2. International Forum on Trade Facilitation 15 th May 2003

3. Hutchison Whampoa Core businesses: Ports and related services Telecommunications Property and Hotels Retail and Manufacturing Energy and Infrastructure

4. World’s leading port investor, developer and operator In 15 countries: Asia, Middle East, Africa, Europe and the Americas Hutchison Port Holdings Operates 175 berths in 31 ports Handled 35.8 million TEU in 2002

5. HPH Global Logistics Network

6. Benefits of supply chain security Secures the integrity of the supply chain Increases the visibility into the status of shipments Drives operational efficiencies Improves businesses’ ability to manage all global inventory in real-time

7. Shipping Costs UK port costs represent 2-3% of entire logistics costs

8. Achieving supply chain security Transparency and Visibility of Supply Chain - Development of a single, common-user system for enhanced operational clarity Physical Security - Provision of an effective barrier to prevent loss and act as a deterrent - Ability to detect any breach immediately and feed information automatically to the appropriate authorities Forensics - Ability to collect historical data to provide an audit trail for each container move 3 key elements:

9. Implementing supply chain security Improvements to practices and procedures - combination of people, process and technology Collaboration between all supply chain participants and regulatory bodies Sell the benefits of security enhancements and “best practice” to all supply chain participants 3 key requirements:

10. How Smart & Secure Trade Lanes Works Clear procedures for loading containers begin at the point of origin To ensure the integrity of upstream security, background screening carried out on authorised individuals Authorised personnel affix an electronic seal (E-seal) onto the container and digitally certify that they have verified the content of the sealed container Data capturing hardware and software infrastructure has been installed at ports and other SST participants e.g. mobile handheld “readers” SST participants have the capability to monitor all activity in real-time at strategic checkpoints and in-transit from point of loading until final destination

11. Our Mission To be the global market leader in port development, operations and logistics services

12. Security Fencing Access Controls Security Guards Port Security Officer Storage Insurance Extra Security Costs

13. Security Acronyms SST – S mart & S ecure T rade Lanes Initiative CSI – C ontainer S ecurity Initiative S ISPS code – I nternational S hip & P ort Facility S ecurity code C-TPAT – C ustoms- T rade P artnership A gainst T errorism AIS – A utomatic I dentification S ystem Transec – Tran sport sec urity SOLAS – S afety o f L ife a t S ea SCST – S trategic C ouncil on S ecurity T ransport

14. Hutchison Whampoa Multi-National conglomerate based in Hong Kong Operates in 41 countries Originally a British “hong” registered in 1863 Publicly quoted Invested over £5,500 million in UK to date UK interests include: Hutchison “3”, Superdrug, Savers, Property, Ports….. Chairman: Li Ka-Shing

15. Smart & Secure Trade Lanes Participants Participants Supply Chain Domain Expertise (to evaluate supply chain vulnerabilities and solutions) Stanford Global Supply Chain Forum, Transportation Logistics Institute, King’s Point Merchant Marine Academy, MIT, Georgia Institute of Technology (Note: These organisations are assisting the process analysis, evaluation, and the development of an economic model for efficiency and security) Shippers (Importers)Target, GE, Boeing, Hewlett Packard, Unilever, Michelin, Expeditors Int’l., UPS/Fritz, Kuehne & Nagel, Semblog Logistics, Transoceanic, Maersk Logistics, LINE Logistics, PSA Logistics Global Port OperatorsSSA, Hutchison Port Holdings, PSA, P&O Ports US Port AuthoritiesPort of Seattle, Port of Tacoma, Port of Los Angeles, Port of Long Beach, Port of New York/New Jersey, Port of Houston, Port of Savannah, and Port of Charleston US Terminal OperatorsAPL, Marine Terminal Corporation, Total terminals Inc., Hanjin, P&O Port Newark Container Terminal, Georgia Ports, Charleston Port Authority, Port of Houston Authority CarriersMitsui OSK Lines, Evergreen, Hanjin, Yang Ming Service ProvidersParsons Brinckerhoff, SAIC, Sandler Travis Trade Advisory Services Cotecna, Boeing Technology ProvidersQualcomm, Savi Technology, OneSeal, Symbol, Intermec, Sun Microsystems, Compaq, Microsoft, IBM, Oracle, EXE, Manugistics, Vigilos InfrastructureCIMC, Transamerica

16. 1) Mandates that all ports, facilities and vessels instigate comprehensive security/incident response plans, coordinated between all relevant authorities 2) Mandates a regional Area Maritime Transportation Security Plan, developed by the Coast Guard 3)Directs the US DOT to develop regulations to create secure areas in ports, and to limit access to sensitive areas e.g. through the issuance of identity cards, and background checks of employees 4)Establishes local port security committees to coordinate federal, state, local and private law enforcement agencies 5) Provides for supply chain security by allowing for secure maritime borders and an efficient cargo transportation system e.g. implementation of enforceable standards for container seals/locks US Port & Marine Security Act 2002

17. 6)Requires that all cargo be pre-cleared for entry into the US at the port of origin 7)Compels commercial vessels to be equipped with and operate an automatic identification system (AIS) when navigating in US waters 8)Authorises the Coast Guard to board and search ships entering US ports 9)Directs the Secretary of Transportation to assess the anti-terrorism measures maintained by foreign ports, and to deny entry to vessels that call on ports with insufficient security regimes 10)Creates a Maritime Security Advisory Committee to make recommendations on national maritime security matters 11)Requires the development of a maritime intelligence system to collect and analyse information on vessels operating in waters under US jurisdiction US Port & Marine Security Act 2002