowing • for secure maritime borders and an efficient • cargo transportation system e.g. implementation • of enforceable standards for container seals/locks

  16. US Port & Marine Security Act 2002 • Requires that all cargo be pre-cleared for entry into the US at the port of origin • Compels commercial vessels to be equipped with and operate an automatic identification system (AIS) when navigating in US waters • Authorises the Coast Guard to board and search ships entering US ports • Directs the Secretary of Transportation to assess the anti-terrorism measures maintained by foreign ports, and to deny entry to vessels that call on ports with insufficient security regimes • Creates a Maritime Security Advisory Committee to make recommendations on national maritime security matters • Requires the development of a maritime intelligence system to collect and analyse information on vessels operating in waters under US jurisdiction

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