Boxing Clever

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					P O R T S

  Boxing Clever
   Hutchison is a key player in a global initiative that will significantly increase safety and security
                             within the world’s maritime container trade.
                                                             By Matthew Flynn

        ust as a secure house helps people sleep peacefully at night,            “HPH is joining with other industry leaders to build a net-
        the introduction of Smart and Secure Tradelanes (SST) is             work to read messages from individual containers as to their
        allowing the shipping industry to rest easy in the knowl-            location and sensor activity,” explains HPH Group Managing
                                                                             Director John Meredith.
        edge that containers carrying their valuable merchandise
                                                                                 “When the messages are received from their origin load-
  will arrive safely every time.                                             ing and destination unloading facilities, shippers will be able to
      Until now, shippers had no real control over their goods               closely monitor the containers in their supply chain.”
  after they’d been packed into containers. Any tampering with                   Meredith is a founding member of the Strategic Council
  the contents in transit, or even the loss of the entire container,         on Security Technology (SCST), which is the driving force
  was almost impossible to detect until it was too late.                     behind the SST initiative. The SCST was brought into exis-
      But all this is rapidly changing with the introduction of              tence in response to the events of 9/11 to focus on security
  SST. The system effectively provides each container with the               with the aim of being an international resource. It is com-
  equivalent of its own electronic dead bolt and burglar alarm,              prised of an international assembly of top executives from the
  along with supporting technology that enables owners to track              world’s largest port operators, logistics technology providers,
  the container and monitor the integrity of their goods from                military logistics leaders, former public officials and prominent
  point of origin to final destination.                                      transportation consultancies.The participation of leading glob-
      The initiative comes at a time of growing concerns world-              al ports players means that SCST represents 75% to 80% of the
  wide over security issues. In the wake of the events of 9/11, the          container traffic crossing US borders.
  movement of containers has been identified in some quarters
  as a vulnerable link in the global security chain. In the worst-           TECHNOLOGICAL BLUEPRINT
  case scenario, some argue, a container could be used to deliver            With growing demand for the establishment of more
  a bomb.                                                                    dependable security, the commercial container industry has
      At the forefront of technology solutions for container                 known for some time that it faces a dramatic change in the
  security, and one backed by Hutchison Port Holdings (HPH),                 way of doing business.
  are anti-intrusion sensor systems that are both tamper proof                    The basic requirement is that each container carry with it
  and monitored by a radio-wave network. The sensor systems                  reliable information on where it has been and who has had
  transmit coded radio alerts in the event of unauthorised tam-              access to it. In short, each container must be secure and tracked.
  pering and also carry an encrypted computerised log of the                      By volume, more than 95% of the US non-North
  container’s handling history.                                              American foreign trade arrives by ship. Yet the US Customs
      This SST initiative is a global effort to use proven technolo-         Service is only able to inspect 2% to 3% of the seven million
  gies and best business practices to plug security gaps throughout          containers that arrive each year, carrying everything from rugs
  the supply chain. Similar technology is widely used in anti-               and razorblades to frozen fish and sports cars. A major securi-
  shoplifting devices. With an average container cargo worth                 ty breach conceivably could cripple global trade.
  US$50,000 to US$100,000, it is not surprising that the technol-                 As the collection and discharge point for sea containers,
  ogy is now being applied to protect commercial cargo in transit.           ports are the strategic control points in the supply chain. But

      Via the web-based software of Safe and Secure Tradelanes (SST), detailed cargo information is submitted to relevant security
 1    authorities by the various links in the global supply chain – including factories, government representatives, logistics service
providers, terminals and shipping lines.The data is simultaneously captured and retained in the SST security software platform.

  there have been obvious and potentially     times a day after the containers of lunch          PIVOTAL ROLE            FOR    PORTS
  dangerous security gaps – until now.        and dinner meals went missing.This was             HPH has installed the Radio Frequency
       The SCST has recently signed a part-   a minor inconvenience, but planners                Identification (RFID) reader equipment
  nership agreement with the International    realised the potential danger if ammuni-           in several facilities – Hongkong
  Standards Organisation (ISO) to acceler-    tion were to get lost in a mountain of             International Terminals (HIT), Port of
  ate the standards-development process       metal containers.                                  Felixstowe (PFL) and Europe Container
  and ensure that the industry-government                                                        Terminals (ECT) – and can bring new
  coalition implements a defined, cohesive              The system                               ports on line in a matter of weeks. In
  and practical set of criteria.                                                                 due course, all HPH container ports will
       The participation of the ISO is                 provides each                             deploy the SST technology.
  important because it responds to earlier           container with the                               When the container enters the HPH
  calls by the World Shipping Council to                                                         facility by truck or barge, a handheld
  ensure a workable radio wave network              equivalent of its own                        RFID reader is used to scan the sensor
  as well as communications security.               electronic dead bolt                         systems. Several dozen readers through-
       While the ISO is responsible for                                                          out the marshalling yard watch over
  defining the standards of the technology,          and burglar alarm                           stored containers while fixed readers
  the foundations of the Smart and Secure                                                        attached to quay cranes capture move-
  Tradelanes have already been estab-             Today, the US military uses sensor             ment on and off container vessels.
  lished, tested and proven by the US         systems and radio tracking on all crucial               The first wave of “smart and secure”
  Department of Defense.                      shipments. During the second Gulf War,             ocean containers was shipped in
       The application of sensors and         containers were tracked and kept secure            December 2002.
  automated tracking systems to con-          while the data remained confidential.                   Among these shipments were ten con-
  tainerised cargo came about after the           The availability of an already devel-          tainer loads of store merchandise loaded by
  US military’s supply chain became           oped secure method to tighten control              HIT for a major US-based retailer. (HPH
  hopelessly tangled during the first Gulf    over supply chains serves as a useful              handles about 50% of the 17,000 contain-
  War. Soldiers were eating breakfast three   model for the shipping industry.                   ers that enter US seaports each day.)

                                                                          After the container has been packed and before it enters the contain-
                                                                      2   er terminal, authorised personnel affix a sensor system, making the
                                                                   container “smart and secure”.The Radio Frequency Identification (RFID) tag
                                                                   contains automatic identification technologies and sensor-related intrusion-
                                                                   detection systems that dramatically improve the ability to track, locate and
                                                                   detect the integrity of shipments in real-time.

     Following the typical 10-day journey                 ty applications. “We are in 32 locations                  work partners, which include carriers and
across the Pacific Ocean, the vessel                      and smuggling may occur in some of                        forwarders in addition to port operators.
berthed at the Port of Seattle, where                     these,” he says.                                              “Shippers should use whatever
strategically placed RFID readers record-                                                                           process and technology that will allow
ed their location and security status.                                                                              them to monitor the location and sensor
     After Customs clearance to exit the                                  Everyone                                  activity of the containers carrying their
Port of Seattle, the smart containers were                               will benefit                               goods as they move through their supply
loaded onto the chassis of a regional                                                                               chain,” Meredith asserts.“We believe Safe
trucker and transported to a distribution                              and the shippers                             and Secure Tradelanes provides them with
facility where key events continued to be                                themselves                                 this service and we think that the effort
captured and transmitted. Authorised                                                                                we have already put into it will be seen in
personnel then unlocked the sensor sys-                                   will be the                               a good light by all players internationally.”
tem using an encrypted code.The event                                   main winners                                    To date, SST is probably the most
was recorded and transmitted to the                                                                                 far-reaching container security initia-
Transportation Security System software,                                                                            tive globally.
enabling complete information verifica-                        “HPH and the other participants of
tion and the instant creation of a docu-                  SST are committed to enlisting a strate-                  COMMERCIAL BENEFITS
mented audit trail. From there, the mer-                  gic group of multinational shippers who                   While the new technology brings addi-
chandise was shipped to retail stores                     can implement end-to-end and port-to-                     tional expenses, Meredith believes it will
throughout the American Northwest –                       destination container security.”                          also result in savings. “Everyone partici-
efficiently, safely and securely.                              Shippers’ requirements go back fur-                  pating will benefit from increased con-
                                                          ther than the ports, linking back to point                tainer security and the shippers them-
SAFETY FIRST                                              of origin at the loading docks and facto-                 selves will be the main winners,” he says.
Meredith points out that, as a major                      ries. The unbroken origin-to-destination                      Commercial benefits will include
container terminal operator, it is natural                process will naturally require collabora-                 better supply chain visibility, bringing
for HPH to be well advanced in securi-                    tion with the shipper’s other physical net-               “substitution cost savings” such as a

         Information contained in the RFID tag is               At the terminal in-gate, a hand-held device          Once security is verified, the container enters the
 3       captured on the Internet-based security
                                                         4      reads the container’s security status then     5     terminal to be loaded.Tracking occurs when the sen-
software platform which facilitates the necessary       sends the information to the security software        sor systems affixed on the container pass through the fixed
information exchanges and makes data readily            platform. The device enables authorised person-       readers installed in the node. At the point of loading, the
available to authorised parties. Phase 2 adds more      nel to capture and verify key information, which      sealed containers are scanned again through readers mount-
security layers, including a grid of sensor tech-       is available for customs authorities to determine     ed on quay cranes, providing a final security confirmation.
nologies for detecting environmental changes            pre-loading inspections.
inside containers, surveillance cameras, biometric
identification, and satellite tracking for in-transit


  reduction in Bill of Lading surcharges                    field, having won awards for the devel-                 shipper for the monitoring of location
  and expedited freight.                                    opment of a computer programme for                      and sensor activity is one more input to
       Greater certainty of a container’s                   yard management and workflow systems                    their data from service providers,” he says.
  location in the supply chain will also                    that arrange containers efficiently.                        Each terminal facility has its own site
  allow shippers to reduce their inventory                       SST operates on an “open architec-                 manager who collects the data from the
  of “safety stock.”                                        ture” software principle to read various                readers. This information is then sent to
       The US military, for example, has used                                                                       the various shippers’ systems, or they can
  the sensor systems to move from just-in-                                                                          access it from the Internet using their
  case logistics, where planners always                                     This is going                           passwords. “The protocols are in place
  shipped extra in case something was lost                                   to be the                              for security,” Meredith confirms, point-
  or delayed, and instead adopt a much more                                                                         ing out that there have been no security
  efficient just-in-time logistics.                                       next revolution                           breaches in the US Department of
       Meredith also anticipates that ship-                                in technology                            Defense’s use of the system.
  pers will enjoy across-the-board direct                                                                               “The key to monitoring the loca-
  and indirect cost savings as fewer ship-                                                                          tion and sensor activity of a ‘smart con-
  ments get tangled in trade compliance                     manufacturers’ RFID tags. The moni-                     tainer’ is the network of readers and the
  procedures and there is less risk of loss.                toring information is then transmitted                  ability to forward data to the shipper for
  “Major retail shippers are already rely-                  to software that alerts shippers on the                 alerts,” notes Meredith. The terminal
  ing on imbedded computer chips to                         status of their cargo.                                  operators’ network will be a large sector
  protect products from theft,” he says.                        Naturally, shippers and other service               of this but additional reading stations at
  “Many of these corporations are now                       providers will be sensitive to who will                 intermodal yards/facilities will further
  ready to adopt this type of technology                    have access to the commercially sensi-                  enhance the network to provide closer
  to track their containerised shipments.”                  tive information.                                       scrutiny of the shippers’ supply chain.
                                                                Meredith explains that shipping                         To date, the main company produc-
  IT PEDIGREE                                               information is the property of the ship-                ing the smart locks is Savi Technology,
  HPH has strong credentials in the IT                      per. “The information provided to the                   which clearly has a head start thanks to

        Secure containers leave their port of origin on board a vessel. Each container can           The container arrives at its destination port where its integrity is
   6    now be tracked to its final destination along Smart and Secure Tradelanes.            7      again checked using a hand-held device. Information on key supply
  (Currently, six lanes are available: HK to Seattle; HK to Tacoma; ECT to NY; Felixstowe    chain and security events is immediately available. Business processes have
  to NY; Singapore to LA/LB; Antwerp to NY.)                                                 been recorded, and container tamperings, mis-routes and delays have been
                                                                                             monitored and reported accurately throughout the global tracking network
                                                                                             in real-time.

     its track record with the US military.                  December 2002 and focused on the                         secure supply chain, governments give
          But RFID hardware is not limited                   installation of the readers and location                 them speedy access to land their goods,”
     to one company. “This is a quickly                      monitoring. It has seen more than 900                    says Meredith. “Shippers who can pro-
     developing sector that is going to be                   containers secured from point-of-origin                  vide accurate and comprehensive loca-
     the next revolution in technology,”                     to point-of-destination. In this phase,                  tion and sensor status of their containers
     Meredith predicts.                                      more than 4,000 container location                       will be at the top of that fast lane list.
          A major container maker in China,                                                                           This is a collaborative effort and not a
     for example, has just signed on with a                                                                           competition of terminal operators to
     proposal for installed imbedded readers                                 This is a                                build security into the global supply
     in their newly built containers, while                                collaborative                              chain.The participants in SST recognise
     retailers and product manufacturers are                                                                          the importance of a secure trade lane to
     now making orders for RFID to track at                               effort and not                              the world economy and believe that at
     the product level.                                                   a competition                               present their initiative is the only one
          “HPH welcomes more advanced                                                                                 upon which shippers can rely.”
     systems that may come into play,” says                                                                               As for the future, it’s quite feasible to
     Meredith. “Security is the incentive and                monitoring and sealing events were                       predict that someday soon all containers
     security protects our people and our                    recorded, spanning the globe and                         will be “smart and secure”. And there’s
     company’s assets,” he adds. “Our prime                  including ports in Rotterdam, Shanghai,                  almost no limit to the potential of the
     motivation is to take concrete action                   Bangkok, Semarang, Jakarta, Singapore,                   technology to keep shippers informed.
     and do our part to provide a service to                 southern China, and Hong Kong.                           Besides tracking their goods via global
     shippers that enables them to better                        Phase 2 is now under way and the                     positioning, for example, they could
     secure their supply chains.”                            focus is on sensor status monitoring,                    soon be keeping tabs on the temperature
                                                             while also expanding the volume of                       within their container or even be able to
     ROLLOUT UNDER WAY                                       tracked containers.                                      “see” their goods via remote cameras.
     SST has undergone a rigorous testing                        “A great deal of impetus will come                       Now, if only our homes and offices
     process. Phase 1 was launched in                        when, in return for shippers showing a                   could be so secure.

       The “seal” of the RFID sensor system is finally broken. The movement of
 8     cargo within the marine container has been accomplished with a high level
of security.

                                                                                      In 1996,Watsons developed the smaller
                                                                                      11-litre water "Junior" to meet the
                                                                                      needs of the home user and in 1998 it
                                                                                      was first to launch the streamlined
                                                                                      light-blue "Handy Bottle" with an inte-
                                                                                      grated handle that made it simple and
                                                                                      easy to replace.


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