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,{
m*rrnru srcuRlryAND TIrE suppr,y cttAIN
I.
INTRODUCIION
I feel tnly honoured
10 be horo ioday to pa'lioipate in this
nnlorla.t forum: dd I nosr hedtily join otheB ro
cong!.lLdale
thc Honolrable House
Comittee on Mdine
.d,po1 ro
dFmtr .L,l6hro for r.ronl).J1ce.r
0"
"
|l"r.'i
hrdl."hrptr0gdderec'
irtsir ir ru.l a '
efiicient dd vcry in!rc$ive nme!.
M! .ssigaed
t6k is to speaL
on the issuc
of"Mnritim.
Securiry
lnd rI€ Supp\\ Chair", and
to swer questlons
I an pleased
io spedk
on tbis topic s Equstod because
security is cenainLy
one ol thc priority i$ucs in intem.lional,
dve'ls\\.gr,.
'.tp 'grJJ.r dd tuopeF bereboln
.l $e legimilg dd a1
lhe end oflhe supplv ondn de
nrevnab\\ imtaded by nost sccurity incidors thal ocor in
thc coNe oI . mdiline adlenLdc

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By My oforgarting nt pemianor fld lbousine lrdrion on
the bsu6, I have bioken doBn ry subnission inlo eisht very bnef
@6ponent
p.rts, ndety
I
l"tnduction (i e.. these
inrroductory
remdLtl
2.
Concepr
of Mririme Secu yl
Ihre.ts to lhe Suppty
Chainl
5
How ro Securc
rhe Supply
Cnanj
6.
The ISPS
Code
ed Other
Inlemarional
Meiline
Challtuse
for lle r.gistarurc
ilNieeliat ud
2.
coNcfPTot rvt\\Itt fMtr sfcuRll1/
SecL br coftoms havo ahv.ts bm a crilical facior id
shilpiag. Indeed
ir is nor wirloul oaus€ ihat isuance
prenloErs comronlt .efer ro each ndine voyaee
as

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'ad!enlurc'
inpl)intsba'suchadrvrr,
smhereit Gauehl
Tod.y" rhe risks dd dmg$ in mdtime adleniures
de mr
onlt rhc nsual "aols of Cod' md -sinple' nan-made lnreals
, d c ! ' e h , I
o b l n e d o l i d )
b I a l ' o h ' F q
r - o r \\ + c r '
d d
e . " PUoldel'rg"'e_ 6scJ dthcDo+ br' ) J-
returtr lttet5 on ships, pon faoilities dd install'lons
Added to iheso is {i.rc
no{ real possibilirv
thar slrips'
containers
and olhcrs @nndd.t shipping gadgets
md
lacilirios (fillod $ ilh {testrucdve
delicet could be uscd 6
we.p ons of a.ss destruct$n thorebv
conveding
dD
nEcndisns and proce$es
oflogftmare trade 1nlo sealons
of {arfaic againsi
polul.Llons or nauos'
co en of nditine securitv
thercforc,
rho
ofvanous
interests
in shipping- i e th' shlp
cargo
o$ner.
the !or| dd its lacililics locd and

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nation.l auihonlics mdthe *orten in hei\\Yocn nusrbe
assured
dgainsl
lhe old N Ncll 6 $e neN tvpes of hdds
. Clrgo nust bc secnrc
f|on tnretts:
. Ship. muq b.qecutu
b.lbre during
aoJ !ttcr \\n!ntse'
. Port duir b. \\ecure
.nvironmcotq
lurship\\ ro ctll rr:
. l.mi0!tolrerrrcFatrdrad.ttcilirarorsmurto|rcrure
jn a maDncr
consistent
riih thc security
profile of tht
. Ctrgo. ships and opentos nust not oonstitute
tlreats n
. Acriviti€s in tho industrv must be protecrcd
fion fiaud'
rr. Jr.rg d.r'r.rddoln.r|fdiJlcom
rior
'r
3- TtlE ST]PPLY CIIAIN
One ofrhe islorrsl issues
in thc drol
slobal conos
abo nditino seclrltv is the f@1
tha! dre sul)ply chdn n

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$ o d nade could becone a serious
condun for tooLs
of
aggre$ion sd secuiity bErchcs in shippins
As MiIc4 lik€ Prol Ald Bruch have slal€d the world
parriculdly ile sond of international
ftade and shilping _ $
nos (norc or les) a single int€g.Led nrLet due 10
Cl"ba,
re ioo. aid tte |n far coo.ec' u e \\moJs 6'eE o
this global conmcrce,
in all its inficacies dd corpl*ilv. r
Simply delincd, the supplt chain is . logislics drNen sv$eo
u r rFr--onnecied
er.c t i c orbu"mc'e' {5ahtnderar
lo supply Coods
to cusloneE on d inlernational
irade ba$
invoting not ody $e seller oi supplicr .l one €nd, ed uc
buycr or dd Dser
.! lhe orlEr cnd, but also atr inlflenng
.h" r olmlcn edrare.
nor'cne0'
aJorllene0\\'d$c

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Thar is b say, dre supply chanr
e€nerally inlolvs svml
parties md lctilities. $ vel as vGible (or physical) @d
invisiblc processes,
qhich we have tried 10 idsntily and
vislalia in tho following diagr@:
rrckd4lm\\
h@q
Fdghr
Each
oI these
lalties and rclated
processes
in fie sulply cm
inrroduce
vulnenbililies
1o
the chain
bt alloBirg
I Lli. aioi. { ererel.e- d'dorotref
Lhre.i.dJrcou.
conpronise lhe secuitl ofthc chajr

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.II{REATS TO TIII SI]PPLI CTIdIN
Sof,e oI the specific tnreaLs
io the chain jmlude thc otd and
the neR. panicultrly tho fouowins:
. k! PirrcJ ro$f i.l !e5 es. ldgu pu..er
estrd c
have been
exlosod thrcugh the ags;
. Hijlck Dfvesels a wlH,noM emple is the Achile
Laurc
Hijackingln
19851
INecnrc pori llcilides rd tcrnimb rvith Dinimll or
no accc$ confol Bultins in defis, dmaees od othcr
h&dds to crgo, equilools dd the f.cilili€s themselves:
flrphu srd Procednr$ for inrndncing dd,/oi ronovine
goods
Aon the supply chain resuting Eon inadequate
or erm dbsence
olalpropiate controls
ard Esulationsj
. T.adporhtion Methods us€d 10 nove goods ln dd out
ofthe pons md lemilrlsl
. racelessness
of CarSo osnervlmporlers
stccially 1
lho abscnce
of a know-you.-cusroner
(or KYC) Eeulalior

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. tl0idl|eded
ur Llsj arcc$ofl trturborir,dlerrc0n(
agents
dd/or srvice provide$ into rcsseh, lolls dd
. Unprcparcdness/lack
of pltN bv narion.l aeetrcres
dd
aDrhonties
for hadling .ncrgencies ard cris$ {ner
. Lorll lcusron$of-the-traile' thd !r. witlclv
characte.ized by frluds
d fnndulcnt practices;
. Unclr ecked P.esen
ce of local mil foreig! terrorisls or
potcrtill tenorisls sEking to make polirical or sooral
ist.Lenonts Rhmever m easy opportuni8 ofos iisell
s. How ro sEIIEIt4-qu8t!l-!!4!!
in dre tuce of $is muftiplicit of pot€niial thEats or sourcs
of threats,
how can ire vLd.cnbilitios
oflhc supPlv
chain
be

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Usiry Nig€ri. d a Poi.t of ieforerce,
de follo{ine Fad v
. Nalional md ifimational {ater chdnels 6ust be seourcd
against
piaics bv thc appropd.tc
authoiries, lsing n'val
esoorts
ifao@sdy - (usA for qdple, uss m0 mdr
. Port facilities dd ieninals, includirg stomge
u€d ror
..pn cor.d.nea
'dolld l'a\\estrtuoosoi
a cc$ oiro
Egime operating
on a 24 lours/seven
d"s a scek (24l')
.
' < p r e n $ s h ! t r g o U d
d ( h d J ! d l q h ' t h ! r o L L d e r
iNide lne pon) nust be scue' Tnis jnvoLvcs
nonronnE
dd conlrourg acess od pcrimeteq seelegatiag
reslricted
arcas,
dd conducli.g
seclnlv checLs
dd
$Eoning ofpe$omer
. Thcr€ dust be ci€r and transpdont
ptoc€duEs lor
introducine
dd renolirs goods
lron the supplv
cnan'

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sucr ihal unauihorized
and ummiftsted eoods do nor gc1
Porr procedws on entrt a exir ofeoods nust equally be
rell arriculaled
md couuicaled ofle ctively to pon
useN, and nmftnorized penonnel ro lon facititios and
tcmnals shodd be redlced to a nidmm and the porr
lcrsomel tralncd trrcperly on lle security
!rcceduEs.
A roliabl€ crisis ntusencnt systd musr bc esrablnhed
Ior rhe nation for mtiralion sher fiere is a drisis ihis
slrould irclude cnergenc)'
planning,
cisis nanaeenenl
rEinirg dd restlne. as well d ircident tuckine
trnlor.emenL
oflegislatios ed regulations
in nriiime
actiyrnes,
which de designed
ro rcdD* gderal od
nstLutional mruption in tho syster! which, in turn. aids
dd abels scclrily bre&hos in 1he
ndusrry.
Lsdy, use 'nus1
be nade of advm@d technoloey
whcre
.pprcpriate,
especially
those beins developed
now for
lr@kidg of containcrized
soods to ensurc
rtoir scuriLy
dd the genenl inlogrily ofthe sully chain.

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/
6, rHr r\\Ps coDE {NpotHLR nlcRl\\{ o\\al
NTARITTITE
SECURITY
INITTATTT'ES
I
According
to Lhis
smit's proerdnq sone tuinenl
nc onoln.+
re\\, ed roaddrc
r someolrle
cvr eo oo.4
8s!s on ndiLihe scurily such 6 thc ISIS CodE dd oller
mu rid e alin..rautc.uq
le no rime.e.uriryo..h!
rpp.l
The
cfoE.ulfice
il ronenruo
hlr Ltdrbep n"4 pL po e
of thc ISPS code is 10 proyide a slandddircd md consistol
Gdewo* for delocting
dd evllu.iins ndiin€
isks
intcmalioraly so s 10 enable
governments
J, take
!6vennve neauEs aBlinst thrcars
afiecting thet nalions
The Code
atr€cis rhe opdaiions (and inhqently.
the
opeding costs) of all inleresrs
and stakEholdes
in the
supply
chain,
includi4 crso inieresls;
md puts into

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pnctical e]Iecr
ndy ofthe approachB
dd securiry
impentives
we n.d eadier
described
wjlh reead to ..how
(
to
secuE
tno supply
chaia.
'
O. 'F a pe-. ofrl e ' odc.hd rode '. ).g it!d \\andcte.
benencial) for counlds like Nigdi4 include the follo{insj
. ftna tsbbal
surpun
throur!
dle
lnrematuunut
ndir ne
Orgdizarion (MO), dd tu enforcaable
inplenentalion
date. shich is l"' July 2004.
It $ill forco countris like Nigeria to nodemiz lod
faoiliries a;d iis opcalioml poced@s ad procNses,
inclldlng the attiludes
ol its hund operatives
tud
asocies at lle ports {whicn iB p@mial ,,port @1bmJ,
had trled sonewhat half-healtedly
for y€m ro @hievq
with, predrctably,
little or m succst
L.st but not rhe ledt, 1! Bitl tead to rhc devetopmeDr
or
Eliable national dalabses ofcargo oMen/importcn dd
expodcrs
1or dre country because,
4 a rulq supply chain

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nmagc4 de eapecrcd
to 'kno* your custDnen 6dcr
tho Cod€ ed fierebt achieYo
a level of ecolatalih!
conparable
io *hd tne banking jndusfiv hd achieved
in
rhen global we agmst morey laundemg
The 1SPS
Code
is nor lhe orny intem.tional
iniLiative
exisrnre
cuftniy to ningatc tne scurity vulndabilitv of
tne supply
chain. Olhcr etrorls
include
thosc
ofdre World
Custons
Ogdisstion (WCO),
shich ibcuss on sccutr
in the multlnod.l norenen! olgoods,
and the Contaircr
Seodity lniliative (CSl) ofihe US Government
which
establis!€s secunty
c ena lor identitins highjisk
conlaneF mone ornerfcalu{s
.IUtr C}IALLINCE F'ORTHELEGISLATT]Rtr
IN NICJiRL{
So, RhaL
e chauoees
in all thes€ for the Nigcilm
Logislalure?
1 believe
that is lhe tunddoral qucstions
tbr
.I our disclssions
in this verv irpoltdt sudit d a Nhole

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uel,,r me. 0c^.o..r'.t..
\\gc.i
paIol-rle.rpo
chain of rhc wodd nading connnmty. Ls sDfplEB.
cusiones. luthoriries md intmedidies arc all Pan olfie
chain, md a chain iison! as shong as ns *eakesr li.l!.
, \\ geria
r'ro J-n ricgoodkilr d l pe.r.o lr J irl.. o
'.co )loibd[oo
'icdI' u ltr@nrirD'-nariJ'
o-
nai ain ils trading links, dd capture new parlncshrps lD
ioday s highly competitire inteflradonal tfade and econonic
.3m. ..1er -Jomo
LlLJrC.P'.gr lor\\errd\\\\a
be on dock to nxegidc fie nation inlo the global ecotunv
Our legnbtures (especiallt
at the national lolcl) musi bcgrn
to considd and enel lais that discolrage
everv link within
the Nigerian end oILhc suppl! chain ils €tlorteB and
I rpor e r\\4'mr"ie.Po\\'-inc'rqter.< a'dofic;l
ns shipfirg opdalors, b0nking
md insumce rst1tut'ons,
brckds/agenls rd ]ioiglt fos'dders, end usA dd t'\\e

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nMy other ntenedidis, rvoike ed coNuna in t1e
cnan - to opoale by the prinoiptos
of best pletice. probiry
md eceprable omnercial, pro&$ionat tud ethicat
A good
sianing
poinr sith resdd to mffitine securjty
ed
the nteerily ofthe supply
chain
would
be to donesricate
thc
I foou.inmalonltLodc. con,eor
on.. aar1me1Btrd
nrolocors.
wbich
drelountD
h6rann(dburhdnotyet
eDeled into laws. This sould help to cEate rh€ legrl
lFnework ad envnonnent
with shicn ro efor@
int€malion.l srodflds of operalioq
bchaviour
ed practi@s
h the mdirine ed othe. soctos ofthe supply chain.
In,\\..e"eo oL eeiJ.lrrenun
a so reL
e$ oJasko
kad(
ud shipping
lavs and update
rhen h line sirh present

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Lastlx €fedive ove4ighl ncchdisns tust bc p!! in llace
\\y. tr cei,lall( | i rJlr loen.' e h rq. metred Le r
od propeny enforced
insidc dd ouhido inc todc dd
8.
CONCLUSION
Th€ supply chaD n the *heel on which rle global econont
rons, dd mdiline scurily is vikl tr ilr shengh dd
efficiency fti new sccurit nodlres dd standdds
enunciated
by rne unired staics of Ancrica dd rhe lMo de
ovcry stllrgdt and udoubtedly oosdy
Ior all operatos and
stfhelrolde6 in the supply clain, including govemments
Therefore,
rhey ae equally,
or perhals, qen noE coslly for
consumcs
or cnd us6 in th€ systm bocause
they usually
bEd the ldger paa of the burdd oI dy @s1
lncrcdcs in tho

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HoNev€r, the lov ne6ms de also - in the c6e of
,onritu like \\ieena eoppomarr rodolhrgs ngt.ud
enbrace best pr@ti€s ir trade hd shilpilg, even thoueh pe
ee be,ng
conpelled
to do so.
It is a bridge tho countl nui ultinat€ly c@$ h ordd to be
tuIy inregraled
in tne elobal msket place ed inprore the
iLine
sMddds ofrb oeople
Thftfoe$efalsFptuaJ be
painlxl but it h6 io b€ tatei! md $e logislaru€ hs a crucial
role to play by prcviding
de mabting
l€gal i4trmdrs md
TIIANK YOU FOR YOUR ATTENTION

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