APL outlines five-step plan for improved supply chain security

Singapore, July 7, 2006 – A leading supply chain security expert today called on like-minded countries to work together to find the best way to make international trade more secure, and outlined practical steps that would help achieve this goal.

Speaking to the Asia Pacific Economic Cooperation (APEC) Symposium on Total Supply Chain Security, Earl Agron, Vice President of Security for global container carrier, APL, said: “The supply chain is a complex web of cultures, languages and interests. In this regard, joint planning and communication are key.”

Agron told the high-level audience of government, military and industry leaders in Singapore that the five key steps that would help improve supply chain security were:

1. A concentrated focus on public-private sector collaboration
2. More information for the effective targeting of suspect containers
3. An intelligent regulatory framework; balancing security with trade flow
4. Improved non-intrusive container inspection technology
5. Development of long-term security technology solutions through the collaboration of supply chain stakeholders.

The public sector’s primary responsibility was to protect its citizens, said Agron, a 25-year APL veteran, who has an extensive background in equipment logistics and container terminal operations. However, the private sector owns and operates much of the supply chain infrastructure that could fall prey to terrorist attack. “Understanding where roles and responsibilities overlap is critical,” said Agron.

Agron made an oft-repeated point that a balance must be struck between the need to secure the supply chain without bringing global trade to a halt. He also renewed his request for harmonised global regulations that could strengthen weak links in the supply chain.

The biggest challenge in supply chain security, said Agron, was knowing “what’s in the box” – referring to the millions of cargo containers constantly circling the globe. More information on who is shipping and receiving cargo and where it was loaded can, for example, help US Customs & Border Protection officials target suspect containers that require inspection.

Agron also urged for the more effective deployment of radiation portals and gamma ray detection equipment to screen containers. But he cautioned that new security technologies must be developed collaboratively by supply chain stakeholders.

“There is an avalanche of technology solutions looking for a problem to solve,” said Agron. “We need to pause and find the right technology in a more systematic way.” Agron added that there must be an emphasis on the cost-effectiveness of solutions. “The industry must spend wisely and not put in place measures that promise much but are ineffective and costly,” Agron concluded.

About APL
APL is a global container transportation company offering more than 60 weekly services and nearly 300 calls at more than 90 ports in Asia, Europe, the Middle East and the Americas. It combines world-class intermodal operations with leading edge IT and e-commerce. APL is a unit of Singapore-based Neptune Orient Lines (NOL), a global logistics and transportation company. APL Web site: www.apl.com

About NOL
NOL is a Singapore-based global transportation and logistics company. Its container transportation arm, APL, provides customers around the world with container transportation services that combine high quality inter-modal operations with state-of-the-art information technology. Its supply chain services arm, APL Logistics, provides international, integrated logistics services and solutions, employing the latest IT and data connectivity for maximum supply chain visibility and control. NOL Web site: www.nol.com.sg

Media Enquiries:

Asia-Middle East
Paul Barrett
Telephone: (65) 6371 7959
paul_barrett@nol.com.sg

Americas
Mike Zampa
Telephone: (1) 510 272 7380
michael_zampa@apl.com

Europe
Michael Haig
Telephone: (44) 1737 248 300
michael@isiscomms.com