3. Learning Objectives
1. Explore the importance of the air, rail, and maritime
components of the global transportation system.
2. Be able to recall the critical historical advances made in
the air, rail, and maritime industries over time, which has
contributed to economic prosperity around the world.
3. Comprehend the significance of the air, rail, and
maritime industry to the overall transportation network.
4. Recognize the need for seamless security between the
air, rail, and maritime industries and the rest of the
transportation logistics chain.
5. Discuss the changes in industry best practices after 9/11.
6. Describe the changes in U.S. air, rail, and maritime
security legislation since 9/11.
3
4. Subtopics Introduction:
Chapter One will critically evaluate the
dependence of the world on the international
transportation industry and the potential
results of a significant break in the free flow of
trade and goods. Without constant and
consistent educational threat awareness
efforts by governments, the public might
ignore the risk and not want to finance the
tremendous cost of security at the expense of
other perceived more needy social welfare
programs.
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6. National and International Strategic Assets
1. The overall global transportation system has issues that need
immediate attention including energy consumption and cost,
pollution control, economic regulation, public subsidies,
safety, deteriorating infrastructure, and last but not least,
adequate security.
2. Currently, modern transportation systems consist of a
complicated network of highways, airways, waterways,
railroad tracks, pipelines, and urban mass transit systems.
3. The public also holds different perspectives on each means of
transportation, which also ultimately affects legislation and
policy and hence funding.
4. The government treats each sector differently in two distinct
areas: subsidies and regulation.
5. Complicating the mix, each component is treated differently
by both the government and the public.
6. To understand the total system it will be necessary to examine
and understand each component.
6
7. Department of Transportation,
the percentage and amounts of
the Gross Domestic Product
(GDP) related to the
transportation industry are huge
and reported in the billions of
dollars. 7
8. The forecast assumes a
positive global economic
growth trend, averaging
2.9% "real growth" after
removing inflation during
the 2003-07 spread.
8
12. 1.The world depends on transportation’s
accessibility and passengers and shippers reap
the benefits of the system on a daily basis.
2.Any passenger or shipper can arrange, via the
Internet, any scheduled transport service and
purchase carriage or passage to virtually
anywhere.
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13. 1.The greatest tribute to air transportation may be
the simple fact that society has accepted its
advantages as a way of life.
2.Commercial aviation is destined to increase in
importance as consumers insist on products
faster and on demand.
3.The public demands that it be reasonably priced,
reliable, and safe.
14
14. War can be the great mother of invention
and World War I saw vast improvements
in the ability to make flight a practicality
for the average traveler The allies built
almost 17,000 aircraft Those airplanes
were put to good use after the war in the
civilian sector. The first industry to
recognize and utilize flight was the postal
service.
15
16. The primary objective of airline
deregulation had been to increase reliance
on competitive market forces as the basic
determinant of commercial airline
operations. While certain provisions still
protect the public against the loss of
essential air service, the commercial
carriers were given considerable freedom
in choosing routes and setting prices.
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20. Facilities Infrastructure
Railroads are no longer the primary means of
domestic transportation as they had been in
1929 when they moved 74% of all freight or in
1944 when they still moved 69%. Railroads must
compete with maritime shipping, and to a lesser
extent, the trucking industry. The demise of the
railroad freight industry might just be a little
premature. In June 2004, the railroads
announced they might take on 80,000 additional
employees before 2010.
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21. 22
SECURITY PLAN
When America came under attack on September 11, 2001,
the railroad industry responded swiftly.
The railroads provide critical support to the Department
of Defense Strategic Rail Corridor Network
(STRACNET) which includes more than 30,000 miles of
rail line and provides the backbone for the movement of
Department of Defense shipments.
Because enhanced security has become a long-term
necessity, the Board of Directors of the Association of
American Railroads (AAR) made up of the CEOs of
North America's major freight railroads and Amtrak has
established the mandate to ensure that the railroads
would be more secure each day.
22. Using CIA’s five critical action team
with the active involvement of some 150 railroad industry, security
and intelligence personnel — were established to scrutinize different
aspects of the railroad system:
• hazardous materials
• operations
• infrastructure
• information technology and communications
• military movements
Throughout this process, the AAR continued to work with the federal
government and solidify links to law enforcement and security
agencies.
23
23. Using national intelligence community
"best practices," the Railroad Security Task Force developed a
comprehensiveriskanalysisandsecurityplanwhichincludes:
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•a database of railroad critical assets.
•assessments of railroad vulnerabilities.
•analysis of the terrorism threat.
•calculations of risk.
•identifications of countermeasures to reduce risk.
•definition of alert levels.
•delineation of actions to be taken at each alert levels.
•functions of the AAR operations center and railroad alert network.
24. The plan establishes four
alert levels and describes
a progressive series of
actions to thwart
terrorist threats to
railroad personnel
and facilities.
Level 2:
Heightened
Security
Awareness
Level 1: New
Normal day-
to-day
operations
Level 4: A Confirmed
Threat of attack
against the railroad
industry or actual
attack in the United
States (implemented
up to 72 hours and
reevaluated)
Level 3: A Credible
Threat of an attack
on the Unites
States or the
railroad industry
These actions are applied
in the areas of operations:
• information technology
• communications
• police
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25. A c t i o n s t a k e n b y t h e r a i l r o a d s s i n c e
S e p t e m b e r 1 1 i n c l u d e :
The railroad sector maintains communication links with
the U.S. Department of Defense, the U.S. Department of
Homeland Security, the U.S. Department of
Transportation, the Federal Bureau of Investigations,
and state and local law enforcement to enable
immediate response:
• After consulting with federal security agencies, declared "Red
Alert" status for 72 hours beginning with the start of U.S.
military action in Afghanistan.
• Increased employee security awareness and training to ensure
that over 200,000 railroad employees became the eyes and ears of
the railroad industry’s security.
• Compared employee records to FBI terrorist lists.
• Created new position of Vice President of Security at the AAR.
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26. A c t i o n s t a k e n b y t h e r a i l r o a d s s i n c e
S e p t e m b e r 1 1 i n c l u d e :
• Established a 24/7 AAR operations center to coordinate
industry-wide rail freight security actions.
• Increased tracking and inspection of certain hazmat and
munitions movements.
• Increased security of railroad physical assets.
• Increased random inspections.
• Conducted spot identification checks.
• Increased coordination with u.S. Department of defense.
• Increased cyber security procedures.
• Implemented encryption technology for selected data
communications.
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29. The railroad industry has operated in the
private sector for about 175 years. Railroads
own the rights of way, locomotives and rolling
stock, train dispatching and signaling systems,
and they install and maintain track. In 1862,
Congress passed legislation to encourage the
rapid construction of a transcontinental railway.
Congress also intervened to control excessive
rates, fraudulent investment schemes, and
internal price wars.
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32. Update:
During the Senate's transportation committee's
Feb. 15, 2005, hearing, the committee's top
Democrat noted that funding for non-aviation
transportation was "desperately lacking." 11,
2001, the government has spent more than $20
billion for aviation security and only $420 million
on rail, The TSA's budget request for fiscal 2006
called for about $5 billion for aviation security
and $32 million for surface security, which
covers all non-aviation modes of transportation.
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34. History and Development
Shipping, maritime travel, and
exploration by sea played a major
role in the early growth and
development of every nation on
Earth. The very existence of most
nation-states depended on the flow
of passengers and vital trade goods
on both inland and ocean waterways.
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35. Facilities/Infrastructure
Maintaining this infrastructure is
expensive: particularly the
functionality of the harbors and
connecting waterways. This is doubly
important when military facilities are
co-located with commercial
operations.
38
36. In 1817, the New York
Legislature contracted the
construction of a 338-mile
canal between the Hudson
River and Lake Erie. The costs
related to shipping a ton of
goods from New York City to
Buffalo was reduced from
$100 to $10 and travel time
dropped from 26 days to 6
days.
39
40. • An additional $148 million was made
available to TSA, for port security as of
January 2003.
• DHS claims to be able to “reach out and
touch” 68% of all cargo containers arriving at
US seaports in the 20-port program and to
extend that security net to 80% under the
new program.
• Since June 2002, more than $92 million in
port security grants have been distributed to
51 US ports
43
41. Update:
On October 18, 2004, the President
signed the Department of Homeland
Security
(DHS) Appropriations Act of 2005.
provided $150 million for port
security. These grants will provide
assistance for physical security
enhancements in the most at-risk
seaports. 44
42. 1. They encourage large-scale production, assist in
determining locations of industry, and contribute to
industrial concentration in certain areas, as well as
aiding in the efficient allocation of resources.
2. The policymakers of the world are justifiably
concerned with attempting to enhance security
without unduly inhibiting the movement of goods
and people.
3. In an economic sense, transportation provides
“place utility” by moving goods to the place they are
needed.
4. Transportation systems also permit and coordinate
an efficient division of labor within the global
economy.
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43. Project: group/individual
Track the possible progress of a
biological weapon from the
interior of Africa, to Mombasa,
Kenya via boat to New York via air,
and finally to Connecticut via rail.
How could international security
systems detect and prevent such a
catastrophe? 46
44. Discussion Questions and Exercises
1. Discuss the importance of air, rail, and maritime
infrastructure as a national strategic asset.
2. Comment on the potential effects of a terrorist
attack on the national economy.
3. How did the two World Wars contribute to the
advancement of the aviation industry?
4. Discuss the historical development of the rail
industry.
5. Analyze the evolution of the maritime industry
and its effect on the global economy.
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45. Discussion Questions and Exercises
6. Explore the need for a seamless security system between
transportation components and strides already made
between the airline and cruise ship industries.
7. Compare the security infrastructure in place between the
rail and air industries.
8. List the three security laws passed after 9/11 that directly
relate to the air, rail, and maritime components.
9. Examine the issue of international cooperation in the field
of transportation security.
10. Analyze the appropriate next step in standardizing best
industry practices with mandatory legislation.
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46. Videotape Sources
1.Delivering Americas Economy
2.Aviation Infrastructure for the 21st
century NASA Aeronautics Design
3.Freight Rail is on the Move by AAR
4.Port of the Future: POLB
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