Free Trade and Port Security

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Center for Research and Communication University
of Asia and the Pacific

• Free Trade and Port Security
• (Philippines)
• 2006 Atlas Liberty Forum
• The Broadmoor, Colorado, USA
• Enrico L. Basilio
• CRC Transport and Logistics Center
• April 21-22, 2006

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Presentation Outline

• ISPS CODE
• Brief History of the ISPS Code
• Mandatory Requirements of the ISPS Code
• Consequences of Non-Compliance
• Philippines and the ISPS CODE
• Philippine International Trade
• Ports and Shipping Sectors
• Compliance to the ISPS Code
• Challenges Ahead

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Brief History of the ISPS Code

• Two months after the "9/11" attacks, the IMO
  adopted Resolution A. 924 (22) calling for a
  thorough review of all existing measures already
  adopted by IMO to combat acts of violence and
  crime at sea.
• In December 2002, 108 Contracting Governments to
  the 1974 SOLAS Convention adopted a number of
  amendments to the 1974 SOLAS Convention, the most
  important of which is the ISPS Code.
• The ISPS Code contains detailed security-related
  mandatory requirements for governments, port
  authorities and shipping companies, together with
  a series of guidelines about how to meet these
  requirements.

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Scope of Application of the ISPS Code

• The ISPS Code is applicable to
• all shipping nations who are Contracting
  Governments to SOLAS - Flag States and Port
  States.
• all ships and ports engaged in international
  voyages

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Mandatory Requirements of theISPS Code

• 1. Assessment Activity and Adoption of a Security
  Plan for
• PORT FACILITIES
• SHIPS
• 2. Contracting Governments to set Security Levels

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Security Plan for a Port Facility

• Appointment of a Port Facility Security Officer
• Port Facility Security Assessment
• Identify assets and infrastructures
• Determine weaknesses and vulnerability
• Formulation of a Security Plan
• Must indicate the operational and physical
  security measures to ensure the port facility
  always operates at security level 1
• Government Approval
• Approve the assessment and security plan
• Issue a Status of Compliance of Port Facility
  (SCPF)
• Port Facilities issued with SCPF to be registered
  with IMO database of ISPS Compliant Port
  Facilities

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Security Plan for a Ship

• Appointment of a Company Security Officer and a
  Ship Security Officer
• Formulate a Ship Security assessment
• identify assets and infrastructures and determine
  weaknesses and vulnerability
• Formulating a Ship Security plan
• The plan to indicate the operational and physical
  security measures to ensure the vessel always
  operates at security level 1
• Government Approval
• approve the assessment and security plan and
  issue a International Ship Security Certificate
  (ISSC)
• Can also be undertaken by an internationally
• Recognized Security Organizations (RSO)

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Security Levels set by the Contracting Governments
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Indicators of Compliance

• SHIP
• A compliant ship should have an International
  Ship Security Certificate (ISSC) issued by
• Government
• Internationally Recognized Security Organizations
  (RSOs)
• PORT
• A compliant Port Facility should have a Status of
  Compliance of a Port Facility (SCPF).
• SCPFs are issued only by the government
• The information regarding compliance of port
  facilities are published in the IMO ISPS website

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Consequences in Case of Non-Compliance

• IMO will not impose any penalties on any
  Governments who do not ensure compliance with the
  ISPS Code
• Market forces and economic factors will drive
  compliance.
• SHIP - If a ship does not have a valid ISSC
• it may be detained in port until it gets a
  certificate
• the port may expel the ship
• the port may refuse the entry of the ship
• the port may curtail the operations of the ship
• PORT - If a port does not have a valid SCPF,
  ships may choose not to dock at this port

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Philippine International Trade
Source NSO
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2005 Philippine Exports
Source BETP, NSO
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2005 Philippine Imports
Source BETP, NSO
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The Philippine archipelago consists of about
7,000 islands To secure the ports represents a
huge task
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Philippine Ports

• Commercial 150
• Public 120
• International
• Domestic
• International/Domestic
• Private 30
• Domestic
• International/Domestic
• Non-Commercial (Private) 280
• Fish wharves/municipal ports 427

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Philippine International Ports
Manila Intl Container Terminal
South Harbor
Subic Bay Freeport
Mindanao Container Port
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Philippine Domestic Ports
North Harbor
RORO Port
Port in Mindanao
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Philippine Shipping

• OCEAN-GOING
• DOMESTIC INTER-ISLAND
• Liners - Passengers and
• Cargoes (Containerized/Bulk)
• Trampers - Cargoes (Bulk)
• RORO - Passengers/Cargoes (moving)
• Fast Crafts - Passengers
• Tankers - Specialized Cargoes
• Institutional - Cargoes (Bulk)
• Carriers

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Domestic Inter-Island Ships
Liner Ships
RORO Ferry
Fast Crafts
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Philippines Status of Compliance

• 1. ESTABLISHMENT OF THE OFFICE FOR TRANSPORTATION
  SECURITY (OTS)
• EO 277 (January 2004)
• Establishment of the OTS under the DOTC
• EO 311 (April 2004)
• Expansion of the powers and functions of the OTS
• Designation of the OTS as the single authority
  responsible for the security of the
  transportation systems of the country (land,
  rail, air and sea)

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Organizational Structure of the OTS
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Philippines Status of Compliance

• 2. ASSESSMENT OF THE PORT FACILITIES AND SHIPS
• EVALUATION OF PORT AND SHIP SECURITY PLANS
• ISSUANCE OF ISSCs AND SCPFs
• TOTAL SHIPS issued with ISSC 201
• OTS issued ISSC 35
• RSO issued ISSC 166
• TOTAL PORTS issued with SCPFs 97

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Recognized Security Organizations (RSO)

• Nippon Kaiji Kyokai
• Bureau Veritas
• Lloyds Register
• Det Norske Veritas
• American Bureau of Shipping
• These RSOs are IACS members (International
  Association of Classification Societies)

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Philippines Status of Compliance

• 3. TRAINING OF MARITIME SECURITY
• PERSONNEL (Phil-Australia Security Project)
• As of April 2005, OTS has conducted
• Port Facility Security Officer Course - 7
• Advance Techniques for Trainors - 3
• Verification Course - 1
• Audit Course - 1

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Challenges Ahead

• Budget for OTS
• Fund to finance acquisition of security equipment
  (CCTVs, X-ray machines for cargoes)
• Research and advocacy on the proposed creation of
  the Philippine Transport Security Agency
• Drafting of the National Maritime Security Plan

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• THANK YOU

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WGA Superferry 14