For Immediate Release

Maryland Air and Sea Ports Discuss Security Threats To Trade

Baltimore, December 16, 2002—On Wednesday December 11, approximately 100 mid-Atlantic business leaders came to hear from top public-private sector officials on how transportation security will affect their business. “The logistics industry is a $970 billion industry, almost a fourth of the entire U.S. economy,” said Jock Menzies, Chairman of the Terminal Corporation. “We learned from the recent West coast port shutdown, how devastating such a closure could be to our business,” he said.

"Over the past 15 months, we have placed great emphasis on airport security," said Maryland Secretary of Transportation John D. Porcari. "However, airports are but just one piece of the transportation security pie,” he said. The Port of Baltimore has benefited from a grant of $3.2 million from the newly formed, U.S. government Transportation Security Administration. The new agency has $200 million targeted at upgrading security at 51 U.S. ports. “We need to upgrade security at our ports, roads, bridges, and tunnels,” said Secretary Porcari. “Transportation facilities have been common terrorism targets for years, and will continue to be so unless security improvements are made,” he said.

The events of September 11, 2001 have changed the mindset of major U.S. trading hubs as to how they go about their business. Panelists highlighted the need to upgrade security procedures, but also recognized that government can’t bear all of the costs. “The problem is easy to talk about, the solution is much more difficult,” said Norm Saunders, Vice President of SAIC’s Intelligence Solutions Group. The U.S. has 90% of its trade going by sea with 5,400 ships going through US ports. “We know that the security solution is more than providing the latest technology to address threats to Maryland’s economy,” said Gerry Buckwalter, Northrop Grumman’s Director of Homeland Security Marketing. Firms are recognizing they need to know more about the background of key players within the supply chain. “We must connect the dots of the supply chain from ports overseas to our shores in Maryland,” said Mr. Buckwalter.

Maryland security officials are coalescing the various maritime and airport industry groups to development public-private partnerships to help create a security net in the region. U.S. Customs has implemented a new

public-private certification program (C-TPAT )to register major international trade players into their security database regime. “Over 800 firms have registered so far,” says David Austin, Acting Port of Baltimore Director for the U.S. Customs Department. This effort is aimed at helping to improve security for those firms that sign up and its will also help expedite their goods through our trading hubs.

But it’s apparent that security at home isn’t enough. “Europe is a major transshipment point, we know that we have to implement a security plan at the source of the export heading for the U.S.,” said Captain DiCasagrande from Mediterranean Shipping. Captain DiCasagrande told the audience of a recent incident that highlights the problem. “A ship which originated in North Korea with a destination of Libya claimed its manifest contained DVDs. When the ship stopped through Italy, it was boarded and found to have six metric tons of bombs and grenade launchers,” he said.

U.S. Customs officials interdict suspicious cargo and sometimes that has to occur across the globe. "Inspectors need to be able to communicate from remote sites, and they must do it securely," said Tim Lorello, Senior Vice President of TeleCommunication Systems. The firm currently provides Secretary of State Powell with a highly secure deployable communications system that supports voice and data from any location and can be set up in under 30 minutes. "Firms need to realize that we are being targeted and communication is one of the most vulnerable targets," said Mr. Lorello.

The topic of transportation security was quite relevant as many seminar registrants were caught the area’s ice storm on their way to the event. Attendees heard from a broad range of security experts and technology solution providers and most felt that they had learned some new helpful information that they can take back to their firm. “This forum helps us better understand how we can bring cohesion to the process of transportation security,” said Mr. Menzies.

“We feel that Maryland has an excellent opportunity to showcase itself as a leader in port security and thus, help attract new investment to the state, “said Leigh Ann Ruggles, Director of Business Development for the Greater Baltimore Alliance.

“We sought this stakeholder format to provide a forum for transportation executives and public policy makers to hear one another,” said Deborah Kielty, President of the World Trade Center Institute. The seminar, A 360 Degree Look at Maryland Transportation Security International Trade featured speakers from the state, port terminals, BWI, Port shipping and other security firms and logistics providers. “The World Trade Center Institute has a vital interest in helping our clients better understand security procedures which can enhance their productivity while safekeeping Maryland’s global trade routes,” she said.

Headquartered in Baltimore, Maryland, the World Trade Center Institute (WTCI) is the premier international business hub for the Mid-Atlantic region with over 3,000 clients benefiting from its global connections and educational services. WTCI has an extensive global reach through its 300 world trade centers around the world. As a non-profit, non-political organization, WTCI’s overall goal is to enhance international trade, promote local economic development, and ultimately foster economic stability through trade.