Policy and Strategy in Maritime Security. A simple presentation on implementation of maritime security strategy frameworks within an organization.

1. An Analysis of “Security in
Maritime Transport: Risk
Factors and Economic Impact”
JOHN STEVEN PADERA

2. Content
 Purpose
 Introduction
 Maritime Security Issues
 Prioritization
 Costs of Policy
 Cost of Attack
 Conclusion
 Reference

3. Purpose
 Identify, tier and prioritize risk categories
 Detail an example of cost based on OECD findings
 Compare to potential cost of one attack

4. Introduction
 Supply chains are vulnerable to terrorist attacks that can
cause loss of life and potentially high financial losses.
 A requirement for the right policy that measures the
potential cost with the potential mitigating benefit.
 The potential vulnerabilities must be mitigated with a
holistic policy.
 The International Convention for Safety at Sea (SOLAS)
and the International Ship and Port Facility Security
(ISPS) create a framework.

5. Maritime Security Issues
 Terrorism: Use of violence to intimidate and/or coerce, especially for
political purposes.
 Largest potential impact
 Largest potential cost
 Piracy: Ransom and theft.
 Prevalent
 Most visible
 Costly
 Illegal Activity: Smuggling drugs, weapons, counterfeit goods and theft
 Least visible
 Most prevalent
 Most costly
T
I
P

6. Prioritization _Ports
Ports
Ships
Personnel
Containers
Type Priority
Location
to Threat
Historical
Data
Regional
Terrorism
Regional Crime and
Corruption
TI

7. Prioritization _Ships
Type Priority
Ports
Ships
Personnel
Containers
Volatile
Bulk
Bulk by
size
Break Bulk by
Capacity
Individual Containers
P
T

8. Type Priority Managers
Supervisors
Others with access
Ports
Ships
Personnel
Containers
TI
Prioritization _Personnel

9. Type Priority
Explosive
Material
Hazardous
Material
Environmental
Sensitive / Valuable
I T
Ports
Ships
Personnel
Containers
Prioritization _Personnel

10. Measures Targeting Ships (cost)
 Automatic Identification System: $649,300,000
 Navigation and monitoring aid.
 Ship identification number: $21,600,000
 Stenciling or marking of ship for visual identification.
 Ship security alert system: $86,500,000
 An alert sent to authorities discreetly.
 Total: $757,400,000

11. Measures Targeting Personnel (cost)
 Company Security Officer (more than 10 vessels): $514,600,000
 Assigns a company security guard with subordinates to oversee compliance with IMO security
rules.
 Ship Security Assessment: $103,900,000
 An assessment of ship security through ISPS standards.
 Ship Security Plan: $51,900,000
 A mandatory plan with associated “living document” needed for each vessel.
 Ship Security Officer: $29,000,000
 Designated and trained officer to handle security for each vessel.
 Ship Security Training Drills: $16,800,000 and Vessel Security Equipment: $304,000,000
 Total: $1,020,200,000

12. Measures Targeting Ports (cost)
 Port Facility Security Assessment: $27,900,000
 Assess threats based on port characteristics
 Port Facility Security Plan: $27,900,000
 Port Facility Security officer, training, drills, and equipment:
undetermined
 Known totals: $55,800,000

13. Cost of Security
 Estimated initial cost based on the totals presented: $8,650,000,000
 Shutdown to simulate a terrorist attack: West coast port labor dispute
February 2015: According to the National Retail Federation:
 $2 Billion dollars a day.
 Theoretical cost of attack on Terminal Island port of L.A. as outlined
Gordon et al, in Protecting the Nation’s Seaports: Balancing
Security and Cost:
 $45 Billion dollars

14. Conclusion
 Despite the heavy cost of security, it is necessary in and of
itself as a deterrent for the would-be attacker.
 The costs presented have an unseen benefit in the actual
prevention and the overall likelihood of attack.
 Terrorism specifically equal uncertainty, which is a potent
cost which security alleviates.
 Value of human life plays a further role in justifying these
costs to an extent.
 Policy must balance cost with potential benefits.

15. Reference
 Public Policy Institute of California. (2006). Protecting the Nations Seaports:
Balancing Security and Cost. Retrieved January 24, 2016, from
http://www.ppic.org/content/pubs/report/r_606jhr.pdf
 Security in Martime Transport: Risk Factors and Economic Impact (pp. 1-59, Rep.).
(2003). Maritime Transport Committee.
 Woodyard, C. (2015). West Coast ports to reopen after weekend shutdown. Retrieved
January 24, 2016, from
http://www.usatoday.com/story/money/business/2015/02/08/west-coast-ports-
closure/23086097/
 International Convention for the Safety of Life at Sea (SOLAS), 1974 //. (n.d.).
Retrieved January 24, 2016, from
http://www.imo.org/en/About/Conventions/ListOfConventions/Pages/International-
Convention-for-the-Safety-of-Life-at-Sea-(SOLAS),-1974.aspx
 James, A. (n.d.). International Business & Economics Research Journal (IBER).
Retrieved January 24, 2016, from
http://www.cluteinstitute.com/ojs/index.php/IBER/article/view/3962