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Supply Chain Security – Challenges and Opportunities

Supply Chain Security – Challenges and Opportunities. Transport Canada Surface and Intermodal Security Directorate Transportation Border Working Group November 1-2, 2011. Outline. Context – Surface and Intermodal Security Surface and Intermodal Security Directorate

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Supply Chain Security – Challenges and Opportunities

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  1. Supply Chain Security – Challenges and Opportunities Transport Canada Surface and Intermodal Security Directorate Transportation Border Working Group November 1-2, 2011

  2. Outline • Context – Surface and Intermodal Security • Surface and Intermodal Security Directorate • Background / Timelines • Typical Directorate Challenges and Approach • Supply Chain Security • Security Assessment Project Framework • Supply Chain Partners, Phases and Nodes • Examples of Notable Supply Chain Security Practices

  3. 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

  4. 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

  5. Surface & Intermodal Security – Typical Challenges: Complex Jurisdictional Issues and Broad Mandate Require the Right Approach Research & Evaluation Outreach • Research projects, e.g., supply chain security, critical infrastructure • Engagement strategy Operations • Strategic Risk Assessments • Intergovernmental WG • Inspector training and development Instruments • Canada-U.S. Transportation Security Cooperation Group • Evaluation & Performance Measurement • Advice to industry • Acts & Regulations • MOUs (IBT/Rail) • Codes of Practice (Urban Transit) • Industry Guidelines • Other Information (e.g., Notices) • Review of security plans, risk assessments • International WG on Land Transportation • International Standards • Exercises & Drills

  6. Surface and Intermodal Four Strategic Areas Secure surface passenger transportation system Secure surface freight transportation system Secure surface and intermodal critical infrastructure and facilities Enhanced capacity to provide national leadershipin surface and intermodal security International Bridges and Tunnels Intermodal Freight Yards Urban Transit Passenger Rail Stakeholder Relations Research Strategy Security Management Systems TDG by Truck TDG by Rail Oversight capacity Evaluation capacity A collaborative effort is required among federal, provincial, municipal and industry partners. 6

  7. PROJECT METHODOLOGY AND OBJECTIVES • Partner with government (federal and provincial) and industry stakeholders to: • Identify the current security practices in place Canada’s Gateways and Corridors; and • Identify potential areas for improvement. 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 EXPECTED OUTCOMES • Increase Supply Chain Actors’: • Situational Awareness, • Collaboration, • Readiness and Resilience • Address the need for improvements, as applicable • Reduce the impact of security on the efficient flow of goods

  8. Supply Chain Security Assessment Methodology, Phases and Approach

  9. Supply Chain Partners – Roles and Responsibilities • Federal Government • National security, and regulation and/or service delivery in transportation, border operations, customs, and immigration • Provinces • Provincial transportation (policy, regulation and operations); provincial police services; emergency preparedness and response • U.S. Government • 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

  10. 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.

  11. Supply Chain Nodes: Canada’s Major Ports

  12. Supply Chain Nodes: Highways

  13. Supply Chain Nodes: Land Border Crossings

  14. 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

  15. 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

  16. 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

  17. 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 shut-down 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

  18. 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 CBPwork 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

  19. 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)

  20. 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

  21. Questions Serge Lavoie Chief, Multimodal Security Policy Surface & Intermodal Security Directorate serge.lavoie@tc.gc.ca 613-993-6862

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