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

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Presentation on theme: "Just in Time – Facilitating Secure Cargo Movement APEC Air Cargo Security Workshop 24th June, Bangkok, Thailand Matt Hemy Vice President, Security & Crisis."— Presentation transcript:

1 Just in Time – Facilitating Secure Cargo Movement APEC Air Cargo Security Workshop 24th June, Bangkok, Thailand Matt Hemy Vice President, Security & Crisis Management DHL Express Asia Pacific

2 Bangkok | June Page2 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

3 Bangkok | June Page3 Pickup (PU) 12 Processed & Bagged (PL) 43 Departs Facility (DF) Arrives Facility (AF) Processed & Bagged (PL) Depart Facility (DF) Confirmed Uplift (CU) 567 ORIGIN SERVICE CENTREORIGIN GATEWAY TRANSFER HUB Arrives Facility (AF) Processed & Bagged (PL) Departs Facility (DF) Confirmed Uplift (CU) DEST GATEWAY DEST SERVICE CENTRE Processed & Bagged (PL) Departs Facility (DF) Arrives Facility (AF) Arrives at Final Dest (AR) With Courier (WC) Shipment Delivered (OK) Typical End to End Shipment Movement Process

4 Bangkok | June Page4 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

5 Bangkok | June Page5 Secure Facilities: Example

6 Bangkok | June Page6 Secure Facility: Security Control Centre

7 Bangkok | June Page7 Secure Facilities: CCTV

8 Bangkok | June Page8 Securing the EDS Network

9 Bangkok | June Page9 Securing the EDS Network 1. X-Ray was suspicious 2. Shipment manually searched

10 Bangkok | June Page10 Track record of Express Industry Example: Forged Passports and Forged Credit Cards Detected in Thailand

11 Bangkok | June Page11 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

12 Bangkok | June Page12 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 11 th September 2001

13 Bangkok | June Page13 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

14 Bangkok | June Page14 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

15 Bangkok | June Page15 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

16 Bangkok | June Page16 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

17 Bangkok | June Page17 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

18 Bangkok | June Page18 Thank You for your attention Matt Hemy Vice President, Security & Crisis Management DHL Express Asia Pacific


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