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Supply Chain Security Challenges and OpportunitiesTransport CanadaSurface and Intermodal Security DirectorateTransportation Border Working GroupNovember 1-2, 20111

OutlineContext Surface and Intermodal Security Surface and Intermodal Security DirectorateBackground / TimelinesTypical Directorate Challenges and ApproachSupply Chain SecuritySecurity Assessment Project FrameworkSupply Chain Partners, Phases and NodesExamples of Notable Supply Chain Security Practices22The 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 natureCreating and executing all surface security programming, operational activities and action plansMonitoring developments in surface and intermodal security in Canada and abroad, and ensuring that pertinent security issues are properly reflected in Departmental and governmental initiatives3

Surface and Intermodal Security33

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 securityOctober Asia-Pacific Gateway and Corridor Initiative (APGCI) 42007: May National Policy Framework for Strategic Gateways and CorridorsJuly Continental Gateway and Trade Corridor2008: Internal review of security functions Creation of Surface and Intermodal Security Directorate (SIMS)2009: March Transit Secure Contribution Program completedJune APGCI Security Assessment Pilot Project completed2010-2011: Several ongoing projects and activities

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Acts & Regulations MOUs (IBT/Rail)Codes of Practice (Urban Transit)Industry GuidelinesOther Information (e.g., Notices)

OperationsInspector training and developmentAdvice to industryReview of security plans, risk assessmentsExercises & DrillsOutreachEngagement strategyIntergovernmental WGCanada-U.S. Transportation Security Cooperation GroupResearch & EvaluationEvaluation & Performance MeasurementResearch projects, e.g., supply chain security, critical infrastructureInternational StandardsStrategic Risk AssessmentsSurface & Intermodal Security Typical Challenges: Complex Jurisdictional Issues and Broad Mandate Require the Right ApproachInternational WG on Land TransportationInstruments556

Surface and Intermodal Four Strategic Areas6Secure surface passenger transportation systemSecure surface freight transportation system Secure surface and intermodal critical infrastructure and facilitiesEnhanced capacity to provide national leadership in surface and intermodal securityPassenger RailUrban TransitTDGby Truck TDGby Rail InternationalBridges andTunnels Intermodal Freight YardsSecurity Management SystemsOversight capacityEvaluation capacityResearch StrategyA collaborative effort is required among federal, provincial, municipal and industry partners.Stakeholder Relations667

Supply Chain Security Project FrameworkPROJECT METHODOLOGY AND OBJECTIVESPartner with government (federal and provincial) and industry stakeholders to:Identify the current security practices in place Canadas Gateways and Corridors; andIdentify potential areas for improvement.EXPECTED OUTCOMESIncrease Supply Chain Actors:Situational Awareness,Collaboration,Readiness and ResilienceAddress the need for improvements, as applicableReduce the impact of security on the efficient flow of goodsGATEWAY STRATEGIC GOALNational Policy Framework for Strategic Gateways and Trade Corridors (2007) was developed to:Guide investment and policy measures, Enhance infrastructure at key locations, andPromote the efficient movement of goods and people while mutually reinforcing public safety andeconomic security 78

Supply Chain Security AssessmentMethodology, Phases and Approach

8Federal GovernmentNational security, and regulation and/or service delivery in transportation, border operations, customs, and immigrationProvincesProvincial transportation (policy, regulation and operations); provincial police services; emergency preparedness and responseU.S. GovernmentCollaborate with Canadian colleagues and counterpart agenciesIndustry Primary responsibility to ensure suitable standards of security in all facilities and operations along the supply chain

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Supply Chain Partners Roles and Responsibilities910

Overview of Supply Chain Phases and NodesLevel 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.

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Supply Chain Nodes: Canadas Major Ports

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Supply Chain Nodes: Highways

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Supply Chain Nodes: Land Border Crossings

13Pilot security assessment of the Prince Rupert to Fort Frances/Ranier Gateway and Corridor completed in June 2009Focus on intermodal and railway transportation within the APGC systemConclusions: Security posture in place is addressing the existing threat environmentNoted duplication of Customs targeting and inspectionsAssessment Methodology worked well, lessons learnt to be applied in future supply chain security workMust remain vigilant and promote collaboration and continuous improvement14

Asia-Pacific Gateway Supply Chain Security Assessment14Canada-Ontario-Quebec Collaboration:Transport Canada (TC), and other Federal Government Security AgenciesMinistry of Transportation Ontario (MTO)Ministre des transports du Qubec (MTQ)Project:Examines surface and intermodal freight supply chain security from the marine-trucking perspectiveFocus is on security of intermodal freight movements along key critical commercial routes to the United StatesFinal report validation is underwayExpected completion: end of FY 2011/201215

Continental Gateway Supply Chain Security Assessment15Private Sector:Facility SecurityPerimeter security and access controlCrime Prevention Through Environmental Design (Fencing, Lights, CCTV, natural surveillance)Security monitoring and Security personnel, incl. CCTV monitoring Training, Drills, and ExercisesPatrols, and Security/Response PlansPersonnel SecurityPolice Checks, References and Credentials ValidatedConveyance and Cargo SecurityContainer/Trailer tracking of movements through technology, conveyance security measuresUse of security seals and of larger secured rest areas with good lighting and CCTVDocument, Data, and IT controls, incl. management of Bills of LadingParticipation in Trusted Trader ProgramsThreat-Risk Assessments, Security Plans, and Business Continuity Plans16

Examples of Notable Supply Chain Security Practices16Provincial 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 cargoDirect radio communication access to policeTraffic 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 centersOthers: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

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Examples of Notable Supply Chain Security Activities17Police and Border Services:Services involved: RCMP, Provincial, and municipal policeSpecialized teams and programs, such as: Integrated National Security Enforcement Teams (INSET)Integrated Border Enforcement Teams (IBETS)Operation Pipeline/ConvoyCBSA and CBP work to improve border security and use several layer of security such as the:Advanced identification of high risk shipment and risk assessment processTechnologies 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 AuthoritiesRisk assessments and exercises done with emergency first responders, and local facility and infrastructure operators 18

Examples of Notable Supply Chain Security Activities18Transport Canada:Surface & Intermodal Security Directorate: Voluntary Rail Security Framework implemented in 2007, including an oversight programCurrently developing a national TDG Security Policy FrameworkImplementing a voluntary International Bridges and Tunnels (IBT) Security FrameworkSecurity technology research and evaluation ProjectsMarine Security Directorate: Marine Transportation Security Act and Regulations, complying with SOLAS ISPS CodeMarine Transportation Security Clearances Interdepartmental Marine Security Working Group (IMSWG), Incl. MSOCsOthers:Air Cargo Security Program is being rolled outInvestments 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)19

Examples of Notable Supply Chain Security Activities1920

We still must remain vigilant!

Therefore, lets identify and eliminate the weakest links while seeking continuous improvement in both: Security and EfficiencyEfforts must be made to preserve what has been achievedIt is necessary to continue to improve in order to keep ahead of evolving security threats2021

Questions

Serge LavoieChief, Multimodal Security PolicySurface & Intermodal Security Directorateserge.lavoie@tc.gc.ca613-993-6862

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