1. Michael Edgerton, CPP Good Harbour International, LLC Abu Dhabi, UAE
ISPS Code 2.0: Including the Supply Chain in the International Maritime Security Code
Michael Edgerton, CPP
Good Harbour International, LLC
Abu Dhabi, UAE

2. Agenda The Need for Reform
The Current ISPS Code’s Strengths and Weaknesses
Current Supply Chain Security Initiatives
Why the ISPS Code Should Include Supply Chain Security Measures
How ISPS Code 2.0 Might Look
Challenges and Opportunities

3. ISPS Code: Time to Reform
The ISPS Code is now 10 years old and born of necessity after 9/11;
The international shipping community has had time to implement the code and embed the code in ports and shipping companies;
Over the last 10 years, there has been a growing focus on supply chain security and the development of associated guidelines and standards; and
Incorporation of supply chain security measures into the Code can create efficiencies in compliance as well as enhance security.

4. The Current ISPS Code
The ISPS Code was implemented in 2004 and was developed by the International Maritime Organization, a specialized agency of the UN.
The Code recognizes the unique nature of seaports and is therefore focused on risk-based and outcomes-based security measures.
The Code applies to vessels of greater than 500 gross tones on international voyages and the seaports at which they call.

5. The Current ISPS Code Key elements include:
Assessments and plans for both ships and ports;
Designations of security officers for each ship, each port, and shipping companies;
The development of security plans;
Certain equipment; and
Training and exercise programs.
The current ISPS Code is primarily focused on protecting ports and ships as targets of potential terrorist or criminal activity rather than conduits of illicit material.
Plans and assessments focus on perimeter security, access control, staff, establishing restricted areas, and security level implementation. There is less focus on the cargos contents.

6. Current Supply Chain Security Initiatives
Over the last decade, there have been several important supply chain security initiatives. These include:
ISO (International Standard 28000: Specification for Security Management Systems for the Supply Chain);
Customs-Trade Partnership Against Terrorism;
World Customs Organization SAFE Framework; and
European Union’s Authorized Economic Operator program.
Key components of these programs include the Authorized Economic Operator (AEO) concept:
Certification of the commercial elements involved in manufacturing and shipping goods;
Integrity-based (with validation); and
Economic advantages to compliance and certification.

7. Why the ISPS Code Should Include Supply Chain Security Measures
Fills the gap in the ISPS Code by focusing on cargo as well as ports and ships, thereby making the Code more comprehensive; and
A code that includes supply chain requirements is likely to enhance system resilience. This is especially important with globalization and the tendency towards “just in time delivery” with the associated reduction in warehousing.

8. How ISPS Code 2.0 Could Look
ISO (series)
WCO SAFE Framework
Resilience Standard (ANSI)
ISO 31000
ISO (series)
ISO (Series) – Provides over-arching supply chain security management system guidance.
ISPS Code (Parts A and B) – Provides specific port and facility security requirements.
European Union’s Authorized Economic Operator Guidelines – Provides mechanism for assessing the risks posed by participants in the supply chain and providing recommended controls. Compatible with the U.S.’s C-TPAT program.
World Customs Organization SAFE Framework – Provides specific customs measures to enhance security.
ANSI Resilience Standard – Provides a management system approach to preparedness, planning, and response.
ISO – Provides the overarching standard for Code’s approach to risk management. The standard requires some additional modifications regarding the assessment of threat and the assessment of risk appetite, which will be covered in a future chapter.
ISO (Series) – Provides the standard for information security to be used throughout the Code’s development and implementation.

9. Challenges and Opportunities
Private sector concerns over costs and burdens of implementation;
Funding for security improvements, especially in less wealthy countries;
Consistency of new requirements with existing national or international regulations; and
Bureaucratic infighting and workload challenges.

10. Challenges and Opportunities
The Plan-Do-Check-Act process found in the ISO approach can be included in existing Safety Management Systems that are consistent with ISO 9001;
Increases the level of conformance across nations;
Increased transparency through out the system;
Potential for a solid business case as evidenced by entities that already include supply chain security in their processes; and
More comprehensive security and resilience in the maritime domain.
A global AEO system could expedite shipping internationally and ultimately reduce the burden on Customs while lessening he shipping times for industry.

11. Questions?