Is Your Port Prepared to Recover from a Disaster? Can you keep the cash register ringing when bad things happen?

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1 Is Your Port Prepared to Recover from a Disaster? Can you keep the cash register ringing when bad things happen? J E A N N I E B E C K E T T T H E B E C K E T T G R O U P A P P W I N T E R C O N F E R E N C E J A N K A U A I M A R R I O T T R E S O R T K A U A I, H I

2 Topics What is Business Continuity/ Business Recovery? Quick Quiz to test if you are Ready Why do we as Ports need to have a Continuity Plan? Current Activities Puget Sound Regional Maritime Transportation Disaster Recovery Exercise Program (PSMRT)

3 We are talking Resumption, not Recovery Focus is on returning to the New Normal It is about looking not only at the Port but the relationships with the Supply Chains, Transportation systems, Communities, State and Federal Agencies. Source: Port Resumption & Resiliency Model

4 Business Continuity Is keeping the money coming in even when something really bad has happened Seattle Municipal Archives, from flickr creative commons America by The Prophet, from flickr creative commons

5 Facts from other Disasters Hurricane Sandy Port of NYNJ lost 1/3 of their capacity- terminal equipment, no electricity, limited fuel, most terminals sustained some damage Because it was primarily surge damage, the Port was able to open within a week, but with bandages. It has already been 15 months, and it is estimated it will take another 2-3 years to return to pre-event status.

6 Kobe Earthquake Fires consumed 203 acres (82 hectares) 400,000 building damaged, 10,000 collapsed 200,000 housing units either partially or completely destroyed. 85% of the schools and many hospital and other major public facilities sustained heavy damage

7 Kobe Earthquake Natural gas service to homes were out for 2.5 months Restoration of water and wastewater to 1.3 M households took 4 + months to restore Port repairs took over 1 year to complete 80% of the regions small and medium size businesses failed

8 Kobe Earthquake Recovery Infrastructure Emergency use only Temporary Use Port 10 days 2 months 2 years Road 1 week 1 month 1 year Full Recovery Rail 10 days 3 months 7 months

9 Port of New Orleans- Katrina It has been 9 years, they anticipate it will take at least 10 years to fully recover Day 60: many employees were able to return to work because Port offered short term housing for employees and their families FEMA brought in Cruise Ship to hotel first responders and Port employees MARAD brought in RAPID deploy ship to provide dock workers and truckers with a place to bath and sleep. It took until Day 174 to be fully re-open the Port of New Orleans.

10 The Personal Impact Are you personally ready for an event? If, you are a small business, will your business survive? Will you financially survive? Do you have the financial resources to rebuild / repair your home if needed? Where will you go, if you home is inhabitable? How will you communicate with your loved ones?

11 What keeps you up at Night? What do you worry about? Do you have contingency plans for these or are these fears real? Do you have contingency plans, or a play book that can be used when bad things happen? What do you already have in your tool box?

12 Example of Tools in the Tool Box A Prepared communications plan including: How are you going to get information on the status of the Port? Who is going to speak to the press/ respond to inquiries? file in the form announcements that only have to be filled in for the event List of who is in the building, who is off site, who is on vacation?

13 Example of Tools in the Tool Box A Prepared communications plan including: Alternative Administration / Operations site Current hard copy or off-site contact list for employees, customers and vendors, local agencies Do you have a method to blast an announcement outnotification / list for emergencies?

14 How Do We Survive? Keep the Cash Register Ringing by: What is your cash reserve? Can you do your banking off site? How are you going to prioritize the needs? What are your essential functions vs. your less critical? Supporting essential functions during and after an incident Protect people, facilities, equipment, and records that support essential functions Mitigate disruptions to operations Source: Port-au-Prince port 5 by simminch, flickr creative commons Page 14

15 Quiz: Are your ready? 1. Do you have a copy of your essential records offsite? 2. Do you have a communication plan to locate your employees and update them on the Port s status? 3. Do you have a policy/ procedure for paying your staff / vendors post-disaster? 4. What are your essential needs to keep your customers?

16 Quiz: Are your ready? 5. What about -Fuel, phones, internet, electricity, etc. Do you have back up plans? Generators, supplier contracts, mutual aid contracts? 6. Do you have clear roles essential staff vs. non essential staff, tenant responsibilities vs. port responsibilities? 7. How many yes vs. no or I don t know answers?

17 Business Continuity WHY DO WE NEED A PLAN?

18 Why? To keep the cash register ringing To provide the region with services and economic impact we currently provide Jobs Economic Vitality for the community/ region Supplies and commodities used regionally To help our community return to a good place to live, work and play

19 Impact Analysis When it goes wrong, what does it cost? Ports are huge Economic Drivers 2002 West Coast Labor Dispute = $2B/day 2003 Northeast Blackout = $118B in lost business and recovery costs 2005 Hurricane Katrina = Waterborne exports dropped by $1.2B September vs. August 2012 Hurricane Sandy = PANYNJ damages cost $2B alone, not counting loss of income Page 19

20 Something Evil This Way Comes

21 Something Evil This Way Comes

22 It Is All About Survivability

23 Business Continuity Planning Cycle Continuous Process of Improvement Distribute, Maintain, & Update Initiate the Process Test, Train, & Exercise Hazard and Threat Analysis Build the Plan Impact Analysis Essential Functions

24 Initiate the Process Engage Senior Leadership Build the Team Collect the Resources Create the Schedule Set the Rules plans are useless, but planning is indispensable Dwight D. Eisenhower

25 The First Five Minutes Inclusion Trumps Exclusion Coordination is King Everything Comes With a Cost Chicken Little Was An Optimist! Things Go Wrong Every Day! What Are Your Victory Conditions? Lion Tamer by Bansky. Photo by dullhunk, Flickr Creative Commons Page 25

26 Hazard and Threat Analysis What can go wrong? What can be done to prevent or protect against something going wrong? What will we have to do when it does go wrong? Page 26

27 Threat vs. Risk THREAT RISK Art of the POSSIBLE A factor of frequency/likelihood Something to protect against Nature Technology Our Fellow Man Reality of the PROBABLE A factor of Vulnerability Can it harm you? Are your protections adequate? Page 27

28 MORE. Impact Analysis Up Stream Impact What supplies do you need? Where do they come from? How do they get to you? How much do you keep on hand? How long will that last? How long until the deliveries resume? Down Stream Impact Who are your customers? What do they purchase from you? Why do they purchase it? Do they still need it? Can they still afford it? How long until they need you, and can afford you again? Page 28

29 Essential Functions Essential Keep the doors open Keep everyone safe Necessary Make operations efficient Nice-to-Have Everything Else Stream of Consciousness by jurveston, flickr creative commons Page 29

30 Build the Plan Page 30

31 Test. Test is this thing on? Validate the plan NOT the people! Were the assumptions correct? Are they still? Can people accomplish what is expected of them in the plan? Can we break it now? Page 31

32 Training Everyone needs to be familiar with the plan More responsibility = more training! Cross-Training isn t just for athletes anymore Pieces of the puzzle by charkrem, from flickr creative commons Page 32

33 Current Research/ Planning Activities Puget Sound Regional Maritime Transportation Disaster Recovery Exercise Program Funded by a Security Grant

34 PUGET SOUND REGIONAL MARITIME TRANSPORTATION DISASTER RECOVERY EXERCISE PROGRAM A year long project that helps the Ports of Puget Sound prepare for Disaster Recovery: Individual Port Table top facilitated discussions Summer 2013 Regional Exercise Feb 12, 2014 Interactive Game Play/Table Top Discussions enhanced by economic modeling and simulations presenting outcomes based upon decisions made by the individual port player

35

36 Model Components Page 36

37 Model User Interface Overview 1. Summary and Map 2. Regional Message 3. Tabs for 1. Input 2. Output My Port 3. Output Region 4. Model Logic Page 37

38 Model UI: Summary and Map Page 38

39 Model UI: Summary and Map Page 39

40 Model UI: Input (People and Infrastructure) 1. People 1. Infrastructu re Page 40

41 Model UI: Output My Port 1. Port Message 2. Port Metrics Page 41

42 Model UI: Output -- Regional 1. Jobs (#) Wages ($) Output ($) 2. Direct Indirect/Induce d 3. On-Port Business Off-Port Business Visitor & Crew 4. Construction 5. Taxes Page 42

43 Questions? Jeannie Beckett The Beckett

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