Supply Chain Security –
Challenges and Opportunities
Transport Canada
Surface and Intermodal Security Directorate
Transportation Border Working Group
November 1-2, 2011
Outline
1. Context – Surface and Intermodal Security
•
Surface and Intermodal Security Directorate
•
Background / Timelines
•
Typical Directorate Challenges and Approach
2. Supply Chain Security
•
Security Assessment Project Framework
•
Supply Chain Partners, Phases and Nodes
•
Examples of Notable Supply Chain Security Practices
2
Surface and Intermodal Security
The Surface and Intermodal Security Directorate (SIMS) works to
enhance the security of surface and intermodal transportation
across Canada, by:
• Identifying security concerns related to surface and intermodal
transportation systems and establishing, in consultation with
stakeholders, effective policy responses including those that may be
regulatory or voluntary in nature
• Creating and executing all surface security programming, operational
activities and action plans
• Monitoring developments in surface and intermodal security in Canada
and abroad, and ensuring that pertinent security issues are properly
reflected in Departmental and governmental initiatives
3
Background and Timelines
• 2004: Rail and Transit Security Working Group (Madrid)
• 2005: Task Force on Rail & Urban Transit Security (London)
• 2006:
• May – Budget includes $115M to bolster rail and transit security
• October – Asia-Pacific Gateway and Corridor Initiative (APGCI)
• 2007:
• May – National Policy Framework for Strategic Gateways and Corridors
• July – Continental Gateway and Trade Corridor
• 2008:
• Internal review of security functions
• Creation of Surface and Intermodal Security Directorate (SIMS)
• 2009:
• March – Transit Secure Contribution Program completed
• June – APGCI Security Assessment Pilot Project completed
• 2010-2011: Several ongoing projects and activities
4
Surface & Intermodal Security – Typical Challenges:
Complex Jurisdictional Issues and Broad Mandate Require the Right Approach
Research & Evaluation
Outreach
• Engagement strategy
• Research projects, e.g.,
supply chain security,
critical infrastructure
Operations
• Intergovernmental WG
Instruments
• Inspector training
and development
• Canada-U.S.
• Advice to industry Transportation Security
• Review of security Cooperation Group
• Acts & Regulations
• MOUs (IBT/Rail)
• Codes of Practice (Urban Transit) plans, risk
assessments
• Industry Guidelines
• Other Information (e.g., Notices) • Exercises &
Drills
• International WG on
Land Transportation
• Strategic Risk
Assessments
• Evaluation &
Performance
Measurement
• International
Standards
5
Surface and Intermodal Four Strategic Areas
Secure surface
passenger
transportation
system
Passenger
Rail
Secure surface
freight
transportation
system
Urban
Transit
TDG
by Truck
Secure surface and
intermodal critical
infrastructure and
facilities
International
Bridges and
Tunnels
Enhanced capacity to
provide national
leadership in surface and
intermodal security
Intermodal
Freight
Yards
TDG
by Rail
A collaborative effort is required among federal,
provincial, municipal and industry partners.
Stakeholder
Relations
Research
Strategy
Security
Management
Systems
Oversight
capacity
Evaluation
capacity
6
Supply Chain Security Project Framework
GATEWAY STRATEGIC GOAL
National Policy Framework for Strategic Gateways and Trade Corridors (2007) was developed to:
• Guide investment and policy measures, Enhance infrastructure at key locations, and
• Promote the efficient movement of goods and people while mutually reinforcing public safety and
economic security
PROJECT METHODOLOGY AND OBJECTIVES
Partner with government (federal and provincial) and industry stakeholders to:
1. Identify the current security practices in place Canada’s Gateways and Corridors; and
2. Identify potential areas for improvement.
EXPECTED OUTCOMES
1. Increase Supply Chain Actors’:
 Situational Awareness,
 Collaboration,
 Readiness and Resilience
2. Address the need for improvements, as applicable
3. Reduce the impact of security on the efficient flow of goods
7
Supply Chain Security Assessment
Methodology, Phases and Approach
8
Supply Chain Partners – Roles and Responsibilities
•
Federal Government
–
•
Provinces
–
•
Provincial transportation (policy, regulation and operations); provincial
police services; emergency preparedness and response
U.S. Government
–
•
National security, and regulation and/or service delivery in
transportation, border operations, customs, and immigration
Collaborate with Canadian colleagues and counterpart agencies
Industry
–
Primary responsibility to ensure suitable standards of security in all
facilities and operations along the supply chain
9
Overview of Supply Chain Phases and Nodes
•
•
Level of risk can change during each transportation phase at varying nodal
areas, stops, and transfer points.
Conditions differ along the supply chain, including security measures in place,
response capacity, traffic coordination, and system resilience.
A:
Factory / Warehouse
Day 1
B:
Local Truck or Rail
Transport
Rail / Truck
Consolidation
Container Yard and
Transport
(if applicable)
Consolidation
Facility
(if applicable)
C:
Port of Export
Loading Vessel
Day 2-5
D:
Vessel Departs
Territorial Waters
E:
Vessel En Route (International
Waters)
Day 5-10
F:
Vessel Enters
Canadian Waters
Day 11-12
G:
Vessel Enters
Navigation
Channels
Day 13
H: Vessel Arrives
in Canadian Port
Day 14
I:
Unloading of
Vessel, Transshipment, CEF
Day 14-17
J:
Rail/Truck
Transport via
Tracks, Roads,
Highways, Area 1
Day 18
K:
Rail/Truck Transport via Tracks,
Roads & Highways – Area 2
Day 18
L:
Stops along
Railways or
Highways
Day 18
M:
Rail/Truck
Transport, Area
N…
Day 18-19
N:
Stops along
Railways or
Highways
Day 18-19
O:
Rail or Truck
Transport /
Border Crossings,
Bridge / Tunnels
Day 19
P/Q:
Entry into the US
and Arrival to US
Destination
Day 19
10
Supply Chain Nodes: Canada’s Major Ports
11
Supply Chain Nodes: Highways
12
Supply Chain Nodes: Land Border Crossings
13
Asia-Pacific Gateway Supply Chain Security Assessment
• Pilot security assessment of the Prince Rupert to Fort
Frances/Ranier Gateway and Corridor completed in June 2009
• Focus on intermodal and railway transportation within the APGC
system
• Conclusions:
• Security posture in place is addressing the existing threat
environment
• Noted duplication of Customs targeting and inspections
• Assessment Methodology worked well, lessons learnt to be
applied in future supply chain security work
• Must remain vigilant and promote collaboration and
continuous improvement
14
Continental Gateway Supply Chain Security Assessment
• Canada-Ontario-Quebec Collaboration:
– Transport Canada (TC), and other Federal Government Security Agencies
– Ministry of Transportation Ontario (MTO)
– Ministère des transports du Québec (MTQ)
• Project:
– Examines surface and intermodal freight supply chain security from the
“marine-trucking” perspective
– Focus is on security of intermodal freight movements along key critical
commercial routes to the United States
• Final report validation is underway
• Expected completion: end of FY 2011/2012
15
Examples of Notable Supply Chain Security Practices
Private Sector:
Facility Security
•
•
•
•
•
Perimeter security and access control
Crime Prevention Through Environmental Design (Fencing, Lights, CCTV, “natural
surveillance”)
Security monitoring and Security personnel, incl. CCTV monitoring
Training, Drills, and Exercises
Patrols, and Security/Response Plans
Personnel Security
•
Police Checks, References and Credentials Validated
Conveyance and Cargo Security
•
•
•
•
•
Container/Trailer tracking of movements through technology, conveyance security
measures
Use of security seals and of larger secured rest areas with good lighting and CCTV
Document, Data, and IT controls, incl. management of Bills of Lading
Participation in Trusted Trader Programs
Threat-Risk Assessments, Security Plans, and Business Continuity Plans
16
Examples of Notable Supply Chain Security Activities
Provincial Ministries of Transportation and Municipalities:
• Transportation enforcement :
– Inspections of commercial motor vehicles, including: driver qualifications, CPIC
checks on drivers, vehicle permits, bills of lading and cargo
– Direct radio communication access to police
• Traffic Centers:
– Traffic centers operate hundreds of cameras, sensors and electronic message
boards in the larger population centers and leading up to major border crossings
aimed at protecting infrastructure and managing traffic flows
– Law enforcement also have close working relationships with the traffic centers
• Others:
– Risk assessments and scenario-based tests and exercises (e.g. hypothetical shutdown highway)
– Alerts and notices regarding specific issues of concern or persons of interest are
frequently issued and disseminated via electronic message boards, radio, etc.
– Investments made to improve safety and traffic flows in urban centres and along
key trade routes
17
Examples of Notable Supply Chain Security Activities
Police and Border Services:
• Services involved: RCMP, Provincial, and municipal police
• Specialized teams and programs, such as:
– Integrated National Security Enforcement Teams (INSET)
– Integrated Border Enforcement Teams (IBETS)
– Operation Pipeline/Convoy
• CBSA and CBP work to improve border security and use several layer of
security such as the:
–
–
–
–
–
Advanced identification of high risk shipment and risk assessment process
Technologies to facilitate the examination of container (RPM, VACIS)
Trusted Traders Programs (PIP, C-TPAT)
Identification of suspicious behavior, incl. Border Watch Toll-free line
Close relationship with RCMP and Port Authorities
• Risk assessments and exercises done with emergency first responders, and
local facility and infrastructure operators
18
Examples of Notable Supply Chain Security Activities
Transport Canada:
Surface & Intermodal Security Directorate:
•
•
•
•
Voluntary Rail Security Framework implemented in 2007, including an oversight program
Currently developing a national TDG Security Policy Framework
Implementing a voluntary International Bridges and Tunnels (IBT) Security Framework
Security technology research and evaluation Projects
Marine Security Directorate:
• Marine Transportation Security Act and Regulations, complying with SOLAS’ ISPS Code
• Marine Transportation Security Clearances
• Interdepartmental Marine Security Working Group (IMSWG), Incl. MSOCs
Others:
• Air Cargo Security Program is being rolled out
• Investments made to improve safety and traffic flows in urban centres, along key trade
routes and border infrastructure, Smart Corridor Initiative (Policy and Programs Groups)
• Support the Declaration on Economic Competitiveness and Perimeter Security (Safety
and Security, and Policy Groups)
19
We still must remain vigilant!
Efforts must be made to preserve what has
been achieved
It is necessary to continue to improve in order
to keep ahead of evolving security threats
 Therefore, let’s identify and eliminate the
weakest links while seeking continuous
improvement in both: Security and Efficiency
20
Questions
Serge Lavoie
Chief, Multimodal Security Policy
Surface & Intermodal Security Directorate
serge.lavoie@tc.gc.ca
613-993-6862
21