1. IT Solutions for Security & Trade Facilitation Susan Evans Business Development, EMEA

2. All Rights Reserved. Confidential Agenda The Challenge Requirements A Technology Approach Case Study

3. All Rights Reserved. Confidential The Challenge Limited visibility of movements of goods Limited information of trading partners Lack of existing infrastructure Security Breach –When did it happen –Who was in custody of the goods Acceptance of new processes & technology

4. All Rights Reserved. Confidential Requirements A solution that provides security A solution that provides visibility and data –Forensics for improving supply chain security A solution that automates and improves supply chain efficiency An adaptable solution that meets differing objectives –Theft –Smuggling –Bombs and Weapons of Mass Destruction

5. All Rights Reserved. Confidential A typical supply chain Network includes … Movement Vehicle Container (sea) Pallet Master Carton Item Active RFID Satellite Passive RFID Bar Code ULD (air) Semi- Passive RFID Paper

6. All Rights Reserved. Confidential A Technology Solution Radio Frequency Identification Device (RFID) –Hardware Device for Security Software Application that collects the information and makes available to users –Transportation Security System A Network that supports the RFID technology

7. All Rights Reserved. Confidential A Typical RFID Network Includes… Applications for user interaction Enterprise systems for coordinated decision making Local systems for site coordination ZONES APPLICATIONS Distribution Center Warehouse Manufacturer Store Web Browser Alerts Enterprise Software ENTERPRISE Other Enterprise SITES ASSETS RFID readers RFID tags (Active or EPC/Passive)

8. All Rights Reserved. Confidential 36 countries and growing 400 nodes – Airports, Seaports, Rail Terminals, Consolidation Points 250,000 conveyances tracked Open network, international (ISO) and technology standards-based system Integrated with a number of complementary technologies (sensors, GPS, handheld devices) Technology infrastructure available for global container security US Govt. Dept. Total Asset Visibility Network Macedonia Bremerhaven Antwerp Port Brindisi Beaumont McGuire Air Force Base

9. All Rights Reserved. Confidential READER SIGNPOST BEACON MODE SIGNPOST MODE TAMPER EVENT Tag ID Seal Condition Tag ID Tamper Condition 2.4GHz or other Backhaul RADIO ACCESS POINT PORT HARDWARE INFRASTRUCTURE SAVI SITE MANAGER Signpost ID 123 KHz Tag ID + Signpost ID + Seal Condition 433 MHz SAVI MOBILE READER POD AND HANDHELD Seal/Tag Commands 433MHz Seal/Tag Commands 433MHz / 123 KHz Tag ID Tamper Condition Tag ID Tamper Condition Tag ID Tamper Condition Tag ID Tamper Condition SMART SEAL TAG Tag ID Seal Condition Tag ID Seal Condition Tag ID Seal Condition

10. All Rights Reserved. Confidential Examples of RFID Tags ST-604 ST-654 ST-602 ST-645New ST-645 EJB ESeal General Asset Tracking Security Tags RFID Tags Smart Lables Future Tags will be smaller than a grain of rice Intelligent Labels Bar codes give way to Intelligent Labels (Passive RFID tags)

11. All Rights Reserved. Confidential Case Study: Smart & Secure Tradelanes Phase One Results: Increased security Complete, accurate information Timely information transfer Compliance Economic justification

12. All Rights Reserved. Confidential SST Objectives 1.Rapidly deploy an industry-wide, open, and holistic security initiative of participants, business processes, security procedures, and various technologies to improve supply chain security and efficiency. 2.Enlist a strategic group of multi-national shippers (importers) who, in collaboration with their physical network partners (port operators, carriers, forwarders), can implement end-to-end container security. 3.Go deep at the point of origin – warehouses, manufacturing facilities -- in business process, data, security procedure, physical tracking and electronic security. 4.Implement or enable US Customs CTPAT, CSI, and 24 advance manifest information rule. Test the concept of an automated fast lane and ensure compatibility with other government initiatives. 5.Capture potential efficiency gains for all supply chain participants of a baseline capability in upstream data, security, tracking, and government initiatives; develop an overall economic model of costs and benefits.

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14. All Rights Reserved. Confidential Solution Overview Baseline Capability Available Today 3. Port of Loading - Vessel load Verify clear for loading status Automatically verify security status at quay cranes 2. Port of Loading - Arrival Automatically record container arrival Automatically verify security status at entry gate 4. Vessel Departure 6. Port of Discharge - Departure Automatically record departure Automatically verify security status at exit gate 1. Manufacturer/Consolidator Associate manifest with container and seal ID Verify user and electronically secure container Automatically record departure (optional) Transmit data to TSS Transportation Security System Platform 5. Port of Discharge - Vessel Unload Verify clear for unloading status Automatically verify security status at quay cranes 7. Deconsolidation center Automatically record arrival (optional) Automatically verify security status Verify user and unseal container Transmit data to TSS Transmit documentation and updates to Customs Provide alerts if container deviates from plan Provide reports and other analytics for supply chain and security inefficiencies Maintain audit trail of accountability Provide web access to users

15. All Rights Reserved. Confidential General Phase I Results Phase I produced tangible results for its users 65 participants collaborated in a global initiative that spanned 4 continents and shipped 818 containers through 18 tradelanes. SST network enabled shippers to meet or exceed 100% of Customs requirements for advanced manifest information. Average of 7.3 automated reports on the status and location of container were collected for each shipment during Phase I. SST transmitted status and location information, up to two days earlier than through traditional EDI system In 5% of the containers shipped, a significant routing or rules exception was detected and transmitted to SST users. For containers of average value, the SST system demonstrated a potential net financial operational benefit to shippers of $378-$462 per container.

16. All Rights Reserved. Confidential SST: Phase II –Phase I results proved that SST is a viable and effective system for improving global supply chain security and efficiency –The geographical, technological, and informational deliverables and benefits of SST were powerful but limited during Phase I –The capabilities of SST are nonetheless suitable for expanding it on a large scale –Phase II builds upon the existing capabilities of SST, and refines and expands its benefits through a three-part process –Enlarge the circle of partners to develop improvements for both the SST system and the management of individual supply chains –Expand the number of locations served, technologies available, and information provided to users –Collaborate closely with the ISO to develop global standards for supply chain security –Phase II presents an opportunity for users to implement a completely integrated, end-to-end supply chain security and management system that is truly global

17. All Rights Reserved. Confidential SST Applications for Securing Transit Transport Nato relief to Afghanistan SST for Africa –Corridor Specific Applications Integration with customs systems Tracking transit goods –East Africa –Kuwait –Pakistan

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20. All Rights Reserved. Confidential Smart Container – Evolution of RFID for Security and Tracking SST I Bolt TagSST I New DesignSingle Use EJ Brooks Tag Smart Container with Sensors Monitors presence and integrity of ISO bolt seal Generates immediate alarm upon bolt removal or breakage Re-usable tag 5 year battery life Up to 300 feet range 32 K bytes of read/write memory To be used in OSC Trials Enhanced version of previous ST-645 Less prone to breakage -- lies within protective envelope of container Rubberize arms fits any hasp and makes tag easier to install. Bolt is easier to cut Tough and Durable Co-developed by Savi and EJ Brooks Compatible with Savi Fixed Readers and Mobile Readers Single Use Bolt Seal –lower cost –bolt can be cut once Designed for Pardo Hole Containers –Longer bolt Security, Tracking, and Status of Container Easy to install Replaceable battery for long lasting life Senses when doors are open or closed Integrated light detection circuit for additional intrusion detection Temperature, humidity, and shock sensors add value for intrusion detection and integrity of goods monitoring Expansion port for integration with other sensors