PRESENT IN NEW YORK ON JANUARY 19, 2001

James A. Capo, Team Coordinator, President, USMX and the New York Shipping Association
Tom Bolcar, Safety Manager, Howland Hook Marine Terminal
Sam Crane, Vice President for External Affairs, Maher Terminals Inc.
John Hyde, General Manager Security & Compliance, Maersk Container Service
Carol Lambos, Lambos & Junge, Counsel to USMX
Robert McKeon, North Atlantic Region Director, MARAD
Ron Signorino, Regulatory Affairs Consultant, USMX
Sue Turner, Director of Government Relations, AAPA

BY VIDEO CONFERENCE

Joseph Miniace, President, Pacific Maritime Association
John McNeill, Vice President Operations, Marine Terminals Corporation

BY TELEPHONE CONFERENCE

Chuck Carroll, Executive Director, National Association of Waterfront Employers

SUBMITTED INFORMATION FOR MEETING ON JANUARY 18, 2001

Beth Ann Rooney, Senior Transportation Plannerand Port Readiness Coordinator, Port Authority of New York and New Jersey

****

James A. Capo, Team Coordinator opened the meeting on behalf of Chuck Raymond, MTSNAC Chair and Security Team Leader. He thanked all attendees for their interest in the team and turned the meeting over for a discussion of the mandate of the MTSNAC and the MTSNAC Security Team.

It was noted that the purpose of the MTSNAC was to study issues relevant to the nation's marine transportation system ("MTS") and report to the Secretary of Transportation with regard to those issues. Since the issue of seaport and intermodal cargo terminal security has been designated as an area important to the nation's MTS, a MTSNAC Security Team was created. Thus, it was noted that the purpose of the Security Team is to study issues relevant to seaport and intermodal cargo terminal security and report to the full council.

Action Item 1.

To discuss the Report of the Interagency Commission on Crime and Security in U.S. Seaports ("Gov't Report"), released this past fall, and Senate Bill S.2965 introduced during the last congressional session by Senator Ernest Hollings (D-SC). S. 2965 sought to enact many of the provisions of the Gov't Report.

Sue Turner was asked to report on the AAPA position with regard to the Gov't Report and Hollings legislation. She graciously obliged made a presentation comparing the Gov't Report to the Hollings legislation. It was noted that while the private sector cannot deny that seaport crime exists, the Gov't Report is deficient in quantifying the problem and that much of the report is anecdotal. Moreover, she also stated that a cost/benefit analysis must be discussed because considerable funds could be expended without any attendant benefit. The AAPA is advocating a partnership approach meaning that it does not support unfunded federal mandates and that since the subject crime are federal in nature then the federal government must supply the funds to combat the crime. In addition, the AAPA does not support minimum security guidelines but recommends an international approach to tackle crime that has its genesis overseas. The AAPA further recommends that more funds be authorized for federal agencies that can oversee local security committees to address specific port conditions. In addition, the AAPA believes that there is no need for a new federal agency to be created because existing agencies currently have the jurisdiction and mandate to address these issues. The AAPA does support a crime threat assessment for individual ports to assess whether or not a security problem in fact exists in a particular port.

Sue Turner's presentation provoked a lively discussion with various team members opining on the issue.

It was generally noted that even the Gov't Report seemed to indicate that cargo crime was not the real issue but that terrorism was. As such, it was the general sentiment of the group that private industry cannot fund the war on terrorism or drugs.

Chuck Carroll indicated that while he did not want to see minimum standards, he thought that law enforcement might insist on this. He also noted that a modified bill might be a solution to many of the issues raised.

There was considerable discussion on the issue of new security regulations for the maritime industry that might carry penalties.

John McNeill noted that there are currently regulations that deal with security issues like terminal fencing. So it should not be an issue of new regulations but an issue of enforcing existing regulations.

Joe Miniace voiced the opinion that the focus of the terrorism issue should be overseas where the threat begins. Sue Turner commented that Gov't Report was vague on the issue of terrorism and while it is stated that we are vulnerable there have been but a small number of incidents.

Generally, the team dismissed the loan guarantee provision of the Hollings legislation as unfunded mandates. Loan guarantees are not funding.

John Hyde noted that even the Gov't Report acknowledges that the majority of seaport cargo crime does not take place at the marine terminal. As such, much of the suggestions for marine terminals would not impact cargo crime. However, he indicated that the private sector should strive to improve the delivery process to ensure that the proper parties are receiving the cargo. He also suggested that there are customs standards and regulations that address these issues and that new regulations are not appropriate. He mentioned the Port Newark Security Council that meets to discuss these issues.

There was also a discussion about the viability of requiring truck drivers servicing marine terminals to be identified. It was mentioned that the Port Authority of New York and New Jersey has some form of a driver ID program.

Jim Capo indicated that he was opposed to further government intervention in this area. While the Port of New York has the Waterfront Commission that addresses many of the issues concerning the identification of longshore workers, it brings with it another level of regulation that can hinder business and bring about enhanced costs.

The issue of educating law enforcement, local, state, and federal about marine terminals was discussed. John Hyde mentioned that he has been involved in such seminars.

Chuck Carroll stated that marine terminals fall under the federal maritime jurisdiction of the United States as such the federal government should pay for any security programs they suggest. The team agreed that it should be up to the federal government to defend the borders of this nation.

Tom Bolcar raised an issue concerning the recommendation that maps and other information should be posted on the internet. It was agreed that this would be helping criminal activity rather than preventing it. However, Mr. Bolcar noted that law enforcement should share information with industry to help prevent crime.

Sam Crane suggested that we make a list of the security regulations that the industry is already subject to as a starting point for a report to the council. The team agreed and Ron Signorino and John Hyde volunteered to do this.

Action Item 2. Prepare a brief report on the Security Team meeting for the full MTSNAC

Carol Lambos volunteered to do this. A copy of the report that was made to the full MTSNAC at the February 2, 2001 meeting is annexed to these minutes.

Action Item 3. Prepare a paper on the Team's assessment of the impact of the Graham Commission and ensuing legislation.

As a result of the discussion held at the Security Team meeting the following issues were presented as suggestions for inclusions in a report for the full council:

The war on terrorism and drugs is a federal law enforcement issue.

• Industry recognizes the interest of federal law enforcement authorities on the issues of terrorism and crime but feel that the principal law enforcement responsibility is federal.

Security must be looked at on a port by port basis.

• To the extent that the federal government believes that there can be improvements in seaport security, a structure should be set up that allows for local port security committees to be established to oversee these issues on a port by port basis. What may be applicable to one port may not be applicable to another port.

No mandates or requirements without federal funding

• Any mandates must come with federal money. No shifting of costs of law enforcement obligations to private sector. No waterfront or other user type taxes to be assessed against maritime industry.

No concurrent regulations

• To the extent that additional federal regulation is required there must be no duplication or local effort to avoid inconsistent regulation and overburdens, and duplication of costs i.e. New York Waterfront Commission.

Flexibility

• To the extent that further regulation may be required, any burden that falls on the private sector must be flexible with alternatives and performance without regulatory penalties. Compliance will occur because people will want to comply. Huge dose of voluntary commitment.

• Sufficient compliance deadlines that minimize costly impact.

Truck Driver Identification

• Truck drivers that have access to cargo should be credentialed. The costs of implementation of such a program should be federally funded.

Current security statutes and regulations should be examined before any new standards enacted

• Suggest that existing federal statutes and regulations be examined to avoid inconsistent or overly burdensome regulations.

Action Item 4. Monitor relevant issues impacting seaport security.

The group agreed to continue to monitor relevant issues impacting seaport security in anticipation of its next meeting and in anticipation of preparing its report to the full council.

THE MEETING WAS ADJOURNED. NO DATE FOR THE NEXT MEETING WAS SET.

PRESENT IN NEW YORK ON JANUARY 19, 2001

James A. Capo, Team Coordinator, President, USMX and the New York Shipping Association
Tom Bolcar, Safety Manager, Howland Hook Marine Terminal
Sam Crane, Vice President for External Affairs, Maher Terminals Inc.
John Hyde, General Manager Security & Compliance, Maersk Container Service
Carol Lambos, Lambos & Junge, Counsel to USMX
Robert McKeon, North Atlantic Region Director, MARAD
Ron Signorino, Regulatory Affairs Consultant, USMX
Sue Turner, Director of Government Relations, AAPA

BY VIDEO CONFERENCE

Joseph Miniace, President, Pacific Maritime Association
John McNeill, Vice President Operations, Marine Terminals Corporation

BY TELEPHONE CONFERENCE

Chuck Carroll, Executive Director, National Association of Waterfront Employers

SUBMITTED INFORMATION FOR MEETING ON JANUARY 18, 2001

Beth Ann Rooney, Senior Transportation Plannerand Port Readiness Coordinator, Port Authority of New York and New Jersey

****

James A. Capo, Team Coordinator opened the meeting on behalf of Chuck Raymond, MTSNAC Chair and Security Team Leader. He thanked all attendees for their interest in the team and turned the meeting over for a discussion of the mandate of the MTSNAC and the MTSNAC Security Team.

It was noted that the purpose of the MTSNAC was to study issues relevant to the nation's marine transportation system ("MTS") and report to the Secretary of Transportation with regard to those issues. Since the issue of seaport and intermodal cargo terminal security has been designated as an area important to the nation's MTS, a MTSNAC Security Team was created. Thus, it was noted that the purpose of the Security Team is to study issues relevant to seaport and intermodal cargo terminal security and report to the full council.

Action Item 1.
To discuss the Report of the Interagency Commission on Crime and Security in U.S. Seaports ("Gov't Report"), released this past fall, and Senate Bill S.2965 introduced during the last congressional session by Senator Ernest Hollings (D-SC). S. 2965 sought to enact many of the provisions of the Gov't Report.

Sue Turner was asked to report on the AAPA position with regard to the Gov't Report and Hollings legislation. She graciously obliged made a presentation comparing the Gov't Report to the Hollings legislation. It was noted that while the private sector cannot deny that seaport crime exists, the Gov't Report is deficient in quantifying the problem and that much of the report is anecdotal. Moreover, she also stated that a cost/benefit analysis must be discussed because considerable funds could be expended without any attendant benefit. The AAPA is advocating a partnership approach meaning that it does not support unfunded federal mandates and that since the subject crime are federal in nature then the federal government must supply the funds to combat the crime. In addition, the AAPA does not support minimum security guidelines but recommends an international approach to tackle crime that has its genesis overseas. The AAPA further recommends that more funds be authorized for federal agencies that can oversee local security committees to address specific port conditions. In addition, the AAPA believes that there is no need for a new federal agency to be created because existing agencies currently have the jurisdiction and mandate to address these issues. The AAPA does support a crime threat assessment for individual ports to assess whether or not a security problem in fact exists in a particular port.

Sue Turner's presentation provoked a lively discussion with various team members opining on the issue.

It was generally noted that even the Gov't Report seemed to indicate that cargo crime was not the real issue but that terrorism was. As such, it was the general sentiment of the group that private industry cannot fund the war on terrorism or drugs.

Chuck Carroll indicated that while he did not want to see minimum standards, he thought that law enforcement might insist on this. He also noted that a modified bill might be a solution to many of the issues raised.

There was considerable discussion on the issue of new security regulations for the maritime industry that might carry penalties.

John McNeill noted that there are currently regulations that deal with security issues like terminal fencing. So it should not be an issue of new regulations but an issue of enforcing existing regulations.

Joe Miniace voiced the opinion that the focus of the terrorism issue should be overseas where the threat begins. Sue Turner commented that Gov't Report was vague on the issue of terrorism and while it is stated that we are vulnerable there have been but a small number of incidents.

Generally, the team dismissed the loan guarantee provision of the Hollings legislation as unfunded mandates. Loan guarantees are not funding.

John Hyde noted that even the Gov't Report acknowledges that the majority of seaport cargo crime does not take place at the marine terminal. As such, much of the suggestions for marine terminals would not impact cargo crime. However, he indicated that the private sector should strive to improve the delivery process to ensure that the proper parties are receiving the cargo. He also suggested that there are customs standards and regulations that address these issues and that new regulations are not appropriate. He mentioned the Port Newark Security Council that meets to discuss these issues.

There was also a discussion about the viability of requiring truck drivers servicing marine terminals to be identified. It was mentioned that the Port Authority of New York and New Jersey has some form of a driver ID program.

Jim Capo indicated that he was opposed to further government intervention in this area. While the Port of New York has the Waterfront Commission that addresses many of the issues concerning the identification of longshore workers, it brings with it another level of regulation that can hinder business and bring about enhanced costs.

The issue of educating law enforcement, local, state, and federal about marine terminals was discussed. John Hyde mentioned that he has been involved in such seminars.

Chuck Carroll stated that marine terminals fall under the federal maritime jurisdiction of the United States as such the federal government should pay for any security programs they suggest. The team agreed that it should be up to the federal government to defend the borders of this nation.

Tom Bolcar raised an issue concerning the recommendation that maps and other information should be posted on the internet. It was agreed that this would be helping criminal activity rather than preventing it. However, Mr. Bolcar noted that law enforcement should share information with industry to help prevent crime.

Sam Crane suggested that we make a list of the security regulations that the industry is already subject to as a starting point for a report to the council. The team agreed and Ron Signorino and John Hyde volunteered to do this.

Action Item 2. Prepare a brief report on the Security Team meeting for the full MTSNAC

Carol Lambos volunteered to do this. A copy of the report that was made to the full MTSNAC at the February 2, 2001 meeting is annexed to these minutes.

Action Item 3. Prepare a paper on the Team's assessment of the impact of the Graham Commission and ensuing legislation.

As a result of the discussion held at the Security Team meeting the following issues were presented as suggestions for inclusions in a report for the full council:

The war on terrorism and drugs is a federal law enforcement issue.

• Industry recognizes the interest of federal law enforcement authorities on the issues of terrorism and crime but feel that the principal law enforcement responsibility is federal.

Security must be looked at on a port by port basis.

• To the extent that the federal government believes that there can be improvements in seaport security, a structure should be set up that allows for local port security committees to be established to oversee these issues on a port by port basis. What may be applicable to one port may not be applicable to another port.

No mandates or requirements without federal funding

• Any mandates must come with federal money. No shifting of costs of law enforcement obligations to private sector. No waterfront or other user type taxes to be assessed against maritime industry.

No concurrent regulations

• To the extent that additional federal regulation is required there must be no duplication or local effort to avoid inconsistent regulation and overburdens, and duplication of costs i.e. New York Waterfront Commission.

Flexibility

• To the extent that further regulation may be required, any burden that falls on the private sector must be flexible with alternatives and performance without regulatory penalties. Compliance will occur because people will want to comply. Huge dose of voluntary commitment.

• Sufficient compliance deadlines that minimize costly impact.

Truck Driver Identification

• Truck drivers that have access to cargo should be credentialed. The costs of implementation of such a program should be federally funded.

Current security statutes and regulations should be examined before any new standards enacted

• Suggest that existing federal statutes and regulations be examined to avoid inconsistent or overly burdensome regulations.

Action Item 4. Monitor relevant issues impacting seaport security.

The group agreed to continue to monitor relevant issues impacting seaport security in anticipation of its next meeting and in anticipation of preparing its report to the full council.

THE MEETING WAS ADJOURNED. NO DATE FOR THE NEXT MEETING WAS SET.