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PORT SECURITY:
A CHALLENGE FOR THE HEMISPHERE
Presentation to the Inter-American Committee against
Terrorism (CICTE), Organization of American States
7 March, 2008
Jon Glassman
Director of Government Policy
Business Development & Strategy Planning
Northrop Grumman Private/Proprietary Level 1
PORT SECURITY
• Problem definition in U.S.: Protect U.S. ports from weapons of
mass destruction and radiological weapons (“dirty bombs”)
• But maybe a bigger and different problem in countries outside
U.S.?
• Problem definition in Latin America/Caribbean: Any blocking of
capacity to export and import products vital to national wellbeing and growth.
Northrop Grumman Private/Proprietary Level 1
DEPENDENCE ON FOREIGN TRADE
% Relative to GDP
145
135
125
115
105
95
85
75
65
55
45
35
25
15
5
Foreign Trade
Panama
Honduras
Jamaica
Dom. Rep.
Chile
Ecuador
Mexico
Peru
US/Brazil
US/Brazil
• Foreign trade-to-GDP ratios (measure of relative importance of
external commerce):
•
•
•
•
US and Brazil 26%
Peru 44%
Ecuador 62%
Mexico 63%
•
•
•
•
•
Chile 73%
Dominican Republic
Honduras 102%
Jamaica
105%
Panama
136%
Northrop Grumman Private/Proprietary Level 1
81%
HEMISPHERIC COUNTRIES HAVE NEED TO
PREVENT OBSTRUCTION OF FOREIGN TRADE
• Need is equal or greater than for U.S.
• Because 66% of increasing global commerce moves by sea, and
Latin American/Caribbean maritime trade is expected to grow by
6-7% /year, it is important to improve port physical and policy
infrastructure.
• But Latin American/Caribbean investment in infrastructure is
only equal to 2% of GDP.
Northrop Grumman Private/Proprietary Level 1
PORT INFRASTRUCTURE IMPROVEMENT IS
INSEPARABLE FROM SECURITY
• Increased capacity/efficiency irrelevant if domestic or foreign actors
or actions can shut down or disrupt Lat Am/Caribbean ports
• Reason: Very limited number of major seaports in a given country
makes re-routing difficult
• Major seaports: US—361, Argentina, Brazil and Mexico—7, Ecuador
and Venezuela—4, Panama—3, Guatemala—2
Northrop Grumman Private/Proprietary Level 1
SMALL NUMBER OF PORTS COMBINED WITH HIGH
FOREIGN TRADE DEPENDENCY = VULNERABILITY
• Catastrophic attack on U.S. port of Los Angeles/Long Beach would
produce $45 billion loss (compared to US GDP of $11.7 trillion)—not
devastating to national economy
• Closing down of one or several Lat Am/Caribbean ports for physical
or policy reasons would be highly damaging, particularly for
countries with high foreign trade dependency
Northrop Grumman Private/Proprietary Level 1
NEED TO CONSIDER NOT JUST DIRECT THREATS BUT
ALSO SECONDARY EFFECTS OF INCIDENTS ELSEWHERE
• Actual or feared catastrophic incident in U.S. could produce U.S.
shutdown of shipments from a Lat Am/Caribbean transit port or
ports
• U.S. could also impose 100% scanning requirement or discriminate
among ports based on surveillance technology investment
• Good counsel: Cooperate with U.S. risk-analytic data collection and
U.S. Container Security Initiative risk-based scanning to mitigate risk
of U.S. domestic pressure for more extreme overseas surveillance
Northrop Grumman Private/Proprietary Level 1
DIRECT THREATS
• Outside terrorist actions against U.S. European and Israeli cargo and
cruise ships in Lat Am/Caribbean ports
• Multiple and continuing attacks generating sense of vulnerability of
Hemispheric ports
• Efforts to disrupt physical or IT/communications nodes providing
access to, or enabling and controlling operations of, port complexes
• Manipulation of the content of shipments, particularly related to
food or pharmaceutical safety
• Criminal actions: theft, narcotics
Northrop Grumman Private/Proprietary Level 1
CREATING SECURE PORT ENVIRONMENT
• Prevent damage to third parties: Producer-to-port cargo
tracking/documentation
• Protection against intrusion: Additional sensors, data fusion and
drilldown, decision aids, operations center/command and control for
interdiction
• Domestic dimension: Identity management system for access to
cargo custody chain, vessels and IT systems/databases, obligatory
cargo handling procedures prior to port entry
Northrop Grumman Private/Proprietary Level 1
ELIMINATE IMAGE OF ‘SOFT TARGET”
• Will generate secure, orderly throughout and revenue generation
• Will remove invitation to attack and criminal theft
• Will mitigate U.S. pressure for more extreme surveillance
• Financing for security can be covered as part of overall infrastructure
upgrades.
Northrop Grumman Private/Proprietary Level 1