Container Security and Singapore's Role as a Hub

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Container Security and Singapore's Role as a Hub

Container Security and

Singapore’s Role as a Hub

K Raguraman & Cheu Ruey Long


Container Security and Singapore’s Role as a Hub

Overview

Trends in international/regional freight movements

Singapore’s role as a hub

The distribution channels in the multi-modal chain

Concerns with security issues

Technology development in container security

Research issues for Singapore


Container Security and Singapore’s Role as a Hub

TRADE/GDP GROWTH

• The four decades from 1950 to 1990:

– Value of trade grew at 1.5 times the growth in

value of world GDP for each decade

• The last decade from 1990 to 2000:

– Value of trade grew at 2.2 times the value of

world GDP


Container Security and Singapore’s Role as a Hub

Changes in International Trade and Responses of

Carriers and Airports/Ports (Source: ESCAP, 2001)

Acceptance of Trade as Engine of Growth

Policies to Reduce Barriers to Trade and Investment

Growth in Shift to Higher Heightened Awareness

Trade Volume Unit Value

of Pivotal Role

of Airports/Ports

New

Higher Performance Higher Expectations

Opportunities For Expectations of

on Airport/Port

Carriers Carriers Performance


Container Security and Singapore’s Role as a Hub

GROWTH IN SEABORNE TRADE

(million tons)

Source: UNCTAD (2001)

---------------------------------------------------------------------------------------

Year Total Seaborne Tanker Dry

Trade Total Bulk

---------------------------------------------------------------------------------------

1970 2,556 1,442 1,124 448

1980 3,704 1,871 1,833 796

1990 4,008 1,755 2,253 968

2000 5,885 2,149 3,736 1,285

----------------------------------------------------------------------------------------

Biggest growth in non-bulk dry cargo – containerized cargo,

especially in last decade


Container Security and Singapore’s Role as a Hub

General cargo and container fleet - tonnage additions

(newbuildings) and reductions

as of January 1st, 1989 - 1999 (mill dwt)

Source: ISL Shipping Statistics and Market Review 2000


Container Security and Singapore’s Role as a Hub

Container fleet development as of January 1st, 1986 – 2000

Source: ISL Shipping Statistics and Market Review 2000


Container Security and Singapore’s Role as a Hub


Container Security and Singapore’s Role as a Hub

World Container Volumes (Full, O-D)

(Source: ESCAP, 2002)

140

120

123

100

Million TEU

80

60

59

40

20

0

1980 1985 1990 1995 2000 2005 2010

Historical Estimates

Model Estimates


Container Security and Singapore’s Role as a Hub

Transshipment Volume

(Source: ESCAP, 2002)

70

64

67

Million TEU

60

50

40

30

20

10

26

Kobe/Osaka

Tokyo/Yokohama

Gwangyang

Busan

Kaohsiung

Shanghai

Hong Kong

Tanjung Pelepas

Port Klang

Singapore

Colombo

0

1999 Base 2011 Big Ships 2011


Container Security and Singapore’s Role as a Hub

Top 5 Container Ports in Asia (2011)

(Source: ESCAP, 2002)

Port 1999 2011

Singapore 15.9 30.9

Hong Kong 16.2 25.3

Shanghai 4.0 19.0

Kaohsiung 7.0 12.8

Busan 6.3 12.5


Container Security and Singapore’s Role as a Hub

Total Airfreight Rankings (World) (2000)

(Source: Airports Council International)

Rank

Airport

City

Total Freight

(Millions of U.S.

Tons)

%

Change

1

Memphis Int'l/FedEx (MEM)

Memphis

2.70

+3%

2

Hong Kong Int'l (HKG)

Hong Kong

2.47

+14%

3

Tokyo Narita (NRT)

Tokyo

2.08

+5%

4

Kimpo Int'l (SEL)

Seoul

2.04

+14%

5

Los Angeles Int'l (LAX)

Los Angeles

2.02

+7%

6

New York Kennedy (JFK)

New York

1.86

+6%

7

Changi (SIN)

Singapore

1.85

+12%

8

Frankfurt (FRA)

Frankfurt

1.73

+12%

9

MIAMI INT'L (MIA)

MIAMI

1.72

-0.6%

10

Louisville Int'l/UPS (SDF)

Louisville

1.66

+6%

Source: Airports Council International (ACI) and respective airport traffic reports.


Container Security and Singapore’s Role as a Hub

International Airfreight Rankings (World) (2000)

(Source: Airports Council International)

Rank

Airport

City

International

Freight (Millions

of U.S. Tons)

% Change

1

Hong Kong Int'l (HKG)

Hong Kong

2.47

+14%

2

Tokyo Narita (NRT)

Tokyo

2.07

+5%

3

Changi (SIN)

Singapore

1.85

+12%

4

Kimpo Int'l (SEL)

Seoul

1.76

+14%

5

Frankfurt (FRA)

Frankfurt

1.68

+12%

6

Heathrow (LHR)

London

1.43

+4%

7

MIAMI INT'L (MIA)

MIAMI

1.43

-1%

8

New York Kennedy (JFK)

New York

1.41

+8%

9

Schiphol (AMS)

Amsterdam

1.35

+4%

10

Chiang Kai Shek Int'l (TPE)

Taipei

1.32

+14%

Source: Airports Council International (ACI) and respective airport traffic reports.


Container Security and Singapore’s Role as a Hub

Air Freight Traffic by Region (Tonne-Km Performed)

(Source: ICAO, 2002)

------------------------------------------------------------------------------------------

REGION Annual Growth Rate (%) Predicted Regional

(1999 – 2010) Share (%) (2010)

------------------------------------------------------------------------------------------

Europe 4.5 28.2

Africa 5.0 1.9

Middle East 4.0 3.3

Asia and Pacific 7.5 42.6

North America 5.0 20.7

Latin America & Carib 4.5 3.3

------------------------------------------------------------------------------------------

WORLD 6.0

------------------------------------------------------------------------------------------


Container Security and Singapore’s Role as a Hub

Distribution Channels in the Multimodal Chain

Outbound

Shipper – truck – port (terminal gate –drayage – crane – outbound ship)

Transshipment 1

Inbound ship at Terminal X – crane unloading – truck – terminal gate X –

road network – terminal gate Y – storage – crane loading – Outbound

ship at Terminal Y

Transshipment 2

Inbound ship at Terminal X – crane unloading – truck – terminal gate X –

road network – freight forwarder’s warehouse (consolidation and

reconsolidation) - terminal gate Y – crane loading – Outbound ship at

Terminal Y


Container Security and Singapore’s Role as a Hub

Concerns with Security Issues

• Large container throughput in Singapore port

• Approx. 16 million TEUs handled in 2001

• US as a major trade partner

• 2 SIN-US container vessel trips per day

• Port efficiency a major advantage

• 2001 port productivity at 45 TEU/ha/yr, or 1.5 TEU/m berth/yr

• World record of 234 container moves/vessel-hr

• Average vessel turnaround time S$21 billion


Container Security and Singapore’s Role as a Hub

Technology Development - Operational

• POCC’s Vessels Traffic Monitoring System

• PORTNET

• Computer Integrated Terminal Operations

Systems

• Flow-Through Container Gate System

• GPS-based truck dispatching system

Container scanning (X-ray) machine

• Most are developed to improve the

efficiency of the container flow

• How about technology to improve security

DGPS

Reference

Station


Container Security and Singapore’s Role as a Hub

Technology Development - Ongoing

• Electronic container seals

• Low cost tracking devices

Container scanner

• Inspection on the move

• Track & trace systems


Container Security and Singapore’s Role as a Hub

Research Issues for Singapore

• Inter-agency framework

– Multi-modal chain (sea, land & air)

Roles and responsibilities clearly defined

• Public-private partnership

– Involve major port, truck and warehouse operators

Government agencies

University,

RI/RC

Port, truck and

warehouse

operators


Container Security and Singapore’s Role as a Hub

Research Issues for Singapore

Container risk profiling

– Data fusion from national agencies

– International cooperation in information sharing

– Data mining techniques

• Integrating of IT systems

Container content

– IT security


Container Security and Singapore’s Role as a Hub

Research Issues for Singapore

• Remote or non-intrusive detection of contraband

materials

– Explosives and weapons of mass destruction

– Chemical and biological agents

– Radiological materials or other hazardous materials

– Destruction mechanisms present in and around

containers in single mode and multiple mode methods

of cargo shipments


Container Security and Singapore’s Role as a Hub

Research Issues for Singapore

• Port efficiency

– How many container to inspect

– To what level the drop in efficiency can be

compromised

– What technology to adopt

– Where to inspect, and additional land needed

– How to optimize the inspection process to reduce the

container movement


Container Security and Singapore’s Role as a Hub

Research Issues for Singapore

• Multi-model chain security management

– Where are the security weak points

– At what points in the flow process a container should

be inspected to maximize the improve in overall

reliability


Container Security and Singapore’s Role as a Hub

Research Issues for Singapore

• Route planning

– Safe route for inter-terminal transfer, import and export

– Risk assessment along possible routes using spatialtemporal

analysis

• Truck/container tracking systems

– Make full use of real-time traffic information

– Possible routes, if fixed route is not mandatory

– Movements as relative to real-time traffic information

Travel Time Prediction


Container Security and Singapore’s Role as a Hub

Summary

Security: threat or opportunity

– Business opportunity supported by R&D

• A potential area of service excellence for

Singapore

– As a regional/international shipping cum container

inspection hub

– As a good investment location for petrochemical, bioscience

and other concern industries

• Competitive advantage


Container Security and Singapore’s Role as a Hub

End of Presentation

Thank you!

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