Just in Time – Facilitating Secure Cargo Movement APEC Air Cargo Security Workshop 24th June, Bangkok, Thailand Matt Hemy Vice President, Security & Crisis.

Just in Time – Facilitating Secure Cargo Movement

APEC Air Cargo Security Workshop

24th June, Bangkok, Thailand

Matt HemyVice President, Security & Crisis ManagementDHL Express Asia Pacific

Bangkok | June-24-2008 Page 2

Express Delivery Services (EDS) industry

• Some statistics:

– Over 30 million shipments daily

– Our customs declarations are estimated at 25% of total declarations in AP

– 1, 200,000 employees / 170,000 vehicles / 1,700 aircraft

– Operations in over 220 countries

– By 2017 EDS is expected to represent almost 36% of global air cargo

• EDS is unique

– Speed and Reliability - Nothing Stands Still

– Fully integrated, door-to-door delivery

– Global reach

– Full Custodial control

– “Track and trace” technology


Pickup (PU)

1 2

Processed& Bagged (PL)

43

DepartsFacility (DF)

ArrivesFacility (AF)


DepartFacility (DF)

ConfirmedUplift (CU)

5 6 7

ORIGIN SERVICE CENTRE ORIGIN GATEWAY

TRANSFER HUB




ConfirmedUplift (CU)

8911 10

DEST GATEWAY DEST SERVICE CENTRE




Arrives atFinal Dest (AR)

WithCourier (WC)

ShipmentDelivered (OK)

12 13 14 15 16 17

Typical End to End Shipment Movement Process


EDS – already secure

• Best in Class

• We see the shipper and the package

• A video record is kept of every shipment in our facilities

• Secure facilities and vehicles

• Pre-employment screening of staff and contractors

• Formal training of front line staff on security practices and procedures

• Sophisticated risk management techniques

• Our normal theft prevention measures also protect shipments from

unauthorized interference

• Over 30 years of experience – proven track record with large, professional

security teams managing all aspects of security


Secure Facilities: Example


Secure Facility: Security Control Centre


Secure Facilities: CCTV


Securing the EDS Network


Securing the EDS Network

1. X-Ray was suspicious

2. Shipment manually searched


Track record of Express Industry

Example: Forged Passports and Forged Credit Cards Detected in Thailand


The Regulatory Environment

• EDS as integrators have to deal with multiple agencies and regulations as a

part of the supply chain

• Aviation Security (ICAO, IATA etc) vs WCO SAFE Framework & AEO

• Airline industry has been ahead of the ‘game’ and focused on this for a very

long time

• Physical vs Intelligence layer focus

• Government Collaboration with Civil Aviation Administrations, Law

enforcement

• WCO is now leading the charge on a holistic approach to supply chain

security


WCO SAFE Framework – principles & partnerships

• The Introduction of the WCO Framework states:

– SAFE is designed to secure the movement of global trade in a way that

does not impede but, on the contrary, facilitates the movement of that trade.

– A holistic approach is required to optimize the securing of the international

trade supply chain while ensuring continued improvements in trade

facilitation.

• Customs to Business partnership is one of the pillars of SAFE

– Our customers have long demanded secure supply chains due to their

critical nature and high value of their shipments

– Thus we have been making significant investments in security of premises

and processes for many years, even before 11th September 2001


A balancing act

• Authorities now see the need for much greater levels of control in response to the current security situation

• At the same time the rising volumes of global trade increasingly demands secure, timely and affordable international delivery of time critical documents and goods

• Therefore a coordinated & balanced policy approach is necessary

– DHL Express supports Authorized Economic Operator (AEO) regimes, “known shipper” programs and the like because they are good for our business

– Authorities should not be too reliant on physical measures rather than “intelligence” available from industry and other government agencies

– Security requirements of Customs vs Aviation Security vs Transport Administrations need alignment

– Risk vs threat


Physical Security Measures

• EDS has substantial programs in place and can control its link in the

chain

• Physical security depends on the weakest link and clear lines of

responsibility

• Physical means “visible” which is politically popular

• Physical measures can compromise our operation between pick-up

and delivery

• Compliance is a cost and resources issue for our customers,

especially SMEs

• Can change the whole EDS business dynamic


The Intelligence Layer

• WCO acknowledges the use of strategic intelligence

• The US TSA strategic plan is focusing on risk based screening

• EDS already works closely with authorities

• An area of opportunity for collaboration between government

agencies and law enforcement

• Enables us to continue to offer high levels of security whilst

maintaining trade facilitation


Threat Assessment & use of Data

• We have always promoted a threat-based approach to security

• Threat Assessment requires data, but we already supply it to Customs

• We could tighten and provide account-opening data, also reducing bad debts

• Requires coordination between different arms of government

– Customs

– Immigration

– Law Enforcement Agencies (e.g.: Police)

– Criminal intelligence bureaux

– Civil Aviation authorities

– Ministries of Transport


Best Case & Worst Case Scenarios

• Ideally ….

– The assessment of the totality of our security; does not specify physical

measures between pick-up and delivery

– EDS integrators improve the timeliness of data on shipments and provide

better data from account opening procedures

– A “whole of government” approach which considers ICAO, WCO SAFE etc

– A collaborative Government & industry approach to air cargo security

– Mutual recognition across countries

• Nightmare …

– Red lane / green lane system

– Responsibility for security compliance of our customers


Thank You for your attention

Matt HemyVice President, Security & Crisis ManagementDHL Express Asia Pacific

Just in Time – Facilitating Secure Cargo Movement APEC Air Cargo Security Workshop 24th June, Bangkok, Thailand Matt Hemy Vice President, Security & Crisis.

Documents

aspects of security

supply chain security

eds network slide

security control centre

thailand slide

chain physical security

cctv slide

security practices