Hutchison Port Holdings and its Commitment to Supply Chain Security. E. Devisch WCO December 8-9, 2005

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1 Hutchison Port Holdings and its Commitment to Supply Chain Security E. Devisch WCO December 8-9, 2005

2 HPH Security Initiatives Objectives - Reduce risk - Reduce impact - Improve the industry

United Kingdom Netherlands Poland China Mexico Felixstowe Thamesport Harwich Belgium Rotterdam Pakistan Karachi Gdynia Germany Duisburg Hong Kong Kwai Chung Tuen Mun Shanghai Shanghai Pudong Ningbo

3 United Kingdom Netherlands Poland China Mexico Felixstowe Thamesport Harwich Belgium Rotterdam Pakistan Karachi Gdynia Germany Duisburg Hong Kong Kwai Chung Tuen Mun Shanghai Shanghai Pudong Ningbo Yantian Xiamen Shantou Jiangmen Nanhai Jiuzhou Gaolan Veracruz Ensenada Manzanillo Lazaro Cardenas Bahamas Freeport Willebroek Korea Egypt Gwangyang Busan Alexandria El Dekheila Thailand Saudi Arabia Dammam Tanzania Myanmar Thilawa Laem Chabang Indonesia Jakarta Panama Cristobal Balboa Dar es Salaam Malaysia Port Klang Argentina Buenos Aires HPH Ports Around The World March 2005

4 Facility Implementation of the IMO ISPS Code

5 Trusted Parties Authorised Economic Operators C-TPAT Red/Black Shipper etc.

6 Container Information 24-hour rule EC / WCO data model Bayplan Manifest Purchase Order etc.

7 Radiation Detectors - Felixstowe

8 Radiation Detectors Freeport

9 Imaging Equipment

10 Latest Developments World WCO Framework of standards ISO e-seal standard EU Regulation amending EU Customs Code Hong Kong green customs seal China red shipper concept Seal verification (US Department of Homeland Security DHS) HPH Data provision to authorities Non-intrusive inspection capabilities Building RFID network Pilot project SST between China and EU

11 ISO standards ISO Permanent Container Tag ISO Supply Chain Tag ISO e-seal Shipping-Line Tag

12 RFID in transport 3 types of tags 1 frequency mhz = 1 reader

13 Smart & Secure Tradelanes Supply Chain Security

14 Industry participation Bring together partners & participants for joint development and testing government authorities shippers service providers ports ocean carriers other carriers technology providers

15 Project Goals Demonstrate the usage of technology for container security monitoring and tracking by all parties involved Demonstrate information availability Demonstrate information exchange Demonstrate the usage of technology for non-intrusive inspection for every container Demonstrate the operational workings of the Authorized Economic Operator concepts

16 Project Technology Technical Infrastructure The Transport Security System (TSS) system located in Singapore, collects all relevant information, regularly checks container security status and alerts parties when necessary. Handheld Terminals (GSM/GPRS) at origin and destination locations to secure the consignment /container and supply information to the system. Fixed position readers on strategic locations along the container route establish container security status. Non-intrusive gamma-ray scan information and radiation scan information is stored. Internet web-forms for parties to supply the required information about the respective secured consignment. Container Terminal EDI-information sent to provide cross-check information.

17 Infrastructure Requirements

18 RFID-based monitoring devices One seal tag on each container

19 Container security US Customs suggests high security bolt seals be placed at the base of the locking bar. This will require a ½ inch hole be drilled to insert the seal.

20 Smart Container Devices

21 Readers at gates

22 Readers on quay cranes

Non-Intrusive Inspection Project The Integrated Container Inspection System (ICIS) Demonstration Project at Kwai Chung container terminals Portal

respectively Mobile ICIS system installed at Modern Terminals as initial approach for screening export containers arriving at the barge quay

23 Non-Intrusive Inspection Project The Integrated Container Inspection System (ICIS) Demonstration Project at Kwai Chung container terminals Portal ICIS system installed at Modern Terminals and HIT to screen containers at the entry gate area started in September 2004 & in January 2005, respectively Mobile ICIS system installed at Modern Terminals as initial approach for screening export containers arriving at the barge quay started in February 2005 The aim is to deploy sufficient capacity to ensure that all containers which enter the yard for export are screened through the systems

24 Scanning equipment layout Radiation Portal Gamma-ray Portal OCR Portal 4 m 5 m 4.25 m Low radiation power High penetration 75 m Detects spectrum of radiation (special nuclear materials like plutonium, cesium, uranium) Can distinguish normal radiating materials

25 Combined Image

26 Infrastructure at South China and Hong Kong 白雲廣州南海廣州關區東莞黃埔關區 Factory 沙田深圳關區 Consolidation Centre 中山拱北關區保安蛇口福田皇崗落馬洲鹽田珠海葵涌 Hutchison Ports HKG Airport 赤蠟角 SST Cargo RF Infrastructure

27 Radiation Scanning and Gamma-ray Imaging in Hong Kong quay side Relocatable RPM Mobile VACIS + OCR

28 Securing the supply chain Benefit C-TPAT Manufacturer Factory Consolidation Data for targeting Road Transport Consolidator / Distribution Center Road Transport Supply chain efficiency benefits inventory management asset utilisation Port of Loading Monitor at Key Choke & Transit Points Vessel Commercial security benefits Transit Port Brand protection Reduce pilferage, damage Positioned for green lane (reduced inspections) Audit trails for isolation, recovery and learning ( inspected already quicker restarts) Vessel Port of Discharge Road/Rail Transport Mfg Distribution Center Retail Store National security benefits Reduce terrorism threats Retail Distribution Center

29 Authorized Supply Chain Deploy a secured factory / freight forwarder premises where the container is loaded and locked for transport. Use of electronic monitor to guard and report the security status of the container during transport. Provide gamma-ray scan data of the shipment. Provide radiation scan reporting. Gather Security information during trip in the global SST-system from Modal Change points. (accessible for relevant parties only) Gather information to provide to the Authorities; TradeLink (HK), Hong Kong-Customs, China Customs, Dutch Customs (Rotterdam) and UK Customs. Deploy a secured delivery destination where the consignment is received and unlocked, satisfying the requirements for the electronic monitoring of the goods.

30 Customs Inspection Process and Alerts Customs Inspection Process TSS Non-Secured Message Alerts Non-Intrusive Inspection Inspect container Update TSS with inspection results Container e-seal is read by TSS as not secured Intrusive Inspection Physically inspect container TSS steps performed before inspection: Alert message is sent to Customs Unlock Seal Tag and Clear Tamper Unbolt Seal Tag Update TSS with inspection results TSS steps performed after inspection: Delayed alert message sent to freight forwarders Customs tracks suspect container Delayed alert message sent to shippers Bolt Seal Tag Relock Seal Tag Update TSS with inspection results Perform Customs exception procedures (need to discuss) Delayed alert message sent to terminal operators

31 Pilot Information Rotterdam/Felixstowe Shipper Consignee SO BL Forwarder UK / Dutch Customs Customs exchange data 13 data fields 24 hours before load China / H.K. Customs Far-East Shipper Consignee SO BL Forwarder SO Carrier BL Export data Clear to load Booking Data Security, X-ray, Radiation data Export Data Clear to load Booking Data SO Carrier BL SO BL Vessel/Voyage data Vessel/Voyage data SO BL Container Terminal Booking, Gate-log, Security, X-ray, Radiation data TSS System Singapore Booking, Gate-log, Security, X-ray, Radiation data Container Terminal

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

IMPLEMENTATION OF MEGAPORTS INITIATIVE (MALAYSIA S EXPERIENCE)

IMPLEMENTATION OF MEGAPORTS INITIATIVE (MALAYSIA S EXPERIENCE) A component of the US DOE s 2nd Line of Defense Programme To detect, deter and interdict trafficking in nuclear and other radioactive WMD.