Senator Patty Murray Announces Completion of Test Phase of Operation Safe Commerce, Discusses Project Findings

Senator Patty Murray (Wash.) today declared the test phase of the Port of Seattle and Port of Tacoma Operation Safe Commerce (OSC) projects a resounding success.

Operation Safe Commerce (OSC) is a federal program designed to test and evaluate practices, policies and procedures to improve the security of international containerized shipping. The Port of Seattle and Port of Tacoma are working cooperatively on nine OSC test projects funded by a $27.5 million grant from the Department of Homeland Security (DHS). The first OSC test containers arrived in Puget Sound in March. Since then, hundreds of test containers have moved through the two ports.

"The original shipment we celebrated five months ago, and the tests that followed, tracked shipments from their point of origin - whether that was the factory floor or an agriculture field - to a distribution center right here in Washington state," said Murray, who has supported funding for the program. "The products traveled by truck, train and ship along their journey, and we watched them every step of the way. We monitored and analyzed the security from beginning to end and on each mode of transportation until it reached the customer."

"We found that each supply chain is unique and very dynamic," Murray continued. "The players change often and market forces have a significant impact on how those players change. We found that technology alone is not the answer. Technology is but one part of governmental policies, logistical procedures and the physical processes needed to move containers in the global economy."

"There are many maritime security efforts underway," said Linda Strout, Deputy Chief Executive Officer of the Port of Seattle. "But OSC is unique in making ports and the communities around them safer by securing the cargo that moves through them. OSC also adds value by improving inventory control and expediting the movement of cargo."

"Most items on our store shelves were manufactured overseas, put into a container and transported to this country in ocean-going ships," said Timothy J. Farrell, Acting Executive Director of the Port of Tacoma. "Just look at the tags on your clothes," he said, "More than any other factor, security is enhanced by the visibility and efficient movement of cargo."

The key initial findings of the test programs outlined by Murray included:

· Supply chains are vulnerable at various points within the United States and overseas. Addressing vulnerabilities outside U.S. jurisdiction will require cooperation with the governments of overseas trading partners.

· Technology is only part of the solution. International security standards that employ shared practices, policies and procedures, and work in conjunction with security technologies are essential.

· Supply chains are complex, dynamic and unique. Security solutions that suit one product or trade lane may not be applicable to others. Security standards should be perfromance based and allow for flexibility in how to achieve them.

· Solutions must be globally integrated and applied, and be developed using a system-wide approach. Users of critical security information must work closely with transportation service providers and shippers.

· Multi-national acceptance of security in the supply chain is essential. Global shippers, as the owners of the cargo, are at the center of the supply chain and are critical to the ongoing success and evolution of security standards.

A total of 19 supply chain test projects funded by $58 million in grants are included in OSC. Other participating ports include Los Angeles, Long Beach and New York/New Jersey. Reports on the supply chain tests from Seattle, Tacoma and New York/New Jersey will be submitted to DHS in October. Los Angeles and Long Beach will submit reports on their test projects in spring 2005. The results will be analyzed by DHS and will influence future maritime security standards.

A proposed second round of OSC, funded by $17 million in DHS grants, would "stress test" selected supply chains to prove security approaches.