AUTOMATIZATION IN PORTS: SECURITY...

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Jorge DuránSecretaryInter-American Committee on Ports (CIP)jduran@oas.org

AUTOMATIZATION IN PORTS: SECURITY IMPLICATIONS

Inter-American Committee on Ports

Only permanent inter-governmental forum at the highest level to promote the development of the maritime sector in

the region.

1. Political Dialogue

Promote and improve

management and technical capabilities

of port officials.

2. Capacity Building

Assist Member States on issues or

specific projects upon request.

3. Technical Assistance

Promote win - win partnerships with

private sector in the maritime industry to

develop projects.

4. Active Collaboration with the Private Sector

Barbados

Argentina

Honduras Antigua and BarbudaCIP Secretariat

Panama MexicoPeru Honduras

Uruguay

Public

Policy,

Legislation

and

Regulation

CS, Gender

Equality and

Empowerment

of Women

Port

Protection

and

Security

Sustainable

Port

Management

and

Environmental

Protection

Logistics,

Innovation and

Competitiveness

Tourism, Inland

Ports and

Waterways,

Ship Services

and Navigation

Safety

CIP Structure / Executive Board - CECIP

Associate Members/ Strategic Partners

Competiveness, Port Automation and Security Implications

Global Competitiveness Map 2017-2018

Source: World Economic Forum

Logistic Performance Index 2018

País LPI Ranking

Germany 1

USA 14

Canada 20

Chile 34

Panama 38

Mexico 51

Brazil 56

Colombia 58

Argentina 61

Ecuador 62

Source: World Bank

Source: World Bank

Quality of PortInfrastructure 2017

Country Quality

Panama 6.2

USA 5.8

Canada 5.4

Jamaica 4.9

Dominican Republic 4.8

Honduras 4.4

El Salvador 3.4

Guatemala 3.6

Costa Rica 3.4

Nicaragua 3.1

#1 Colon: 3. 89

#2 Santos: 3.58

#3 Balboa: 2.98

#4 Manzanillo: 2.83

#5 Cartagena: 2.67

TOP 5 RANKING

Port Ranking: Top 20 LAC 2017

Source: ECLAC

NATURAL DISASTERS

All ports represents a complex interfacebetween human activities, technologicalinnovation and natural environment.

Inherent to its location a port is exposed tonatural calamities like cyclones, floods,earthquake, Tsunami that may affectseverely the infrastructure and similarlyhuman activities may lead to hazardoussituation.

NATURAL DISASTERS

Significant Disaster would pose unique challenges to all ports (including smartports). Therefore coordinated crises management plan is required to providean effective disaster response. The Plan must establish framework forcoordinated inter-agency and port community response to significant disaster.

Disaster Management Plan

Source: Munich Re, NatCatSERVICE

NATURAL DISASTER: Damaging Events Worldwide 2014

Source: Munich Re, NatCatSERVICE

NATURAL DISASTER: Damaging Events Worldwide 2014

SIX-STAGE MODEL

It is vital that the Caribbean consider themany risks that could impact its port anddevelop sound plans to combat theserisks, and identify means of cascadingresponse capabilities from neighboringcountries throughout the Caribbean.

PROJECT: Capacity Building in Port Logistics for Disaster Risk Management

Project Components

1. Assessment (risk and capabilities):

•Conduct a comprehensive review of both the manmade and natural hazards that have the potential to threaten or disrupt Caribbean.

2. Emergency Response Plan Prototype:

•Develop a prototype Emergency Response Plan for a Caribbean Port to address the risks posed by natural and manmade hazards to ports.

3. Training:

•Represent the bulk of the project and will consist in workshops and seminars imparted in cooperation with Strategic Partners.

4. Regional simulations and drills:

•Design, facilitate and evaluate emergency response drills, exercises and simulations with the participation of Port Authorities.

5. Model legislation, regulation and procedures:

• Look into international agreements and instruments to complete their own emergency response plan based on the prototype provided in component 2.

• PMAC, IFRC, ASA and its members, USCG,

OCHA, PAHO, CDEMA, and ACS.

Potential Partners

• Caribbean Institute of Meteorology and Hydrology,

the Caribbean Disaster Information Network, the Caribbean Relief Insurance

Facility.

Other potential partners • Port Authorities in the

Caribbean SIDS, in cooperation with

National Emergency Management

Organizations (NEMOs) or Agencies (NEMAs),

and Ministries of Tourism/Environment.

Executing national counterpart

Inter-Agency Coordination

PROJECT: Capacity Building in Port Logistics for Disaster Risk Management

Port Modernization Investments

Trends in World Container Ports

Port Automation (consolidation and concentration)

PCS/SW

Cyber Security

Mega-Ships/ Mega-Alliances

As key nodes in global transport thatprovide access to markets, supportsupply chains, and link consumers andproducers, ports are under constantpressure to adapt to economic,institutional, regulatory and operatinglandscape changes.

EUROPE

16 %

2

ASIA 64%1

LAC 6%4

AFRICA

4%5

NORTH

AMEICA 8%3

OCENIA

2%6

World Container Volume by Region 2017

76% Full

Containers

24% Empty

ContainersTYPE OF TRAFFIC

Source: UNCTAD

ARGENTINA

MEXICO BAHAMAS

JAMAICA

BRAZIL

Freeport Expansion in Bahamas US$ 250 million.

Jamaica investing US$ 660 million to become a Regional

Logistics Hub.

Institutional Reform in Brazil tobecome more Competitive and reduce Logistics Costs. Investing

US$ 2.5 billiion in Port Infrastructure.

52 Highways

80 Roads

3 Passenger Trains

1New Airport in

CDMX

25 Port Projects

1 Telecom Network

83$ Billion

USD

$ 5 Billion USD

for Ports

Mexico National Infrastructure Program

85% Private

Capital

Competitive Ports and Waterways in Argentina

Puerto de Bahía Blanca -Rosales

Puerto de Rosario -Timbúes

INVESTMENTS 2016 - 2019

USD 260 MPRIVATE INVESTMENTS

USD 2.500 M+

Puerto de Buenos Aires

Always trying to…

Security

Port Automation and

Competitiveness

FINDING THE RIGHT BALANCE

Port Community System/ Single Window

Smart PortProcesses amongStakeholders

Integrated

Interconnected

Cyber Security risk at each step/Institutiondue to more Automated Processes

ASSESS

MITIGATE

TRAIN

TRANSFER

ENGAGE

Benchmark your cybersecurity state. Perform a cyber risk / assessment; Identify best practices

Establish a budget, implement best practices anddeploy solutions

Implement cybersecurity training program for executives and staff

Feedback Loop

Establish a Cybersecurity Risk Management Program - Resource it with People,

Processes and Tools

INSTITUTIONALIZE

Establishing a Standard of Care for 21st Century Risks

Only a fraction of global container volume is done by fully automated terminals.

• To stay ahead, automation has been heralded as inevitable. Major transshipment hubs and aspiring ports bet their future on automation, which raises the cyber risks impact.

Cyber attack to automated terminals “NotPetya” cyber-attack in June 2017.

• Maersk interrupted operations at terminals worldwide, causing logistical havoc for weeks after the attack. It cost Maersk $300 million, even though the attack was not specifically directed at them.

LAC needs to update its port and national legislation to support modernization processes (e.g., Digital Signature).

A Few Considerations…

Thank you!

Jorge DuránSecretaryInter-American Committee on Ports (CIP)jduran@oas.org