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Institute of Defence and Strategic Studies, Nanyang Technological University Block S4, Level B4, Nanyang Avenue, Singapore 639798 TEL: 65-6790-6982, FAX: 65-6793-2991 Email: [email protected], Website: http://www.idss.edu.sg Singapore’s Report on the APEC Symposium on Total Supply Chain Security 6-7 July 2006 Singapore APEC Counter Terrorism Task Force December 2006 Institute of Defence And Strategic Studies An Institute of Nanyang Technological University

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Page 1: Singapore's Report on the APEC Symposium on Total Supply … · 2017-10-31 · Singapore’S report on the apeC SympoSium on total Supply Chain SeCurity by acts of terrorism. He highlighted

Institute of Defence and Strategic Studies, Nanyang Technological UniversityBlock S4, Level B4, Nanyang Avenue, Singapore 639798

TEL: 65-6790-6982, FAX: 65-6793-2991Email: [email protected], Website: http://www.idss.edu.sg

Singapore’s Report on the APEC Symposium on Total Supply Chain Security

6-7 July 2006 Singapore

APEC Counter Terrorism Task Force

December 2006

Institute of DefenceAnd Strategic Studies

An Institute of Nanyang Technological University

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© 2006 APEC Secretariat

By:Centre of Excellence for National SecurityAt the Institute of Defence and Strategic StudiesNanyang Technological UniversitySouth Spine, S4, Level B4, Nanyang AvenueSingapore 639798 Telephone: 6790 6982 Fax: 6793 2991E-mail: [email protected]: www.idss.edu.sg

Produced for APEC Secretariat35 Heng Mui Keng Terrace Singapore 119616Tel: (65) 67756012 Fax: (65) 67756013Email: [email protected] Website: www.apec.org

APEC#206-SO-04.3.

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Singapore’s Report on the APEC Symposium on Total Supply Chain Security

6-7 July 2006 Singapore

APEC Counter Terrorism Task Force

December 2006

Institute of DefenceAnd Strategic Studies

An Institute of Nanyang Technological University

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SINGAPORE’S REPORT ON THE APEC SYMPOSIUM ON TOTAL SUPPLY CHAIN SECURITY 6-7 JULY 2006

INTROdUCTION

1 In November 2005, theAPEC LeaderssupportedthecallbySingaporeforAPECtoputgreaterfocusontheissueofsupplychain security to protect trade against thethreatofinternationalterrorism.TheyalsowelcomedSingapore’sinitiativetoorganizeanAPECSymposiumonTotalSupplyChainSecurityin2006.

AIM Of THE APEC SYMPOSIUM ON TOTAL SUPPLY CHAIN SECURITY

2 TheAPEC Symposium on Total SupplyChainSecuritywasheldon6-7July2006at theMarinaMandarinHotel,Singapore.ItwasorganisedbytheSingaporeMinistryofTransport, Ministry of ForeignAffairs,Ministry of Trade and Industry, and theInstituteofDefence andStrategicStudies(IDSS) in collaboration with theAPECSecretariat.1Theobjectivesofthesymposiumwere:

(a) ToraisethelevelofawarenessamongstAPEC economies of the importanceof enhancing the security of thesupplychain.Thiswasinlinewiththeagreementby theAPECLeaders thatAPECshouldpaymoreattentiontothisissue;and

(b) Bringtogetherexpertsfromgovernment,industry, international organisations,consultants and academics, to sharetheir experiences and knowledge onthe issues concerning supply chainsecurity.

PARTICIPATION AT THE SYMPOSIUM

3 Intotal,388participantsfromall21APECeconomies,andfromanumberofnon-APECeconomiesand internationalorganizations(eg.WCO,ISO)attendedthesymposium.Fifty-six percent of the participants werefromtheprivatesector,withtheremainingforty-four percent from the public sector.Atotalof29speakersfromthepublicandprivatesectorsdiscussedwaystopromotethe enhancement of supply chain securityintheAPECregion.Toharnessthesupplychain security experience and knowledgeofothernon-APECentities,thesymposiumwas open to participants from non-APECeconomiesandinternationalorganizations.

SYMPOSIUM’S PROGRAMME

4 The symposium covered six key areas asfollows:

(a) Threatsandvulnerabilitiestotheglobalsupplychain;

(b) The benefits to facilitating trade andbusiness;

(c) Theprinciplesofandapproachestowardssupply chain security – PerspectivesfromGovernments;

1 OtherSingaporeGovernmentagencies thatsupported theorganizationof thissymposiumincludedtheMinistryofHomeAffairs,SingaporeCustoms,MaritimeandPortAuthorityofSingapore,theEconomicDevelopmentBoard,NationalSecurityCo-ordinationSecretariat,InfocommDevelopmentAuthorityandSPRINGSingapore.

Guest of Honour Singapore Deputy Prime Minister, Coordinating Minister for National Security and Minister for Law, Professor S. Jayakumar (left) and APEC Secretariat Executive Director Ambassador Tran Trong Toan (right).

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(d) Theprinciplesofandapproachestowardssupply chain security – PerspectivesfromIndustry;

(e) International organisations and co-operation;and

(f) Challengesforthefuture.

(ThesymposiumprogrammeisatAnnexA)

KEY ISSUES dISCUSSEd AT THE SYMPOSIUM

THE CRITICAL IMPORTANCE Of THE GLObAL SUPPLY CHAIN

5 The Chair of the symposium, Mr BarryDesker(InstituteofDefenceandStrategicStudies), gave an overview of the globalsupply chain and its importance. He alsoprovidedSingapore’sandAPEC’srationalefororganisingthesymposium.Essentially,theglobalsupplychainisacomplexnetworkof relationshipscomprisingofprivateandpublicsectorentitiesthatareinterconnectedand working together to provide goodsand services from their point of origin(raw materials and manufacturers) to theconsumers. Protecting the global supplychain against acts of terrorism is a majorresponsibilityinvolvingallstakeholders.

6 The Executive Director of the APECSecretariat,AmbassadorTranTrongToannotedthatwiththeAPECregionaccounting

for40percentoftheworldpopulation,56percent of world GDP and 48 percent ofworldtrade,thesecurityofthesupplychainiscrucialtoensurethecontinuedeconomicgrowthofmembereconomies.NotingthatAPEC had previously undertaken someeffortstoaddressissuesrelatingtosupplychain security, such as the SecureTradein theAPEC Region (STAR) initiativelaunchedin2002andtheestablishmentin2003of the‘APECPrivateSectorSupplyChainSecurityGuidelines’aimedathelpingprivate sector companies improve thesecurityoftheiroperations,thissymposiumwas thus a timely effort.The symposiumfacilitated the sharing of experience byexpertsandthebrainstormingofthewaysforward forAPEC to work together toenhance total supply chain security in anintegrated, multi-dimensional and holisticmanner. At a broader level, followingAPEC’s2006theme“TowardsaDynamicCommunity for Sustainable DevelopmentandProsperity”,totalsupplychainsecurityis very much related toAPEC’s ongoingworkonsustainabledevelopment.

7 Inhiskeynoteaddress, Singapore’sDeputyPrime Minister, Coordinating Ministerfor National Security, and Minister forLaw, Professor S. Jayakumar, cautionedthatAPEC members could suffer severeeconomicimpactifthesupplychain,whichis the lifeblood of trade, was disrupted

Mr Barry Desker (Institute of Defence and Strategic Studies), Chair of Symposium, delivering the opening remarks.

Guest of Honour Singapore Deputy Prime Minister, Coordinating Minister for National Security and Minister for Law, Professor S. Jayakumar emphasising on the impact of terrorism on the security of the global supply chain in his keynote address.

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by acts of terrorism. He highlighted thatvarious studies estimate that the lossesfrom the closure of major gateway portsfor a week could range from US$65milliontoUS$150millionperday.APEChas many major economic markets, largemanufacturing bases and key air and seahubsandhencecouldillaffordtosuffersuchcatastrophes.HeannouncedthatSingaporehad established its own national supplychainsecurityprogrammeasasteptowardsenhancingthesecurityoftheglobalsupplychain.Singaporeisalsokeentocontributefurther to international efforts, includingthosewithintheAPECregion,tohelpsecurethesupplychain.

THREATS ANd vULNERAbILITIES TO THE GLObAL SUPPLY CHAIN

8 Theparticipantsnotedthattheglobalsecurityenvironmenthadbecomemorecomplexandthethreatfrominternationalterrorismhadbecomemoresophisticated.TheChairmanoftheAPECCounter-TerrorismTaskForce(CTTF),Ambassador Benjamin Defensor,elaboratedonthesecuritychallengesfacedwithin theAPEC region and remindeddelegates that therewasnoguarantee thattheregionwouldbetotallysafeandsecureagainstterrorism.HeemphasizedthreekeychallengeswhichAPECeconomieshadtoaddress,namely,forleadershiptoincorporatesecurity into governance, public-privatepartnerships in enhancing the resilienceof economies, and the development of a“counter-threat” culture inAPEC, i.e. heemphasizedtheimportanceofmultilateralcooperationagainstthethreatsofterrorismandtrans-nationalcrime.

9 TheparticipantsalsonotedtheviewssharedbyMrJoshuaHo(InstituteofDefenceandStrategic Studies) on the vulnerability ofseatransporttothethreatfrominternationalterrorism. Mr Ho noted that maritimetransport is one of the key links in theglobalsupplychain,giventhatmajorityofthegoodsaretransportedacrossbordersby

sea.TradewithintheAPECregioncouldbeseverelydisruptedifthevulnerabilitiesareexploitedbyterrorists.However,prudenceisneededinimplementingsecuritymeasuresasitisimpracticabletoscreenallcontainersineveryport.

10 VADM Gordon Holder (Booz AllenHamilton) gave participants an analysisofthesevereeconomicimpactthatAPECeconomiescouldsufferifthesupplychainwas disrupted by acts of terrorism. Hefurtherexplainedthatthenewbusinessandoperatingmodelforglobaltradeshouldnowincludethefollowingelements:

(a) Leaders should embrace security asa necessary and strategic concept forglobal trade resilience, and balancebetween security and economicefficiency;

(b) Businessmodelsmustevolveinsucha way that security is embedded intheeconomicsoftheindustryandnotsimplyinsertedintoexistingprocesseswithoutbecomingpartofasolutionthatenhancesproductivity;

(c) There is no single solution to thesecuringoftheentirelogisticsnetwork.Solutionsmustaddressallfreightandnotjustship-bornecontainers;

(d) Public-privatepartnershipsareessential

Ambassador-at-Large Benjamin Defensor (left) and Mr Joshua Ho (right) addressing the audience on the threats to the global supply chain and its vulnerabilities.

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in seeking out an effective globalsolution. Business and governmentresponse plans must be synchronisedlocallyandinternationally;and

(e) Governments and businesses need todevelopalayered,end-to-endsolutionindeterringamajorterroristattackonthesupplychain.Thisincludesenhancingcontainer design to enable inspectionand tracking; creating a simplifiedglobal electronic data system for allpointsofcargotracking;andenhancingthe ‘fast lane’ processing system asan incentive to shippers. Creatingincentives for industry participationisimportantandforthistosucceed,afocusedstrategyisneeded.

THE bENEfITS Of SUPPLY CHAIN SECURITY TO fACILITATING TRAdE ANd bUSINESS

11 Major established companies gave theparticipants first hand accounts on thebenefits of investing in supply chainsecurity measures. Mr Ken Wheatley(SonyElectronicsInc),sharedhowSony’sinvestmentinsupplychainsecuritymeasureshadhelpedpreventlossesandreapedsuchbenefits as significant cost savings fromprompt delivery times and the betterutilizationofresources.

12 MrTheoFletcher (IBM),sharedthatIBMhad conducted two studies, one with theMassachusettsInstituteofTechnology(MIT)and the other with Stanford University,that demonstrated the collateral benefitsenjoyed by companies such as IBM fromtheir investment in supply chain securitymeasures. These included increasedefficiency, visibility, resilience, inventorymanagement, and improved customerrelations.Somequantifiableresultsshowedthat on average, companies that investedin supply chain security measures couldgainupto48percentreductionintheneedfor security inspections of their goods,29 percent shorter transit time, 31percent

shorterproblem resolution time, anda38percentreductionintheft,loss,andpilferage.TwogenerallessonsfromIBM’sexperiencetoimprovesupplychainsecurityincluded(1)theneedtocreateariskassessmentdatabaseformonitoringthesecurityoffacilities,and(2) the implementationofaglobal supplychainreadinessassessment.

13 Dr Robert de Souza and Dr Mark Goh(both fromThe Logistics Institute of theAsia-Pacific), discussed some positiveachievementsthathavebeenmadethroughthecollectiveeffortsoftheusercommunityand logistics service providers. Theseincluded, (1) reducing supply chainpipelinecosts throughbetter supplychainconsolidationstrategies;(2)improvedend-to-end supply chain process efficienciesthrough better design and re-engineering;and (3) establishing industry standardsby government agencies and industryassociations such as ISO18000 standardsand other harmonization codes for cargoflow.The challengeof good supply chainmanagement lay in the ability to mitigaterisks at both the operational and strategiclevels.They noted that given the diversegeography and culture withinAPEC, it isimportant for companies to attain a goodgraspofinternationalandregionalpolitics,culturalnuances,socialdiversity,aswellaslegal,financialandadministrativeprocessesto help them in their efforts at enhancingthe securityof theirportionof the supplychain.

Mr Ken Wheatley (Sony Electronics Inc.) giving the audience a corporate perspective of the benefits of investing in supply chain security.

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PRINCIPLES ANd APPROACHES TOwARdS SUPPLY CHAIN SECURITY – PERSPECTIvES fROM GOvERNMENTS

14 Theparticipantsheardtheviewsofregulatorsfrom China, New Zealand, the EuropeanCommissionandtheUnitedStates,ontheimportanceofenhancingthesecurityoftheglobal supplychain.MrChenZhenchong (People’s Republic of China) noted someof the key initiatives being undertakenby China to ensure trade facilitation andsecurity.Theseincludedtheuseofsimplifiedprocedures,andexploringtheestablishmentof ‘green lanes’, the use of ‘smart boxes’and targeted inspections. China was alsoactive in co-operating with other partnerssuchastheWorldCustomsOrganizationandmembersoftheinternationalcommunity,toenhancethesecurityofthesupplychain.

15 MrMartynDunne(NewZealand)examinedNewZealand’seffortsatimplementingitsdomesticsupplychainsecurityprogramme.Theseincludedtheconductofauditcheckson companies, scrutinyof containers, andcollaboration with international partnerson issues such as the development ofpossiblecommonstandardsforsupplychainsecurity.

16 Mr Loris Rossi (European Commission)talked about the EC’s perspective andefforts on supply chain security, wheretransportation security was given furtheremphasisfollowingtheterroristattacksinMadrid (2004) and London (2005). TheEChadworkedoutcommonstandardsforaircargoandwaskeenondoingthesamefor maritime cargo. The engagement ofindustryplayers isalsoakey factor in itsconsiderations.

17 Mr Wayne Kornmann (USA) sharedthe US Customs and Border ProtectionBureau’s experience under its Customs-Trade PartnershipAgainstTerrorism (C-TPAT) programme. Some of the lessonslearntincludedtheneedtounderstandthe

diverse processes in the supply chains ofdifferentindustriesandtheneedtooptimizethe use of scarce resources (e.g. customsinspectors).

PRINCIPLES ANd APPROACHES TOwARdS SUPPLY CHAIN SECURITY – PERSPECTIvES fROM INdUSTRY

18 Notable organisations from the privatesector gave first-hand accounts of theirprinciples and approaches towards supplychainsecurity.MrEarlAgron(APLLimited),outlined some key suggestions for bettersupplychainsecurity:

(a) The need for enhanced improvementof public-private cooperation.Theseincluded not only consultations butalso theconductof jointcontingencyplanning against security threats thatcouldaffectthecontinuityoftradeandmovementofcargo;

(b) Theneedforcontainertargetingofhigh-riskcontainersforsecurityscreeningasitisimpossibletoscreenallcontainersintheports.Inretrospect,itwouldbeuseful if non-intrusive inspection ofcontainerscouldbeadopted;

(c) The need for supply chain securityprogrammestoberegulatedaccordingtoaminimumsetofstandards;and

(d) The need for technological solutions

Discussion on the principles and approaches towards Supply Chain Security from the Governments’ perspectives.

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thatwouldhelpthepublicandprivatesectors maintain security and ensuretradeandoperationalefficienciesatthesametime.

19 MrAllanRichardTurley(FederalExpress)sharedFedEx’sexperienceinsupplychainsecurity from the global express deliverybusinessperspective.Forsuchcompanies,the implementation of good supply chainsecurity measures has enhanced clientrelationshipsthatareusuallybuiltontrust.Thisissobecausethemeasureshelpensureprompt, reliable and rapid services aswell as better inventory management andoperationalefficiency.Hestressedthat,forall stakeholders to implement end-to-endsupplychainsecuritysolutions,government-industrypartnershipsarecritical.

20 MrTanPuayHin (PSACorporationLimited)spokeofPSA’seffortsinenhancingsupplychain security from the physical andproceduralaspects.HenotedthatthePSACorporationfocusesonfiveinitiatives:

(a) Collaboration with governments (e.g.informationexchange);

(b) Useoftechnology; (c) Use of integrated processes, (e.g.the

TerminalAccessControlSystem); (d) Shaping mindsets and developing a

securitycultureamongstitsstaff;and (e) Collaboration with other industry

players such asAPL in the SecureContainerProgramme.

ThePSAisalsoactiveinotherinitiativesapartfromadheringtotheISPScode.Forinstance,ithasalsoparticipatedintheContainerSecurity,Radiation Detection, and Operation SafeCommerceInitiatives.

INTERNATIONAL ORGANIzATIONS ANd CO-OPERATION

21 The participants engaged in a livelydiscussiononthesupplychainsecurityeffortsundertaken by international organisations.Mr Michael Schmitz (World CustomsOrganization)elaboratedontheWCO’seffortinsecuringandfacilitatingtheworkflowoftheglobal supplychain through itsSAFEFramework of Standards. He also briefedtheaudienceonthestatusoftheframework.Essentially, this Framework of Standardsinvolvessustainablecapacitybuildingandimprovementsofvariousaspectsofcustomsadministration. Although the frameworkis still in its early stages, many customsauthoritiesandindustryplayershavebeenverysupportiveofthiseffort.

22 Captain Charles Piersall (InternationalStandards Organization) discussed thevarious supply chain security effortsundertakenbytheISO.Theseincludeditsstrategic visionof being the linkbetweenthe shipping and maritime industry since1995,whichhasover time translated intoaburgeoningsetofdeliverablesforglobalsupplychainstakeholders.TheISO’sPilotProgrammewiththeIMOinlate2001,theISO/TC8andthefamilyofspecificationscontainedintheISO28000seriesaspubliclydevelopedspecifications,allprovideusefulbenchmarks for supply chain securitymeasures.

23 MrPaulCollins(HerMajesty’sRevenueandCustoms,UK)sharedtheUK’sexperiencein promoting supply chain security.Thisincludedvariousprogrammestoco-ordinatethe security efforts undertaken by borderprotection units, airports, seaports andthe various industry sectors. International

Mr Allan Richard Turley (Federal Express) sharing with the audience FedEx’s experience in the implementation of supply chain security measures.

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co-operationwithothereconomies,onforexample theexchangeof informationwasfoundtobeuseful. Inaddition, theuseoftechnology,suchassmartboxes,e-sealsand‘track&trade’,complementedotherpublicand private sector efforts to protect tradeagainstthethreatfromterrorism.

CHALLENGES fOR THE fUTURE

24 Theparticipantshadaninsightfuldiscussionon the possible future challenges to theglobal supplychainnetworkand security.MrWernerKrüdewagen(SiemensSchweizAG),analysedtheneedforregulatorsandindustry players to address the securityrequirements of in-transit containers. HeaddedthatSiemens,onitspart,wasinvolvedin various projects that have sought todeveloptechnologicalresponsesassolutionstotheconcerns.

25 Mr Paul Lightburn (Lloyd’s Register)elaborated on the importance of humanfactors in global supply chain security.He asserted that there are no substitutesto good processes, practices and peoplewho would diligently observe securityprocedures. Hence, the “human element”isvitalinthemaintenanceofsupplychainsecurity. Furthermore, he added that itis important that the top management ofall companies incorporates supply chainsecurity considerations into key businessplans.

26 Mr Nick Small (Unisys) shared thatcooperationbetweenthepublicandprivatesectors is necessary to spread the cost ofsecurity measures. Moreover, the synergywill also facilitate thefindingof practicalsolutions thatwillhelp to improvesupplychain security. Security measures shouldalsobeflexibleastheglobalsupplychainenvironmentisdynamicinnature.Headdedthat all organisations should not be toorelianton technology. There isno“silverbullet”orasinglesolutionthatwilladdressthesecurityneedsoftheentireglobalsupplychainnetwork.Hence,technologyshouldbeappliedintandemwithothermeasuressuchasgoodsecurityprocedures,awarenessandstafftraining.

27 Mr Graham Pettifer (Transport Canada)spokeonthekeyeffortswhichtheCanadianGovernmenthasundertakenonthesupplychain front. The global community,interconnectedbytrade,isverysusceptibleto terrorism. Therefore, effective supplychain security would require a globalapproach.Themanynodesandplayersintheglobalsupplychainmeansthatitiscrucialthat the lines of responsibility amongstthevariousplayersinthesupplychainareclearlydefined.

OTHER POINTS

28 Inhisluncheonaddress,MrPeterSchwartz(Global Business Network) gave allparticipantsmuchfoodforthoughtwithhis

Discussion on the importance of international organisations and co-operation in the maintenance of global supply chain security.

Discussion on the challenges for the future and the way ahead for members of the global supply chain.

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presentation.Heconjureduptwopossiblescenariosofthefuturesupplychainandatthesametimeexploredthechallengesthatmight arise. The first image envisioneda global situation marked by increasingintegration,whereinterconnectivityincreasesexponentially with technology.This wasperceivedtobetheresultofthegrowthofknowledge-basedeconomiesandimprovedgovernance.Inthesecondimaginedfuture,fragmentation is the key characteristic inglobaldevelopments.Schwartzhypothesizedabreakdownofsharedconsensusbetweenthe major economic powers, leading toresource wars, particularly for oil andwater. Inboth imagined futures, theacutevulnerability and sensitivity of the globalsupplychaintofluctuationsingeopoliticalclimatestoodoutasacommonfeature.

SUMMARY Of KEY POINTS

29 MrBarryDesker(InstituteofDefenceandStrategicStudies)summarisedthekeypointsthatwerediscussedandtheissuesthathadsurfaced during the symposium. Theseincluded:

(a) Thethreatfrominternationalterrorismisrealandcouldseriouslyaffecttradeiftheglobalsupplychainwasdisrupted;

(b) Any major disruption to the supplychain from a terrorist attack wouldhave serious implications for theeconomiesintheAPECregion.Tradeandeconomicactivitiescouldcometoastandstill.Asaresult,lossesmightbeincurredandAPECeconomieswouldhave to bear the cost. In this regard,theparticipantswelcomedSingapore’soffertosponsorastudyontheimpactofamajordisruptioncausedbyterroristattacks to the supply chain withinAPEC. (The study is expected to becompleted within the last quarter of2006.);

(c) There was recognition thatAPECeconomies should seriously considerinvestingintheenhancementofsupplychain security measures, particularlyto close the information gaps on thecontents of containers as well asto facilitate information exchangeamongstthemselves;

(d) Inlookingatsupplychainsecurityfroma holistic and integrated perspective,one issue requiring urgent attentionstoodout.Thisconcernstherestorationoftheflowoftradeafteramajorterroristattack.Itwasemphasisedthatlossescould be minimised if internationaltradecouldberestoredfastenoughafteranattack;

(e) Therewasconsensusthatthefacilitationof trade and continuity of commercewithin theAPEC region is a sharedresponsibilitybetween thepublicandprivatesectors.Assuch,itisimportantthat the public and private sectorswithinAPECcollaboratecloselywitheachother toenhance the securityofthesupplychainaswellastoensuretherapidrecoveryoftradeandcommerceintheeventofaterroriststrike;and

(f) Itwasrecognizedthatthesymposiumprovided all participants andAPECeconomieswithabetterunderstandingoftheimportanceofenhancingsupplychain security within the region.Participants welcomed the insightfulviews and experiences shared byexperts from the regulatory sector,within the industry and internationalorganisations, and recognised theneed to continue raising the level ofawareness,aswellastheunderstandingand sharing of knowledge withinAPEC.

30 Basedonthekeypointsdiscussedasabove,thekeyconcludingrecommendationsfromthesymposiumwere:

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(a) thatAPECLeadersendorsetheneedforAPECeconomies, includingboth thepublicandprivatesectors,tocontinuetogiveseriousattentiontotheimportanceandbenefitsofenhancingthesecurityof the supply chain, and to maintainthis as a key initiative involving thepublicandprivatesectorin2007andbeyond;

(b) thatAPECeconomiesagreethatthereisanurgentneedtoaddresshowintheeventofamajorterroristattackontheglobalsupplychain,APECeconomiescould,especiallywithintheregion,aidintherecoveryoftrade;and

(c) thatAPEC economies acknowledgethat the implementation of supplychain security measures requirescontinual technical support andassistance in capacity building.Thiswould include further sharing ofknowledge, experiences and trainingopportunities amongst the public andprivatesectors.

PREPARED AND SUBMITTED BY: SINGAPORE

31 August 2006

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Wednesday 5 July 2006

1300-1800 Registrationofparticipants(Venue:LibraatLevel1) 1900-2030 WelcomeReceptionhostedbyBarryDesker,Director,InstituteofDefenceandStrategicStudies(IDSS)forspeakers

andparticipants (Venue:PoolGarden,Level5)

Thursday 6 July 06 OpeningCeremony (Venue:MainBallroomatLevel1)

0900-0920 OpeningRemarks Barry Desker, Director,InstituteofDefenceandStrategicStudies(IDSS) 0920-0930 WelcomingRemarks Ambassador Tran Trong Toan, Executive Director, Asia Pacific Economic Co-operation (APEC) 0930-1000 KeynoteAddress Professor S. Jayakumar,DeputyPrimeMinisterandCo-ordinatingMinisterforNationalSecurity,Singapore 1000-1030 TeaBreak

Session 1: Threats and Vulnerabilities to the Global Supply Chain (Venue:MainBallroomatLevel1)

Moderator Rohan Gunaratna,HeadofInternationalCentreforPoliticalViolenceandTerrorismResearch,IDSS 1030-1055 SecurityChallengesintheAPECRegion Benjamin Defensor,Ambassador-at-LargeandChairman,APECCounter-TerrorismTaskForce 1055-1120 TheThreatofInternationalTerrorismontheSupplyChain Joshua Ho,SeniorResearchFellow,IDSS 1120-1145 SecurityVulnerabilitiestotheGlobalSupplyChain:WhatitmeansfortheWorldEconomy Gordon Holder,Principal,BoozAllenHamilton 1145-1215 QandAandSummaryRemarks(Moderator) 1215-1400 Lunch(Venue:MainBallroomatLevel1) LunchAddress:SecuringtheGlobalSupplyChain:Risks,ChallengesandScenarios Peter Schwartz,cofounder,GlobalBusinessNetwork

Session 2: Supply Chain Security : The Benefits to Facilitating Trade and Business Moderator Eduardo Pedrosa,SecretaryGeneralofthePECCInternationalSecretariat 1400-1425 The Benefits of Investing in Supply Chain: The Sony Experience Ken Wheatley,VicePresident,CorporateSecurity,SonyCorporation 1425-1450 The Benefits of Investing in Supply Chain Security: The IBM Experience Theo Fletcher,VicePresident,ImportComplianceandSupplyChainSecurity,IBM 1450-1515 SupplyChainSecurity:KeyConceptsandCurrentPracticesinRelationtoTradeFacilitation Robert de Souza, Executive Director, The Logistics Institute of Asia-Pacific (TLIAP) Mark Goh,DirectorofIndustryResearch,TLIAP 1515-1530 QandAandSummaryRemarks(Moderator) 1530-1550 TeaBreak

APEC SymPoSium on ToTAl SuPPly ChAin SECuriTy, 6-7 July 2006, mArinA mAndArin hoTEl, SingAPorE

AnnexA

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Session 3: Supply Chain Security : The Principles and Approaches Towards Supply Chain Security – Perspectives from Governments

Moderator Mary Seet-Cheng,Consultant,MinistryofForeignAffairs,Singapore 1550-1615 SupplyChainSecurity:APerspectivefromChina Chen Zhenchong,DeputyDirector-GeneralofBorderControl,MinistryofCustoms,People’sRepublicofChina 1615-1640 SupplyChainSecurity:APerspectivefromNewZealand Martyn Dunne,Comptroller,NewZealandCustomsService 1640-1705 SupplyChainSecurity:APerspectivefromtheEuropeanCommission Loris Rossi,DirectorateJ-Security–ProtectionofPersons,GoodsandInstallations,EuropeanCommission 1705-1730 SupplyChainSecurityProgrammes:LessonsLearntfromtheUSExperience Wayne Kornmann, Director, Long Beach C-TPAT Office, US Customs and Border Protection 1730-1800 QandAandSummaryRemarks(Moderator) 1900-2100 DinnerforspeakersandinvitedguestshostedbyBG(NS)ChoiShingKwok,PermanentSecretaryofTransport,

MarinaMandarin END OF DAY 1

Friday 7 Jul 06Session 4: Supply Chain Security : The Principles and Approaches Towards Supply Chain Security – Perspectives

from Industry (Venue:MainBallroomatLevel1) Moderator Derk Jan Hartgerink,ManufacturingDirector,ExxonMobilChemicalOperationsPrivateLtd 0900-0925 SupplyChainSecurity:AViewfromtheShippingIndustry Earl Agron,VicePresident,Security,APLLimited 0925-0950 SupplyChainSecurityaspartofGlobalBusinessOperations:TheFedExExperience Alan Richard Turley, Vice President, International Affairs, Asia Pacific Division, Federal Express 0950-1015 SupplyChainSecurity:ThePSAExperience Tan Puay Hin, Chief Operating Officer, PSA Corporation 1015-1045 QandAandSummaryRemarks(Moderator) 1045-1100 TeaBreak Session 5: International Organisations and Co-operation Moderator Amitav Acharya,DeputyDirectorandHeadofResearch,IDSS 1100-1125 TheWCOFrameworkofStandards–TheRoadforGovernmentsandIndustry Michael Schmitz,Director,ComplianceandFacilitation,WCO 1125-1150 DevelopmentsattheInternationalStandardsOrganisation Charles Piersall,Director,TechnicalCommittee8Chairman,ISO 1150-1215 InternationalCo-operationinSupplyChainSecurity:TheUKExperience Paul Collins,HeadofFrontierSecurityandInternationalTeam,HMRevenueandCustoms 1215-1245 QandAandSummaryRemarks(Moderator) 1245-1400 Lunch(Venue:MainBallroomatLevel1)

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Session 6: Challenges for the Future Moderator Kumar Ramakrishna,ActingHead,CentreofExcellenceforNationalSecurity(CENS),IDSS 1400-1425 TechnologicalSolutionstoEnhancetheSecurityoftheGlobalSupplyChain Werner Krudewagen,Director-SectorSales,SiemensSchweizAG 1425-1450 ManagingSupplyChainSecurity:KeyChallengesfortheFutureandtheHumanElement Paul Lightburn,IntermodalSecurityManager,Lloyd’sRegister 1450-1515 TheChallengesAheadforGovernmentsandBusiness–AViewfromIndustry Hans Nicolas Small,Director,EnterpriseSecurityInitiatives,Unisys 1515-1540 TheChallengesAheadforGovernmentsandBusiness–AViewfromGovernment Graham Pettifer,ActingDirector,MarineSecurityPolicy,TransportCanada 1540-1610 QandAandSummaryRemarks(Moderator) 1610-1620 ClosingRemarks Ambassador Tran Trong Toan, Executive Director, Asia Pacific Economic Co-operation (APEC) 1620-1645 ClosingRemarks Barry Desker,Director,InstituteofDefenceandStrategicStudies(IDSS) END OF SYMPOSIUM

The symposium papers are available at http://www.apec.org/content/apec/documents_reports/counter_terrorism_task_force/2006.html

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AbOUT APEC

Asia-Paci f ic Economic Cooperat ion, orAPEC, is the premier forum for facilitatingeconomic growth, cooperation, trade andinvestment in the Asia-Paci f ic reg ion.

APEC,comprising21membereconomies,ishometo more than 2.6 billion people and representsapproximately56%ofworldGDPand49%ofworldtrade.LeadersofAPECeconomiesmeetannuallyto discuss a range of issues that are focused oneconomicgrowthandprosperityfortheregion.

APEC’s 21 Member Economies are Australia;Brunei Darussalam; Canada; Chile; People’sRepublicofChina;HongKong,China;Indonesia;Japan;RepublicofKorea;Malaysia;Mexico;NewZealand;PapuaNewGuinea;Peru;TheRepublicof the Philippines; The Russian Federation;Singapore;ChineseTaipei;Thailand;UnitedStatesofAmerica;VietNam.

APECplacesastrongemphasisonparticipationbytheprivatesectorinitsactivities.The APEC Business Advisory Council (ABAC)helps Leaders establish the main priorities forbusiness in areas such as trade and investmentliberalisation and facilitating the movement ofgoods,servicesandpeople.

THE APEC SECRETARIATTheAPECSecretariatisbasedinSingaporeandoperatesasthecoresupportmechanismfortheAPECprocess. It provides coordination, technical andadvisorysupportaswellasinformationmanagement,communications and public outreach services.TheAPECSecretariatperformsacentralprojectmanagement role, assisting APEC MemberEconomiesandAPECforawithoverseeingmorethan230APEC-fundedprojects.APEC’sannualbudgetisalsoadministeredbytheAPECSecretariat.

ISO CERTIfICATION In2002,theAPECSecretariatobtainedISO9001:2000QualityManagementCertification.ThisrecognisesthecontinuouseffortsmadebytheAPECSecretariattoprovideimprovedadministrativeandsupportactivities.TheAPECSecretariatisthefirstmultilateraltrade-relatedsecretariattoattainISOcertification.

More Information Visitourwebsiteatwww.apec.orgformoredetailedinformation.

APECSecretariat35HengMuiKengTerraceSingapore119616Telephone:(65)67756012Fax:(65)67756013Email:[email protected]

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AbOUT CENS

The Centre of Excellence for National Security (CENS) is a research unit of the Institute ofDefenceandStrategicStudies(IDSS)atNanyangTechnologicalUniversity,Singapore.Establishedon 1 April 2006, CENS is devoted to rigorouspolicy-relevant analysis of a range of nationalsecurityissues.TheCENSteamismultinationalincomposition,comprisingbothSingaporeanandforeign analysts who are specialists in variousaspectsofnationalandhomelandsecurityaffairs.

wHY CENS?In August 2004 the Strategic Framework forNational Security outlined the key structures,security measures and capability developmentprogrammesthatwouldhelpSingaporedealwithtransnationalterrorisminthenearandlongterm.

However, strategizing national security policiesrequiresgreaterresearchandunderstandingoftheevolving security landscape. This is why CENSwasestablishedtoincreasetheintellectualcapitalinvestedinstrategizingnationalsecurity.Tothisend,CENSworkscloselywithnotjustotherIDSSresearch programmes, but also national securityagenciessuchastheNationalSecurityCoordinationSecretariatwithinthePrimeMinister’sOffice.

wHAT RESEARCH dOES CENS dO?CENS currently conducts research in three keyareasofnationalsecurity:

• RiskAssessment/HorizonScanningo The art and science of detecting “weak

signals”emanatingfromthe totalsecurityenvironmentsoastoforewarnpolicymakers,the private sector and the public aboutapproaching “shocks” such as terrorism,pandemics,energycrisesandothereasy-to-misstrendsandostensiblydistantevents.

• SocialResilienceo The capacity of globalized, multicultural

societies to hold together in the face ofsystemic shocks such as diseases andterroriststrikes.

• TransportationSecurity

o The security of land-based, aviation andmaritimetransportnetworksandincreasingly,the total supplychainvital toSingapore’seconomicvitality.

HOw dOES CENS HELP INfLUENCE NATIONAL SECURITY POLICY?Throughpolicy-orientedanalyticalcommentariesandotherresearchoutputdirectedatthenationalsecurity policy community in Singapore andbeyond, CENS staff members promote greaterawarenessofemergingthreatsaswellasglobalbestpracticesinrespondingtothosethreats.Inaddition,CENSorganizescourses,seminarsandworkshopsforlocalandforeignnationalsecurityofficialstofacilitatenetworkingandexposuretoleading-edgethinking on the prevention of, and response to,nationalandhomelandsecuritythreats.

HOw dOES CENS HELP RAISE PUbLIC AwARENESS Of NATIONAL SECURITY ISSUES?Toeducatethewiderpublic,CENSstaffmembersregularlyauthorarticlesinanumberofsecurityandintelligencerelatedpublications,aswellaswriteop-edanalysesinleadingnewspapers.RadioandtelevisioninterviewshaveallowedCENSstafftoparticipateinandshapethepublicdebateoncriticalissuessuchasriskassessmentandhorizonscanning,multiculturalismandsocialresilience,intelligencereformanddefendingcriticalinfrastructureagainstmass-casualtyterroristattacks

HOw dOES CENS KEEP AbREAST Of CUTTING EdGE NATIONAL SECURITY RESEARCH?TheleanorganizationalstructureofCENSpermitsaconstantandregularinfluxofVisitingFellowsofinternationalcalibrethroughtheDistinguishedCENSVisitorsProgramme. This enablesCENSto keep abreast of cutting edge global trends innationalsecurityresearch.

For more information on CENS

Log on to http://www.idss.edu.sg and follow the links to “Centre of Excellence for National Security”

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AbOUT IdSS

The Institute of Defence and Strategic Studies (IDSS) was established in July 1996 as anautonomousresearchinstitutewithintheNanyangTechnologicalUniversity.Itsobjectivesareto:

• Conduct research on security, strategic andinternationalissues.

• Provide general and graduate education instrategicstudies,internationalrelations,defencemanagementanddefencetechnology.

• Promote joint and exchange programmeswith similar regional and internationalinstitutions;andorganiseseminars/conferenceson topics salient to the strategic and policycommunitiesoftheAsia-Pacific.

Constituents of IDSS include the InternationalCentre for Political Violence and TerrorismResearch (ICPVTR), the Centre of Excellencefor National Security (CENS) and the AsianProgramme for Negotiation and Conf lictManagement(APNCM).

RESEARCHThrough its Working Paper Series, IDSS Commentariesandotherpublications,theInstituteseeks to share its research findings with thestrategicstudiesanddefencepolicycommunities.TheInstitute’sresearchersarealsoencouragedtopublish their writings in refereed journals. Thefocusofresearchisonissuesrelatingtothesecurityandstabilityof theAsia-Pacificregionand theirimplicationsforSingaporeandothercountriesintheregion.TheInstitutehasalsoestablishedtheS.RajaratnamProfessorship inStrategicStudies(named afterSingapore’sfirstForeignMinister),to bring distinguished scholars to participate intheworkoftheInstitute.PreviousholdersoftheChair includeProfessorsStephenWalt (HarvardUniversity), Jack Snyder (Columbia University),WangJisi(ChineseAcademyofSocialSciences),Alastair Iain Johnston (Harvard University) andJohn Mearsheimer (University of Chicago). AVisitingResearchFellowProgrammealsoenablesoverseasscholarstocarryoutrelatedresearchintheInstitute.

TEACHINGTheInstituteprovideseducationalopportunitiesatanadvancedleveltoprofessionalsfromboththeprivateandpublicsectorsinSingaporeaswellasoverseas throughgraduate programmes, namely,the Master of Science in Strategic Studies, theMasterofScience inInternationalRelationsandthe Master of Science in International PoliticalEconomy.Theseprogrammesareconductedfull-time and part-time by an international faculty.TheInstitutealsohasaDoctoralprogrammeforresearchinthesefieldsofstudy.Inadditiontothesegraduate programmes, the Institute also teachesvarious modules in courses conducted by theSAFTIMilitaryInstitute,SAFWarrantOfficers’School,CivilDefenceAcademy,andtheDefenceandHomeAffairsMinistries.TheInstitutealsorunsaone-semestercourseon‘The International Relations of the Asia Pacific’ forundergraduatesinNTU.

NETwORKINGThe Instituteconvenesworkshops, seminarsandcolloquiaonaspectsofinternationalrelationsandsecuritydevelopmentthatareofcontemporaryandhistoricalsignificance.HighlightsoftheInstitute’sactivitiesincludearegularColloquiumonStrategicTrendsinthe21stCentury,theannualAsiaPacificProgrammeforSeniorMilitaryOfficers(APPSMO)andthebiennialAsiaPacificSecurityConference.IDSSstaffparticipateinTrackIIsecuritydialoguesand scholarly conferences in the Asia-Pacific.IDSShascontactsandcollaborationswithmanyinternational think tanks and research institutesthroughoutAsia,EuropeandtheUnitedStates.TheInstitutehasalsoparticipatedinresearchprojectsfundedbytheFordFoundationandtheSasakawaPeaceFoundation.ItalsoservesastheSecretariatfor the Council for Security Cooperation in theAsia-Pacific(CSCAP),Singapore.Throughtheseactivities,theInstituteaimstodevelopandnurturea network of researchers whose collaborativeeffortswillyieldnewinsightsintosecurityissuesofinteresttoSingaporeandtheregion.

On 1 January 2007, the Institute of Defence and Strategic Studies will be formally inaugurated to become the S. Rajaratnam School of International Studies (RSIS), an institute of Nanyang Technological University.