Assuring transport security: why and how? Thierry Vanelslander Department of Transport and Regional Economics University of Antwerp

1 Starting point: what do passengers want?

2 And what do air freight transport actors want? Source: Kupfer (2010)

3 And maritime transport actors? Owner / Shipper of goods Forwarder Shipping company Terminal operators Costxxx Locationxxx Port operations quality and reputation xx Speed / timexxxxx Infrastructure and facilities availability xxx Efficiencyxxxx Frequency of sailingsxxx Port information systemxxxxx Hinterlandxxxxx Congestionxxxxx Source: Aronietis, Meersman, Van de Voorde, Vanelslander (2010)

4 The impact of transport unsecurity -Temporary drop in activity for certain modes -Need for searching emergency alternatives, implying high cost -Alternatives run up to capacity limits, implying high prices and excess surplus -A number of flows come to a halt -Some subsequent production activities get stopped -Insurance premia rise -Less government income -Missed contracts -Longer-run reliability of certain modes -Permanent relocation of flows

5 A chain is as strong as its weakest node Source: World Bank

6 The benefits of security measures For transport sector: -Saving time spent on research, follow-up and compensation -Improved working conditions -Customer confidence For countries: -Decreased funding to criminal activities -Country confidence For producers: -Safer market accessibility -Continuity of supply -No market share loss

7 The need for a global approach Attacks have led to closer co-operation between EU and US, but also some strong disagreement 2004: air passenger name records 2004: ship 24-hour notice 2006: liquids in air transport 2006: financing: public security support is no competitive distortion and no unlawful state aid 2006: secure operator status: protest 2012?: 100% scanning rule

8 Issues One size fits all? Where does supply chain stop and end? New entry and trade barrier

9 Many thanks for your attention!