Security in the Asia Pacific Gateway: Human Resources Issues and Strategies

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies

The Security Sub-sector Roundtable was established to provide advice on human resource issues and strategies for contracted security in the Asia Pacific Gateway. The following members of the Roundtable are acknowledged for their contributions: John Beckett, British Columbia Maritime Employers Association Jason Begin, Paladin Security Andrew Brink, Chubb Security Vic Byrom, Paladin Security Melanie Costley, Port Metro Vancouver Ken Deptuck, Teamsters Canada Sarah Gallagher, Vancouver Airport Authority Luc Gervais, Human Resources Skills Development Canada Michael Henderson, Transport Canada Stan Hennessy, Teamsters Local Union 31 Darcy Kernaghan, Securiguard Ivan McClelland, CP Rail Jack McGee, Justice Institute of British Columbia Doug Moulton, Human Resources Skills Development Canada Michele Pace, Ministry of Transportation and Infrastructure Gary Paulson, Prince Rupert Port Authority Wayne Peppard, British Columbia Yukon Territory Building Construction Trades Council Mike Teixeira, Eculine Canada Inc. Bob Wilds, Greater Vancouver Gateway Council December 31, 2009 PREPARED FOR: Asia Pacific Gateway Skills Table SUBMITTED BY: Context Research Ltd. 202 1260 Hamilton Street Vancouver, BC V6B 2S8 Izen Consulting Box 47101, 15 555 West 12th Avenue Vancouver, BC V5Z 4L6

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 3 TABLE OF CONTENTS Executive Summary........................................................................ 5 The Study......................................................................... 5 Key Findings....................................................................... 6 Recommended Strategies............................................................. 6 Implementation Priorities............................................................. 9 Introduction............................................................................. 11 Background...................................................................... 11 The Assignment................................................................... 12 Methods......................................................................... 12 Format of the Report................................................................ 13 Security in the Asia Pacific Gateway......................................................... 15 Defining the Gateway............................................................... 15 Legislation Governing Security in the Gateway............................................ 17 Supply Chain Approach to Security in the Gateway........................................ 19 Framework for Security in the Asia Pacific Gateway............................................. 21 Security Industry Drivers............................................................. 21 Security Occupations and Skill Requirements............................................. 22 Best Practices in Supply Chain Security...................................................... 25 Rationale for Improving Security....................................................... 25 Better Practices for Supply Chain Security Education....................................... 26 Key Issues Impacting Security in Gateway.................................................... 29 Introduction...................................................................... 29 A Supply Chain Network Approach to Security............................................ 29 Leadership to Establish a Comprehensive Approach to Security............................... 30 Defining the Asia Pacific Gateway...................................................... 31 Security Culture................................................................... 31 Security Personnel Skills and Training................................................... 33 Private Sector/Operator Collaboration................................................... 35 Attraction and Retention............................................................. 36 Security Standards................................................................. 36 Public Perception of the Security Industry................................................ 37 Evaluation of Security Measures....................................................... 38

4 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies Gap Analysis: Gateway Security Labour Market and Training...................................... 39 Meeting Demand for Security Personnel in the Gateway......................................... 41 Strategies to Address Security in the Asia Pacific Gateway....................................... 45 Introduction...................................................................... 45 Strategic Area 1 - Leadership and Guidance.............................................. 45 Strategic Area 2 - Security Training and Education......................................... 48 Strategic Area 3 - Evaluating Impact.................................................... 50 Appendices............................................................................. 51 Appendix I Notes and Outcomes of BC Security Roundtable Meeting 1......................... 53 Appendix II Notes and Outcomes of BC Security Roundtable Meeting 2........................ 59 Appendix III Notes and Outcomes of BC Security Roundtable Meeting 3........................ 63 Appendix IV Notes and Outcomes of BC Security Roundtable Meeting 4........................ 67 Appendix V Stakeholders Interviewed and Consulted.......................................69 Appendix VI Industry Drivers and Trends Impacting the Gateway............................. 71 Appendix VII Basic Security Training (BST) Curriculum..................................... 75 Appendix VIII Scan of Relevant Security Training Opportunities in BC.......................... 77 Appendix IX Workforce Security Programs and Training.................................... 79 Appendix X ISO 28000............................................................. 81 Appendix XI - Asia Pacific Gateway Skills Table Board of Directors............................. 83

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 5 EXECUTIVE SUMMARY The Study Security within the Asia Pacific Gateway is coming under increasing scrutiny with the expansion of trade, and ever changing security regulations brought on by the threat of terrorism. There is increasing demand for more and better security to ensure public safety and to protect the economy. The security industry is also impacted by advances in technology, and changes in workforce demographics with retiring baby-boomers and fewer younger workers. With the projected expansion of the Gateway and the various forces at play, the Asia Pacific Gateway Skills Table (APGST) initiated a study to determine if the security industry has the capacity and capability to meet its future requirements. In July 2009, the APGST engaged Context Research Ltd. and Izen Consulting to conduct a review of labour market needs and human resources issues for the security sub-sector of the Asia Pacific Gateway (the Gateway). A Roundtable comprised of security industry stakeholders was established to provide input to the study and to assist with the identification of: Human resources issues related to the security sub sector of the Gateway; Future labour requirements for security within the Gateway; Possible solutions to security labour market issues that will bridge the gap in addressing potential constraints in this sector. The Gateway refers to the supply chain network of interlinked vendors, distributors, transporters, storage facilities and suppliers that participate in the procurement, sale, delivery, and production of a particular product through the west coast marine, air, rail and road transportation network. Transport Canada is the government agency most responsible for security in the Gateway through the regulation of the marine port and airport authorities, and the rail network. The network of stakeholders also includes ground transportation, warehousing, freight forwarders and logistics services. This study focused on the security services that are privately contracted or provided by employees of companies operating in the Gateway. This study focused on the security services that are privately contracted or provided by employees of companies operating in the Gateway. It did not include government agencies responsible for enforcing the Criminal Code of Canada, including the Royal Canadian Mounted Police (RCMP), Canadian Border Security Agency (CBSA), Vancouver Harbour Police or the Canadian Security and Intelligence Services (CSIS). Security services refer to the protection of goods and people through the monitoring of property and data. Security is provided directly by personnel in occupations with security as a primary function, but also by personnel with a secondary security function (e.g., front line employees, safety officers). Occupations at the managerial, tactical and operational levels were examined, using the categories established by the Canadian Supply Chain Sector Council. The identification of labour market issues, including the demand for and capability of security personnel, was based primarily on consultations with industry leaders and stakeholders, research on labour market statistics and a review of industry best practices. The research did not include audits of security at individual facilities in the Gateway.

6 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies Key Findings At the operational level, security guards are the most prominent occupation in the sector. Despite the expansion of the Gateway and the projected increase in demand for security personnel, industry stakeholders do not anticipate a shortage of qualified people. The industry expects to meet the demand due to the large numbers of qualified applicants in recent hiring phases, and the relatively high wages for security guards at Gateway facilities. However, while the demand for security guards can be met, industry consultations identified that the current Basic Security Training is not sufficient. Improved knowledge and training is required to meet the needs of an expanding and dynamic Gateway. Improved knowledge and training of security personnel is required to meet the needs of an expanding and dynamic Gateway. The managerial and tactical occupations are more difficult to analyse as many of the security functions are secondary to other occupations. Staffing shortages are not an issue in these two occupation categories. However, at the tactical level, there are gaps in training and in the level of understanding of supply chain security. The concept of a network or holistic approach to supply chain security is fundamental to the strategies outlined in this report. Security within the Gateway is currently The concept of a supply chain suggests that without a common or consistent approach, security in the Gateway is only as good as the weakest link in the chain. planned and delivered largely by individual facility or supply chain component. While each Gateway facility or service (e.g., port, airport, warehouse, trucking) may have its own unique security requirements, the supply chain concept suggests that each link in the chain should share a level of consistency with respect to how security is planned and delivered. Otherwise, security within the Gateway is only as good as the weakest link. This consistency and integration can be achieved through proper training, adherence to a security standard and improved collaboration among Gateway partners. Recommended Strategies The following strategies are recommended, in consultation with the Security Roundtable, to address the human resources issues related to the capacity and capability of the workforce involved with security in the Asia Pacific Gateway. LEADERSHIP AND GUIDANCE The concept of the Asia Pacific Gateway is well understood. However, there is not a clear understanding of the components that collectively fall under the Gateway security umbrella. A detailed description and listing of components is a pre-requisite to establishing a collaborative network and applying security standards for training, skill development, employee awareness and service delivery. Strategy #1: Map the Asia Pacific Gateway for Security That the APGST initiate a project to map and inventory the supply chain that comprises the Gateway, including the full scope of facilities and services that fall under a common security umbrella. The need and value of investing in security beyond the regulations is questioned by many stakeholders who may incur costs for new technology, training and personnel. A comparison of U.S. and Canadian ports identified that federal government investment in security at U.S. ports offers a competitive advantage that is not matched by similar investments at Canadian ports 1. The majority of operators, and many stakeholders, identified the need for a strong rationale and business case for a consistent, higher standard of security. 1 British Columbia, British Columbia Ports Strategy, Co-published by the Ministry of Small Business and Economic, Development and the Ministry of Transportation. March 2005 ISBN 0-7726-5344-5

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 7 Strategy #2: Develop the Business Case for an Integrated Supply Chain Approach to Security in the Asia Pacific Gateway That the APGST develop the business case that addresses the incremental social and economic benefits of improved security to owners/operators, the public and governments. Strategy #3: Develop and Implement a Communication Strategy to Establish Awareness and to Test the Validity of the Business Case with Industry That the APGST implement a communication strategy to promote the value of Gateway security, leading to collaborative action among Gateway partners. Beyond the current regulations, a champion is required to bring the individual components of the Gateway together to improve security across the supply chain. The federal government has a legislative and policy mandate to protect the Canadian public from security threats and is in the best position to bring Gateway partners together in a collaborative forum. Strategy #4: Establish a Champion for a Supply Chain Approach to Security in the Asia Pacific Gateway That the federal government, led by Transport Canada and/or HRSDC, facilitate the establishment of a forum for collaborative action toward a supply chain approach to security across the Asia Pacific Gateway, including establishing a security network. Table 1 Summary of Recommended Strategies PURPOSE STRATEGIC AREAS STRATEGIES To identify appropriate strategies to organize the security sub-sector and to meet the future demand for security resources Strategic Area 1: Leadership and Guidance Strategic Area 2: Education and Training Strategy 1: Map the Asia Pacific Gateway for Security Strategy 2: Develop the Business Case for an Integrated Supply Chain Approach to Security in the Asia Pacific Gateway Strategy 3: Develop and Implement a Communication Strategy to Establish Awareness and to Test the Validity of the Business Case with Industry Strategy 4: Establish a Champion for a Supply Chain Approach to Security in the Asia Pacific Gateway Strategy 5: Establish a Gateway Security Network (GSN) Strategy 6: Establish and Promote Gateway Security Standards and Certification Strategy 7: Assess Security Standards and Establish ISO 28000 Security Standards at BC Port Facilities Strategy 8: Brand the Gateway with Improved Security Standards Strategy 9: Establish a Gateway Security Training Advisory Group Strategy 10: Establish Accreditation for Gateway Security Personnel Strategy 11: Review BST Testing and Licensing Approval Strategy 12: Develop a Tactical Level Training Program Strategy 13: Establish a Gateway Workforce Security Orientation and Awareness Initiative Strategic Area 3: Evaluation Strategy 14: Develop and Implement an Evaluation Framework for Security Practices in the Gateway

8 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies Roundtable members acknowledged the importance of having a forum to bring the stakeholders responsible for security in the Gateway together. A Gateway Security Network would establish uniform security standards, advise on security training and education requirements, share and promote best practices, and build awareness and understanding of emerging issues and security policies and regulations. The importance of the Network to move the security agenda forward was supported by the Roundtable, but only after initial work has been completed on defining and mapping the Gateway, and building a business case for security improvements. Strategy #5: Establish a Gateway Security Network (GSN) That Transport Canada, the Province, the Vancouver Airport Authority, Port Metro Vancouver and Port Rupert, and representation from the transportation and warehouse sectors establish a formal Network to provide leadership and guidance on human resources and labour market issues related to security in the Gateway. A common security standard will provide consistency across all facilities and services, and can be used to set training and education requirements. Furthermore, it can become a Gateway brand attribute; businesses using the Gateway would have quality assurance regardless of where their products are in the system. Roundtable members recommended investigating the application of the ISO 28000 standard for security management in the Gateway, and that it be applied initially to the marine environment. This standard is already being adopted by some port operators, is internationally recognized, includes a quality control function and allows for the continuous alignment of security policies and procedures. Strategy #6: Establish and Promote Gateway Security Standards and Certification That the GSN, once established, evaluate and adopt ISO 28000 as a uniform security standard for the Gateway. Adherence to the standard would be required in order for a business to be part of the Gateway, and certification of owners/operators would acknowledge those who have met the standard. Strategy #7: Assess Security Standards and Establish ISO 28000 Security Standards at BC Port Facilities Leading International Ports have adopted ISO 28000 standards; ISO 28000 standards could be considered for major BC ports to help achieve a more consistent approach. Strategy #8: Brand the Gateway with Improved Security Standards That the GSN market and promote the security network and standards as a Gateway brand attribute to customers, its potential workforce and the public. EDUCATION AND TRAINING Basic security training needs to be supplemented with a training curriculum specifically targeted at improving the skills of security personnel in the Gateway. An education curriculum needs to be developed based on the skills and capabilities required by operational and tactical security personnel to meet the security standard. A Gateway Training Advisory Group is recommended to define learning outcomes for each level of security personnel along a career path, and to work with learning institutions to determine how best to design and implement training programs. Strategy #9: Establish a Gateway Security Training Advisory Group That a Gateway Security Training Advisory Group be established to lead development of training and skill development programs for security personnel at the operational and tactical levels. Strategy #10: Establish Accreditation for Gateway Security Personnel That the Ministry of Public Safety and Solicitor General establish an accreditation for personnel completing the Gateway security training. Successful applicants for licensing could be further designated as an Asia Pacific Gateway Security Consultant, once sufficient (2 years) experience in Gateway security has been completed.

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 9 Strategy #11: Review BST Testing and Licensing Approval That the province review options to reduce the time required for testing and licensing candidates for successful completion of the basic security training courses. Strategy #12: Develop a Tactical Level Training Program That a middle management training program be developed to provide candidates with an interest in security in the Gateway with the necessary training, skills and qualifications to make career advancements into management roles. The commitment to security among workers varies significantly by facility with generally a low level of engagement. Employees need to be more aware of security priorities and requirements, and should be consulted in some form in the development of security plans because of their knowledge of site operations and potential security risks. A minimum standard of security orientation and awareness should be set for employees in order to work in the Gateway. Strategy #13: Establish a Gateway Workforce Security Orientation and Awareness Initiative That a security orientation program and a security awareness program be developed and used by owners/ operators in the Gateway. The orientation program would be delivered as part of new employee orientation with updates as part of other training programs. EVALUATION An evaluation framework is required to measure the impact of new initiatives in security training, recruitment, industry organization and branding on actual improvements in security. This will allow for continued improvements to the training processes and human resources strategies and to build the case for further uptake of effective activities across the supply chain. Strategy #14: Develop and Implement an Evaluation Framework for Security Practices in the Gateway That the GSN establish an evaluation plan and program to assess the effectiveness of training, education and employee awareness initiatives, and to measure the impact of best practices. Implementation Priorities The strategies outlined in this report focus on establishing a more comprehensive and consistent approach to security across the Asia Pacific Gateway. Fundamental to the success of the strategies is the need for strong leadership and collaboration among Gateway organizations and agencies to achieve improvements in security that strengthen the supply chain. Security improvements can become a brand attribute that can be marketed and promoted internationally. As a starting point, and to establish the foundation for moving forward, actions are recommended in three main areas: 1. Mapping of the Asia Pacific Gateway supply chain to identify and describe those facilities and services that need to be captured under a common security umbrella. 2. Developing a business case, specific to the Asia Pacific Gateway, to establish a strong social, economic and public safety rationale for improvements to Gateway security. 3. Using the business case and the characterization of the Gateway supply chain for security to promote the need for a security network, and improved security standards among Gateway industry leaders. Once this baseline work has been completed, the commitment to improved security can be assessed and steps taken to establish the Gateway Security Network, security standards and to improve training for security personnel.

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Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 11 INTRODUCTION Background Following the terrorist attacks of September 11, 2001, the world was transformed into a society transfixed with security both at home and on the global stage. Over the past nine years, Canadians have witnessed and experienced firsthand, pre-emptive measures intended to root out terrorist threats, and to secure the movement of people and goods through airports, ports and border crossings. The recent failed bombing of Northwest Airlines Flight 253 originating from Amsterdam has led to even more stringent security measures, and reminds us that the terrorist threat can originate from anywhere in the world. Securing our borders is essential to protect Canadian society and our economy. Canada is a major gateway to the United States. Our airports, ports and borders transport people and goods from foreign countries into Canada and to the United States each year. Over 25% of all Asia Pacific imports coming through the Gateway are destined for BC. By 2020, Asia Pacific container traffic is projected to increase by 300% and air passenger traffic is expected to double. 2 Canada s west coast ports, airports and Over 25% of all Asia Pacific imports coming through the Gateway are destined for BC. supporting road and rail networks as key gateways to and from Asia have tremendous potential to capture significant opportunities being presented by growing markets. 3 This potential will be constrained if the Gateway is not considered secure by companies moving goods and people, and by those receiving them, in particular the United States government. The British Columbia Port Strategy (2005) identified that achieving the vision of Establishing BC as a leading gateway for Asia Pacific trade requires developing an international reputation for a secure, world class port system. Ensuring safety and security within the port environment must be balanced with the needs of industry and local communities. The ability to meet and pay for the high security standards being set by the U.S. has been identified as a major challenge for British Columbia s ports. 4 Recognizing the importance of security in the Asia Pacific Gateway, the Asia Pacific Gateway Skills Table (APGST) commissioned a study of human resources issues affecting security in the Gateway. The study focuses on determining whether there is sufficient capacity and capability within the private and contracted security sectors that serve the Gateway to meet present and future demand. This report presents the results of industry consultations and research on the human resources aspect of security in the Asia Pacific Gateway. 2 BC Government, Canada s Pacific Gateway. 2009. 3 Ministry of Transportation. Pacific Gateway. [cited 2009 November 30]; Available from: www.th.gov.bc.ca/pacificgateway/index.htm. 4 British Columbia, British Columbia Ports Strategy, Co-published by the Ministry of Small Business and Economic, Development and the Ministry of Transportation. March 2005 ISBN 0-7726-5344-5

12 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies The Assignment The APGST is a non-profit, regional partnership bringing labour, business and education stakeholders together to find solutions for labour shortages anticipated in the Gateway. Research has identified a potential shortfall of almost one million workers to meet the anticipated construction, expansion and operation of Canada s Asia Pacific Gateway by 2015. The APGST s mission is to ensure that the Gateway has enough people with the right skills and training to meet future demand. 5 As one step towards achieving this mission, the APGST commissioned a study to learn more about the labour market needs and human resources issues in the Gateway s security sub-sector. In July 2009, Context Research Ltd. (Context) was engaged to assist the APGST in providing a forum for the security sub-sector in the Asia Pacific Gateway to identify and discuss common industry human resources issues. A Security Sub-sector Roundtable was established to assist with the identification of: Human resources issues related to the security sub-sector of the Gateway; Future labour requirements for security within the Gateway; Possible solutions to security labour market issues that will bridge the gap in addressing potential shortages in this sector. This study focuses on the security services provided by the private sector and by employees of companies operating in the Gateway. Government security forces responsible for enforcing the criminal code of Canada, including the RCMP, municipal police forces, CBSA, and other similar organizations, are not part of this study. However, their role is acknowledged as a critical component in creating a secure Gateway environment. Methods Context Research Ltd. and Izen Consulting were contracted by the AGPST to deliver four BC Security Industry Labour Market Roundtable meetings and to identify human resources issues and strategies relevant to the Gateway. The identification of labour market issues, including the demand for, and capability of security personnel was based primarily on consultations with industry leaders and stakeholders, and research on labour market statistics and industry best practices. The work program included three phases, as illustrated in Figure 1. Phase 1: Planning and Development 1. Establish APGST Security Sub-sector Roundtable. 2. Develop Terms of Reference for the Roundtable. 3. Identify and recruit approximately 20 stakeholders from sub-sectors such as: marine, ports, airports, construction, rail, transportation, as well as learning providers and government representatives to attend each of the four the Security Roundtable meetings. 4. Finalize the study work plan. Phase 2: Roundtable Meetings and Research 5. Organize and facilitate four roundtable meetings in BC to identify and discuss common labour market challenges related to security in the Gateway and identify strategies to address future labour market requirements. Notes and outcomes from each Roundtable meeting are contained in Appendices I to IV. 6. Characterize the Gateway s security sub-sector; identify training opportunities relevant to security in the Gateway, and collect the perspective of representatives of major organizations active in security in the Gateway. A full list of stakeholders interviewed and/or consulted in this stage of the research is contained in Appendix V. 5 Asia Pacific Gateway Skills Table. 2009 [cited 2009 November 19]; Available from: http://www.apgst.ca.

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 13 JUNE 09 AUG 09 SEP 09 NOV 09 DEC 09 Project Committee Meeting Round Table Meeting #1 HR/Labour Market Issue Research - Interviews - Secondary Research Gap Analysis Based on Industry Profile and Trends HR/Training Strategies Draft Report on Security Industry Issues and Strategies Final Report on Security Industry HR and Labour Market Needs Security Industry Profile Key Issues Round Table Meeting #2 Input to HR/ LM Issues and Gaps Round Table Meeting #3 Input to Potential Strategies Round Table Meeting #4 Input to Draft Report Figure 1 APG Security Industry HR and Labour Market Study Phase 3: Recommendations and Reporting 7. Identify gaps in security resources and supply. 8. Identify key learning resources and tools related to the industry sub-sector. 9. Prepare a final report that summarizes the research and consultations, and recommended strategies. This report presents the results of consultations with industry stakeholders and research on labour market issues. Format of the Report This report presents the results of consultations with industry stakeholders and research on labour market issues. Specifically the report provides the following: A description of the security sub-sector in the Gateway, including a description of the security functions, occupations and skill requirements; An assessment of the demand for security services in the Gateway; A description of security sub-sector labour market issues identified by stakeholders; Recommended strategies to improve the capability of security personal, and the consistency in the delivery of services across the Gateway supply chain. The report begins with an overview of the security industry in the Gateway. Security industry drivers and trends relevant to the Gateway are then described, followed by a summary of Gateway security occupations, certifications and training opportunities. Key issues identified from stakeholder interviews are presented, alongside best practices in supply chain security identified from a review of pertinent literature. Recommendations for addressing human resources and labour market issues for contracted security in the Gateway flow from the identified issues and best practices.

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Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 15 SECURITY IN THE ASIA PACIFIC GATEWAY Defining the Gateway The Asia Pacific Gateway is the supply chain network of directly or indirectly interlinked vendors, distributors, transporters, storage facilities and suppliers that participate in the procurement, sale, delivery and production of a particular product. The Gateway, for the purposes of this study, includes: BC marine ports: Prince Rupert Port Authority ( Northern Corridor ) and Port Metro Vancouver (28 major marine terminals feeding into the Southern Corridor); BC international airports, including Vancouver International Airport, Abbotsford International Airport and Prince George International Airport; Principal road and rail connections of the marine ports and airports; Warehouse and logistical services stretching across western Canada and south to the United States; Key border crossings; Other major Canadian airports. The Asia Pacific Gateway is designed to make Canada the most competitive entry and exit point in North America for Asian and Canadian goods and services. The network serves all of Canada, and is focused on trade with the Asia Pacific region (Figure 2). By 2020, Asia Pacific container traffic is projected to increase by 300% and air passenger traffic is expected to double. 6 Canada s west coast ports, airports and supporting road and rail networks as key gateways to and from Asia have tremendous potential to capture significant opportunities being presented by growing markets. 7 British Columbia s geographic location provides a natural advantage as the Asia Pacific Gateway to North America: the location of the BC ports reduces the sailing time to Asian markets by about two days over all other ports in the Western Hemisphere, and British Columbia is the only gateway on the west coast of the Americas served by three transcontinental railways. Over 25% of all Asia Pacific imports coming through the Gateway are destined for BC, and the province accounts for approximately the same share of Canada s export volume through the Gateway. 8 The majority (~60%) of inbound and outbound containers at port terminals travel by rail. 9 Lesser, but still significant, amounts of cargo (<20 million tonnes/ year) are trucked to and from BC s ports each year. Trucking from the ports generally requires short hauls to the local warehouse and distribution centres, as well as supporting the rail traffic all along the Asia Pacific Corridor throughout Canada and the U.S. Trucking also provides direct service from the maritime ports and airports for regional distribution and fast delivery. 6 BC Government, Canada s Pacific Gateway. 2009. 7 Ministry of Transportation. Pacific Gateway. [cited 2009 November 30]; Available from: www.th.gov.bc.ca/pacificgateway/index.htm. 8 Government of Canada. The Gateway Opportunity: Competitiveness and Attracting Foreign Investment. [cited 2009 November 30]; Available from: http://www.pacificgateway.gc.ca/opportunity.html. 9 Pacific Gateway, Pacific Gateway Strategy Action Plan 2006-2020. 2006.

16 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies Figure 2 Representation of the Pacific Gateway in Canada

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 17 The Asia Pacific Gateway involves dozens of stakeholders across British Columbia and Canada. National, provincial, and local government agencies, First Nations, industry associations, sector councils, the terminal operators and owners, large and small scale companies, and labour all have direct interests in the Asia Pacific Gateway. Public and private education and training institutions play a strong role in the development of human resources to meet the projected strong demand for educated and skilled labour. Legislation Governing Security in the Gateway There is no shortage of regulations and protocols governing security in the Gateway. In the wake of 9/11, existing security regulations have been strengthened and new regulations have been implemented. Canadian legislation, regulations and agreements directly impacting security in the Asia Pacific Gateway include: Canada s Advance Commercial Information (ACI), and the U.S. s Advance Manifest Rule (AMR) both dictate that manifest information must be submitted to customs agents 24 hours before the cargo arrives at the border so that the information can be filtered through automated targeting systems and high-risk containers can be identified and inspected at the local port. (See www.apl.com/security/html/cutoffs.html) Security Services Act, this act regulates all security workers in BC. The Canada Border Services Agency (CBSA) Act establishes the CBSA as responsible for providing integrated border services that support national security priorities and facilitate the free flow of persons and goods, including animals and plants, which meet all requirements under the program legislation. (See www.cbsa-asfc.gc.ca/agencyagence/legislation-eng.html) The Marine Transportation Security Act (MTSA) is administered by Transport Canada, and is designed to provide for the security of marine transportation. Since the MTSA requires that vessels report 96 hours prior to entering Canadian waters, Canada has sufficient notice to perform a security risk evaluation and screening on the reporting vessel. Based on the results of the evaluation and screening, vessels may be redirected, including while in Canadian Arctic waters. (See www.tc.gc.ca/acts-regulations/ acts/1994c40/menu.htm) The Canadian Air Transport Security Authority (CATSA) Act was designed to support CATSA, a crown corporation, in the wake of 9/11 to strengthen Canada s air transport security system. CATSA is responsible for implementing the rules, running programs, and training screening officers. (See http://laws.justice.gc.ca/en/showfulldoc/ cs/c-11.2//20090902/en) The Railway Safety Act (RSA), administered by Transport Canada, is intended to enhance safety by requiring railway companies to implement and maintain a safety management system. This formal framework sets out the company s rules and procedures, responsibilities and authorities, and monitoring and evaluation processes. (See www.th.gov.bc.ca/legislation/railway/railway_ safety.htm) The Canadian Transit-Secure program is an application-based contribution program designed to make Canada s transit systems among the safest in the world. Launched in 2006, the program is a $115 million initiative directed by the federal Ministry of Transport, Infrastructure and Communities. (See www.tc.gc.ca/mediaroom/ releases/nat/2008/08-h009e.htm) Agreements: The International Ship and Port Facility Security Code (ISPS) is an international agreement brought into force in 2004 with 108 signatories including Canada. The code describes minimum requirements for security of ships and ports. (See www.tc.gc.ca/marinesecurity/regulatory/isps / menu.htm) The International Port Security Program (IPSP), through the U.S. Coast Guard and the U.S. Department of Homeland Security, encourages bilateral or multilateral discussions with nations around the world in an effort to exchange information and share best practices that align implementation and enforcement

18 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies requirements of the Maritime Transportation Security Act (MTSA) with the ISPS Code and other international maritime security standards. (See https://homeport.uscg.mil/mycg/portal/ep/ browse.do?channelid=-18389) Smart and Secure Tradelanes (SST) is an industry initiative aimed at identifying the tampering of containers while in transit by using automated tracking, detection and security technologies. (See http://scm.ncsu.edu/public/security/sec060221. html) Technology Asset Protection Association (TAPA) of the Americas is an association of security professionals from high technology companies and associated business partners who have organized for the purpose of addressing a variety of security threats common to the technology industry. (See www.tapaonline.org) The security of the supply chain is the responsibility of a complex and evolving network of public agencies, private companies, and in-house operations that share responsibility for the planning, monitoring and enforcement of security. Responsibilities include: National Public Agencies: Develop, coordinate, manage and enforce security issues nationally and coordinate with international public security agencies of other countries. Responsible for creating and enforcing laws and for judgment and punishment. Includes the RCMP, Border Services Agency, CATSA, Revenue Canada, and the enforcement side of Justice and the Solicitor General. Some security services and specific nationally regulated sites such as marine and air ports are monitored by contracted security companies. Provincial & Municipal Public Agencies: Patrol and enforce laws on public property. The provincial governments are also responsible for the legal system of justice. Includes local Police, Provincial police forces, RCMP, Ambassadors and Commissionaires. Contract Security: Private companies with specialties and expertise in various aspects of security services. Examples include Securiguard, Chubb, Paladin, Genesis, and Guard Smart. Some public areas are now monitored by contract security agencies. In-House Security: Many larger companies will often have their own security forces, usually to monitor large amounts of property, goods, or people. Railways such as CN and CP have long had their own private police agencies; many other large companies have in-house security to monitor property. Secondary Security Functions: Many security functions are secondary functions of other occupations within companies. Receptionists serve a key security function as the first point of contact for people, packages and telephones; warehouse inventory control technicians are responsible for monitoring the physical location of goods. Collectively, public and private organizations and agencies provide multiple layers, often with overlapping areas of responsibility and surveillance. This can help to improve security simply by having more personnel focused on common risk factors. The security of the supply chain is the responsibility of a complex and evolving network of public agencies, private companies, and in-house operations that share responsibility for the planning, monitoring and enforcement of security.

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 19 Supply Chain Approach to Security in the Gateway Security within the Asia Pacific Gateway is governed by federal legislation administered in large part by Transport Canada and the Canadian Border Security Agency (CBSA). Inspectors from both agencies, along with the RCMP and other security agencies, are responsible for ensuring adherence to the legislation. While the federal government sets the regulations, the emphasis is on each operator to provide security at the tactical and operational levels. At the Gateway ports, the Marine Transportation Security Act requires each operator to prepare an operational security plan. Port Metro Vancouver works collaboratively with port operators and other security agencies to manage security operations. Vancouver Airport Authority similarly works with a variety of agencies to ensure that security at the airport meets federal standards established by Transport Canada. Security within the Gateway s bonded warehouses is administered by CBSA. Sealed containers are inspected by CBSA prior to being destuffed for distribution. Many warehouse operations participate in the partners in protection program under the administration of the CBSA. The Canadian International Freight Forwarders Association (CIFFA) has established voluntary guidelines for its members to increase their capability and awareness of security issues, although bonded warehouses are required to submit a security plan to Canada Customs. With respect to the rail sector, federal jurisdiction applies to rail that crosses provincial The concept of a supply chain suggests that without a common or consistent approach, security in the Gateway is only as good as the weakest link in the chain. or international boundaries. A memorandum of understanding between the federal government and the rail companies identifies requirements for security. Three key points emerge from the current situation with security in the Asia Pacific Gateway: 1. The federal government plays a major role in establishing and administering security regulations across the Gateway. It is the one common denominator binding the Gateway for security purposes. 2. While the government defines the regulations, it is the responsibility of each operator to plan and provide security. Facility operators may choose to exceed the regulations and to establish security standards that address their own commercial and operational needs. This can result in a lack of consistency and integration of security practices and procedures across the Gateway that, in turn, can weaken the overall security system. The concept of a supply chain suggests that without a common or consistent approach, security in the Gateway is only as good as the weakest link in the chain. 3. Third, security within the Gateway supply chain is complex and is not well understood. The absence of an inventory, characterization and assessment of the supply chain for security purposes presents challenges for identifying security improvements.

20 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 21 FRAMEWORK FOR SECURITY IN THE ASIA PACIFIC GATEWAY To better understand private security functions and requirements in the Gateway, a framework for security was developed in consultation with the Roundtable. The framework identifies four key areas that should be the focus of security, along with influencing factors and the skills required by those with primary and secondary security responsibilities. This provides the basis for identifying improvements for training, skill development and security standards. The matrix illustrated in Table 2 identifies the key drivers for enhanced security in relation to the people, goods, data and property that are the primary focus and the key access points where the security functions occur. This provides the framework for identifying future requirements for security to meet the needs of an expanding Gateway. A more detailed discussion of industry drivers and trends is contained in Appendix VI. Security Industry Drivers Within the contract and secondary security functions (i.e., security-aware workforce), the Roundtable confirmed four key areas that should be the focus of improved security: People: The passengers and workers that move through and work within the sea, air, rail and road components of the Gateway, and in the supporting areas like marine ports, airports, railway terminals, and warehouses; Goods: The physical products that move through the Gateway including finished and unfinished products, packages, and raw materials; Data: The specific information about the goods and people that move through the Gateway that precedes, is attached to, and follows the movement of the people and goods; Property: The physical locations of the Gateway that serve as the boundaries for security purposes, including both public and private locations such as marine ports, airports, railway terminals, yards and tracks, private and public roads, warehouses and inland ports. Each of these areas will be impacted by the expansion of the Gateway, and by changes in legislation, technology, globalization and competition. These changes, in turn, will impact the requirements for security services. Table 2: Gateway Security Industry Drivers and Key Access Points FOCUS INDUSTRY DRIVERS KEY ACCESS POINTS People Goods Data Property Increased people through the Gateway Threat of terrorism Regulations Customer service Perceptions of security and safety Speed of movement convenience Technology i.e. ID scans Cost Increased goods, containers, bulk shipments Increased shipments of unfinished products and parts Insurance of goods Productivity of Gateway, speed of goods movement Recognition of security Regulations customs Technology i.e. GPS Cost Increased trade Increased use of technology and new technologies Increased globalization leading to greater interdependence of data Languages Cost Increased trade, leading to increased volume and need for storage Increased inspections and customs services Increased use of warehouses and inland ports Insurance Technology i.e. remote sensors Cost Mostly airports Marine ports Rail Road Marine ports as the main access points Also, airports, rail, road and warehouses Point of transfer to different modes of transportation and storage Manufacturers, purchasers, logistics providers and third parties Computer servers, computer terminals, internet and intranets Marine ports, airports, warehouses, rail and road Warehouses, storage and sorting Ports, airports, rail and road Inland terminals Customs yards

22 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies Security Occupations and Skill Requirements SECURITY OCCUPATIONS Security occupations and skill requirements were developed in consultation with the Security Sub-sector Roundtable. Occupations were established on three levels, with corresponding skill requirements: 1. Managerial: the highest level requiring the most education, training and experience, and receiving the greatest compensation. 2. Tactical: the mid-level occupations usually requiring some type of education, certification and/or experience. 3. Operational: occupations requiring the least education, training and experience, and receiving the least compensation. SKILL REQUIREMENTS At the operational level, security guards and personnel are required to be licensed to work in BC by the BC Ministry of Public Safety and Solicitor General. 10 While basic security training provides the foundation for entering the security workforce, Roundtable participants clearly indicated that a broader set of skills are required. This applies mainly to the operational level, but also to the tactical level. Table 3 shows the skills required in each of the occupational categories by their relation to the people, goods, data and property to be protected. While management has the most responsibility and receives the greatest compensation, occupations within the tactical and operational categories perform key security functions that require specific capabilities. Table 3: Skills Needed in Gateway Security Occupational Categories FOCUS MANAGEMENT Example: Chief Security Officer TACTICAL Examples: Security Officer, Information Officer, Security Analyst, MFSO OPERATIONAL Examples: Security Guard, Shippers & Receivers, Data Entry Clerks People Recognizing and responding to security & productivity concerns Resourcing, monitoring and evaluating to meet regulations and customer requirements Planning skills and use of technology Efficient security Movement of people Coordinating security services Customer service skills Cultural diversity and sensitivity Behavioural risk management Customer service Interpersonal skills Behavioural risk management awareness Cultural diversity and sensitivity Use of technology Pride in work through an understanding of the big picture Reporting Goods Recognizing and responding to security & productivity concerns Resourcing, monitoring and evaluating to meet regulations and customer requirements Increasing productivity Coordinating security efforts to be contiguous Branding a secure port Analysis, planning, monitoring, evaluating, tracking Recruiting Training Increasing volume Communications Follow directions Use of technology Pride in work through an understanding of the big picture Reporting Data Recognizing and responding to security and productivity concerns Resourcing, monitoring & evaluating to meet regulations and customer requirements Understanding use and limitations of technology Balance data sharing and privacy Technology training Computer and systems analysis Security concerns Understanding of process Understanding of regulations and compliance Languages Computer protocols Data entry Access to data Communications Working with others Accuracy Use of technology Pride in work through an understanding of the big picture Reporting Property Recognizing and responding to security and productivity concerns Resourcing, monitoring and evaluating to meet regulations and customer requirements Coordination with shippers Strategic analysis Speed of processing Productivity and cost effectiveness Public use of private areas Communications Use of equipment Use of technology Pride in work through an understanding of the big picture Reporting 10 BC Ministry of Public Safety and Solicitor General. Security Industry and Licensing. 2009 [cited; Available from: http://www.pssg.gov.bc.ca/ securityindustry/worker/licencetype.htm#training.

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 23 GATEWAY WORKFORCE SECURITY TRAINING AND AWARENESS Roundtable participants emphasized the importance of the general workforce in the Gateway for ensuring a secure operating environment. While employees may be required to follow security protocols, there are relatively few programs in place and no standards for training the workforce to heighten security awareness across the supply chain. Some notable examples of employee security awareness programs include Air Cargo There are relatively few programs in place and no consistent standards for training the workforce to heighten security awareness. Security Training (via CIFFA) and Longshore Worker Training (via BCMEA). Additional information on these programs is included in Appendix IX. Several port operators also provide security awareness presentations for employees.

24 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 25 BEST PRACTICES IN SUPPLY CHAIN SECURITY Rationale for Improving Security Trade between Canada and the Asia Pacific region is expected to grow dramatically due to the expansion of world trade and improvements to transportation infrastructure. As the Gateway expands, so too will the demand for security services. In 2005, the Council of Supply Chain Management Professionals identified that the marine ports in the United States represent the largest risk and ocean cargo container security ranks as a top concern. The Report Card went on to state that while many significant security programs have been launched the Maritime Transportation Security Act, C-TPAT and the Container Security Initiative each of these measures has come up short. Reducing the vulnerability of the supply chain should be a number one priority for the federal agencies tasked with protecting the nation s infrastructure. 11 In 2003, the World Bank noted that: new security protocols being deployed at ports, custom offices, and border posts around the world have the potential to streamline trade transactions as well as promote safety and security. Well-planned security can enhance a port s efficiency and productivity, by speeding up border crossing and customs inspections, while providing increased protection to people and goods. 12 The evidence shows a diverse array of benefits that can be amassed through security enhancements, which stretch from direct and indirect benefits to business, society and to individuals. By increasing supply chain security, companies will see new opportunities for cost savings, have greater visibility for better planning, and be able to forge closer relationships with trading partners all of which can provide them with a significant advantage over competitors who may not be taking the same approach. 13 Basic tenets of logistic operations within a new global environment of heightened security serve as a guide for practice. 14 These tenets were developed from a review of supply chain disruptions due to terrorist attacks, contingency planning efforts, potential new security costs, and new regulations. The five tenets of securityaware logistics and supply chain operation are: Tenet 1: Companies need to partner with local, state (provincial), and federal government organizations that impact the movement of freight. Tenet 2: Companies need to be familiar with their overseas trading partners and take responsibility for securing their cross-border supply chains. Tenet 3: Companies need a mode-shifting capability to accommodate unexpected delays, interruptions, and disasters. Tenet 4: Companies need to develop a suite of communication channels and media to manage crises. Tenet 5: There is a need to adopt the military concepts of agility, reservists, and pre-positioning for the management of business logistics and the supply chain in the new environment. 11 Wilson, R. Security Report Card - Not Making the Grade. 2005 [cited 2010 January 5]; Available from: http://www.slu.edu/documents/business/ cscms/16th_state_of_logisticsreport.pdf. 12 Prentice, B.E., Tangible and intangible benefits of transportation security measures. Journal of Transportation Security, 2007. 1: p. 3-14. 13 Closs, D.J. and E.F. McGarrell, Enhancing security throughout the supply chain. 2004, IBM Center for The Business of Government. p. 52. 14 Russell, D.M. and J.P. Saldanha, Five tenets of security-aware logistics and supply chain operation. Transportation Journal, 2003. 42(4): p. 44-54.

26 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies Supply chain security experts 15, 16 identified seven best practices to improve security and suggested that the most important factor in maintaining supply chain security is to keep shipments moving. The best practices are: 1. Constant movement, not sheer velocity, of shipments within a collaborative effort from operations and security teams. 2. Security in numbers for example, using caravans instead of one truck with an armoured guard, or using 2 drivers in trucks to avoid sleep breaks where the shipment would be at a standstill. 3. Adopting federal safe commerce programs (i.e., C-TPAT or CSI in the US) reduces time spent in customs, which, in theory, allows low-risk shipments to enter the country more quickly. 4. Adoption of business processes that take people out of the loop, enhance security, reduce cost, time and human error. For example, electronic container seals are a process that requires an investment on the part of the business, but the return on investment can be substantial. 5. Adherence to regulations that require importers to provide information on the contents of containerized goods 24 hours before the goods were loaded onto ships in foreign ports boosts visibility, allows companies to load more efficiently and effectively, and is an important security component, as the goods can be seen from point of origin to final destination, and reactions can occur more quickly if there is a delay. 6. Maintaining close partnerships with carriers and evaluating carriers prior to entering into partnerships helps avoid occasional slowdowns. Good partner relations with suppliers, and obtaining as much data as possible from them, boosts visibility, product velocity, and enhances trade. 15 Gillai, B., L. Sept, and G. Bhat. More Security May Have Cost-Saving Benefits (Margaret Steen)--Report on Innovators in Supply Chain Security: Better Security Drives Business Value Stanford Business 2006 [cited 2009 August 25]; Available from: http://www.gsb.stanford.edu/news/bmag/ sbsm0705/knowledge_security.html. 7. The business case, in hard dollars, for security enhancements needs to be made, and used to convince other executives of security s value. Better Practices for Supply Chain Security Education Supply chain better practices can be organized into three levels. 17 Level one shows the minimum security practices expected for organizational relationship management, process refinements and incident planning processes. Level 2 refers to organizations that have gone further than required with their security efforts. Level 3 indicates those practices that are characteristic of companies that have put a very strong emphasis on supply chain security. The review indicates the three levels of practice for a broad spectrum of components everything from relationships (with suppliers, government, carriers, terminal/port operators and customers), to security relating to personnel, information, inventory, facilities and transportation, to management. Particularly relevant to this research is the better practices related to security management education and supply chain education. Advanced best practices that provide management and employees with a broad understanding of the benefits and costs related to supply chain security include: Supply chain security is viewed as a competitive advantage by top management; Firm communicates security policies and standards to employees including consequences of non-compliance; Public recognition and incentives provided for employees reporting suspicious activities. Advanced best practices for supply chain education (practices that develop a workforce knowledgeable in supply chain management and security) include: Has prepared educational material to provide guidelines for prioritizing efforts to minimize risks; 16 Gibbons Paul, L. How to Improve Supply Chain Security. CSO Online 2004 [cited 2009 August 25]; Available from: http://www.csoonline.com/ article/219649/how_to_improve_supply_chain_security_the_trick_is_ to_keep_it_moving_. 17 Closs, D.J. and E.F. McGarrell, Enhancing security throughout the supply chain. 2004, IBM Center for The Business of Government. p. 52.

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 27 Has identified supply chain security education initiatives and has a formal plan for moving employees through the program; Regularly conducts drills and training exercises; Extends its supply chain security training to its trading partners. BEST IMPROVEMENTS FOR SUPPLY CHAIN SECURITY In order to effectively meet the demands of a secure supply chain in today s environment, a more comprehensive and integrated security focus is required, extending beyond asset protection and preventing the introduction of unauthorized contraband, people, or weapons of mass destruction into the supply chain. 18 Overall, the literature showed that recommendations for enhancing supply chain security fall under four broad categories: 18 Leadership and Visibility Public-Private Sector Collaboration Research to Enhance Knowledge of Supply Chain Security Issues Dissemination of Knowledge Through Education and Training The key resulting impacts from implementing these recommendations for supply chain security enhancements include a transformation of the security industry, heightened information sharing, development and utilization of best practices and metrics, identification and execution of research priorities, and improved education and awareness. Improving education and training are essential to enhance supply chain security. 18 Foremost is the development of education and training resources that would act as a vehicle for the implementation of best practices. Research is needed to develop these materials and programs. Guidance, through clear metrics and best practices, for managers and policy makers would enhance the utilization of these materials and programs. 18 Closs, D.J. and E.F. McGarrell, Enhancing security throughout the supply chain. 2004, IBM Center for The Business of Government. p. 52. Training and education in supply chain security should be incorporated into undergraduate, graduate, executive, and industry trade programs for disciplines including business, security, public policy, and law. There is a need for education and training delivered within short modules and sessions that provide an overview, as well as multiple-day programs and semester classes that train participants in the assessment and implementation of supply chain security best practices. The targets of the education materials are broad, and range from company CEOs, line workers, government officials and international stakeholders. Incentives for action will be important in engaging some audiences, such as lower tier suppliers and foreign partners. Based on past experiences, it is likely that incentives (e.g., accelerated cargo clearance associated with fast lane status, fewer inspections, etc.) will be much more effective than penalties. 18 BENEFITS OF IMPROVING SUPPLY CHAIN AND TRANSPORTATION SECURITY The business implications of an investment in security are positive, as demonstrated by a 2006 study of supply chain companies (11 manufacturers and 3 carriers). 19 Many companies reported that their investment in security was offset by the efficiencies and savings achieved through the implementation of improved measures. Companies reported increased revenue of about 7% due to improved security measures. Supply chain companies have reported substantial 19, 20 benefits of from improved security: New security policies that require advance notice of what will be arriving and when allows better control over the raw material inventory at its production facilities; 19 Gillai, B., L. Sept, and G. Bhat. More Security May Have Cost-Saving Benefits (Margaret Steen)--Report on Innovators in Supply Chain Security: Better Security Drives Business Value Stanford Business 2006 [cited 2009 August 25]; Available from: http://www.gsb.stanford.edu/news/bmag/ sbsm0705/knowledge_security.html. 20 Prentice, B.E., Tangible and intangible benefits of transportation security measures. Journal of Transportation Security, 2007. 1: p. 3-14.

28 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies Eliminating theft by adding an array of security techniques, including using teams of drivers instead of single drivers, and using radio frequency identification technology to track containers and trucks; Improved, timelier information about product shipment, leading to better distribution and more satisfied customers; Elimination of filing inconsistencies across members of the supply chain through electronic filing. Improved ability of the purchasing manager to manage suppliers, and enhancement of the buyersupplier relationships; Reduced cargo inspections; Cost savings from improved visibility into supply chains; Improved accuracy of shipping information; Reduction of steps in supply chain processes; Reductions in delivery time or the variance in transit times, reductions in time between order placement and shipping, and more on-time deliveries; Reductions in product tampering; Reductions in staffing needs; Decreased insurance premiums through a decrease in the frequency and severity of insured losses (due to improved inspection, enhanced facility security, better monitoring). Firms qualifying for Technology Asset Protection Association (TAPA) certification may receive insurance discounts in the US. 21 Improved security measures benefit markets and governments: 22 A reduction in the illegal importation of goods helps domestic producers to prosper, leading to greater tax revenues for government and the local economy; Preventing the introduction of pests and diseases through heightened security and inspections benefits domestic agriculture and markets; Improvements in trade flows can result from security improvements that improve the efficiency of cross-border traffic; The tourism industry directly benefits from anti-terrorism security: if country risk increases, tourism decreases; Security improves property values: personal safety means people go to work and are productive; safer facilities attract more and better-trained employees (circular argument for improving training of security employees); consumer loyalty is encouraged through reliability of supply; Weak security programs drive up recruitment and training costs. Improved supply chain and transportation security also benefits society 22 by protecting all those who may be affected by a potential terrorist attack, by enhancing a country s claim to waterways and lands, and decreasing the likelihood of pollution by vessels working in the supply chain. Improved supply chain and transportation security directly benefits individuals 21 through reductions in stress and inter-group tension, the provision of a more stable and secure environment, and a reduction in the number of emergencies. 21 Closs, D.J. and E.F. McGarrell, Enhancing security throughout the supply chain. 2004, IBM Center for The Business of Government. p. 52. 22 Prentice, B.E., Tangible and intangible benefits of transportation security measures. Journal of Transportation Security, 2007. 1: p. 3-14.

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 29 KEY ISSUES IMPACTING SECURITY IN GATEWAY Introduction This section highlights key issues that emerged from research and consultations on security human resources and the labour market in the Gateway. A list of stakeholders interviewed and/or consulted on security issues is presented in Appendix V. The importance of security in the Gateway was supported by all stakeholders who participated in the process. Airport security was identified as being at a A consistent level of security needs to occur at each point along the supply chain to minimize risks and to facilitate the efficient movement of goods and people through the system. Improved access to U.S. markets, with an ability to move goods more quickly and securely across the border; Reduced liability/risk of a major security or terrorism incident due to current preventive measures in place; Reduced insurance premiums for shippers due to reduced product loss and fewer insurance claims; Labour stability through improved security contributing to a strong and stable workforce with low turnover and high quality staff. While the benefits of a secure Gateway were acknowledged, the need for improvements in security was also highlighted. Labour market and human resources issues that need to be addressed to improve security in the Gateway are summarized in the following points. more advanced stage due to well established security procedures developed in response to the September 2001 terrorist attacks, U.S. security requirements and the number of security agencies operating at the international airport. It was acknowledged that most of the ports and warehouse facilities are focused mainly on goods movement rather than people and therefore have different security requirements. While the focus of security may vary by facility, the need for a consistent and comprehensive approach to security across the supply chain was endorsed. The benefits of security identified by stakeholders included: Improved marketability of the Gateway to international shippers, thereby increasing the competitiveness of British Columbia s Asia Pacific Gateway; Economic benefits from increased trade through the Gateway; A Supply Chain Network Approach to Security The supply chain in the Asia Pacific Gateway includes all of those facilities and activities involved in the sourcing, procurement, transport, storage and distribution of people and goods. A consistent level of security needs to occur at each point along the supply chain to minimize risks and to facilitate the efficient movement of goods and people through the system. Security in the Gateway, as it operates today, is largely focused on particular assets or groups of assets that share common functions. For example, each port terminal may have its own security personnel and programs, and each terminal may choose to meet a particular security standard within the context of the federal Marine Transportation Security Act. Across the supply chain, security at the marine ports is not the same as security at the airports, at warehouses or in the transportation sector. There is no consistency or

30 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies The lack of a comprehensive, network approach to security increases the risk within the Gateway, leaving the supply chain only as secure as the weakest link. uniformity in how contracted and in-house security functions operate, other than conformity with federal legislation and the basic skills training required for security guards. The current approach for security in the Gateway suffers from a lack of integration, cohesion and consistency that limits the effect across sectors, jurisdictions and all modes of transportation. 23 Improving contract and in-house security within the Gateway requires a supply chain network approach. The security industry as it operates within firms today is not engaged in the broader issues of supply chain security, but is focused primarily on fixed asset security. 24 The industry needs to broaden its scope and role in the protection of supply chain processes, activities and infrastructure. The lack of a comprehensive, network approach to security increases the risk within the Gateway, leaving the supply chain only as secure as the weakest link. Stakeholders supported the need for a consistent and comprehensive approach to security across the Gateway supply chain. This requires collaboration and integration of security across all components of the supply chain the ports, airports, warehousing and transportation sectors. More urgently, it requires strong leadership to bring Gateway organizations together to achieve a commitment to a consistent standard of improved security. Leadership to Establish a Comprehensive Approach to Security Establishing a comprehensive approach to security in the Asia Pacific Gateway requires strong leadership at both the senior management level within organizations, and at a network level, which focuses on the entire Gateway. Consultations with industry stakeholders identified that there is a lack of support and buy-in to security improvements beyond the regulations. Stronger leadership and commitment to security within organizations and at a network level is necessary to: Establish the social and economic business case/ rationale for a more comprehensive and consistent approach to security to help build industry commitment to improvements; Promote the importance of security to Gateway organizations and agencies; Conduct a Gateway network-wide assessment of security risks and security functions across the supply chain; Be a catalyst for combined action and commitment on security in the Gateway; Establish corporate policies that elevate the awareness of, and priority for, security within organizations; Promote the role of employees and contractors in ensuring the protection of people, goods, data and property. The ability to meet and pay for high security standards being set by the U.S. has been identified as a major challenge for British Columbia s ports. 25 Stakeholders expressed concern about the high cost and marginal payback of incremental investments in security particularly at the ports. This makes it challenging to compete with U.S. ports where the federal government is making significant investments in security, beyond what the Canadian government is currently investing. 23 Purdy, M. The Asia-Pacific Gateway and Corridor: Gaining a Competitive Edge by Doing Security Differently. 2008 [cited 2009 December 10]; 51:[ 24 Closs, D.J. and E.F. McGarrell, Enhancing security throughout the supply chain. 2004, IBM Center for The Business of Government. p. 52. 25 British Columbia, British Columbia Ports Strategy, Co-published by the Ministry of Small Business and Economic, Development and the Ministry of Transportation. March 2005 ISBN 0-7726-5344-5

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 31 National security, with respect to Canada s maritime sector, is identified as a modern imperative that requires profound thought, investment, resourcing and, most of all, government leadership and action. 26 Leadership is required to facilitate action towards a comprehensive and integrated security system. A champion is required, with the requisite authority and credibility, to bring the major players in the Gateway together to begin working towards a common security framework. Leadership options include: 1. Federal government bringing Gateway organizations together to establish a network approach to security (e.g., common standards for security, collaborative forums etc.); this role is particularly well suited to Transport Canada, who is tasked with responsibility for air and marine safety, security, policy coordination and regulatory leadership. 2. APGST providing leadership because it currently has all the Gateway partners at a common table; however, the APGST carries no formal authority that may be necessary to encourage participation. 3. Encouraging industry e.g., ports, airports, rail etc. - to collaborate and take a joint leadership role in bringing the Gateway together to establish a supply chain approach to security. The need for a champion is essential in order to move forward with recommendations to improve security across the Asia Pacific Gateway; strong leadership is necessary to raise awareness of the importance of supply chain security as a national priority and to promote initiatives to assure results. 27 Defining the Asia Pacific Gateway Within this complex network, the concept of security and how it applies to the Asia Pacific Gateway is not well defined. Numerous questions have been raised within 26 Avis, P. Canadian Maritime Domestic Security An Assessment in Late 2007, Two Years Prior to the 2010 Vancouver Olympics. Canadian Military Journal 2008 [cited 2010 January 5]; Available from: http://www.journal. dnd.ca/vo8/no4/notice-avis-eng.asp. the context of this study about what components of the supply chain are included, and what organizations and agencies are affected. The security industry that operates in the Gateway is diverse with a multitude of agencies and organizations providing security resources, programs and services across a spatial network that includes points of entry, transportation systems, and warehousing and storage. After analyzing the evolving threat environment and how security is being planned and implemented in the Gateway, industry experts recommended that a high priority be placed on integrating and linking security programs, players and capabilities across the entire Gateway-Corridor. 25 Roundtable members acknowledged the importance of having a well defined Gateway network that brings key stakeholders together to establish a consistent approach to security. The Gateway needs to be better defined and organized as a first step to establishing a more comprehensive and consistent approach to security. All Gateway supply chain components need to be brought under a common security umbrella. Security Culture There was general agreement among Gateway stakeholders that a security culture is essential to establish a comprehensive, well-integrated and effective security system. One industry stakeholder s comment illustrated this: if you can get employees (including management) up to the acceptance or commitment level on the change curve, it will make a big difference to security. (Figure 3) Consultations identified that the workforce is generally not engaged and is less than committed to security in the Gateway. Some employees are still reluctant to adhere to security protocols; requirements for security passes are not uniformly adhered to; people move in and out of secure areas without proper clearance; and, in some cases, security checks are simply not made. Others pay little attention to security because they are constantly being shifted to different work locations 27 Closs, D.J. and E.F. McGarrell, Enhancing security throughout the supply chain. 2004, IBM Center for The Business of Government. p. 52.

32 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies Readiness for Change WHERE WE NEED TO BE WHERE WE ARE TODAY Awareness I understand the reason for security measures I agree security is a priority Understanding I can see how security will improve safety and protect goals and people I can see how clients will benefit from improved security I am interested in learning more about security functions Acceptance I can see a role for myself in supporting security I work toward change by testing security concepts and change implications I am prepared to discuss and resolve security-related issues Commitment I express personal ownership of the security portfolio requirements I pursue change goals continuously over a long period of time to support improved security Figure 3 Schematic of Employees Readiness to Change and have little if any time to become familiar with the worksite in order to notice activity that may be suspicious or out of context. Labour concerns about increased security measures, particularly at the ports, is well-documented by Cowen 28 who identified that security initiatives may compromise employment security and threaten the rights of workers. The identified concerns focus mainly on the role of security agencies such as the RCMP and CSIS in conducting security clearances and screenings, which is not the focus of this report. Striving to achieve levels of security beyond the current regulations is met with some scepticism. A number of stakeholders stated that the benefits of security have largely been achieved, and that any incremental improvements accrue to the Canadian economy and the broader public. Therefore, it was suggested that 28 Cowen, D., Struggling with Security : National Security and Labour in the Ports. Just Labour: A Canadian Journal of Work and Society, 2007. 10(Spring). governments should not be placing the entire financial burden for incremental levels of security, including new infrastructure and training, on industry. A level of risk is accepted in order to avoid inconvenience or delays in the movement of goods and people. Consultations also identified that senior management s commitment varies and there is often a perception that the risk of a major event is remote. Security can be perceived as an obligation, and an impediment to business rather than a means to improve efficiency or to make the Gateway more competitive. A level of risk is accepted in order to avoid inconvenience or delays in the movement of goods and people. While Gateway operators currently adhere to security regulations, it was strongly recommended that future improvements

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 33 in security be accompanied by a business case that demonstrates the social and economic value, and advantage to the operator and the customer. Building a culture of prevention in the workplace requires a commitment to security at the management level, which in turn must be communicated to all employees. Advanced best practices for supply chain education in the workforce (those practices that develop a workforce knowledgeable in supply chain management and security) have been identified 29 and should be prioritized in the Gateway: Educational materials to provide guidelines for prioritizing efforts to minimize risks; Identified supply chain security education initiatives and a formal plan for moving employees through the program; Engaging and consulting employees for the development of security plans to incorporate their knowledge of site operations and potential security risks. Regularly conducting drills and training exercises; Extending supply chain security training to trading partners; Stated and demonstrated commitment on the part of facility owners/operators to security. Security Personnel Skills and Training Under the BC licensing requirements, security guards working within the Gateway must have completed Basic Security Training (BST, approximately 1 week long) and have sufficient English fluency to converse with the public. Basic security training is offered by a variety of private and public organizations and learning institutions. In addition, there are abundant opportunities for advanced security training in BC, many of which would benefit workers in the Gateway. A summary of relevant security training opportunities is included in Appendix VIII. 29 Closs, D.J. and E.F. McGarrell, Enhancing security throughout the supply chain. 2004, IBM Center for The Business of Government. p. 52. A lack of training and career opportunities are priority concerns to those working in the security industry. The BST is intended as a general course and includes an introduction to private security, an overview of legal issues, processes for documentation and reporting and how to maintain personal safety on the job (Appendix X). Further training for security workers in specific locations within the Gateway becomes the responsibility of the service provider. This is where inconsistencies can occur in training, awareness and capability across the Gateway. The Law Commission of Canada, in its report on The Future of Policing in Canada 30 identified that there is a lack of universal training standards for private security personnel. The report states that there is a need to embrace greater professional standards within the private security sector in order to ensure that private security functions are consistently applied, and that they reflect the core values of policing in a democratic society. Higher standards also contribute to a professional image for private security workers. A 2009 poll of 350 security professionals, conducted by Canadian Security Magazine 31 identified that a lack of training and career opportunities are priority concerns to those working in the industry. Lack of training contributes to safety concerns as well as limiting certification of security professionals and opportunities for career advancement. A scan of training opportunities (Appendix VIII) for security personnel clearly shows that, while there is no apparent shortage of programs, training is fragmented and not optimally aligned, as is training for the supply chain in general. 32 30 Law Commission of Canada, In Search of Security: The Future of Policing in Canada. 2006: Ottawa. 31 Sutton, N. Salary survey results: training remains top concern 2009 [cited 2009 October 17]; Available from: http://www.canadiansecuritymag.com/ Top-Stories/Salary-survey-results-training-remains-top-concern/Page-3. html. 32 Deloitte Inc., Strategic Human Resources Study of the Supply Chain Sector.

34 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies Security providers suggested a reluctance to invest in advanced skill development due to: Limited or no requirements by clients for increased skills and capabilities at the entry level; The cost of increased training with no or minimal return on the investment. The prevailing approach is to train staff only after their capability has been established. Lack of well-defined, consistent standards for security across the Gateway that would drive personnel to a higher qualification level. Basic security training needs to be supplemented with a training curriculum specifically targeted at improving the skills of security personnel in the Gateway. Industry consultations and best practices strongly support the need for improved training at both the operational and tactical levels. Basic security training needs to be supplemented with a training curriculum specifically targeted at improving the skills of security personnel in the Gateway. This includes training in the following areas: Understanding the Gateway supply chain, including security requirements and consequences of non-compliance; Security threats specific to the Gateway supply chain (e.g. terrorist incidents, smuggling and weapons conveyance which usually include a form of transportation cargo handling ships, trucks, and planes serving as targets, theft and property destruction); Basic to intermediate computer skills (depending on placement): -- To learn internet supply chain-theft reporting -- For biometric personnel screening -- Verification recording ability Cultural awareness and sensitivity training; Awareness of behaviour risk assessment; Improved capability to conduct searches and to be aware of security risks; Improved customer service and communication skills; Knowledge of radio frequency identification technology (RFID); Closed circuit monitoring (for facilities, docks, cargo); Understanding of warehouse management systems with radio frequency (RFDC) to track storage and retrieval; Stronger written and oral communications, and English language skills. Improved training of security personnel in behavioural analysis has been done in other jurisdictions, with particular reference to Israel. Security personnel can be appropriately trained to spot suspicious behaviours and to engage passengers in polite and tactful conversation in order to identify people and activities requiring further investigation. Tel Aviv s Ben Gurion Airport is cited as an example where behavioural analysis has significantly reduced the threat of terrorism. Within the Gateway, tactical level (middle management) staff are in demand. The mid management level is responsible for operationalizing and managing security plans, and for working with on-site security providers to ensure a consistent approach to security. The 2005 strategic human resources study of the supply chain sector 33 highlighted that manager-level positions, which are increasing, were the most difficult roles to fill in the supply chain. Other types of positions that were also broadly identified as being a challenge to fill included supervisors and analysts (including information and security). Consultation identified strong support for additional training and career advancement opportunities at the tactical or mid-level security management positions. This includes public safety officers, marine facility safety officers (MFSO) and supervisors. Training should provide for an expanded skill set that includes: Ability to make risk assessments; Improved technical knowledge associated with the facility (e.g., ability to review crew and cargo electronic manifests from international carriers); 33 Deloitte Inc., Strategic Human Resources Study of the Supply Chain Sector. 2005, Canadian Logistics Skills Committee.

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 35 Strategy/operational security plan development; Managing the organization to deliver security; Knowledge of Gateway security issues and risks; Administration and supervisory skills; Strong judgment, leadership and critical thinking skills; Knowledge of supply chain logistics. The need for more effective training in security at the supervisory and middle management levels has been recognized by a number of training institutions. The Justice Institute of BC, for example, has established a new diploma program titled Emergency and Security Management and a two-year Law Enforcement Studies Diploma to prepare people to go into private security. Skills taught include weapons training, vehicle driving, force options, risk management leadership, and supervisory and judgment/critical thinking capabilities. Improving training and skill development for operational and tactical level security personnel requires first defining the core competencies for security professionals operating in the Gateway, followed by the development of a learning curriculum that can be used for course design. Research also identified options to establish security as a career and to standardize training for the Gateway: Establish security within the Industry Trades Apprenticeship program; Work with universities and colleges to identify opportunities for internships and co-op placements in Gateway security roles, to help students have a better appreciation of the level of effort, knowledge, and technical skills one needs to excel in security, and to determine whether a career in security is appropriate for them; 34 Establish a security certificate of recognition program that would require private sector security agencies to meet Gateway specific security standards; Expand the BST program to encompass a broader range of training and skill development. Establishing higher qualifications for Gateway security and a career path will contribute to a stronger professional image for security staff and improved employee retention. Private Sector/Operator Collaboration Security at Gateway facilities can be provided by many different organizations and agencies. At the ports, consultations suggested that there needs to be improved coordination among people with security responsibilities. This is necessary to ensure stronger adherence to security protocols and more consistent application of security measures. A number of challenges were identified with the integration of private security providers and operators. Chief among these was the collaboration on the development and implementation of security plans, and the training necessary to provide effective security. Security providers felt that their expertise was not being used as effectively as it could be to identify on site security risks, security strategies and protocols, and training requirements. Establishing higher qualifications for Gateway security and a career path will contribute to a stronger professional image for security staff and improved employee retention. It was suggested that more collaboration between security providers and those responsible for day to day management of the facility security plan would result in more cost-efficient and effective security. However, it is also acknowledged that security committees comprised of all stakeholders exist at both the ports and the airport, which provide a forum for discussion of security issues. 34 Alexander, D.C., The Role of Universities in Preparing the Next Generation of Security Professionals. Journal of Applied Security Research, 2009. 4: p. 101 108.

36 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies Attraction and Retention Part of the review of labour market needs included an assessment of the demand for security personnel to meet the needs of an expanding Gateway. At the entry level, the security industry attracts relatively unskilled, entry level workers. Entry level pay is generally low and the type of work can lead to potentially high turnover rates. Industry consultations identified that attracting entry level employees can be challenging during periods of low unemployment when unskilled workers are in high demand. However, security positions in the Asia Pacific Gateway (e.g., ports and airports) are higher paying and more attractive compared to other types of security jobs. Recruitment issues can be addressed by branding Gateway security as having higher wages, improved training and career advancement opportunities. Private security companies stated that they can usually find people at the entry level. However, the challenge is finding people with the right skills and attitude, which cannot necessarily be taught in the classroom. The availability of security personnel with basic qualifications and experience will also increase following the 2010 Olympic Winter and Paralympic Games. In the range of 5,000 people are being recruited and trained for security work. Retaining security staff at the supervisory and tactical levels does present additional challenges. Staff generally graduate into tactical level positions, with little formal training. While there are several colleges and institutions offering advanced security courses, opportunities are not aligned into a professional career development path. A more formal certification or specialized education program is required to attract and retain middle management security personnel. Security Standards Security requirements are defined by federal legislation, as well as agreements established at the international level. The security practices stemming from the operational security plans can vary across the Gateway depending on the location (port, warehouse, airport, transportation) and the owner/operator s commitment to security. The lack of a consistent security standard across the Gateway is a potential risk, which will only increase as the Gateway expands and more facilities and services become part of the network. Maintaining this patchwork approach is not in the interest of those facilities and organizations who strive to meet and exceed the regulations. Nor is it in the interest of public safety, and the future marketability of the Gateway. A security standard will: 1. Establish common expectations and standards for security among owners and operators in the Gateway; 2. Acknowledge the Gateway as a defined jurisdiction with a specific approach to security; 3. Contribute to establishing a common security culture; 4. Establish a basis for personnel training and skill development. Security standards would become a Gateway brand attribute and would be applied consistently across the supply chain. Businesses moving goods through the Gateway would be assured of the quality of security regardless of where their products are in the supply chain. Approaches for establishing a Gateway security standard were reviewed with the Roundtable: 1. Establishing an organization similar to CATSA for the ports could result in a more consistent approach to security across the two major Gateway entities the airports and the ports. CATSA is responsible for passenger and non-passenger screening, baggage screening and access control in restricted areas at the airports. A similar function could streamline operational security at the ports. However, this would require federal government involvement (legislation, funding, staffing etc.) to take over responsibility for operational port security. However, maintaining this function with the operator helps to ensure that security is embedded into all aspects of operations rather than being managed at arm slength by the government. This approach would also only address the ports and would require additional strategies for other components of the Gateway supply chain.

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 37 2. Gateway organizations and agencies could come together to establish a Gateway Certifying Partners group that would set security standards. The standards would apply to all businesses operating in the secure sector of the Asia Pacific Gateway. Adherence to the standards would be monitored for quality assurance. Businesses achieving the standard would be security certified and the standards would also be used to set performance expectations for service providers (e.g., contract requirements for private security services). The standards would be supported by changes to security training and education to ensure that the right skills and capabilities can be acquired. 3. Have all network partners adopt international standards for security in the Gateway. ISO 28000 establishes an international security standard and management system that can be applied to facilities in the Gateway. DP World, which operates Centerm (one of two container terminals in Vancouver s inner harbour), is ISO 28000 certified. These standards specify the requirements for a security management system, and links security management to other aspects of business management, including all activities controlled or influenced by organizations that have an impact on supply chain security. Quality assurance is monitored by an independent third party audit. The standard would apply to the owner/operator who, in turn, would require all service providers (e.g., security contractors, trucking) to be able to provide services that meet the standard. Service providers would need to seek out the appropriate training in order to be eligible for contracts. The Roundtable endorsed the concept of a common security standard in the Gateway and recommended that the ISO 28000 be considered. This standard is wellestablished, recognized internationally and has already been adopted by some port operators. Encouraging adoption of the standard within the marine environment was suggested as a first step. Further description of the ISO 28000 is provided in Appendix X. Public Perception of the Security Industry The security industry, particularly at the operational level, is often perceived as a lower skilled position, lacking credibility and respect. The Law Commission of Canada observed that occupations within the security industry are not perceived as professions in the same sense as public policing. 35 Their 2006 report stated that, given the increasingly specialized duties of security personnel, the expense of training and the high rate of employee turnover in the industry, the benefit of professionalization must be considered. 35 Given the increasingly specialized duties of security personnel, the expense of training and the high rate of employee turnover in the industry, the benefit of professionalization must be considered The perception of the industry has far reaching impacts affecting recruitment and retention, investment in training and the willingness of clients to pay for services. Stakeholders agreed that the industry needs a stronger sense of professionalism, borne out of higher training standards, improved branding and establishing security as a profession. Workforce Security Training BCMEA includes a security awareness component as part of its general waterfront safety training for dispatch workers. A number of the port operators also provide security training and awareness to their workforce. The format for these sessions varies from toolbox talks to two to four hour classroom sessions using presentations and information on security issues. Further description of workforce training offered in the Gateway is included in Appendix IX (MFSO and GWST training). 35 Law Commission of Canada, In Search of Security: The Future of Policing in Canada. 2006: Ottawa.

38 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies In general, the supply chain suffers from a lack of awareness or public perception, that feeds directly into the difficulties in recruiting appropriate personnel to fill roles in the industry. 36 The security industry in the Gateway can only be seen as suffering a double hit in terms of public perception: the aforementioned perception of security as a low-skilled position with no defined career path is exacerbated by the lack of knowledge at the post-secondary level of the possibility of security as a career. Collaboration with the Canadian Supply Chain Sector Council to elevate perception of both logistics and security may be warranted. Evaluation of Security Measures The security industry is growing and evolving at a rapid pace in response to the demand for services, but also to changes in technology and best practices. Within the complex spatial network that comprises the Gateway, evaluation of security practices can play a key role in building knowledge and capability to address emerging security issues. It also informs best practices, contributes to stakeholder collaboration, and helps to position the Gateway as an organized industry leader in security. Industry experts 36,37 identified that shared knowledge and information are integral cornerstones to prevention. Collaboration among security providers and agencies enables information sharing, coordination, cooperation and unified action for the resolution of security problems. The importance of knowledge generation and sharing for collective security in the Gateway is also indicated: Evaluation of security practices can play a key role in building knowledge and capability to address emerging security issues. Industry consultations identified an interest in improved collaboration and evaluation of security measures in the supply chain, including evaluation of training and education programs, changes in workforce awareness, and the effectiveness of security procedures. At the same time, however, it is important to recognize that some security practices may be proprietary and may not be shared due to the competitive nature of the industry. A number of operators felt that improvements in security over the past five years has reduced theft, but that further investments need to be evaluated for effectiveness, and justified based on factors such as economics, public safety, improved trade and security. Evaluating existing and new security practices, especially those that influence the training and education of personnel, is important to demonstrate value and sustain momentum around improvements. Establishing the rationale or business case for security in the Asia Pacific Gateway will also help to engage Gateway partners to collaborate on improvements to security. Collectively, the problem is not too little information but the failure to connect the wealth of disparate information, to convert it to knowledge, and to share it widely and wisely in the interests of collective security. 36 36 Purdy, M. The Asia-Pacific Gateway and Corridor: Gaining a Competitive Edge by Doing Security Differently. 2008 [cited 2009 December 10]; 51:[ 37 Avis, P. Canadian Maritime Domestic Security An Assessment in Late 2007, Two Years Prior to the 2010 Vancouver Olympics. Canadian Military Journal 2008 [cited 2010 January 5]; Available from: http://www.journal. dnd.ca/vo8/no4/notice-avis-eng.asp.

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 39 GAP ANALYSIS: GATEWAY SECURITY LABOUR MARKET AND TRAINING By considering the previously identified best practices alongside the key issues raised through stakeholder consultations, gaps in the Gateway s security labour market emerge. Table 4 shows the flow among supply chain security best practices, the key issues identified in the Gateway, gaps to address and the many possible strategies to reduce the gaps. Table 4: Gap Analysis Security Labour Market and Training KEY ISSUES IDENTIFIED BY GATEWAY STAKEHOLDERS BEST PRACTICES IDENTIFIED GAPS FOR GATEWAY SECURITY LABOUR The commitment to security at senior management levels, including awareness of and appreciation for security, funding adequate levels of security, promoting security buy-in across the organization. Degree to which meeting the regulations set out by Transport Canada represents an adequate commitment to security was questioned. Need for a champion to bring the Gateway together under a common security umbrella. Concern around lack of a security culture. Inconsistency in implementation of security regulations across members of the Gateway. Need for additional focus and emphasis on tactical or mid-level security management to operationalize the security plan, work with on-site security providers to ensure consistency, and build the security culture. Lack of understanding of the regulations. The security industry at the operational level suffers from a stereotypical image of low skill levels, high turnover, and a lack of respect resulting in a lack of willingness to pay higher rates and to invest in training front line security staff to provide valueadded services. Leadership and visibility The business case, in hard dollars, for security enhancements needs to be made, and used to convince other executives of security s value.* Adherence to regulations that require importers to provide information on the contents of containerized goods.* Supply chain security is viewed as a competitive advantage by top management. Firm communicates security policies and standards to employees including consequences of noncompliance. Supply chain security is viewed as a competitive advantage by top management. Firm communicates security policies and standards to employees including consequences of noncompliance. Public recognition and incentives provided for employees reporting suspicious activities. Adherence to regulations that require importers to provide information on the contents of containerized goods.* Supply chain security is viewed as a competitive advantage by top management. Has prepared educational material to provide guidelines for prioritizing efforts to minimize risks. Has identified supply chain security education initiatives and has a formal plan for moving employees through the program. Extends its supply chain security training to its trading partners. Dissemination of knowledge through education and training. Public recognition and incentives provided for employees reporting suspicious activities. Research to enhance knowledge of supply chain security issues. Dissemination of knowledge through education and training. Has identified supply chain security education initiatives and has a formal plan for moving employees through the program. Low funding and priority placed on training workforce and building security awareness Meeting Transport Canada regulations offers no measure of senior management commitment to security, nor does it measure the results of increased funding for training staff or raising workforce awareness of security. No champion identified, and lack of willingness to go beyond the regulations by many Gateway operators. Culture of security needs significant improvement. Consistent implementation/ adherence to security regulations that apply in the Gateway. Improved training, awareness and engagement of employees to improve security. Hiring and training within tactical and mid management security in the Gateway. Workforce training on security regulations. Poor image of security operations personnel contributes to perpetuation of low pay rates, attrition, low levels of responsibility and a low level of training required/completed.

40 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies KEY ISSUES IDENTIFIED BY GATEWAY STAKEHOLDERS BEST PRACTICES IDENTIFIED GAPS FOR GATEWAY SECURITY LABOUR Security positions at an entry level are perceived as a short term financial/employment opportunity and less often as a career. Need for greater skills at the entry level of security to include: Written and oral communications, documentation, customer relations skills, analytical and problem solving skills, technology/computer skills (basic, movement of access control systems, verification recording data, ability and willingness to learn evolving technology), English language skills, emergency response, first aid and customer service. The reluctance to invest in additional skills and training is the result of a variety of factors, including: Limited or no requirements by clients to have increased skills and capabilities at the entry level. The cost of increased training with no or minimal return on the investment. The prevailing attitude is to train staff after they enter the workforce subject to their capability and site specific requirements. For many entry level people, security positions are a quick way to earn income. If additional entry level training is required, it would need to be framed within the incentive of a career or trade as opposed to a short term opportunity. Private security providers perception that expertise is not used to its potential to define on-site training requirements, advise on security gaps and requirements, undertake security and risk assessments. Need for improved coordination among people/ organizations/agencies with various security responsibilities. Certification and accreditation are key to improving the status of the industry. Has identified supply chain security education initiatives and has a formal plan for moving employees through the program. Dissemination of knowledge through education and training. Has prepared educational material to provide guidelines for prioritizing efforts to minimize risks. Has identified supply chain security education initiatives and has a formal plan for moving employees through the program. Regularly conducts drills and training exercises. Dissemination of knowledge through education and training. Public-private sector collaboration. The business case, in hard dollars, for security enhancements needs to be made. Supply chain security is viewed as a competitive advantage by top management. * Public-private sector collaboration. Extends its supply chain security training to its trading partners. Regularly conducts drills and training exercises. Public-private sector collaboration. Extends its supply chain security training to its trading partners. Maintaining close partnerships with carriers. Firm communicates security policies and standards to employees including consequences of noncompliance. Supply chain security is viewed as a competitive advantage by top management. Research to enhance knowledge of supply chain security issues. Lack of options for security as a career. Skills of entry level security staff are lacking. The value of front line security staff needs to be recognized beyond their primary function. Lack of investment for additional skills training for security guards. Security is not framed as a career path. Lack of collaboration between security providers and security managers. Organizations and agencies providing security at ports feel uncoordinated and disjointed. Lack of industry status. * Gibbons Paul, L. How to Improve Supply Chain Security. CSO Online 2004 [cited 2009 August 25]; Available from: http://www.csoonline.com/article/219649/how_to_ Improve_Supply_Chain_Security_The_Trick_Is_to_Keep_It_Moving_. Closs, D.J. and E.F. McGarrell, Enhancing security throughout the supply chain. 2004, IBM Center for The Business of Government. p. 52.

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 41 MEETING DEMAND FOR SECURITY PERSONNEL IN THE GATEWAY One of the questions posed by the APGST was whether the supply of security personnel would be sufficient to meet the increase in demand resulting from the expansion of the Gateway over the next ten years. The security sector must meet the demand for labour at the operational level, and the demand for specific skills and experiences at the tactical and managerial levels. According to the Canadian Supply Chain Sector Council, over the next three to five years 12.3% of the supply chain sector s labour force will be new due to new jobs and vacancies created through retirement and turnover. This equates to an annual demand of an estimated 86,330 employees to nearly 260,000 people in three years, and 430,000 in five years. 38 The Asia Pacific region is leading global long-term growth. For BC, the increase in container traffic through the Gateway translates into new jobs and economic growth: just a 1% increase in container traffic would equal $250 million per year and 4000 new jobs. By 2020, Asia Pacific container traffic to North America could generate $76 billion for BC and $230 billion for Canada. 39 In Canada, governments and industry are investing almost $10 billion to quickly expand the capacity of the Asia Pacific Gateway Corridor to accommodate a large increase in the volume of goods imported and exported through the West Coast port system. 40 This predicted economic growth points to the need for increased recruitment for security positions in the Gateway. The labour force within BC and Canada is facing potential shortages of skilled labour as the baby-boom generation nears retirement, and with relatively fewer numbers of young replacement workers. This has put Security services must keep pace with the anticipated industry growth, and be responsive to changes in technology, regulations and skills. pressure on most industries, particularly those that require specific education and training in advance of employment. Security workers, by comparison, require a very short training period with limited specialized training. Workers at the entry level are often unskilled and simply looking for a job and a quick pay cheque. As an overall result, the industry does not experience backlogs in the supply of workers typical of other industries with higher entry level skill requirements. In recent years, there has been significant growth in the number of people employed in the security industry. The number of those employed as security guards (and in related occupations) has grown by 28% in BC between 2001 and 2006, as compared to 19% for Canada during the same time period (Statistics Canada, National Occupation Codes). At the same time that security guard occupations are growing, a decline in the number of commissioned police is occurring, demonstrating the shift to an ever increasing role for private security personal. Table 5 shows the growth in security related occupations in BC and Canada, with growth in many key security occupations higher in BC than Canada, particularly in Security Guards, and Investigation and Security Services. 38 Deloitte Inc., Strategic Human Resources Study of the Supply Chain Sector. 2005, Canadian Logistics Skills Committee. 39 Asia Pacific Gateway Skills Table. 2009 [cited 2009 November 19]; Available from: http://www.apgst.ca/. 40 Roslyn Kunin and Associates Inc, Situational Analysis of Projected Asia- Pacific Gateway Investments in the Western Provinces with a Focus on Human Resources. 2007, Human Resources & Social Development Canada & British Columbia Ministry of Economic Development.

42 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies Table 5: Selected Security Industry Occupations Employment Levels Occupation 2001 2006 Change Change % Security Guards and Related Occupations (G631) Canada 79,515 97,640 18,125 19% BC 8,695 12,050 3,355 28% Investigation and Security Services (5616 NAIC) * Canada 74,280 96,090 21,810 23% BC 9,425 13,800 4,375 32% Other Protective Service Occupations (G625) Canada 11,040 10,700-340 -3% BC 1,745 1,435-310 -22% Locksmith: Other Trades and Related Occupations (H523) Canada 8,125 9,400 1,275 14% BC 1,915 2,110 195 9% Security Alarm Installer and Technician (C142) Canada 50,105 55,310 5,205 9% BC 6,420 7,740 1,320 17% Commissioned police officers (A351) Canada 3,765 2,005-1,760-88% BC 395 185-210 -114% Police officers (except commissioned) (G611) Canada 59,860 67,310 7,450 11% BC 7,070 7,860 790 10% Table 6 shows projections for key management, supply chain and security related occupations in BC from 2009 to 2015. The growth rates refer to the average annual growth from 2005 to 2015. These projections do not take into account turnover due to retirements, and are based on 2001 Census figures. The highest growth rates are for Security Guards, Information Systems Analysts and Purchasing Managers. An annual growth rate of 3.1% suggests that over the next five years, from 2010 to 1015, an additional 2,200 security guards will be required. Table 6: Projections of Selected Security Occupations 2005 & 2015 20 Occupation (NOC) 2009 2010 2011 2012 2013 2014 2015 2005-2015 Change 2005-2015 Annual Growth Human Resources Managers 3,030 3,080 3,150 3,220 3,280 3,360 3,430 1,090 2.2% Purchasing Managers (0113) 890 910 930 960 980 1,000 1,030 320 2.6% Computer & Info. Systems Managers 5,330 5,450 5,590 5,750 5,890 6,030 6,180 1,660 2.4% Purchasing Agents & Officers 3,050 3,080 3,140 3,200 3,270 3,310 3,380 1,240 2.0% Customs, Ship & Other Brokers 690 720 730 740 750 770 780 240 2.3% Shippers & Receivers (1471) 15,900 16,180 16,450 16,700 16,970 17,230 17,510 3,630 1.9% Purchasing & Inventory Clerks 5,100 5,180 5,280 5,360 5,450 5,530 5,630 1,160 1.8% Info. System Analysts & Consultants 14,290 14,630 15,060 15,570 16,160 16,630 17,300 1,930 2.7% Retail & Wholesale Buyers 3,200 3,280 3,320 3,360 3,400 3,450 3,500 1,040 2.1% Security Guards & Related Occupations 14,670 15,240 15,570 16,090 16,510 16,990 17,450 4,630 3.1% Total All Occupations 1,380,040 1,409,170 1,434,870 1,461,060 1,487,670 1,515,410 1,543,360 652,630 2.0%

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 43 Meeting future demand is not likely to be a problem based on historic recruitment levels, an aging retirement population looking for part time work, and the availability of security personal being trained for the 2010 Winter Olympic Games. Roundtable Participants noted that meeting the demand for entry level security personnel can be challenging during periods of economic prosperity. Entry level workers will be attracted to higher paying jobs, compared to lower wages that are typical of the private security industry. However, security guards working in the Gateway are paid higher hourly wages compared to security positions at retail, event and construction sites. Roundtable members indicated that even a slight raise in wages would result in an increase in both the quantity and quality of applicants for operational level security guard jobs in the Gateway. Discussions with the Roundtable confirmed that meeting future demand is not likely to be a problem based on historic recruitment levels, an aging retirement population looking for part time work, and the availability of security personal being trained for the 2010 Winter Olympic Games. The managerial function of security falls under risk management functions of senior managers and executives, although some larger companies will have specific Chief Security Officers or managers with explicit security responsibilities. Risk management is a topic covered in management training programs, although not necessarily as security. Most of the security expertise within management is through experience and in-house training. The Roundtable participants, supported by the statistical projections, do not anticipate a shortfall in managers for security, beyond the pressures for all managers. The demand for tactical level occupations in security is also difficult to track, especially in the supply chain, as the ideal tactical analyst would have an understanding of both security and the supply chain. Roundtable respondents expressed concern for the current and future availability of these occupations as there are no clear career, training or recruitment pathways. It was also expressed that tactical people with good knowledge of both security and the supply chain could be of real benefit to enhance the productivity of both elements, while reducing costs. Additional emphasis is required on developing training programs and a career path for tactical level staff. The demand for managerial and tactical level security personnel in the supply chain is more difficult to measure and monitor, as they are not distinct occupational groups captured by standard government data collection methods.

44 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 45 STRATEGIES TO ADDRESS SECURITY IN THE ASIA PACIFIC GATEWAY It is important to recognize the human element in security, including issues of education and training, policy development, management practices and procedures, psychology, and related subjects. Such research should not be limited to such hardware-bound topics as the humanmachine interface or acceptance technology, but should be predicated on the knowledge that often, the merchant mariner, gangway guard, longshoreman, or terminal manager is the first line of defence against potential attacks, accidents and other hazards. 41 Introduction Human resources planning issues common to the industry have been identified based on a review of best practices, a review of the labour market for security and consultations with industry stakeholders. This section identifies appropriate strategies to organize the security sub-sector and to meet the future demand for security resources. While this report focuses on human resources issues related to security, the consultation process identified a number of potential gaps in infrastructure and surveillance. These include: Improved waterfront security at port terminals; Improved security screening for air cargo; Long range radar for offshore surveillance; Improved coordination of security operations at the ports to address inconsistencies in the application of security procedures by different security providers on-site. 41 Helmick, J.S., Port and maritime security: A research perspective. J Transp Secur, 2008. 1: p. 15-28. This report focuses on training and education to improve security, and is not intended to address specific issues related to security procedures, technology and infrastructure. To address identified best practices and stakeholder priorities, strategies for improving the resources and capabilities of the security workforce have been organized into three key areas: 1. Leadership and Guidance 2. Training and Education 3. Evaluating Impact Within all three areas, collaboration among public, quasi-public and the private sector is required in the planning and implementation of Gateway security. Strategic Area 1: Leadership and Guidance MAPPING THE GATEWAY: SECURITY COMPONENTS AND CORE COMPETENCIES The Gateway needs greater definition to more clearly identify the facilities and services that fall under the security umbrella. An inventory, mapping and description of supply chain components (i.e., warehouse facilities, transportation networks, storage facilities, ports and airports) that need to be included under a common security umbrella is a priority identified by the Roundtable, and a prerequisite to establishing the Gateway Security Network and security standards. Each Gateway stakeholder has unique knowledge and capability when it comes to security. Governments know the threat and hazard environment; individual corporations have intimate knowledge of their own facilities and vulnerabilities; and shippers know the

46 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies door-to-door supply chain. By first defining the scope of inclusion in the Gateway network, this specialized security knowledge can then be utilized and integrated across the Gateway. Importantly, all partners can then contribute to mapping the core competencies needed across levels and types of security positions. Mapping core competencies in security across the operations, tactical, and managerial levels within the Gateway will, in turn, help to define standards, certification and training requirements. Strategy #1: Map the Asia Pacific Gateway for Security That the APGST map and inventory the supply chain that comprises the Gateway, including the full scope of facilities and services that fall under a common security umbrella. ENHANCED SECURITY BUSINESS CASE Federal regulations identify requirements for security at most facilities in the Gateway. However, the evidence shows that the Gateway requires greater consistency and, in some cases, a higher standard of security than what is currently being provided. Achieving higher standards may require additional investments in staffing, training, equipment and other resources. Some The Gateway requires greater consistency and, in some cases, a higher standard of security than what is currently being provided. Strategy #2: Develop the Business Case for an Integrated Supply Chain Approach to Security in the Asia Pacific Gateway That the APGST develop the business case for enhanced security that addresses the incremental social and economic benefits of improved security to owners/operators, the public, and governments. Strategy #3: Develop and Implement a Communication Strategy to Establish Awareness and to Test the Validity of the Business Case with Industry That the APGST implement a communication strategy to promote the value of Gateway security, and to promote collaborative action among Gateway partners. CHAMPION FOR SECURITY Beyond the current regulations, a champion is required to bring the individual components of the Gateway together, and to be a catalyst for action on improving security and reducing security risks that may reside in the supply chain. While three options for designating a champion were discussed, the federal government has both the authority and capability to bring Gateway operators together to collaborate on security. The federal government also has a policy mandate to protect the Canadian public from security threats and to facilitate the movement of people and goods across national and international borders. Gateway facility operators, on the other hand, are largely concerned with the efficiency and safety of their individual facilities; a network perspective is not their priority mandate. owners/operators have already made this investment recognizing that it provides a competitive advantage. However, others argue that meeting the regulations is sufficient, and that additional improvements need to be supported by a strong rationale and business case. Building the commitment to supply chain security in the Gateway requires a concise business case outlining the value of improved security to Gateway owners/ operators, the public and the provincial and federal governments. The rationale for improved security needs to be strongly communicated, and used to bring the Gateway partners together into a forum for collaborative action. Strategy #4: Establish a Champion for a Supply Chain Approach to Security in the Asia Pacific Gateway That the federal government, led by Transport Canada and/or HRSDC, facilitate the establishment of a forum for collaborative action toward a supply chain approach to security across the Asia Pacific Gateway, including establishing a security network, establishing a security standard, stronger leadership by Gateway partners, improved training and the evaluation of security initiatives.

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 47 GATEWAY SECURITY NETWORK Leadership and guidance focus on organizing the security sector in the Gateway, and establishing a more consistent and comprehensive approach to security across the supply chain. Given the strategic importance of the Gateway and its anticipated expansion, a Gateway-focused collaborative is required to provide the integration necessary for a network approach to supply chain security. This collaborative would provide for full participation by Gateway supply chain partners, and would lead to an industry-driven approach to security. Roundtable members acknowledged the importance of having a forum to bring together the primary stakeholders responsible for security in the Gateway. A Gateway Security Network, with participation from Transport Canada, the provincial government, Port Metro Vancouver, Vancouver Airport Authority, Port Rupert and representation from the transportation and warehouse sectors would take responsibility for establishing a consistent and comprehensive approach to security in the Gateway. The Network would establish uniform security standards, advise on security training and education requirements, share and promote best practices, and build awareness and understanding of A Gateway-focused collaborative is required to provide the integration necessary for a network approach to supply chain security. emerging issues and security policies and regulations. The Network would also develop a marketing and communications program to promote the Gateway as a secure supply chain for the movement of goods and people. While the Gateway Security Network is a priority, the advice from the Roundtable was that a leadership group should be formed only after the critical building blocks have been put in place. Specifically, defining and mapping the Gateway, building a business case for improved security, implementing a security standard, and obtaining the commitment of industry leaders needs to occur prior to formalizing a Gateway Security Network. Regardless of when a Network is formed, it is critical that leadership is in place to move initiatives forward, sustain momentum and share best practices for continuous improvement. Strategy #5: Establish a Gateway Security Network (GSN) That Transport Canada, the Province, the Vancouver Airport Authority, Port Metro Vancouver and Port Rupert, and representation from the transportation and warehouse sectors establish a formal Network to provide leadership and direction on human resource and labour market issues for security in the Gateway. DEFINING AND IMPLEMENTING AN ASIA PACIFIC GATEWAY SECURITY STANDARD A common security standard will provide consistency across all facilities and services, and can be used to set training and education requirements. The standard can become a Gateway brand attribute; businesses moving goods through the Gateway would have quality assurance regardless of where their products are in the system. Roundtable members recommended applying the ISO 28000 standard for security management in the Gateway. This standard is already being adopted by some port operators, is internationally recognized, includes a quality control function and allows for the continuous alignment of security policies and procedures with the necessary training and awareness programs. The Roundtable recommended that the ISO 28000 security standard be implemented first within the marine/port environment, and then more broadly applied to the Gateway. The results of the business case should be used to confirm the broader application of the standard across the Gateway.

48 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies Strategy #6: Establish and Promote Gateway Security Standards and Certification That the GSN, once established, evaluate and adopt ISO 28000 as a uniform security standard for the Gateway. Adherence to the standard would be required in order for a business to be part of the Gateways, and certification of owners/operators would acknowledge those who have met the standard. Strategy #7: Assess Security Standards and Establish ISO 28000 Security Standards at BC Port Facilities Leading international ports have adopted ISO 28000 standards. ISO 28000 standards could be considered for major BC ports to help achieve a more consistent approach to security. Strategy #8: Brand the Gateway with Improved Security Standards That the GSN market and promote the security network and standards as a Gateway brand attribute to customers, its potential workforce and the public. IMPROVE BASIC SECURITY TRAINING FOR THE GATEWAY Basic security training needs to be supplemented with a training curriculum specifically targeted at improving the skills of security personnel in the Gateway. Gateway partners need to engage in a process of curriculum development based on the skills and capabilities required by operational and tactical security personnel to meet the security standard. A Gateway Training Advisory Group should be established to define learning outcomes for each level of security personnel along a career path, and to work with learning institutions to determine how best to design and implement training programs. This should also include reviewing the training program (curriculum and availability) for the MFSO. Training could then be delivered widely through organizations that are already delivering security training, and through the Gateway organizations that need to train their non-security workforce. Development of a certification process for APG-trained security personnel could be explored, and would contribute to branding the Gateway. Strategic Area 2: Security Training and Education Industry consultations strongly supported the need for improved training at both the operational and tactical levels to meet the security needs of the Gateway. Consultations identified that tactical (middle management) level staff are in demand and require improved training and a career path. Establishing a more focused approach to security training for the Gateway will contribute to a stronger professional image for security staff and improved employee retention and career opportunities. Strategy #9: Establish a Gateway Security Training Advisory Group That a Gateway Security Training Advisory Group be established to lead development of training and skill development programs for security personnel at the operational and tactical levels. Strategy #10: Establish Accreditation for Gateway Security Personnel That the Ministry of Public Safety and Solicitor General establish an accreditation for personnel completing the Gateway security training. Successful applicants for licensing could be further designated as an Asia Pacific Gateway Security Consultant, once sufficient (2 years) experience in Gateway security has been completed. At the entry level, establishing higher standards for security training presents particular challenges. Many people entering the security workforce do so at a very low pay level, and are often anxious to work as quickly as possible in order to obtain income. The relatively short BST course (approximately one week) enables entry level workers to be placed at a worksite within

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 49 Reducing the time required for testing and licensing would enable security personnel to obtain additional training and still access the workforce within the same timeframe. a short period of time. However, this timeframe can extend to 4 or 5 weeks, depending on how long it takes for trainees to be tested and licensed by the province. Reducing the time required for testing and licensing would enable security personnel to obtain additional training and still access the workforce within the same timeframe. Strategy #11: Review BST Testing and Licensing Approval Processes That the province review options to reduce the time required for testing and licensing candidates for successful completion of basic security training courses. Within the Gateway, the potential labour and skill shortage focuses more on supervisory positions and middle management roles. Industry consultations identified a shortage of skilled and knowledgeable staff at the middle management (tactical) level, as well as the need for additional supervisory staff to coordinate and manage operational security plans. This shortage will be exacerbated as older and more experienced workers retire from the workforce. Meeting the demand for supervisory and management staff by tapping the general labour pool is not the most efficient or practical option. Establishing training and career advancement opportunities that enable those entering and those within the security workforce to gain Gateway industry knowledge provides for a more stable and effective security workforce over the long term. A range of different training programs exist at public and private learning organizations. However, these programs need to be designed to address the specific needs of the Gateway and organized into a program that would enable an individual to establish a career path. Strategy #12: Develop a Tactical Level Training Program That the Gateway Security Training Advisory Group develop a certification program for tactical/middle management that will provide candidates with an interest in security in the Gateway with the necessary formal training, skills and qualifications to make security a career. WORKFORCE EDUCATION AND AWARENESS IN SECURITY: TRANSFORMING THE WORKPLACE CULTURE The workforce within the APG is broad, and includes thousands of workers at ports, warehouses, the airport, and the transportation sector that are not employed in a security-specific position. The commitment to security among workers varies significantly by facility. However, industry stakeholders identified that if you can get employees up to the acceptance [or] commitment level on the change curve, it will make a big difference to security. While some owners/operators have A minimum standard of workforce training/orientation should be set for a level of security knowledge and awareness in order to work in the Gateway. employee awareness programs, there is no standard for security awareness training for employees. In addition, employees should be consulted in some form on the development of security plans because of their knowledge of site operations and potential security risks. This helps to build ownership of security at particular sites. A minimum standard of workforce training/orientation should be set for a level of security knowledge and awareness in order to work in the Gateway. From these standards, a workforce security training program could be developed and administered by a central body such as CIFFA or the Canadian Society for Training and Development. Individual companies and organizations already delivering training could ensure

50 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies that what they deliver meets the minimum standards, while organizations not currently delivering workforce security education would benefit from the existence of a new program. Strategy #13: Establish a Gateway Workforce Security Orientation and Awareness Initiative That a minimum standard for employee security orientation and awareness be developed and implemented by owners/ operators in the Gateway. The orientation program would be a mandatory part of new employee orientation with updates as part of other training programs (e.g. workplace health and safety). The awareness program should be ongoing, providing reminders of security risks, protocols and procedures in the workplace. Strategic Area 3: Evaluating Impact An evaluation framework is required to measure the impact of new initiatives in security training, recruitment, industry organization and branding on actual improvements in security. This will allow for continued improvements to the training processes and human resources strategies and to build the case for further uptake of effective activities across the supply chain. Within current measurement/audit systems (i.e. compliance with the Marine Transportation Security Act and Regulations), there is no way to measure outcomes related to enhanced training or education of security personnel and the Gateway workforce. Evaluation should include performance measurement and monitoring, system evaluation, and impact evaluation of new practices, with outcomes feeding back to the GSN to help identify best practices and assist in decision-making. To maintain objectivity in this process, a combination of academic and governmental institutions, professional organizations, and private sector firms could contribute to a Gateway evaluation and knowledge transfer initiative. Strategy #14: Develop and Implement an Evaluation Framework for Security Practices in the Gateway That the GSN establish an evaluation plan and program to assess the effectiveness of training, education and employee awareness initiatives, and to measure the impact of best practices.

Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES

52 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 53 APPENDIX I NOTES AND OUTCOMES OF BC SECURITY ROUNDTABLE MEETING 1 AUGUST 11, 2009 Introduction and Session Objectives John Forsdick opened the meeting and welcomed the participants. John reviewed the meeting objectives and the role of the Roundtable in providing advice to the planning team on human resources and labour market issues related to security in the Gateway. The first meeting of the Security Industry Roundtable focused on: 1. Introducing and establish the role of the Roundtable; 2. Establishing a common understanding of the study and the security sub-sector; and 3. Identifying security sub-sector strategic issues that need to be addressed in the study. Asia Pacific Gateway Skills Table Background Information Oksana Exell welcomed participants and provided a brief introduction to the Asia Pacific Gateway Skills Table. The Gateway was described as an integrated supply chain; the focus is on the movement of goods into the BC Gateway as well as private security operations that deal with the Gateway. The value of goods movement is estimated at $28 billion, and this is expected to double by 2020. With this increase in revenue comes a massive increase in infrastructure and the resulting expenditures. Security is a vital part of the Gateway. Various studies have suggested that security in the Gateway needs to be better understood in order to identify challenges and opportunities that may need to be addressed in order to keep pace with a doubling of trade in the Gateway. Specifically, can the demand for security personal be met; are the skills and training available for security personal; and what needs to be put in place to recruit and retain a skilled workforce. It was emphasized that the Security Sub-sector Roundtable is an integral part of the study, and will be used to obtain advice and direction on security related challenges and opportunities. Overview of the Security Sub-sector Study and Industry John Forsdick provided an overview of the study, including the research and the Roundtable meeting schedule. Copies of the presentation were provided to all members. Michael Izen then provided an overview and description of the security industry. This overview resulted in a group discussion in regard to the direction of the security industry and current problems with the security industry. Key points outlined in the overview and the resulting discussion included: Overview of the Security Industry (see attached presentation for detail) Security is a rapidly growing industry, with both an increase in the number of security people and an increase in the diversity of security related functions. The number of private sector personnel is almost double that of the number of police officers Private security has a large range of ages (quite young and older (55+)) when compared to police force (which is more the middle range)

54 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES Security is also a secondary function of other staff, for example, the secretary/receptionist has a front line screening role for people coming into a facility. Comments on the Direction of the Security Industry provided by Roundtable members included: Industry is migrating from only access control to more sophisticated technology (camera systems, pulling data from photo images etc.) resulting in a shift towards a more technical and skilled environment. Functional technology within a building is only as effective as the person that is monitoring the screen/data. Skills, such as interpreting data, can be applied in other areas, such as tagging goods as they enter a building or interpreting data from an x-ray machine at the airport. Example of CN Rail Operation between Prince Rupert and Chicago research conducted into who to work with and what equipment the US will accept this level of security is embedded in the Port and CN, and monitored by people that can understand, interpret and communicate information. Skill sets that are required in security personnel are becoming more technology based future employees must be able to learn these skills quickly. Customer Service was identified as an important skill set security personnel can be interacting with cruise passengers and then a truck driver transporting goods. English language skills were also identified as a challenge. Identified need to recruit personnel who possess customer care skills coupled with technology skills as a major challenge. Technology could have an impact on the number of employees that are required; however, technology has not decreased labour demand but has increased expectations of the labour force. Identified the importance of analytical skills (watching the computer/video screens) The Basic Skills Training requires 44 hours of security training, and is mandated by the federal Government. Additional training may follow depending on what role and what location personnel will fill when they are on location. Security as access control identified a shift towards security personnel taking on many activities that are more diverse but value added. Roundtable members identified and discussed issues (potential and immediate) related to security in the Gateway: Roundtable members suggested that there is no obvious problem with the industry. Awareness: the focus on security has increased due to the need to be aware of the US regulations combined with the realization by private industry that security issues can disrupt the flow of business. Standardized training in the marine environment every point of entry at the waterfront would have the same procedures and practices (i.e. onsite training). Identified that individual security stakeholders in the US are more fragmented in their practices than in Canada. Major transport companies in the US have their own individual security requirements. Canadian companies must meet these individual requirements to conduct business; abiding by the highest standard was identified as the best approach. The US security environment is more prone to liability lawsuits in comparison to Canada transferring blame to the security companies which raise concerns around insurance. Canada is a country that is based upon immigration resulting in challenges with language skills and writing skills. Written and oral skills need to be set at a minimum level for employment. Suggestion to create a standard assessment procedure for hiring across the security industry. The security industry has a minimum requirement for training ((BST 44 hours) to meet from the provincial government and then specific

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 55 training follows. The security industry must identify the career path of the individual while considering the needs of the specific client. No standardized training beyond the BST program. Each company has their own testing system for communications, writing and comprehension. Eculine Canada Inc: Safety Management Systems and Security Management Systems: seek out individuals who can understand a security system, can teach how it works and who is accountable for the management of the program. A broad holistic perspective around security. Licensing and Accreditation: Identified as difficult to organize majority of the security operators are small mom and pop shops (low barrier to entry to the security industry) combined with a shift back to contracting security work out as it has become easier to find personnel. Insurance identified as an issue. Has the security industry approached the insurance industry around this problem and challenge? What if certification and commonality of training etc. was only used for the specific sites, for the chain of locations that make up the Asia Pacific Gateway? Overall, the group agreed that this approach would make certification and commonality more possible (example of hospitals given). Security Sub-sector matrix Michael Izen provided an overview of security industry sub-sectors and descriptions. Participants were asked for feedback on their preferred approach. The following section outlines the key components of the overview as well as the resulting discussion. Security Sub-sector Segmentation Operational - security guard, entry level Tactical mid range Managerial executive etc. Ten Security Sub-sectors 1. Access Control - basic function 2. Computer System Security essential 3. Corporate Security 4. Cross-Border Security excluding public agencies 5. Enforcement - 6. Information System the data of the users of the port 7. Inventory Control 8. Legal 9. Regulatory 10. Security Analysis and Planning -- Identified that if an overall security plan could be created for the Asia Pacific Gateway it could potentially be branded and applied in other jurisdictions. -- Suggested Security Planning and Management as better terminology for subsector 10. Four Perspectives of the Security Industry: What is the security industry protecting? Property Goods Data People -- A different perspective through which to view the security industry; the 4 areas within which security takes place. -- Suggestion made to analyze each of the ten sub-sectors through the four perspectives. -- General support for the 2nd approach (4 perspectives) as the preferable approach to be taken. -- Identified that the ten sub-sectors are possibly more internal to the security industry. -- Suggestion of creating a base of training using a modular system; if personnel were to work in a hospital they would take one module of training, if they were to work on the waterfront, they would take another.

56 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES The Roundtable was asked if the focus of the study should be on those individuals who are entering the system. Identified the need for client buy-in from the top; without this, additional training in security will not be perceived as value added. The drivers for improving security functions would be improved efficiency, the ability to move goods in a safe and secure manner, improved marketability of the Gateway and reduced liability. Identified that some companies are quite explicit with the quality of guard that is required, though this is not always the case. Until there is support at the client/managerial level, major changes in security training are unlikely to occur. Need to keep in mind that the security industry operates in a competitive environment, which would result in a struggle to find the funds to send staff on courses unless there is a willingness on the part of clients to pay for a higher level of service. Identified that it is somewhat presumptuous to assume the gap is in the entry level; the Roundtable discussion suggested that the gap may be more at the managerial level and with the end-user. The Roundtable was asked how the gap at the managerial level can be addressed. Incentives Differentiating and/or branding Vancouver as superior. By following recommendations, the reward would be differentiating yourself as one of the companies that makes the cut Objective is to create a standard that we can abide by, aside from the competitiveness of the industry. Security sub-sector Labour market gaps Roundtable members were asked to participate in an exercise where they voted for what they believe to be the top five gaps in skills requirements in security employees. The results from this exercise are as follows: Skill Requirement Gaps Top Results Communication skills (verbal & written) Customer relations skills Analytical and problem solving skills Technology/computer skills (basic, movement of access control systems, verification recording data, ability and willingness to learn evolving technology) English language skills Decision making skills Roundtable discussion points: Establishing a career path for personnel is vital in determining what direction training should take. The need for security personnel who understand the regulatory environment in the US was identified (similar to a security broker or a freight forwarder). The focus of Basic Security Training (BST) is a general overview of all aspects of the security industry. The licensing touches on language requirements. It was noted that only if language skills are questioned are personnel sent to take the LPI (Language Proficiency Index). Next steps John Forsdick asked the Roundtable members to provide any non-proprietary resources that could inform the study. An interview instrument is currently being developed; reinforced the importance of a speedy response on the part of participants as it is integral to gauging the next steps of the study.

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 57 Industry Survey Results Prior to the August 11th meeting of the Security Roundtable, participants were asked to complete an industry survey in regard to Human Resources and Labour Market Issues Related to Security. Six participants completed the survey. Participants were asked to identify the top five labour market issues facing the security industry in the Asia Pacific Gateway. The most frequently identified issue was the ability to attract properly skilled security personnel. Further to this issue, retention of quality employees was identified as a challenge due to a competitive labour market and the loss of experienced employees to retirement. Participants identified a shortage of specific training for security personnel as another market issue facing the security industry. It was suggested that standardized training for security personnel throughout the Gateway community should be created and implemented which would begin to address the issue of consistency in security delivery across the Asia Pacific Gateway. Participants were asked to identify the extent to which certain human resource issues are challenges currently facing their organization with respect to security employees. Issues identified as creating the most significant challenge included: Education and training Lack of defined/standard career path(s) Retention Issues identified as creating the least challenge included: Creating and maintaining a diverse workforce Requirement to provide 24/7 coverage Succession planning labour relations Loss of experience/aging employees (identified as a potential challenge for the future) Communications skills were also identified as a labour market issue. This issue was raised in relation to the language skill levels as well as documentation skill levels of security personnel. Participants also mentioned the need for refresher training on software based systems, customer relation skills and processing applicants through Transport Security Clearance (TSC) as labour market issues facing the security industry. Participants were asked to indicate the top gaps in skill requirements for security employees. The top responses are as follows: Communication Skills (verbal and written); Technology/Computer Skills; Analytical Problem Solving Skills; and Customer Relations Skills When asked if enough/adequate training courses are available to meet the needs of employees that lack necessary skills, 67% of participants said no. This response was due to the opinion that the economic environment makes the implementation of these courses difficult, the need for standardized training at each level of service within the Port community and an overall lack of availability of training courses for security personnel.

58 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 59 APPENDIX II NOTES AND OUTCOMES OF BC SECURITY ROUNDTABLE MEETING 2 SEPTEMBER 29, 2009 Meeting Objectives The second meeting of the Security Industry Roundtable provided: 1. An update on the Security Sub-sector Work Program 2. A review of the demand/supply requirements for security in the Gateway 3. Identification of priority labour market and human resources issues related to meeting the demand for security in the Gateway Update on the Security Sub-sector Work Program John Forsdick presented an update on the Security Sub-sector Work Program. This overview covered the results of the first Roundtable Meeting, the supply chain context and the steps of the work program that have been completed to date. Security Industry Demand/Supply Scenario Michael Izen presented an overview of the industry demand/supply scenario. This presentation covered both the demand/supply projections for security workers and the demand/supply for specific skills areas. The resulting Roundtable discussion is summarized below: Questioned if the projection for future demand for security was reasonable; clarification given that the projection applies to all security workers in BC but the participants still felt that that the 2009 number (14,570) was a bit high. Questioned if finding the supply of workers to meet the projected numbers of security employees is attainable; Roundtable members didn t think that there would be supply issue, especially in the current economic situation where there are many people looking for entry level work and the security workforce training initiative being undertaken in preparation for the winter Olympics. Identified that the province will see an increase in private security as the private security industry begins to take on new roles that were traditionally filled by the public police force. Therefore, the projected 3% increase in security jobs is considered acceptable and achievable with the current workforce. Identified that there is not a shortage of people, but a shortage of people with the right skills for security. Security Industry Image/Branding Roundtable members noted that a basic security worker position is regarded as one step better than a job in the fast food industry; it is difficult to retain employees in an industry that does not have any prestige. Comment made that there is a great difference between using the term security professional and security guard. This influences employee morale and self esteem. The industry is not allowed to use the word officer (security officer) as it has a police connotation. To attract people there are different levels of security guards, the bottom level is for construction sites.

60 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES Explored the idea of creating a security brand for the Gateway; companies would need to prove their value and the value of security in order to convince potential customers that security is a good investment for the company. Identified that if the work is part-time then there are no benefits (health etc.) in less employee retention. There are relatively few positions in middle management (tactical level) in the security industry; the majority of security personnel are at the operational level. Opportunities for career advancement can be limited. Roundtable members noted that security staff at the port/airport deal with more complex situations compared to construction sites for example, and are therefore more skilled and better paid. Progressive movement to job locations which are more demanding is one form of career advancement. Identified that a sense of pride in the work is missing; money is a large component in having pride in your work and the majority of security guards are making under (well under) $20 per hour. Low wages are a barrier to entry for higher quality candidates. Matrix of occupational levels & skills required Participants were presented with a matrix that broke down the skills required in each of the security occupational categories by their relation to the people, goods, data and property to be protected. The occupational categories included management, tactical and operational. The resulting discussion is summarized below: Participants identified that the descriptions provided an accurate assessment of skills required at different occupational levels. Comment made that technology was not identified as a core competency for security in any discussions; this is due to the fact that each company trains employees on their own technology, which may be considered to be proprietary. Identified that a strong command of the English language, and the ability to read and write reports are critical issues; many companies are not necessarily hiring people with those skills. Identified that access control systems, alarm systems and data collection systems are the typical technology skills that a security employee would need; basic knowledge of computers is needed in order to be able to use them and not everyone can. Matrix of industry drivers and key access points Participants were presented with a matrix of security industry drivers and key access points. The security drivers presented were broken down into categories of people, goods, data and property. The resulting discussion is summarized below: Do these drivers address your understanding of industry motivations? -- Identified the security of data systems is as a driver that is not covered in the matrix. What is the greatest vulnerability at access points within the Gateway? -- Identified that the greatest vulnerability is not at the airports and ports but rather at warehouses and on trucks; do not always know the destination of the trucks, and don t have security controls. -- Identified that it is pretty difficult to steal off of a moving train, compared to the unpacking/ repacking that occurs in warehouse operations. -- Similarly, at the Ports, sealed containers prevent easy access and theft. It was noted that thefts of goods at ports has decreased substantially in the past five years since security measures have been put in place. -- Once the containers leave the port they become more vulnerable, particularly if the destination of the goods is known. -- Intermodal yards (inland ports) were also identified as vulnerable access points. The question was raised that insurance and liability is identified as major driver in the US literature; why is this not the case in Canada? -- Identified that most trucking companies and warehouses have a minimum level of insurance that they need to operate.

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 61 -- Identified that these trucking companies and warehouses also have a very low liability for the goods that they are moving or storing. -- Identified that the focus of security has shifted from what is missing from the load to what may be added to the load (post 9/11). Security interview results and key issues John Forsdick presented an overview of the results of the interview process as well as the key issues that emerged. The following issues and gaps in the security industry were identified for discussion: 1. System/Industry Level 2. Executive/Board 3. Management 4. Tactical 5. Operational 6. Organization/Cultural 7. Public perception and awareness of security (possible 7th) Participants took part in a discussion focused on security training. The results are summarized below: Comment made that there is a belief that all of the work the Justice Institute does is a direct result of regulations. However, it was noted that the Justice Institute does have the ability to customize training and are capable of providing training to fill current gaps. It was noted that Douglas College also provides training and is in the process of redesigning their training program to address gaps. The comment was noted that candidates for Douglas College courses often include people who are re-entering the workforce and are being subsidized with government funding. Many of these people may have marginal skills, therefore requiring additional training and preparation for the workforce. It was noted by private operators that the screening process for those entering the Douglas College stream may be different to those entering the private supplier courses. Identified a disconnect between the training institutions and the employer as each possess different criteria and different methods for screening. Participants took part in a general discussion as a result of the key issues and gaps that were presented. The results are summarized below: Identified that the value of strong security within the Gateway is the overall added competitiveness of the industry and how it adds to the Canadian economy and then the protection from terrorists. Identified that government funding initiatives would have a huge impact on the security industry. The example of BC Hydro (Power Smart) was given; all the programs that they have put into place, to drive people to get on board with new programs are often cost shared between government and the private sector. It was noted that the consultations with port operators suggested that the benefits of increased security in terms of theft and loss have already been realized. It was suggested that there are not significant incremental benefits from further investment and that the benefits are really the broader provincial and national economy and citizenry. On this basis, operators suggested RESULTS: Participants were asked to identify the top 5 gaps in skills requirements in security employees Skill Area Votes Skill Area Votes Skill Area Votes English language skills 7 Communication skills (verbal & written) 12 Reading skills 4 Mathematic skills 0 Technology/computer skills 7 Mechanical skills 0 Customer relations skills 11 Analytical and problem solving skills 8 Decision-making skills 7 Negotiation skills 0 Skills in the use of force 1 First aid skills 0 Emergency/crisis management skills 6 Interpersonal (e.g., team building) skills 4 Time management skills 1 Project management skills 0 People management/leadership skills 3 Cost analysis and budgets 0 Knowledge of laws and regulations 3 Situation documentation and analysis 0

62 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES that governments need to be making a more significant investment in both infrastructure and training. Roundtable members noted that a major driver for improved security will be the US regulations. The US goal is to scan 100% of cargo coming into the country. Increased requirements may provide important motivation for getting commitment to security among senior executives and Boards of Directors. With respect to research on best practices, Roundtable members debated the process for best practices research for security. An issue for consideration is that best practices may be proprietary and company specific, particularly as it relates to technology applications. The group questioned how much sharing competitors may be willing to do; it would be necessary to look beyond the technology and look at the procedures that work the best instead. Identified the possibility of Transport Canada getting more involved as to what regulations are necessary (in order to implement best practices for security). Roundtable members confirmed that standardization of security procedures and protocols across the Gateway and particularly across common operational environments (e.g., ports) would be valuable. The point was made that this should occur with the role of Port Metro Vancouver. Discussion around the process of entering the security profession and the massive delay caused by criminal records checks; suggestion made that initiatives be explored to speed up this process. Identified the possibility of a Professional Security Career to patent the security industry and create a Gateway standard. Identified the importance of providing information to lower level staff (i.e. get them in on the bigger picture ) and how it adds to their understanding of the importance of their work in relation to security. Getting staff on board and interested in security can be challenging due to the nature of the workforce in the ports. Two areas where there is less control include warehousing and transportation. Security in warehouses where goods are unbundled and repackaged varies considerably and there are no common standards of practice. For the trucking industry, the licensing and reservation systems are important for security. The group discussed the possibility/feasibility of using GPS tracking for trucks that are delivering goods from the Gateway. Anecdotally, it was noted that a major Canadian retailer tried this, but noted that there was not incremental benefit to security. Identified that requiring certification of security guards (who work in the gateway) could be possible and would not have negative effects; if it was left to the market it would be unlikely to happen. Vancouver as an extra secure port: would enhance transportation to the states and through the rest of Canada while creating more complications through increased regulations. Bench marks: none established currently but their creation should be undertaken. Common security for the marine side of the Gateway; a CATSA for the waterfront makes sense from a purely security-focused perspective, but that does not make it practical or financially feasible. Creation of a BST+ program for the Gateway; increased training results in the ability to earn more money which would lead to increased pride and employee retention Next Steps The next steps in the work program include: Further exploration/identification of security issues common to the Gateway. Working towards strategies for the issues that have been identified. Confirming the participation of members of the Roundtable for strategy development and the next meeting. The next meeting will be scheduled for early November, 2009. The feedback form circulated in the roundtable meeting will be forwarded to all participants electronically.

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 63 APPENDIX III NOTES AND OUTCOMES OF BC SECURITY ROUNDTABLE MEETING 3 NOVEMBER 10, 2009 Meeting Objectives The third meeting of the Security Sub-sector Industry Roundtable focused on a review of priority strategies to address labour market and human resources issues related to meeting the demand for security in the Gateway. A draft report outlining possible strategies was circulated in advance to participants and provided a basis for discussion. Update on the Security Sub-sector Work Program John Forsdick of Context Research presented an update on the Security Sub-sector Work Program. This overview included a review of activities since the last meeting in September 2009 and served as background and contextual information for the discussion. Recap of Key Issues John Forsdick and Michael Izen provided a recap of key issues that have been uncovered through the course of work. The resulting comments and discussion are as follows: Identified the importance of understanding who needs to be involved to move strategies forward as well as what work (and where) still needs to be done to move strategies forward. The key challenges of the study were identified to include the need for a champion, the need for commitment to improving security as well as addressing human resource and labour issues. The interview process highlighted that there has been significant progress in security over the last 5 years and that further improvements may not contribute to the loss of goods but rather to the protection of the broader population from things such as terrorism. Identified that security within the Gateway is fragmented and that a comprehensive approach across the Gateway Supply Chain would add value. One participant asked for clarification on how broadly security is defined within this study. The key points made as a result of this question are as follows: -- For the purpose of this study, the focus is security that addresses the role of the private sector within the Gateway, as well as the various policies and procedures that are currently in place. -- The study is not suggesting that a regulation or structural change is necessary. -- The study has not looked at waterfront or airport handling (which have been identified as liabilities) or at the various police forces and government agencies which have standardized training. -- Security in relation to the movement of goods and people as well as the information and technology supports that relate to the movement of goods and people are included. -- The definition of security includes individuals that have a primary, secondary or indirect role in security; employees who are not in a security related position are still important in this regard. The example of BCMEA and the security overview training module that is provided to the entire workforce.

64 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES -- Identified the importance of being clear in what sense the Gateway needs to be secure as the distinction between security that relates to criminality and security that relates to terrorism is an important one. One participant asked for clarification on what the problem is that the study is trying to solve and what exactly is broken that needs to be fixed? The key points made as a result of this question are as follows: -- It has been identified that the Gateway is going to expand dramatically over the next ten years. -- The study is to determine if current security resources are capable of handling future growth/demand and if there is an appropriate work force available. -- There are no pre-conceived ideas in regard to new legislation; the focus of the study is on human resource deficiencies. Discussed if security can actually enhance efficiency within the system, which would be beneficial to industry. -- Port Rupert identified as an example of a security model that increases efficiency. -- Identified that the model in Port Rupert works due to the nature of the community; a small community with leadership and commitment (provided by CN). Participants were asked which strategies they felt were most important to focus on during the course of discussion. The group agreed to review each strategy as they were presented in the report. Discussion of Key Strategies A logic diagram laying out the goals, strategic areas and strategies for security in the Gateway was circulated during the meeting. Some of the strategies were discussed by the group with the key points summarized below: Strategy 1: Establish a Gateway Security Network (GSN) Identified that it would be necessary to specifically define what is and is not included within the Gateway. Comment made that the why of establishing a GSN must be clearly addressed prior to its creation. The creation of a GSN should be the last step in this process, not the first. Identified that a GSN represents the commitment of industry and without commitment none of the other recommendations will be accomplished. The creation of a GSN would get the initiative started and would provide industry with an incentive to deliver on the strategies that have been laid out. Identified that the GSN is a way to demonstrate leadership; but if the initiative lacks substance then participation by leadership within organizations will be delegated downwards. Identified the need to determine the outcomes and benefits prior to establishing a GSN in order to increase industry buy-in. Example of PNWER (Pacific Northwest Economic Region www.pnwer.org ) given as an organization that has major representation federally, provincially and in the western United States. PNWER could be seen as a potential champion for a GSN. Participant identified that while the idea of engaging the US is interesting, care would have to be exercised in regard to PNWER as their mandate is so diffuse and would run the risk of losing the good work which has been completed to date. Participant identified that they saw value in involving government organizations to provide governance and direction on security decisions. This was preferred over an informal informationsharing network for best practices. Identified that the Port of Vancouver is part of a network that follows a common approach to environmental issues in the Pacific Northwest. Ports are in competition with one another and will not be interested in sharing any information that relates to their competitiveness There is no champion in place at this point, the closest is Transport Canada. Suggestion made that the province and other government entities may have to become the leaders as they will know best how this part of the country needs to be served.

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 65 Idea of the Asia Pacific Gateway (APG) as a brand: -- APG as a brand would require the involvement of the ports; without involvement of the ports cannot see this initiative being successful. -- Identified a major challenge in that industry may not perceive value in enhanced security. The perceived threat from terrorism is viewed as being in the national interest and may not benefit industry. Identified that some sort or organizational body is needed to carry out the strategies identified; without a champion to implement these strategies then most of this work will have been academic in nature. Identified the idea of creating a Memorandum of Understanding between all players in regard to meeting security commitments as an alternative to legislation or a mandate. Identified that increased legislation would not be popular among industry. Suggestion made that all major agencies (port, airport, governments, CSIS) could define their current security roles and activities to clarify what is actually being done and what is missing. Identified that many agencies, such as CSIS and Transport Canada, have a security plan for the port. Suggestion made that all of these plans be unified into one vision to provide clarity for membership. Identified that increased security is viewed as an impediment to the flow of goods, services and people; if increased security could be implemented in a manner that did not impede flow it would enhance the credibility of the Gateway. Suggestion made to create a Gateway Quality Control Sticker which would tell the rest of the world that a set of standards are in place that provide an enhanced ability to move goods into the US or through other ports of call. Identified the need to focus on how security can increase competitive advantage of industry or save money from a risk management perspective; this is what will generate interest and support from industry. The creation of a strong business case for a GSN must be created before the ports would consider coming on boards as champions. Identified that more work could be done to determine hard numbers; what profits/benefits would industry derive from this initiative? Example given of the green building drive. One company became the champion and the creation of a network followed. Strategy 2: Improve On-Site Security Coordination Identified that in some cases, a number of security providers are providing similar services; the idea of establishing continuity between security providers should be explored. Strategy 5: Establish and Promote Gateway Security Standards Participant questioned how well the ISO (International Standards Organization) is understood within the Gateway. -- The ISO is a world standard and the Gateway is a world port; assumption is that the ISO is well understood throughout the Gateway and is likely the most internationally recognized standard. Identified that establishing a new set of standards is an onerous and costly process. Identified that the focus should be on improvement rather than establishing standards. Identify for industry all of the areas in which they could improve and how they would improve. A standard has to be in place to enable the process to be quantified; ideally this would be a global solution and not only a made in BC solution. Strategy 8: Establish a Gateway Security Training Advisory Group The creation of a Gateway Security Training Advisory Group could be commissioned as a separate project if an advisory group was not yet in place. Identified the improvement of MFSO (Marine Facility Security Officer) training, both the quality and the frequency, as a potential priority.

66 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES Suggestion made that the training organizations (BCIT, Justice Institute) should be involved when determining security training requirements. A DACUM approach should be used in order to determine the competencies required and then the necessary curriculum to achieve those competencies. Suggestion made that it might be possible to package network creation, standard creation and training requirements together as one strategy. Identified that defining security and its importance is integral to defining what the responsibilities of security should be. Identified the delay involved in security licensing as a challenge. Identified that a core group of people/ organizations need to lead this strategy; once standards for training are mandatory the employers (such as Securiguard) will be quick to comply with them. One participant identified that Port Metro Vancouver should be approached first to require training standards; other participants disagreed as they felt if the tenants required training standards, Port Metro Vancouver would follow their lead. Strategy 15: Research on Security Practices in the Asia Pacific Gateway Identified that there is currently no research that examines best practices within the security industry. Participant commented that they have no problem sharing their best practices but are nervous in regard to establishing a research component. In their experience research components tend to be miniscule and unfocused and should therefore not be included as a strategy. At the conclusion of the discussion period, John Forsdick asked participants if there were any important areas that had not been covered. A discussion on the supply of security labour followed, in which the following key points were raised: The clarification was made that the supply of security labour is seen as a non-issue. The demand for security labour is projected to grow by 3% per year and therefore a staffing shortage is not foreseen. If there was a shortage in security labour, a marginal increase in pay would create a much larger draw. It was identified that at the tactical level there could potentially be a labour issue. The tactical level does not involve a large number of individuals so this has been identified as an issue but not a major one. Next Steps The key steps for moving forward include: Determining how to package the strategies. The strategies had been separated out for discussion purposes. Identified the need to go back and re-organize the strategies into groupings so that some strategies become a part of other strategies. The strategies will be made more concise in order to move forward and determine how they will be rolled-out. The meeting notes will be circulated among participants. Strategy 16: Evaluation of Security Practices in the Asia Pacific Gateway Identified that an evaluation program would need to be established in order to monitor how the recommended changes and improvements make a difference, for example, in creating international recognition.

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 67 APPENDIX IV NOTES AND OUTCOMES OF BC SECURITY ROUNDTABLE MEETING 4 DECEMBER 21, 2009 Meeting Objectives The fourth meeting of the Security Sub-sector Roundtable focused on a review of the draft plan and strategies to address labour market and human resources issues for security in the Gateway. Update on the Security Sub-sector Work Program John Forsdick of Context Research presented an update on the Security Sub-sector Work Program. This included a review of activities since the last meeting in November 2009, and how input from the Roundtable was used to update the strategies. Recap of key issues John Forsdick and Michael Izen provided a recap of key issues that were identified in the November 2009 meeting, including the definition of the Gateway, the creation of buy-in at senior levels, creation of a Gateway security standard and the adoption of a supply chain approach to security. The discussion that resulted from this presentation is summarized in the following points: It was identified that security is viewed as being separate from marketing (in a port setting); security is what they are told to do and is encapsulated in the regulation, and therefore there is minimal visioning or strategizing required. It was identified that the inclusion of security in marketing plans should be a priority. It was noted that this would be incorporated into the mandate of the Gateway Security Network, once formed. Identified that security is invisible unless it is part of a marketing plan; the Port of Dubai and the Port of Prince Rupert were given as successful examples of promoting security as a competitive advantage. Identified that some players do promote security, but only on an individual basis; there is an overall lack of a Gateway network approach. Identified that Port Metro Vancouver is not currently in a position to market security due to a lack of consistency in security among its tenants. Identified that there is currently no champion to act as a catalyst in bringing all of the Gateway players together on the issue of security. Identified that while the federal government has played a role in implementing the marine regulations and providing financial assistance, it is not currently in a leadership role. Highlighted the absence of buy-in to a network approach for security in the Gateway. Overview of the Draft Report John Forsdick provided participants with a brief review of the updated strategies contained in the draft report. The resulting discussion and comments are summarized below: Workforce: Research and stakeholder consultation indicates that the workforce is available to meet future security needs. A gap is identified at the tactical (mid management) level.

68 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES Improved training of the workforce is required, and key areas for training and skill development were briefly reviewed. Supply Chain Approach: It was noted that security is not currently organized on a Gateway-wide or network approach. Rather it is delivered largely on an asset or facility basis. The study makes specific recommendations for developing a supply chain, network approach to security. Collaboration among Gateway organizations and agencies is recommended through establishment of a security network. CATSA (Canadian Air Transportation Authority): It was suggested that CATSA could be consulted to see how they have addressed recruitment and retention issues. John Forsdick committed to following up with CATSA to explore their approach to common security issues. Buy-In: Identified the lack of a critical issue driving the need for improved security and a supply chain approach. There is a general perception that meeting the regulations is sufficient, along with operating as individual facilities within the Gateway. The group supported the need to firmly establish the business case in order to bring industry leaders in the Gateway together. The significance of Port Metro Vancouver and the Vancouver Airport Authority not being at the table was noted as an example of the priority for the study. The importance of a champion must not be underestimated for the generation of buy-in and the creation of a Gateway Security Network (GSN). General: Comment that there appears to be a lack of support for addressing security issues in the Gateway and accompanying security training. The attitude is generally that the regulations are met and there have been no major incidents; Addressing security threats is viewed as a federal agency responsibility (e.g., RCMP, CBSA), and not a responsibility of individual operators. Identified that even governments struggle to ensure resources and training are in place for their areas of jurisdiction; the problem comes when a security issue finally arises and the plan in place does not work. Identified that while security in relation to goods entering the country falls mainly on the ports, individual operators are not in a position to take on the full financial responsibility of terrorist/ border security. There needs to be combined public/private effort. Security Standards: Adopting a common, network wide security standard is recommended to provide consistency across the Gateway. Companies adhering to the standard would be accredited and the ISO28000 security standards would form part of the marketing for the Gateway. Report: It was identified that the report accomplished what it set out to do to identify human resource issues, in relation to security within the Gateway. Identified that this process has taken the form of a stakeholder consultation rather than an audit of security at individual facilities. Recommendation: the report should be made available to other jurisdictions across Canada Recommendation: the inclusion of a strategy for promotion and advertisement of the business case and Gateway mapping (i.e. an implementation step) could function as a catalyst for the formation of a Gateway Security Network (GSN) Recommendation: three recommendation should be highlighted for implementation over the next 12 months to provide the APGST board with a clear idea of what options are available moving forward (logical next steps). Next Steps The report will be finalized based upon the results of today s discussion as well as the feedback received (by December 23rd) from those stakeholders unable to attend. The report will be presented to the Asia Pacific Gateway Skills Table to determine next steps in early January.

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 69 APPENDIX V STAKEHOLDERS INTERVIEWED AND CONSULTED Dave Bachynski, BC Ministry of Transportation and Infrastructure John Beckett, British Columbia Maritime Employers Association Jason Begin, Paladin Security Andrew Brink, Chubb Security Vic Byrom, Paladin Security Sandy Camire, Douglas College Melanie Costley, Port Metro Vancouver Ken Deptuck, Teamsters Canada Rail Conference Kristi Fejedelem, Human Resources Skills Development (HRSD) Canada Sarah Gallagher, Vancouver Airport Authority Luc Gervais, Human Resources Skills Development (HRSD) Canada Tony Gutenberg, TSI Terminal Systems Doug Hackett, Squamish Terminals Michael Henderson, Transport Canada Stan Hennessy, Teamsters Local Union #31 Jerry Jennings, Fraser Surrey Docks Darcy Kernaghan, Securiguard Jennifer Kooren, Vancouver Airport Authority Jason Koshman, Kinder Morgan Canada Terminals David Lee, Transport Canada Val Lockyer, Douglas College Ivan McClelland, CP Rail Bob McConkey, Douglas College Jack McGee, Justice Institute of British Columbia Craig McKay, Canadian International Freight Forwarders Association Doug Moulton, Human Resources Skills Development (HRSD) Canada, BC/YT Region Michelle Pace, BC Ministry of Transportation and Infrastructure Gary Paulson, Prince Rupert Port Authority Wayne Peppard, British Columbia Yukon Territory Building Construction Trades Council Jason Pratt, DP World Vancouver Patrick Service, British Columbia Maritime Employers Association Clayton Smith, Pacific Coast Terminals Co. Ltd. Mike Teixeira, Eculine Canada Inc. Bob Wilds, Greater Vancouver Gateway Council

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APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 71 APPENDIX VI INDUSTRY DRIVERS AND TRENDS IMPACTING THE GATEWAY Drivers in the Security Industry Globalization Global supply chains have expanded and become increasingly complex, and the risks and threats faced by industry have also expanded and become more complex. Raw materials are manufactured into component parts in locations world-wide and then shipped to other locations for assembly and again to still other locations for sale. The responsibility for security has now extended beyond security and safety managers and officers to purchasers, human resource officers, computer and systems analysts, and logistics analysts. The interdependence and interconnection of companies and markets is a key driver for collaboration among stakeholders in securing the supply chain. If one link in the supply chain is affected by a security breach, the result can be disruptions, delays and standstills across the supply chain. The responsibility for preventing, detecting and mitigating potential risks and threats is shared among all the supply chain links, and therefore establishing trust among stakeholders is fundamental to the success and security of the supply chain. Trust is built among stakeholders as each builds a security record that focuses on the safe and efficient flow of goods, people and data. Terrorist Threats Since the 9/11 terrorist attacks in 2001, the security concerning the world-wide transportation networks has changed dramatically. Regulations, procedures, technology and people have all been employed to enhance threat prevention and detection that impacts protection of people and goods. Security concerns have evolved from a focus on theft to a focus on terrorism: a shift from what is missing to what is added. Terrorists and criminals view transportation networks as high-value targets, because they are widely accessible, visible, attract intense media attention, and have a significant degree of government ownership. 42 The most vulnerable parts of the transportation networks are the transfer points such as airports, marine ports, warehouses, and border crossings. Regulations The requirements for security along the Asia Pacific Gateway in Western Canada are affected by the conditions, regulations, inspection and enforcement at each location along the supply chain route. In the wake of 9/11, existing security regulations have been strengthened, and new regulations have been implemented. Regulations, legislation and agreements developed in Canada and/or directly impacting security in the Asia Pacific Gateway are indicated here. Other relevant initiatives and agreements that relate to enhanced security in the global supply chain include: The Container Security Initiative (CSI), launched in 2002 by the U.S. Bureau of Customs and Border Protection (CBP), uses intelligence and automated information to identify and target containers that pose a risk, detection technology to pre-screen those containers at the port of departure before they arrive at U.S. ports, and develop smarter, tamper-evident containers. (See www.cbp.gov/xp/ cgov/trade/cargo_security/csi/ ) The Customs-Trade Partnership Against Terrorism (C-TPAT) is also a US CBP voluntary government-business program that aims to reduce CBP inspections and border delay times, develop priority inspection processes, assign a C-TPAT Supply Chain Security Specialist who will work with the company to validate and enhance security throughout the company s international supply chain, and encourage self-policing over CBP audits. (See www.cbp.gov/xp/cgov/trade/ cargo_security/ctpat/ ) 42 Prentice, B.E., Tangible and intangible benefits of transportation security measures. Journal of Transportation Security, 2007. 1: p. 3-14.

72 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES The Business Alliance for Secure Commerce (BASC) is a business-led alliance, supported by the U.S. Customs Service, created to combat narcotics smuggling via commercial trade. (See www.cbp.gov/xp/cgov/border_security/ international_operations/partnerships/basc.xml ) Business Executives for National Security (BENS) is an American non-profit organization that brings together senior business executives to draw on their experience to help enhance the nation s security. (See www.bens.org ) National Industrial Transportation League (NITL) represents American carriers, shippers and intermediaries in their dealings with various regulatory bodies. (See www.nitl.org ) Technology Technology is constantly evolving and improving the level of security that can be maintained. Complementary visibility and control technologies have produced intense interest, research, experimentation and levels of development. The following technologies have the potential to improve efficiency as well as security: Biometric systems for positive identification of personnel, including truck drivers. Mobile communications, such as satellite or cellular, with global positioning system-like location determination. Sensors, both improved non-intrusive inspection devices and on-board sensors. These include portable devices to detect intrusion, human presence, and explosives/weapons. Electronic cargo seals. Data mining technology, which can identify goods with invoice values that are inconsistent with market prices. Radio-frequency identification (RFID), global positioning systems (GPS), and other tracking devices that can accelerate the flow of information. Security cameras and closed circuit television (CCTV), and face-recognition software enables for the quick analysis of the thousands of cameras. Competition A 2005 study by the Supply Chain Sector Council cited Global Security and Border Crossing Requirements as two of the four most significant business drivers within the supply chain sector in the next five years. Trading opportunities can benefit from betterorganized and secured supply chain services. To take advantage of secure supply chains by increasing their competitiveness, stakeholders must adapt their commercial practices so that they can stimulate and guarantee the level of security needed for the efficient movement of goods. The competitiveness of the Asia Pacific Gateway is greatly influenced by various factors, which build up the overall logistics cost within the supply chains. The main factors [according to Banomyong, 2005] are: Cost: To maintain a product s competitiveness, the seller must make sure that his or her cost is as low as possible. However, on any particular trade route, this cost is made up of a number of direct and indirect cost elements corresponding to the services provided along each specific link. Time: Any reduction in transit time will reduce the overall cost of the delivered goods. Transit times can be improved by increasing transport speed while cargo is moving on any particular transport mode, and/or by reducing idle time while cargo is waiting at some interface point for its next movement. -- The lack of proper co-ordination of transport and security operations or the excessive burden of administrative and documentary requirements can neutralize any effort or investment in increasing commercial speed. Safety: Any loss or damage, because of theft, mishandling, poor quantity packaging or physical damage caused by accident, will result in the nonavailability of the goods at the expected time and place, and in the expected conditions. Risk: Uncertainties of schedules, breakages, loss, pilferage, rules and regulations may disadvantage exporters and importers.

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 73 Trends in the Security Industry A notable trend for Gateway security is the overall shift within supply chain security from inspection to prevention. Inspection has proven both costly and ineffective. Investment in prevention, on the other hand, can lead to improved quality of security, and thus improved efficiency of the supply chain, without increasing costs or jeopardizing productivity. Efforts in prevention have produced visibility and control technologies that have the potential to improve efficiency as well as security, as long as the necessary targeted training of security personnel takes place to ensure effective implementation and monitoring. These technologies include: Biometric systems for positive identification of personnel, including truck drivers. Mobile communications, such as satellite or cellular, with global positioning system-like location determination. Sensors, both improved non-intrusive inspection devices and on-board sensors. These include portable devices to detect intrusion, human presence, and explosives/weapons. Electronic cargo seals. Integration & Coordination: The various public and private security agencies coordinating efforts and sharing information International Efforts: Security issues and the movement of goods are often the result of international treaties and agreements Regulations: The various regulations affecting the supply chain are constantly evolving and need monitoring Security as a Secondary Function: More and more occupations have security-related functions as part of their duties Specialization: Private companies specializing in specific aspects of security functions Technology: The evolution of technology which impacts all aspects of security and related occupations Other notable trends impacting the security sector of the supply chain include: Ageing Workforce: Public police tend to be concentrated with older workers, private security has significant younger and older cohorts Awareness of Industry: Some studies have identified the lack of public awareness to the supply chain as a challenge for recruiting Border Crossing: Border crossing requirements for goods through the supply chain by the various modes of transportation Contract Security: An increase in the use of contract security agencies by both private and public users Data Sharing: Sharing inventory-related data across various users, and countries, while keeping the data secure Essential Skills: The basic essential skills of many entry-level workers are not meeting the needs of the industry

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APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 75 APPENDIX VII BASIC SECURITY TRAINING (BST) CURRICULUM At the operational level, security guards and personnel are required to be licensed to work in BC by the BC Ministry of Public Safety and Solicitor General. A licensed security guard is required to have training, experience and/or qualifications that include: 1. Basic Security Training (BST). 2. If required to use dogs while providing security guard work, the validation process administered by the Justice Institute of B.C. must be completed. 3. If use of restraints (i.e., handcuffs) is required, the Advanced Security Training course provided by the Justice Institute of B.C. must be completed. 4. Sufficient fluency in the English language to converse with the public while carrying out duties as a security guard (Canadian Language Benchmark Level 5 is required). The BST training curriculum is presented in this Appendix. A security guard under supervision has more limited responsibilities and is typically being supervised, as a security guard while completing training; it allows security businesses to hire security guards for a limited duration or special events. This licence type is limited to a one-time only, 90-day term meant to provide the opportunity to gain experience while completing Basic Security Training. A security consultant advises on methods of protecting property from vandalism, intrusion, trespass or theft, or provides the service of detecting electromagnetic, acoustical or other devices by which private communications or records may be intercepted, transmitted or examined. This position requires a licence with at least two years experience working as a security consultant.

76 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES BST CURRICULUM (JIBC 2009) Segment Objectives: By the end of this segment, you will be able to 1 Introduction to the Course Express expectations of the course. State the course goal. List the course objectives. 2 Introduction to Private Security Define professional and explain the standards of professional conduct for security professionals (SPs). Define ethics and explain its importance in the security profession. Give examples of ethical and unethical behaviour on the part of SPs. Define customer service and explain its importance in the security profession. Describe the difference between private security and the police. List the types of jobs that SPs could do. List the basic duties of SPs. List the types of incidents to which SPs might have to respond. Explain the basic steps in responding to incidents. Explain the guidelines for incident scene protection. Describe the role of emergency services and regulatory agencies. Explain the authority of emergency services and regulatory agency personnel on private property. 3 Legal Issues Define law and state the function of law. List the federal and provincial laws that provide a legal framework for SP duties and powers. Explain the purpose of the Canadian Charter of Rights and Freedoms. Explain the SP s responsibilities and limitations under the Charter. Explain the impact of human rights legislation on the SP s performance of his or her duties. Define key terms used in reference to criminal offences. Identify the essential elements of common offences. Explain the provisions of the Security Services Act and Security Services Regulation that have a direct impact on SPs. Identify other legislation that have a direct impact on SPs. Describe the SP s powers and limitations under the law. 4 Documentation Explain the benefits of an SP s notebook. Explain the guidelines for effective note-taking. State the rules for maintaining a notebook. List the parties who may access an SP s notebook. Explain how an SP s notebook may be used in court. Write effective notes about an incident. Explain the purpose of a report. List the instances when a report must be written. Describe the characteristics of an effective report. Describe the report-writing process. Write an effective report. 5 Personal Safety Define safety. Describe the elements of a safe interview stance. Describe the various relative positions that could be used in an encounter. Explain the importance of continuous assessment. Define tactical communication. State the goal and benefits of tactical communication. Explain how tactical communication fits in the National Use of Force Model. Apply three major tactical communication strategies. Describe the desired outcome of tactical communication. List personal safety strategies.

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 77 APPENDIX VIII SCAN OF RELEVANT SECURITY TRAINING OPPORTUNITIES IN BC Security Training Schools (for Basic Security Training) in BC approved by the Ministry of Public Safety and Solicitor General and the Security Services Act Abbotsford Burnaby Campbell River Cranbrook Courtenay Dawson Creek Kamloops Kelowna Nanaimo New Westminster North Vancouver Penticton Prince George Canadian Community College Central Valley Academy First Career Institute Crusade Security Training Academy Out West Training Studio Canadian Marshal Training Academy International Career Training Institute of Canada, Inc William Blair and Associates Ltd. PSG Safety and Security Institute of BC Domcor Health, Safety & Security Ltd College of the Rockies Excel Career College Northern Lights College Thompson Rivers University BC Corps Commissionaires BC Focus Training Institute Ltd. Okanagan College Turner Corporation Security Academy Footprints Security Training Institute Ltd. Securiguard Police Academy- Justice Institute of BC Sensor Protection Group Specialized Defence Tactics Academy Gargoyle Security School Penticton Security South Okanagan Security Services Ltd BC Training Ventures International Protection Sciences University of Northern BC Surrey Trail Terrace Vancouver Victoria Williams Lake A-1 Security Training Academy Advanced Learning Centre Ltd. BCTI Brar Career Training Institute Inc Bravo Security and Career Training Inc. CDI College of Business, Technology and Health Care Core Security Institute (CSI) First Advisory Security Team Inc. Prosafe First Aid Training School Inc. School of Indigenous Peacemaking and Security Westwind Security & Training Institute Domcor Health, Safety & Security Ltd The Ultimate Security Training School Company 24 Hour Security Ltd. BC Corps of Commissionaires Securiguard Services Ltd Bravo Security and Career Training Inc. Concord Security Corporation Elite Retail Solutions Garda Canada Security Corporation Genesis Security Inc Intercon Security Limited Langara College Lion Security London Security Training Institute Ltd. Primcorp Training School Principal Security Training Academy 604 Canadian Corps of Commissionaires Victoria and Vancouver Island Footprints Security Training Institute Ltd. Royal Victoria Security Securiguard Services Thompson Rivers University Prince Rupert Hecate Strait Employment Development Society

78 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES Specific Security Training Courses and Programs Offered in BC Justice Institute BCIT Basic Security Training (BST) Investigation and Enforcement Skills Certificate Program (IECP). B.C. Certificates of Qualification for Security Alarm Installers Security Systems Technician training program (28 week program) Challenge Application Package (for Locksmiths) Security Systems Technician: Full-time, Certificate of Technical Studies Security Management and Technology (Investigation Option): Part-time, Advanced Specialty Certificate MSEC 1010 - Ship Security Officer Revised Security Systems Technician: Full-time, Certificate of Technical Studies SSMT 6220 - Physical Security Systems Management COMP 3705 - Applied Network Security Fundamentals FSCT 8560 - Computer Security Networks 2 FMGT 4620 - Security Fundamentals AVAO 2260 - Airport Security Systems CITX 2183 - Unix/Linux Security, Ethics & Privacy COMP 7006 - Network Administration and Security 1 TELC 0141 - Security Systems CITX 2164 - Security+ Technician Comp TIA Computer Systems (Network Administration and Security Option): Full-time, Bachelor of Technology Computer Systems (Network Administration and Security Option): Part-time, Bachelor of Technology Network Administration and Security Professional (NASP): Full-time, Certificate Security Management and Technology (Investigation Option): Part-time, Advanced Specialty Certificate Security Management and Technology (Asset Protection Option): Part-time, Advanced Specialty Certificate Network Administrator Technician (Microsoft Option): Part-time, Associate Certificate of Technical Studies Network Administrator Technician (Unix/Linux Option): Part-time, Associate Certificate of Technical Studies Forensic Investigation (Crime and Intelligence Analysis for Law Enforcement Professionals): Parttime, BCIT/Industry Partnership Certificate SSMT 6220, Physical Security Systems Management Langara College STA (Security Training Academy Ltd) CANASA (Canadian Security Association) Specializes in flexible formats ranging from inclass seminars to e-learning SIA (Security Industry Association) Based in Virginia, USA - affiliate of CANASA CSAA (Central Station Alarm Association) Based in Virginia, USA affiliate of CANASA ITA (Industry Training Authority) CJUS 1117 Introduction to Control Tactics CJUS 1217 Security Offers an 80 minute video program that covers key subjects that are essential for all uniformed security officers so they can properly understand their roles and responsibilities. Alarm Technician Pre-Requisite (technical) Alarm Technician Course Level One (ATC1) (technical) Alarm Technician Course Level Two (ATC2) (technical) Advanced Control Panel Features (technical) Wireless Components (technical) CCTV Education Programs (technical) Certified Security Project Manager (CSPM) (management) Central Station Operators Level Two Program (sales) Security Selling Skills (sales) Security System Components Overview (sales) Central Station Programs (sales) Central Station Operators Level One Program (sales) SIA is dedicated to the promotion of professional advancement within the security industry via four main core areas: government relations, research and technology, education and training and standards. CSAA is a trade association that represents companies offering security (alarm) monitoring systems through a central station and companies that provide services and products to the industry. Security Alarm Installer Security Alarm Installer Foundation Program

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 79 APPENDIX IX WORKFORCE SECURITY PROGRAMS AND TRAINING AIR CARGO SECURITY (CIFFA) As Transport Canada recently introduced a new Air Cargo Security Program into the Canadian supply chain, CIFFA responded by developing three (3) training programs to assist CIFFA Members in compliance. Cargo Security Coordinator (CSC) is a full day interactive classroom-based program for senior management in a freight forwarding organization, or in 3rd party service providers. CSCs are responsible to Transport Canada for implementation and compliance with TC s requirements. Authorized Cargo Representative (ACR) is a 1/2 day classroom or e-learning program for staff who physically handle air cargo, have physical access to air cargo, or who can influence the movement of air cargo. General Awareness (GEN) is a one (1) hour e-learning program for staff who do not meet the requirements of a CSC or ACR, but need some very basic knowledge of the TC Air Cargo Security Program GENERAL WATERFRONT SAFETY TRAINING (BCMEA) The General Waterfront Safety Training (GWST) is provided by the BCMEA (British Columbia Maritime Employers Association) to all longshoremen in BC. This training is given every three years and is also a part of the recruitment and training process and any additional training taken for a new rating. The GWST includes a security component which provides a review of the generic sections of the MSTR, including: what to look for, what and when to report, who to report to and why the MSTR is in place. The majority of representatives interviewed felt that the GWST Training provided sufficient safety knowledge for employees in non-safety related positions. The Kinder Morgan representative did not agree that the GWST Training was sufficient; an additional safety presentation is given to all longshoremen taking a regular (steady/ permanent) placement at the site. MFSO TRAINING Completion of the Marine Facility Safety Operator Training is required under the MSTR for the individual responsible for security at each port operation. In practice, more than one individual completes the MFSO Training as it is required under the MSTR that an MFSO be on site at all times in which the Port is in operation (usually twenty-four hours a day). The number of employees with MFSO training varies between operators. A general practice among operators interviewed was for the majority of employees at a superintendant level to receive MFSO training. These employees include those who handle ship and regulatory issues and are committed to having a better than average understanding of security. Based on interview results, DP World was the only operator with two employees who actively used their certification; other operators had one main MFSO, or Security Manager, with other MFSO trained employees acting as back-up. Through meetings and interviews with representatives of the Port Operators, it was expressed that the MFSO training available was insufficient or lacking in some way. The following bullets summarize the key points raised: Availability is an issue (frequency of when the course is offered) The training currently consists of a cut and paste from the legislation into a power point presentation The training is not viewed as challenging

80 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES Recommendations: Improve delivery of the training through increased participant engagement Add content on the practical application of the MSTR including: -- How to write a security plan -- What should be included in a security plan (maps, engineering drawings etc)? -- How to implement the MSTR in a cost efficient way Use instructors with practical experience implementing the MSTR or working in a port environment It was noted that these comments and recommendations are generally in reference to the MFSO training offered through BCIT. The McDonnell Group also offers a MFSO course which is perceived as superior to the BCIT course; however the much higher entry cost is considered a deterrent.

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 81 APPENDIX X ISO 28000 ELEMENTS OF ISO 28000 STANDARD: SPECIFICATION FOR SECURITY MANAGEMENT SYSTEMS FOR THE SUPPLY CHAIN: Security management policy Security risk assessment and planning Implementation and operation includes defining roles, responsibilities, competence, training and awareness with respect to policy, objectives, targets and programs. -- NB 1: top management shall provide evidence of its commitment to the development and implementation of the security management system (processes) and continually improving its effectiveness by communicating to the organization the importance of meeting its security management requirements in order to comply with its policy. -- NB 2: The organization shall ensure that personnel responsible for the design, operation and management of security equipment and processes are suitably qualified in terms of education, training and/or experience by establishing and maintaining procedures to make persons aware of 1) the importance of compliance with the security management policy and requirements; 2) their roles and responsibilities in achieving compliance with the policy and requirements; 3) consequences to security of departing from procedures. Checking and corrective action including performance measurement and monitoring, system evaluation, audit) Management review and continual improvement DP World, the Centerm operator (one of two container terminals in Vancouver s inner harbour), is ISO 28000 certified. These standards specify the requirements for a security management system, including those aspects critical to security assurance of the supply chain. ISO 28000 links security management to other aspects of business management, including all activities controlled or influenced by organizations that impact on supply chain security. The ISO 28000 standard could be used across the Gateway to ensure consistency in security at all facilities. Quality assurance is conducted by an independent third party audit. The standard would apply to the owner/operator who, in turn, would require all service providers (e.g., security contractors, trucking) to be able to provide services that meet the standard. Service providers would need to seek out the appropriate training in order to be eligible for contracts. Based on interviews with Port Operators within the Gateway, it was confirmed that only DP World currently holds ISO 28000 certification. ISO 28000 is mandated from the executive level of DP World; as a world - wide based company the goal is to have security levels in place that are globally recognized. ISO 28000 is valued by DP Word as a superior security certification as it provides quality management for security and focuses on the supply chain as a whole rather than just on one component (MTSR). DP World identified the following differences between ISO 28000 and the MTSR: Higher levels of documentation and review are required; Higher levels of manpower for implementation (2nd full-time MFSO staff) are required; The necessity for third party compliance evaluation; ISO 28000 is an international security standard that is recognized all over the world.

82 ASIA PACIFIC GATEWAY SKILLS TABLE Security in the Asia Pacific Gateway: Human Resources Issues and Strategies APPENDICES It was suggested by DP World that recommendations should be made to operators within the Gateway on a site by site basis that will take into account the different operations conducted and the levels of security they need. Implementation of ISO 28000 was viewed as achievable as long as it is recognized that the resources necessary for implementation, such as funding and manpower, are not available to all operators. BCMEA, TSI and Kinder Morgan identified that a clear value or incentive must be provided for operators to become ISO 28000 certified. These incentives could include: A clear benefit in relation to finance, efficiency or competitiveness Direction from the executive level of the operating company ISO 28000 certification requested by customers ISO 28000 certification can be viewed as more valuable than PIP/C-TPAT certification (which also focuses on the supply chain) because it is internationally recognized, whereas PIP/C-TPAT only holds value in trade with the United States. DP World was of the opinion that no value would be lost, other than international recognition, if operators belonged to PIP/ C-TPAT rather than ISO 28000. Within the Gateway, DP World is a member of C-TPAT and TSI is a member of PIP.

APPENDICES Security in the Asia Pacific Gateway: Human Resources Issues and Strategies ASIA PACIFIC GATEWAY SKILLS TABLE 83 APPENDIX XI - ASIA PACIFIC GATEWAY SKILLS TABLE BOARD OF DIRECTORS BOARD MEMBERS Manley McLachlan Jack Davidson Christine Dioszeghy Bob Wilds Sarah Gallagher Stephen Brown Andy Smith Louise Yako Derek Doyle Don Krusel Tom Dufresne John Madden Jim Hamilton Wayne Peppard Allan Bruce Doug Alley Jon Garson Phil Hochstein President, British Columbia Construction Association President, BC Roadbuilders Association Vice President, Human Resources, Port Metro Vancouver President, Greater Vancouver Gateway Council Director, Human Resources, Vancouver Airport Authority President, The Chamber of Shipping of British Columbia President & Chief Executive Officer, British Columbia Maritime Employers Association Vice-President of Policy, Communications & Partnerships, British Columbia Trucking Association Executive Director & Registrar, Association of Professional Engineers and Geoscientists of B.C. President & Chief Executive Officer, Prince Rupert Port Authority President, ILWU Canada Vice President Human Resources & Public Safety, Translink President, B.C. Trades Training Consortium Executive Director, British Columbia Yukon Territory Building Constrcution Trades Council International Representive, International Union of Operating Engineers Vice President, Human Resources, Business Council of British Columbia Vice President, Policy Development, BC Chamber of Commerce President, Independent Contractors and Businesses Association of BC OBSERVERS Michael Henderson Ruth Sol Doug Moulton Mark Gillis Regional Director General - Pacific, Transport Canada President, Western Transportation Advisory Council Program Manager, Sector Council Program, Human Resources Skills Development Canada, BC/YT Region Executive Director, Labour Market Development Branch, Ministry of Advanced Education & Labour Market Development, Government of British Columbia EX-OFFICIO Oksana Exell Executive Director, APGST

The Asia Pacific Gateway Skills Table wishes to acknowledge the funding support of the Sector Council Program and the Asia-Pacific Gateway & Corridor Initiative.