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The Smart Box: SCSS Dr. Jim Giermanski, Chairman Powers International, Inc.

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Presentation on theme: "The Smart Box: SCSS Dr. Jim Giermanski, Chairman Powers International, Inc."— Presentation transcript:

1 The Smart Box: SCSS Dr. Jim Giermanski, Chairman Powers International, Inc.

2 Container Security Market SCSS security is a new application of technology to a developing market Market definition is only now being realized Real cost savings are only now being verified Multinational players (Maersk/IBM, SAVI, Siemens/GE, Motorola, Powers, etc.) in this global market are still determining how they will package security with data management and logistical management

3 Container Security Diagram of Concept Virtual Network Box Energized at Origin Authorization ID Activation Logistical data Containers loaded by Gantry Onto Vessel Container Loaded PORT OF ORIGIN US CUSTOMS Receives Internet Voyage history data Authorization ID Logistical data Gantry Optional) (Vessel Satellite Tracking _______________________________________________________________________________________________________ Device Capabilities Detects Records Transmits U.S. PORT OF DESTINATION

4 Global Issues  Terrorism : One container of RDX explosives could level any port in the United States. If radioactive matter were included, it would render the port unusable for years  Theft : The US Department of Transportation stated that carriers lose $20 to $60 billion dollars in container cargo theft annually  Contamination : Pharmaceuticals, food products, and sensitive materials  Speed : The competitive edge  Control: Equipment usage and access

5 Government Programs Driving the Technology WCO –New standards in 2005 (to which CBP is a signatory) Control at stuffing Electronic data transmission End-to-end supply chain control C-TPAT –New rules – Importers in March 2005; Foreign manufacturers, August 2005, Highway and Vessel Carriers, March 2006 Control at stuffing 7-sided container inspection CSI (50 operational ports) U.S. Law (SAFE Port Act, Oct. 2006; HR-1 passed House, now in conf. EU movements E.U Regulations # 178/2002 and 1935/2004;(EU report # 40008032-6-2 - Oct. 2005, and EADS/Powers Bremen Project, September 2006)

6 Smart-Box Defined The answer is not just a locked door. It’s a System! Coordination, Visibility, Security A Smart-Box System Must:  Electronically identify the authorized personnel stuffing and securing the container, and accept and report information like container/trailer #, booking data, and more  Detect the breach in any part of the container--and more  Report the breach in real time (or close to real time)  Track the container through the supply chain  Identify authorized personnel unsealing container  Software-friendly to accommodate disparate logistics programs in communicating critical data

7 Areas of Detection and Control Available Geo-fencing and reporting path diversions Remote Locking and Unlocking Radiation Detection (including shielded enriched uranium) Temperature (remote sensing and adjustments) Vibration (vibration differentiation, e.g. from gantry, drayage, drilling, etc.) Light Drugs/Chemicals Humans

8 Data Sources & Handling From Shipper at Origin 1.Identity of Person supervising stuffing 2.Identity of Person arming the system if different

9 Data Sources & Handling From Bill of Lading and/or Booking confirmation/Dray Order: 1.Document Number 2.Container ID number 3.Booking Number 4.Shipper/Exporter 5.Forwarding Agent and License Number (e.g. FMC No.) 6.City or Point of Origin (Stuffing) 7.Date of Departure from Origin if Known 8.Consignee

10 Data Sources & Handling From Bill of Lading and/or Booking confirmation/Dray Order continued: 9.Notify Party 10.Place of receipt by land carrier 11.Exporting Carrier (vessel line) 12.Sea Port of Loading (Origin Sea Port) 13.Loading Pier or Terminal if known 14.Sea Port of Discharge (Destination Sea Port) 15.Declared Value 16.Gross Weights in Lbs. or Kgs or measurements 17.Description of Goods (6 digit tariff number)

11 Data Sources & Handling Examples of Customs Forms Data: IMO number Nationality of Ship First Port or place where carrier takes possession Name of vessel Name of Master Last foreign port before U.S. Marks and Nos. (container numbers) Bill of Lading number Driver’s identification; and more

12 Data Sources & Handling System Unit ID Serial Number of Unit Location Presentation Options Digital Mapping Longitude - Latitude

13 The Market

14 Stanford University Study* Product safety – 38% reduction in theft/loss/pilferage, 37% reduction in tampering Inventory management – 14% reduction in excess inventory, 12% increase in reported on-time delivery Supply chain visibility – 50% increase in access to supply chain data, 30% increase in timeliness of shipping information Product handling – 43% increase in automated handling of goods Process improvements – 30% percent reduction in process deviations *World Trade Interactive, Vol. 13, Issue 158, Wednesday August 9, 2006

15 Pricing Estimated Market Pricing for Smart-Box Security $50 to $100 per move, depending on number of moves per month and level of tracking required

16 Cost vs Savings Savings Estimates range from $600 to $700 per container per move (Bearing Point Study, 2003) $1150 per move (AT Kearney Report, 2005) 0.8 of one percent of value of contents of container (Congressional Budget Off., March 2006)

17 So What’s Out there??

18 Current Smart-Box Devices and Systems Radio Frequency Identification (RFID) –Active –Passive Cellular – Wi-Fi – Wi-Max Satellite –Encrypted data transmission –LEO and geosynchronous coverage

19 RFID Problem Issues Frequencies, Protocols, and Power Standards No applicable ISO standards for frequencies (ISO 18185) Passive-only (ISO 10374) No applicable global standards for protocols Varying power limits

20 RFID Weaknesses Land-based Character Land-based antennas and readers require acquisition, maintenance, and security Reports only at choke points Reports only historical data (never current) Footprint interference Limited coverage Detonation risks

21 Cellular Weaknesses Network Interference/Performance Costs Limited Footprint Regulatory Spectrums Wi-Max in infancy Four world wide regions (Developing, Africa; Semi- Developed, China & India; Developed, U.S. & most of EU; Super Developed, Japan & South Korea)

22 The Satellite Advantage Provides real time coordination Provides end-to-end visibility Offers security by reporting breaches as they happen Geo-fences (self-reports its own hijacking) Provides law enforcement intelligence mapping

23 Current Satellite Systems

24 Iridium Constellation and Gateway Satellite constellation Low Earth Orbit –66 fully operational satellites –14 in-orbit spares –Constellation life to 2013/2014 next back

25 INMARSAT D+ Satellite Constellation Consists of 3 geostationary satellites Gateway Earth Station Locations England

26 Orbcom 35 Satellites (Low Earth Orbit) Gateway Earth Station Locations CurrentPlanned New YorkKazakhstan WashingtonSouth Africa GeorgiaGhana ArizonaAustralia MalaysiaTurkey Curacao Brazil Argentina Italy Morocco Korea Japan

27 Technology Improvements Iridium Antenna Battery Sensors 20.5” x 21”

28 Global Call Centers

29 Platform Alarm Handling Example Normal screen, No alarms waiting to be handled next back

30 Operator has to take “OWNERSHIP” of the incident, to be able to handle it… European Platform Alarm Handling Example next back

31 The operator selects the appropriate procedure to follow … Breach, Radiological. Chemcal or Temperature sensor alarm Platform Alarm Handling Example next back

32 Summary While this new industry is being created because of a heightened awareness of terrorism, the real impact is in the development of new technological applications which offer greatly improved supply chain efficiencies, greater security, and ROI.

33 Dr. Jim Giermanski, Chairman Powers International, Inc.

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