Maritime Security: An Introduction

Maritime Security

An Introduction

Second Edition

Michael A. McNicholas

Table of Contents

Cover image

Title page

Copyright

Dedication

About the Author

Contributors to This Edition

Contributors to the Previous Edition (on Whose Chapters This Book Is Based)

Preface

Acknowledgments

1. Commercial Seaports and Strategic Maritime Passages in Transformation

Introduction

Commercial Seaports

Stakeholders at Seaports

Intermodalism

Strategic Maritime Passages in Transformation

Summary

2. Modes of Maritime Transport

Introduction

Summary

3. Documentation, Financial Transactions, and Business Entities in Commercial Maritime Transportation

Introduction

Purchase of Goods

Filling the Order

Container Stuffing

Making a Booking

Documents Used to Export and Import Cargo

The Next Step for the Ocean Carrier

Documents Specific to Import Cargo Only

Business Entities in Commercial Maritime Transportation

Summary

4. International and U.S. Maritime Security Regulations and Programs

Introduction

The International Ship and Port Facility Security Code1

Amendments to Safety of Life at Sea

WCO’s Framework of Standards to Secure and Facilitate Global Trade2

U.S. Laws and Programs

C-TPAT and Foreign Customs Mutual Recognition Agreements

C-TPAT Benefits

24-Hour Advance Manifest Rule, Container Security Initiative, and the Importer Security Filing

Secure Freight Initiative

Summary

Suggested Additional Regulations for Review by U.S. FSOs

5. Vulnerabilities in the Cargo Supply Chain

Introduction

Vulnerabilities and Their Potential Impact

Lessons Learned From the Drug War

Recommended Security Practices at the Production/Loading Phase

Recommended Security Practices at the Export Phase

Recommended Security Practices at the Importation/Distribution Phase

Special Vulnerabilities in the Maritime Environment

Internal Conspiracies and Techniques Used to Circumvent Security

Container Seals

Red Flags of Possible Criminal/Terrorist Surveillance

Summary

6. Perils of the Seas: Piracy, Stowaways, and Irregular Migration

Piracy and Armed Robbery Against Ships

Current Piracy and Armed Robbery Incidents and Their Impact

Tactics and Techniques in Piracy

The Linkages Between Piracy, Organized Crime, and Terror Groups

Stowaways

Summary

7. Drug Smuggling via Maritime Cargo, Containers, and Vessels

Illegal Drug Origins and Production

Maritime Smuggling Routes and Trends

Drug Smuggling Methods and Techniques

Summary

8. Targeting and Usage of Commercial Ships and Port by Terrorists and Transnational Criminal Organizations

Terrorist Targeting of Ships and Ports

Usage of Ships and Containers by Terrorists to Transport Personnel and Materials

The Nexus Between Terror Groups and TCOs

Transnational Criminal Organizations and the Commercial Maritime Sector

Primary TCO Criminal Activities in the Commercial Maritime Environment

Summary

9. Cyber and Information Threats to Seaports and Ships

Introduction

Why the Maritime Sector Is Particularly Vulnerable

Understanding Who are the Bad Guys

Dealing with the Threats

Identifying Your Organization’s Priorities

Implementation

Summary

Suggested Background Reading and Resources

10. A Strategic Blueprint for World-Class Seaport Security

External Security Ring

Perimeter Security Ring

Inner Security Ring

Site and Asset-Specific Security Rings

Vessel Security Ring

Security Personnel Employment and Training

Port Security Director

Port Facility Security Plan

Summary

11. Threat Mitigation Strategies

Mitigating Pirate Attacks

Ship Antipiracy Security Measures for High-Risk Areas

Hostage Survival and Rescue

Cargo Container Inspection Techniques

Security Equipment, Systems, and Devices Used to Detect Contraband and Unauthorized Persons in a Container

Summary

12. Security Management and Leadership in Seaports

The Port Security Director

The Systems Approach, ISO Certifications, Strategic Planning, and Metric Management

A Multiorganizational Approach Toward Port Security

The Importance of Comprehensive Job Descriptions

Planning and Conducting Security-Related Training

Intelligence and Its Role in Maritime Security

Risk Management and Port Security

Contingency Planning: A Critical Part of Port Security Management

Getting the Maritime Community Excited About Contingency Planning: A Brief Look at an Introduction to a Contingency Planning Training Session

Looking for Well-Respected Sources and Standards on Contingency Planning

Crisis Leadership: Improving Emergency Management and Contingency Planning at Port Facilities

Testing Training and Planning Through Exercises and Drills

Port Security Training Exercise Program25

Summary

13. A Networked Response to Maritime Threats: Interagency Coordination

Terminology Challenge?

National-Level Maritime Threat Response Frameworks

National-Level Whole-of-Government Maritime Threat/Event Response Frameworks Considerations

The U.S. Process

Conclusion

Summary

14. Legal Authorities for Maritime Law Enforcement, Safety, and Environmental Protection

United Nations Convention on the Law of the Sea

The 1988 United Nations Convention Against Illicit Trafficking in Narcotic Drugs and Psychotropic Substances (the 1988 Vienna Convention)

U.S. Coast Guard—Law Enforcement 14 U.S.C. § 89(a)

Maritime Drug Law Enforcement Act (MDLEA) 46 U.S.C. §§ 70501-7-507

The Drug Trafficking Vessel Interdiction Act of 2008 (DTVIA) 18 U.S.C. § 2285

Joint Interagency Operations

MARPOL 73/78

National-Level Authorities to Protect the Maritime Environment, Punish Those Who Exploit It, and Prevent Illicit Activity

Living Marine Resources Enforcement

The Magnuson–Stevens Fisheries Conservation and Management Act (Magnuson–Stevens), 16 U.S.C. §§ 1801-1883

The Lacey Act of 1900, 16 U.S.C. §§ 3371-3378

1991 UN Moratorium on High Seas Drift Net Fishing (UN General Assembly Resolution 46/215)

The Agreement for the Implementation of the Provisions of the United Nations Convention on the Law of the Sea of 10 December 1982 Relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks (United Nations Fish Stock Agreement or UNFSA)

The Marine Mammal Protection Act of 1972—16 U.S.C. § 1377

The Endangered Species Act of 1973—16 U.S.C. §§ 1531-1544

Illegal Immigration67

Immigration and Nationality Act

Improper Entry by Alien 8 U.S.C. § 1325 (2010)

Bringing in and Harboring Certain Aliens 8 U.S.C. § 1324

Reentry of Removed Aliens 8 U.S.C. § 1326

Aiding or Assisting Certain Aliens to Enter 8 U.S.C. § 1327

Criminal Sanctions for Failure to Heave to, Obstruction of Boarding, or Providing False Information 18 U.S.C. § 2237

Summary

Index

Copyright

Butterworth-Heinemann is an imprint of Elsevier

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This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein).

Notices

Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary.

Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility.

To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

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A catalog record for this book is available from the Library of Congress

ISBN: 978-0-12-803672-3

For information on all Butterworth-Heinemann publications visit our website at https://www.elsevier.com/

Publisher: Candice G. Janco

Acquisition Editor: Sara Scott

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Designer: Mark Rogers

Dedication

This book is dedicated to my parents, Francis and Virginia McNicholas, for their never-ending love and support, and to my children, Alexandra, Julian, and Maria, and my granddaughter, Mia; all who are the sunshine in my life.

About the Author

Michael A. McNicholas

Mr. McNicholas is the Managing Director of Phoenix Group in Panama and Costa Rica and Pathfinder Consulting, LLC, in the United States. Michael has over 14  years of distinguished and progressive law enforcement, military, and intelligence experience and, most recently, 20+  years as founder/cofounder of several successful professional security corporations in Latin America and the United States. A former noncommissioned and commissioned officer (presidential direct appointment) in the U.S. Army, he served for 9  years in Airborne Infantry, Military Police, and Military Intelligence units and also is a former sworn police officer. Mr. McNicholas held a top secret security clearance in the Central Intelligence Agency, where he specialized in counter-narcotics trafficking and international terrorism and served on the Vice President’s Narcotics Interdiction Task Force and as the CIA Liaison to U.S. Coast Guard Intelligence.

Michael designed, implemented, and directed the internationally acclaimed seaport security program at Manzanillo International Terminal—Panama, the largest container port in Latin America, and currently deploys a 200+ man force (security officers, K-9, intelligence, and management) at the seaport. Mr. McNicholas spearheaded the successful efforts to have Phoenix Group designated as the first Recognized Security Organization (United Nations IMO classification) by the Republic of Panama Registry and the Dominican Republic. Mr. McNicholas is credited with co-pioneering the Maritime Security Team (antipiracy/stowaway/drug trafficking/terrorist) concept in commercial cargo shipping in Latin America. Phoenix Group deploys security personnel onboard over 500 ships per month in 11 ports in Latin America, and McNicholas’ personnel have captured 600+ stowaways and drug couriers, seized over 10,000  kilos of cocaine and heroin, repelled armed pirates in combat on two occasions and denied access in a dozen other pirate attempts, and mitigated two terrorist operations. Mr. McNicholas and his staff have conducted security surveys and training in every major seaport in Latin America and the Caribbean and has been a Sole Source contractor for a U.S. Intelligence agency.

In mid-2001, Mr. McNicholas was contracted by RAND Corporation, under funding by the Defense Intelligence Agency and the U.S. Joint Chiefs of Staff, to provide an intelligence analysis of the origins and routes of arms procured by Colombian Guerrilla, Para-Military, and terrorist groups. From 2002 to 2004, Mr. McNicholas served as a special advisor to the Congress of the Republic of Panama for Counter-Narcotics, Terrorism, and Intelligence issues and has briefed multiple presidents of Panama. In June 2008, Michael was selected by the Office of the U.S. Secretary of Defense (OSD) as a Maritime Security SME for multiple maritime security-related projects and later that year trained the USCG’s International Port Security Assessment Command. In 2009, he was a speaker/panelist at a multiday conference on Somali piracy at the JFK School of Government at Harvard University and in 2010/2011 he conducted presentations at NATO’s Centre of Excellence—Defence Against Terrorism in Turkey.

In 2012, Mr. McNicholas Chaired/lectured at the inaugural conference of the Multinational Maritime Security Centre of Excellence (MARSEC COE) in Turkey and currently he is a member of the Centre’s Academic Advisory Board and continues to lecture there on an annual basis. In December 2012, Mr. McNicholas lectured at a joint U.S. ODNI-Naval Intelligence conference on Commercial Maritime Drug Trafficking and in 2013 he was selected by the U.S. Maritime Administration/USMMA/USCG to be a member of a five-person Subject Matter Expert team to develop the new Facility Security Officer Course Instructor Manual and Guidelines (ISPS/MTSA). In 2015 and 2016, Mr. McNicholas was the senior security advisory overseeing the design, development, and implementation of the port security program at the newly constructed seaport, Tuxpan Port Terminal, in Mexico.

Mr. McNicholas has lectured at Harvard University, Johns Hopkins University, the Pentagon, DIA, NATO, USMMA King’s Point, British Border Forces, and at numerous conferences sponsored by the Office of the U.S. Secretary of Defense, U.S. Department of Homeland Security, the Office of the Director of National Intelligence, and the Shipping Industry. Mr. McNicholas is the author of Maritime Security: An Introduction (McNicholas, 2008; Elsevier, Inc./Butterworth-Heinemann), published in English and Chinese; Port Security (chapter "A Networked Response to Maritime Threats: Interagency Coordination") of Port Engineering: Planning, Construction, Maintenance, and Security (Tsinker, Gregory, 2004; Wiley and Sons, Inc.,); Terrorism and Commercial Transportation: Use of Ships, Cargoes, and Containers to Transport Terrorists and Material (NATO Science for Peace and Security Series, Vol. 98, 2012); and Use of Commercial Shipping by Terrorist Groups and Their Cooperation with Other Terrorists Groups and Transnational Criminal Organizations (MARSEC COE, Global Maritime Security: New Horizons, 2014, Turkish Naval Forces Printing Office); Mr. McNicholas graduated from the University of Baltimore with a Bachelor of Science degree and a Master of Science degree in Criminal Justice.

Contributors to This Edition

Captain Scott D. Genovese, U.S. Coast Guard (Retired), assumed his present position as Director, Global Maritime Operational Threat Response Coordination Center in April 2014. The Global Maritime Operational Threat Response Coordination Center serves as the Department of Homeland Security’s Executive Secretariat for maritime operational threat response coordination and is directly responsible to the Departments of Defense and the National Security Council Staff to ensure timely and appropriate implementation of the President’s Maritime Operational Threat Response Plan. The Maritime Operational Threat Response Plan (MOTR) is the coordinating process for federal agency actions in response to threats to the United States and its interests in the maritime approaches and maritime domain. Mr. Genovese retired from active duty in the U.S. Coast Guard in 2009. During his service he commanded U.S. Coast Guard Cutters in support of Operation Allied Force (Kosovo) and Operation Iraqi Freedom.

Captain Brian Wilson, U.S. Navy (Retired), is the Deputy Director, U.S. Global Maritime Operational Threat Response Coordination Center (GMCC) and is a visiting professor at the United States Naval Academy (Piracy, Maritime Terrorism, and Law of the Sea). The GMCC coordinates the U.S. Government’s interagency response to maritime threats, including drug trafficking, migrant smuggling, and piracy. He has participated in bilateral and multilateral discussions on maritime security and whole-of-government coordination frameworks and previously served in the Pentagon developing maritime security policy for the Office of the Under Secretary of Defense (Policy).

Robi Sen has 20+  years of experience in computer and internet security. As a subject matter expert, he has innovated, designed, and built numerous novel security systems, sensors, electronic warfare platforms, and communication systems, for commercial corporations, DARPA, DOD, TSWG, SOCOM, and elements of the U.S. intelligence community. Some of Robi’s most notable Cyber Security efforts include developing the first security enhanced version of Android, developing a large-scale passive wireless monitoring system, and developing a new type of Electronic Warfare/Cyber-Warfare platform focused on commercial-off-the-shelf devices that makes use of protocol exploitation. Robi also is a sought after lecturer and recently lectured on Cyber Security to the Naval Post Graduate Homeland Security 2014 Master Cohort. Robi is a prolific author and has written numerous papers, articles, and technical books on technology in general and security in particular. He is also a well-established inventor who has filed or contributed to numerous patents and currently has been awarded a patent for an innovative electronic warfare and cybersecurity platform. Robi currently holds a Top Secret Security Clearance with the U.S. Government.

Lieutenant Commander Cara Condit, currently serves as the Deputy of the Environmental Law Division within the Office of Maritime and International Law. She is primarily responsible for providing advice on Environmental Crimes cases, including the enforcement of the Act to Prevent Pollution from Ships and the Federal Water Pollution Control Act. Prior to this assignment, Lieutenant Commander Condit served as appellate defense counsel at the Washington Navy Yard in Washington, D.C. Alongside her Navy and Marine Corps counterparts, she provided legal counsel to members entitled to an automatic appeal as a result of a court-marital sentence that included a punitive discharge from the service or over one year confinement. From 2011 to 2013, Lieutenant Commander Condit served as counsel for members in the Physical Disability Evaluation System process as well as those facing administrative separation boards. In addition, Lieutenant Commander Condit served as counsel for courts-martial, Boards of Inquiry and Reliefs for Cause. On a daily basis, she provided legal advice to Coast Guard members on their rights during investigations, adverse evaluations, and non-judicial punishments. Before becoming a judge advocate, Lieutenant Commander Condit served as the Executive Officer of USCGC BLOCK ISLAND in Fort Macon, North Carolina from June 2006 to August 2008 and as a Deck Watch Officer on USCGC TAMPA in Portsmouth, Virginia from May 2004 to June 2006. Lieutenant Commander Condit graduated from the Coast Guard Academy in 2004 with a Government Degree in International Affairs and Public Policy. Through the funded legal education program, she received a Juris Doctor from Suffolk University Law School in Boston, Massachusetts. She is a member of the Massachusetts Bar. Lieutenant Commander Condit also holds a Master of Law in National Security and Foreign Relations Law from George Washington University Law School in Washington, D.C. Individual military awards include the Coast Guard Commendation Medal with the Operational Distinguishing Device and the Coast Guard Achievement Medal.

Lieutenant Rebecca L. Castaneda, currently serves as a staff attorney in the Response Law Division. She is responsible for providing legal support to the Coast Guard’s Office of International Affairs (DCO-I). LT Castaneda also is a duty attorney and provides real-time legal and policy advice to senior decision-makers to facilitate Coast Guard maritime law enforcement operations, including advising on domestic law enforcement authorities, international law, and interagency coordination requirements. Prior to joining the Coast Guard, LT Castaneda practiced law in Massachusetts as both a trial and disability attorney. Lieutenant Castaneda graduated from the University of California at Davis with a B.A. in English and a minor in Philosophy. She received a Juris Doctor from New England School of Law in Boston, Massachusetts, and is a member of the Massachusetts Bar. In law school, she was an associate editor for the New England Journal of International and Comparative Law and served as the editor-in-chief of Due Process. She joined the Coast Guard as a Direct Commission Lawyer in 2012. Individual military awards include the Commandant’s Letter of Commendation.

Gerard R. Draughon has over 30  years experience in U.S. law enforcement, with 25  years with U.S. Customs and Border Protection and focused on seaport law enforcement. Gerry started his law enforcement career as a police officer in the Panama Canal Zone, where he was born and raised. After 5  years, Gerry was selected for employment with U.S. Customs and in 1979 started as a Customs Inspector at the Miami Seaport and Miami International Airport. In 1983, Gerry was promoted to Senior Customs Inspector and spearheaded various special operations at the seaports and airports in Miami, Fort Lauderdale, West Palm Beach, and Key West, Florida. Most notable, Senior Inspector Draughon was a founding member of the Miami Contraband Enforcement Team (CET), which was U.S. Customs’ flagship interdiction task force and became the model implemented at all U.S. Customs’ Points of Entry nationwide. Gerry’s photo and successes are recorded in the New York Times best seller The Kings of Cocaine, and he received an award personally from then President George H.W. Bush. In 1990, Gerry was promoted to Supervisory Customs Inspector and tasked with managing the field operations in Miami, Fort Lauderdale, Orlando, West Palm Beach seaports and international airports, as well as the U.S. Customs Preclearance Operation in Nassau, Bahamas. In recognition of his vast experience and successes, and his native Spanish language capability, SCI Draughon was frequently tasked by U.S. Customs’ Office of International Affairs and the U.S. Department of State to conduct training classes in Latin America. From 1990 to 2004, Gerry provided seaport and airport security training to police, military, and customs officers in Colombia, Panama, Costa Rica, Nicaragua, Guatemala, Ecuador, Bahamas, Brazil, Jamaica, and Venezuela. After retiring from U.S. CBP, Mr. Draughon continued to share his expertise, as an on-site trainer to Afghan Customs in Kandahar, Afghanistan, and, most recently, for several years as a U.S. Department of State–contracted trainer in seaport security and ISPS Code topics in dozens of ports in Latin America.

Ed Piper has over 30  years of diversified experience in law enforcement, security, intelligence, education, and training. Ed served as a commissioned officer in U.S. Naval Intelligence, the Military Police Corps, and as a police officer in the Baltimore City Police Department. Mr. Piper was a Primary Instructor at the Maritime Institute of Technology and Graduate Studies (MITAGS) for the CSO/SSO/PFSO Courses and has taught numerous police and security management courses and seminars in Africa and Latin America. He is a veteran professor at teaching security, management, leadership, and contingency planning courses at Johns Hopkins University and also serves as the Dean of Homeland Security Studies at Canyon College. Mr. Piper currently is the Director of Security and Emergency Planning at Georgetown University School of Law.

Contributors to the Previous Edition (on Whose Chapters This Book Is Based)

Captain Frederick (Fred) Allen holds an Unlimited Master and First Class Pilot license issued by the U.S. Coast Guard and during the past 30  years he commanded seven containerships and held senior officer positions on several dozen other cargo ships operating in worldwide services. A graduate of West Virginia University, Fred was awarded a direct commission in the U.S. Navy Reserve and during the 1988 Seoul Olympics commanded the U.S. Navy task force in charge of ensuring the security of Korean waters. Today he continues to serve and holds the rank of Captain in the U.S. Navy Reserve. Since 2004, Captain Allen has worked as a consultant for Phoenix Vessel Services, an RSO for the Panamanian government, evaluating and approving/denying Ship Security Plans of vessels in the Panamanian Registry.

Donna Friscia has over 30  years of experience in the maritime industry working for several Shipping Lines trading in Europe, the Far East, the Americas, and the Caribbean, holding a variety of management positions in the Pricing and Documentation Department, Customer Service, and Auditing. Donna started her career working for an NVOCC and then later at Tropical Shipping and Barber Steamship Company, where she learned cargo booking, import-export documentation preparation and filing, vessel chartering, and contract negotiations from the ground-floor up. Ms. Friscia also worked as a Senior Auditor for Tariff Compliance International (TCI), an industry watchdog which audits the rates, agreements, and all documentation of the Latin American operations of Maersk Lines, Crowley Liner Services, Seaboard Marine Line, King Ocean, Tropical Shipping, and the former Sea-Land Service.

James Stapleton is a graduate of the U.S. Merchant Marine Academy in Kings Point, New York. Following graduation, James sailed for 3  years as an officer onboard several U.S. Flag cargo, container, and bulk vessels. In 1999, Mr. Stapleton accepted a position with Del Monte Fresh Produce in Miami, as the Shipping Operations Coordinator. In this position, James was charged with coordinating and scheduling vessel operations (sailing routes and travel times, maintenance, and port activities and cargo stowage issues). Shortly after, in 2000, James was promoted to Port Manager of Del Monte Fresh Produce’s operation in the Port of Galveston, Texas. As Port Manager, Mr. Stapleton was responsible for directing all aspects of the port operations, including terminal planning; stevedoring and trucking issues; cargo discharging and loading activities; cold storage warehousing; dispatch and drayage to clients; and interface with the port authority, government agencies, Del Monte foreign sites, and U.S. clients. In 2006, James resigned to start up two service companies: Dolphin Chemical & Supply, LLC, and the American Energy Network in Texas.

Preface

This book provides a thorough introduction to the topic of maritime security, as seen through the eyes of practitioners who have decades of on-the-ground, experience-based knowledge in seaport security, vessel security, commercial maritime transport, port operations, cyber security, and maritime law. This book is directed to the academic student, government Homeland Security official or policymaker, and private sector maritime security professional. Specifically for these readers, the book details the fundamentals of commercial shipping and how the business functions; the threats and vulnerabilities to the links in the cargo supply chain; strategies, policies, procedures, and practical measures which have proven to be effective in mitigating terrorist incidents, narcotics smuggling, pilferage, stowaways, and piracy; the laws and international Conventions which codify maritime crime and the legal authority for response; and a window into how the U.S. government provides a coordinated, whole-of-government response to international maritime incidents.

It wasn’t until after I left my position as a CIA Counternarcotics Analyst, which included stints as the CIA Liaison to U.S. Coast Guard Intelligence and as a member of the Vice President’s Narcotics Interdiction Task Force, and working in the field for several shipping lines, did I realize the critical value of learning the business of commercial maritime transport and how seaports and ships actually function. During my first few years in the private sector, I rode many cargo ships through the Atlantic and Pacific Oceans and worked side by side with seaport and shipping line employees in most countries of Latin America and the islands in the Caribbean. Gaining insight from these experiences, learning the native language, and understanding the culture provided me with a somewhat unique perspective on maritime security, one which was key to the development and directing of highly successful maritime security programs for the top 20 shipping lines in the world and several of the largest seaports in Latin America. Working on the front lines—or, more appropriately, behind the lines—of the War on Drugs, I learned that successes could be achieved when effective and comprehensive security policies, plans, and procedures were implemented at key initial links in the cargo supply chain and focus was placed at the first primary choke point—the load seaports and their ships. In these post 9-11 times, with the commercial maritime sector as a highly vulnerable target for terrorist attack, it is important that private sector maritime security professionals and government officials and policymakers have access to the knowledge, experience, and lessons learned of practitioners who have successfully operated in the highest risk ports in this hemisphere. This is the reason I wrote this book.

This book provides the reader with a solid familiarization with, and appreciation of, the key tenets of seaport and vessel security and commercial maritime transport, cyber security, and maritime law, and will serve as a practical guide for those private and public sector persons involved in maritime security.

Michael A. McNicholas

Acknowledgments

I would like to recognize and thank the many true maritime security professionals whose hard work, loyalty, dedication, and camaraderie over the past 20+  years provided me with the critical support necessary to design, implement, and direct world-class security programs and operations in numerous high-threat seaports in Latin America and the Caribbean. First though, I would like to thank my clients, who have provided invaluable opportunities and support over the years. Gratitude and special thanks to Port Director Stacy Hatfield, Security Manager Gilda Soto, and Superintendent Rigoberto Small of Manzanillo International Terminal, Panama; Port Director John Bressi of Tuxpan Port Terminal, Mexico; Edward Dempster, Captain Doug Spooner, and Captain Adam Wolski of STAR Reefers UK, Ltd; Bill DeWitt, CPP, Vice President of Security and Compliance at SSA Marine/Carrix; Dean Faina, Safety Director, SSA International; Edward Gonzalez, President of Seaboard Marine Line; the late George Weldon, former Security Manager of Crowley American Transport; Ian Pull, past Vice President of Fleet Operations of Dole Fresh Fruit International; and Helmuth Lutty, Vice President Del Monte Fresh Produce. And from one tire kicker to another, a debt of thanks to Dave Michou, President, Stevedoring Services of America International, for your support and dedication to building a world-class seaport security program.

I’d like to give a warm thanks to Jerry Peterson and Dave Herring, friends and former business partners, for teaching me the critical business skills necessary to becoming a successful entrepreneur. Also, thanks to my first business partner, Rafael Martinez, for his friendship and helping me expand into Latin America and close friend Gerry Draughon for sharing his many years of unique experience and wisdom.

Special recognition and a hearty military salute to mis compañeros Wilberth Gutierrez, Jose Barrows, Dennis Vargas, Kemly Miller (for keeping the guys in line), Gustavo Ramirez, Jimy Jimenez, Simon Brown, Carlos Wolfe Jackson, Rodolfo Aguilera, Aristides Cortez, Eleuterio Ciel and Jovito Mora for their many years of joining me boarding barges and ships at sea to search for stowaways, pirates, and drug shipments; trudging through banana plantations and container yards; training hundreds of military and port police officers; and passing many, many sleepless nights ensuring the port and vessel security officers were always on their toes. My hat is off to you guys—and gal!

Sincere gratitude goes to Gary Greco for teaching me how to shoot and watching my back on my first trips to Colombia, Peru, and Nicaragua many years ago; Keith Herrington for teaching me to drive; Ed Piper for his expertise in training, leadership, and inspirational motivation; and to Geoffrey Walker for working with the folks on the Miami River.

My sincere appreciation goes to Hilary Carr and Dr. Pamela Chester of Elsevier for their support, hard work, patience, and belief in the book, both editions.

Last, and most importantly, I’d like to give thanks to our Lord for the good health, safe travels, answered prayers, innumerable blessings, and delivered protections of Psalm 91 during the past 25  years working in the field as a practitioner in maritime security.

1

Commercial Seaports and Strategic Maritime Passages in Transformation

Abstract

Over 85% of the food we eat, the cars we drive, the clothes we wear, and the items in our houses and offices are transported via maritime transport to commercial seaports around the world, for delivery to you, the end consumer. In this chapter, we review the primary types of seaports—container, bulk cargo, nontraditional, and cruise terminals—and the operations of, and equipment and technological systems utilized in these port. Likewise, we look at the various private sector stakeholders which manage or operate within these seaports. We also discuss changes to, and the resulting significant impacts of, expansion of the Panama Canal and Suez Canal and, due to climate change, the evolving transformation of the Arctic Passages, and the implications and opportunities to commercial trade.

Keywords

Arctic Passages; Container; Crane; Intermodal; Panama Canal; Seaport; Stakeholders; Stevedore; Suez Canal; Terminal

Objectives

After studying this chapter, you will be familiar with

1. The functioning and operations of and equipment utilized in container terminals, bulk cargo terminals, cruise terminals, and nontraditional terminals;

2. The roles and activities of key private-sector stakeholders, including terminal owners, terminal operators, stevedore companies, and longshoremen;

3. The impact and role of the development of the container and intermodalism;

4. Changes to shipping and seaports due to the expansions of the world’s two key Canals—the Panama Canal and the Suez Canal;

5. The impact of the transformation of the Polar Passages—and potential benefits and challenges.

Introduction

The human love affair with the ocean is one that has existed since man first laid eyes on the waters that lay before him. The great seas provided man with mystery and intrigue. The oceans presented a backdrop for stories that served as entertainment and the foundations of religions. The conveyances used to cross first the rivers and then the oceans facilitated international trade and commerce, connected cultures and peoples, and made the world a smaller planet.

The evolution of what we now call the modern shipping industry began small like all things in this world do. The first seagoing traders did no more than cross rivers and float with the flow of the waters. However, with this foundation, man began to thrive. One small village may have possessed an item that another village needed. This prompted traders to bring their goods to different locations along the river in order to trade their items for the items of others. These villages soon became popular trading spots and attracted people from far-away places. The travelers often brought items that had never before been seen in that particular region. These towns became the foundations of our modern ports. Underneath some of the world’s busiest and most modern seaports lie the ruins of these simple yet effective cradles of capitalism.

As oceangoing technology increased, seafarers became more and more bold. They went further and faster in the race to bring trade to the far corners of the world. Each new vessel arrival brought new languages, merchandise, and products. This often led to conflicts and man’s ability to use oceangoing vessels as machines of war increased. As the need for protection against military vessels increased, seaports became bases of operations rather than simply trading posts. As technology grew and time marched on, these bases became a part of a network of commerce with trade lanes that radiated from ports like the spokes of a wheel. An infrastructure was established and fortunes were made via this ever-expanding spider web of trade.

This chapter focuses on the development, operations, and functioning of the primary variations of the modern commercial seaports, as well the equipment utilized, and changes in the world’s two key Canals and the Polar Passages.

Commercial Seaports

If you compared modern commerce to the human body, the shipping lanes would be arteries and veins; ships and intermodal vehicles, the blood; their cargo, the nutrients; and the seaports, the all-important organs. The shipping industry operates in many of the same ways as the human body. There are some periods of rest, but very rarely does the flow of cargo stop. Vessels arrive into ports at all hours of the night, which requires many people to be awake and ready to service the vessel. The seaport’s support to the vessels and preparations for cargo operations in the port begin many hours prior to the vessel’s arrival dockside.

Approximately 6  hours from arriving at the sea buoy (also known as the pilot station), a vessel’s captain will begin to initiate contact via VHF radio (contact is made on channel 16, and the pilot dispatcher will switch to the local working frequency). Notice of arrival is given, and the dispatcher provides the vessel with boarding information, including appropriate speed and the side of the ship that the ladder is to be located. The position of the pilot ladder is determined by the wind, tide, and direction of the swell. Pilots are taken onboard via special-platform boats simply referred to as pilot boats. A harbor pilot is a specially trained navigator. He is tested on the local characteristics of the many different factors and variables required to properly navigate from the sea buoy to a safe berth. Once the pilot is onboard, he assumes the con, or control of the vessel. The captain of the vessel gives up control but does not relinquish overall responsibility of the vessel during this time. As the pilot carefully guides the vessel to the berth, he is in constant communication with tugboats, which provide the vessel with additional steerage capability by connecting to the vessel with large ropes or lines called hawsers. Once the vessel nears the berth, the crew connects the ship’s mooring lines to smaller lines which are thrown down to line handlers. The line handlers physically maneuver the lines to bollards attached to the dock which are used to secure and hold the vessel in place. Typical mooring patterns include a total of eight lines, but the patterns will vary according to currents and tidal fluctuations. Once the ship’s crew lowers the gangway, vessel agents employed by the vessel charterer or owner will come aboard with customs and immigration officials in order to clear the vessel to go to work. Vessel security personnel hustle into place to prepare for the identification and search procedures of individuals boarding the vessel. While this process takes place, stevedores, longshoremen, and company representatives stand by for clearance to begin the arduous process of discharging the vessel.

This whole sequence takes place in a very limited amount of time, and the plasma TV sitting in a container at the bottom of a stack of containers on board the vessel has not even been moved toward its final destination: your living room. Countless hours of preparation and planning have gone into this process. Millions of dollars’ worth of equipment and man-hours are expended with each and every arrival of every product from orange juice to jet fuel. All of this began with just a simple phone call, purchase order, or Internet search. It is hard for many to comprehend the vast number of resources that are poured into this venture in order to keep the supply chain flowing and further expand the network of commerce. The key component in this process is the commercial seaport, which serves as a launching point for the advancement of supply and demand.

Container Terminals

The development of the modern container—the most efficient, safe, and flexible method to transport cargo across the ocean and land—was a watershed event in maritime transportation and served as a catalyst for the evolution of seaports from only handling break-bulk and bulk cargoes and vessels to also—or exclusively—receiving and loading cargo containers. Today, the majority of cargo transported around the world is via containers, and major ports have dedicated berths and terminals for container handling and staging. And, like the ships that arrive, terminals continue to grow in size and complexity. The largest container ports in the world are a reflection of where goods are produced and key gateways of the consumers. So, it should not be surprising that of the largest (measured by container throughput) 14 container ports in the world, 8 are located in Asia—with the port of Shanghai being the largest (35  million containers per year in 2014), as shown in Fig. 1.1.

Key benefits for the shipper utilizing a container include the ability to compartmentalize and segregate different kinds of cargoes and, importantly, the container offers protection from adverse weather and water and handling damages. For example, toys for children can be housed in boxes at the front of the container and radios in the back of the container. Also, multiple shippers with small loads can consolidate the cargo into a single container.

While there are several versions of the shipping container, most commonly they either are 20 or 40 feet long, 8 feet wide, and 8 feet 6 inches in height. Containers are loaded on and off the vessel via a crane, either a shore-based or ship crane (also known as a Morgan crane), which is mounted on the vessel deck and moves atop rails running the length of the ship. Trailers are containers that have a chassis affixed and are unloaded/loaded onboard a roll-on/roll-off (RO/RO) ship via a terminal tractor. The port may have a special berth to accommodate these vessels and their operations. Some ships carry both containers and trailers, and container terminals generally also service RO/RO ships.

Figure 1.1  The world’s busiest seaports in 2014.

Prior to the advent of containers, cargo such as fruit, textiles, coffee, etc., was boxed or stacked loose or on pallets in hatches below decks and loaded and unloaded via conveyor belts, physical manpower, ship cranes, or nets. This work was especially dangerous, cargo was frequently damaged, and operations were very slow. The discharging and loading of a break-bulk cargo vessel may have taken from 3 to 5  days, but today the same quantity of cargo in containers can be handled in about 12  hours. The efficiencies and reductions in manpower and damages represent a significant savings for both the port and the shipping line.

Container vessels require the port to offer ample space for staging, specialized types of equipment, skilled manpower, and efficient organizational and logistical management. As you can see in Figs. 1.2 and 1.3, a significant amount of space is needed to stage containers in the port. Large container ports, such as Shanghai, Shenzhen, Hong Kong, and Ningbo, China; Rotterdam, Netherlands; Antwerp, Belgium; Freeport, Bahamas; and Manzanillo International Terminal, Panama, generally manage a ratio of about 75% or more transshipment containers and 25% or less local containers. This means that only 25% or less of the containers originate in or are destined for the country where the port is located. These ports, located along major trade lanes, function as collection points for manufacturing regions or transfer points—much like a rail hub or bus depot—for containers that will then be distributed throughout the region or hemisphere. Large containers ships, such as the M/V MSC OSCAR (the world’s largest container ship as of September 2015), carrying up to 19,224 20-foot equivalent unit (TEU) containers will arrive at the port, discharge a portion of their containers, and reload as planned. At transshipment ports, the intransit containers are then loaded onto smaller ships—called feeder vessels—which then transport the containers to smaller ports throughout the region.

Figure 1.2  The port of Manzanillo International Terminal—Panama.

Figure 1.3  The port of Shanghai in China. Photo credit: Shutterstock.com.

In general, the larger vessels (functioning as mother ships) operate in an east-west, pendulum movement through the oceans of the world, from Asia to the United States and back and from Europe to the United States and back, as well as Asia to Europe and vice versa. The trade lanes of feeder vessels tend to run north-south. For example, a primary feeder trade lane on the west coast of the Americas runs from Panama (the transshipment hub) south to Chile and north to Los Angeles/Long Beach and Seattle. A typical major container transshipment port or terminal will have at least 1  million TEU container movements (unloading/loading) per year and receive at least 200+ ships per month. The Port of Rotterdam, Europe’s busiest port, posted a record of 6.3  million TEU containers moved during just the first quarter of 2015, which is more than double the amount moved during the same time period in 2007.¹

At a major container port, from 2 to 10 gantry cranes may be assigned to unload and load a single container ship, depending on the length of the ship, number and location of the cargo hatches to be worked, and the number of container movements. Gantry cranes are computer automated and highly precise; a single crane has the capability to unload or load upward of 75 containers per hour, if the terminal operations personnel can keep up with the pace! In smaller or multipurpose terminals, mobile and portal cranes—sometimes referred to as stick cranes—are utilized. In some cases, the ship may have efficient shipboard cranes or the port doesn’t have land-based cranes available, so the ship will discharge and reload using its own cranes.

The lading of the container onto the ship via a crane is the end of what is commonly called the string-piece. The string-piece is the actual strip of concrete/asphalt/block that runs along the water and extends to the backreach of the crane; however, the term also applies to the final process dockside of container loading. In the string-piece, vehicles, chassis, and bomb carts are staged in line and lurch forward in succession until under the crane, to receive or unload a container. It is important to the speed of the process that there are no obstructions to slow down this movement. Prior to the string-piece, there is a well-choreographed and coordinated movement of the container from where it is stacked or staged in the yard or located atop a rail car, to its loading onto a bomb cart or chassis, and then transported through the terminal to the waiting line dockside (beginning of the string-piece). The distance from the rail or stack to the string-piece may vary from 100 feet to a mile and depends on how far away the container stacks/staging areas are from the dock and the layout of the terminal.

For the most part, container vessels are discharged and loaded simultaneously and utilize the same terminal equipment (terminal tractors, top-picks, rubber tire gantry cranes, straddle carriers, gantry cranes, etc.). To add a further level of complexity for the yard planners and vessel planners (the persons in the port who track each container in the port, plan its movement, and coordinate its load position in the ship), each specific container is loaded to a specific position in the ship, so a high level of coordination is required between yard management, equipment operators (who actually sort and move the containers), and the vessel operations (terminal/ship officers).

The equipment most commonly used in container terminals include

• Gantry Crane (Fig. 1.4): This large ship-to-shore (STS) crane has a boom that is capable of extending over the beam of the vessel in order to load/unload containers from the cargo hatch or deck. Typically, these cranes are mounted on rails, for horizontal movement along the dock.

• Mobile Crane (Fig. 1.5): Also known as a type of stick crane, this crane has tracks or wheels and can be moved from location to location for the loading or discharge of containers and other cargoes.

Figure 1.4  Gantry cranes in operation.

Figure 1.5  Mobile harbor crane. Photo credit: g0d4ather/Shutterstock.com.

Figure 1.6  Rubber tire gantry crane.

Figure 1.7  Straddle crane. Photo credit: VanderWolf Images/Shutterstock.com.

Figure 1.8  Top-Pick.

• Rubber Tire Gantry Crane (Fig. 1.6): Also called by its initials—RTG—this crane is used to lift containers on or off a chassis or bomb cart and place them in stack. It is also used for shifting containers within the stack.

• Straddle Crane (Fig. 1.7): A small but more mobile version of the RTG, this crane is capable of working in stacks of up to three containers high.

• Shuttle Carrier: Designed to interface between the RTG and the ship crane, this carrier moves containers directly from the stack to shipside and replaces the use of the terminal tractor.

• Top-Pick (Fig. 1.8): This large lifting device is used in container yards to lift a loaded container off the chassis and place it either onto the ground, onto another chassis, or to stack it onto another container.

• Side-Pick (Fig. 1.9): This equipment is used to rapidly move and shift empty containers.

• Reachstacker: This equipment is similar to a top-pick in function but has the ability to extend out on a diagonal angle.

• Terminal Tractor: Also called a yard hustler, Ottawa (made in Ottawa, Kansas), or mula, this tractor is used to hook up to a chassis or bomb cart to transport containers in the terminal and satellite yards.

• Container Flat-Bed Chassis (Fig. 1.10): This device has a chassis with a wood or metal bed and locking pins for transport of containers in the terminal.

• Bomb cart (Fig. 1.11): This piece of equipment resembles a container chassis but sits lower to the ground and has angled corner and side guides (in lieu of locking pins) to facilitate more rapid lift-off/drop-in of containers.

Figure 1.9  Side-Pick is used to rapidly shift empty containers.

Figure 1.10  Flat-bed chassis.

Figure 1.11  Bomb Cart.

It is important to appreciate that productivity is measured by the port’s number of container moves per hour and the time it takes to turnaround a ship, and these statistics are how a port is rated and success is measured. In a select few ports in the world, automation technology has sought to further reduce manpower, enhance safety, decrease CO2 emissions and energy consumption, and increase efficiency. The automated ground vehicle (AGV) is an unmanned vehicle powered by diesel or diesel-electric engines and carries up to two 20-foot containers. At the Europe Container Terminal in the Port of Rotterdam (the 12th largest port in the world in 2014), 280 AGVs have been in operation for the past 22  years. Another AGV system is installed at the Container Terminal Altenwerder in the Port of Hamburg, Germany. The AGV is controlled by a vehicle navigation system which constantly reads passive transponders embedded in the terminal and adjusts its speed and direction. An integrated communication system that can process up to 250 messages simultaneously also provides nonstop communication between the AGV and the fleet management system. The automated stacking crane (ASC), deployed at the P&O Terminal at the Port of Antwerp, Belgium, and at other high-tech terminals worldwide, is an unmanned portal crane which runs atop rails and can straddle nine containers wide and five containers high. It is generally used to preshift containers for near-term vessel operations and to reorganize the stacks in the yard, both tasks designed to increase productivity when interfacing with the yard management system.

APM Terminals and SSA Marine are two terminal operators which are pushing the envelope of software and hardware technology development interface to increase production. In late April 2015, APM Terminals formally opened its ultrahigh-tech and environmentally green Maasvlakte II container terminal in Rotterdam, heralded by the APM Terminals CEO Kim Fejer as …clearly a gamer-changer port in the shipping industry. This APM terminal is constructed on land fully reclaimed from the North Sea and is a zero-emissions facility; with buildings, systems, and equipment powered by wind-generated electricity and battery sources. The terminal introduces a level of automation which significantly reduces manpower—making it inherently safer for workers—and much more productive than a traditional port terminal. According to the APM Terminals’ press release, the facility launches the world’s first container terminal to utilize remotely-controlled STS gantry cranes. The cranes move containers between vessels and the landside fleet of 62 battery-powered Lift-Automated Guided Vehicles (Lift-AGVs) which transport containers between the quay and the container yard, including barge and on-dock rail facilities. The Lift-AGVs also represent the world’s first series of AGVs that can actually lift and stack a container. A fleet of 54 Automated Rail-Mounted Gantry Cranes (ARMGs) then positions containers in the yard in a high-density stacking system. The terminal’s power requirements are provided by wind-generated electricity, enabling terminal operations, which produce no CO2, emissions or pollutants, and which are also considerably quieter than conventional diesel-powered facilities. The 86  hectare (212  acre) deep-water terminal features 1000  meters of quay, on-dock rail, and eight fully-automated electric-powered Ship-to-Shore (STS) cranes, with an annual throughput capacity of 2.7  million TEUs, representing an APM Terminals investment of EUR 500  million. At planned full build-out, the terminal will cover 180  hectares (445  acres) and offer 2800  meters of deep-sea quay (19.65  meters/64.5 feet depth), with an annual throughput capacity of 4.5  million TEUs.

Another example of the marrying of high technology port hardware equipment and software cargo handling systems to further enhance production is US-based SSA Marine’s Tuxpan Port Terminal, located on the Caribbean coast of Mexico and set to come online in March 2016. At full buildout, the port will be capable of handling 710,000 YEUs and 350,000 cars a year. However, what makes the terminal unique is that it will be the first fully automated terminal in Mexico and Central America. Tuxpan will boast 4 super post-Panama cranes, 8 ASCs, and 30 automated port trailers,