Supply Chain Security Can Pay for Itself

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With 95% of the world's consumables being transported in an estimated 270+ million containers this year are the competitive demands on shipping companies from shippers and consignees, going to result in cost-cutting measures that can compromise security... by, virtually opening the windows of opportunity to incidents -- not unlike that of 9/11 --around the world?

With 95% of the world's consumables being transported in an estimated 270+ million container trips this year (most of which are subject to trans-shipments or other transit) are the competitive demands on shipping companies (to charge the lowest rates on freight) from shippers and consignees, going to result in cost-cutting measures that can (and most likely will) compromise security... by, virtually opening the windows of opportunity to incidents -- not unlike that of 9/11 --around the world?

Shipping companies, appear somewhat hesitant in implementing the use of new technologies that are being designed exclusively to help them in protect their domain. With the right equipment, data such as: shipment auditing, movement status, location, speed, temperature and a host of other features can be accessed in real-time. The dilemma brought on because shipping companies appear to be disinclined to allowing access to logistical information of their container traffic... they produce (willingly or not) an environment that can be exploited by an army of nascent forces, including terrorists.

Container theft is a daily occurrence... as is the "vanishing" of high value cargo from containers and trailers, in high-security ports. And, from the insurance industry's perspective, these occurrences give the impression of becoming a "way of life." If given the opportunity, especially with the heightened levels of terrorist activity around the world, any one of these vulnerable containers could easily become a terrorist's lethal Weapon of Mass Destruction (WMD).

AEGIS Technology Companies, Inc., through its Asset Tracking Logistic And Security (ATLAS) subsidiary, has been pursuing acknowledgment from the Department of Homeland Security (DHS), Customs & Border Protection (CBP), the United States Coast Guard, the Department of Defense and the European Union that its AM-11c GSM/Satellite WW Security System* can serve as a viable and effective preventive measure in the struggle to solve the container security problem... and do so at an acceptable level of investment. Insomuch as containers carry cargo with average values of US $80,000 to $185,000 and often values as much as US $2-3 million, does a security cost that, depending on the level of services being utilized, amounts to "less than a cup of coffee" sound "too expensive?"

The ATLAS AM-11c is the first Worldwide, Intermodal, Real-Time, 24/7, Tracking and Monitoring system that utilizes multiple telecommunications systems (from GSM to Satellite) via a unique hierarchal protocol that is: fully functional; currently available; adaptable to differing applications and requirements; flexible in configuration, and capable of addressing security needs through the entire supply-chain. The fact that less than 5% of all containers, around the world, are inspected, or are under surveillance or tracked and monitored from the point of stuffing to the point of delivery, is unconscionable... because that means that 95% (or more than 250 million containers) remain vulnerable and open to a multitude potential misuses including terror, destruction, havoc and theft.

The ATLAS AM-11c GSM/Satellite WW Security Solution has been designed to address the mandates, demands and regulations of governments and governing bodies, throughout the globe, including: the IMO, the EU's EUREPGAP Protocol, the U.S. Container Security Initiative (CSI) -- to name a few.

One example of the system's capabilities relates to the Euro-Retailer Produce Working Group (EUREP), a European based trade organization for retailers that has developed an auditable standard promoting Good Agricultural Practices (GAP), thus the creation of the EurepGAP Protocol. The Protocol holds that: "all food products, fruit, vegetables, meat and poultry can be subjected to the 2003 EU Law which demands that containers, transporting such products from non-EU countries into EU, are subjected to a comprehensive audit from the Point of Loading to Point of Delivery."

The EUREPGAP Protocol is the European retailer's way of responding to consumer concerns about food safety, animal welfare, environmental protection, and worker welfare. EurepGAP provides an obvious basis for tighter supply chain control, and therein, an added level confidence in product quality and safety. And, through the faculties of the AM-11c System, critical factors such as temperature surveillance, inspection data, environmental variances and the like can be scrupulously monitored and tracked -- yielding a critical element in the supply-chain that produces benefits all involved.

And in the United States, we find the potential for Customs & Border Protection (CBP) to give preference (the so-called Green Lane) to shippers who are able to generate a Comprehensive Journey Report -- to confirm that the integrity of the container, its contents, and the door seal have not been compromised, in any way, from the application of the seal to the CBP inspection. This door-to-door security monitoring -- by way of the Journey Report -- is a construct coming from the Container Security Initiative which was initiated by the Department of Homeland Security... and the ATLAS AM-11c, linked to the 24/7 live monitoring and surveillance services ATLAS provides, is there to serve this need by providing all of the pertinent data necessary in and for the production of the Journey Report.

What are the alternatives to the ATLAS AM-11c System, for shippers? Here are two:

1) Experience Delays and Rejections -- reports have surfaced that acknowledged select cargo vessels, bound for certain US Ports, have been subjected to inspection, and even refused entry -- causing delays and incurring substantial costs and heavy commercial losses.

2) X-Ray scanning of containers -- using multi-million dollar high-value equipment and using expensive consumables -- is proving unsatisfactory because of incomplete coverage, and questions on the credibility of its performance functionality.

What does the AM-11c system really cost?

The rental of a TEU (twenty foot equivalent unit) costs between $2,000 and $5,000 US -- depending on the final destination and the point of origin.

The insurance costs of a TEU carrying a high value, easily disposable cargo of tobacco, alcohol, or Information Communications Technology (ICT) products valued at $2 million US or more, from US to Argentina might cost anything up to ten (10) percent of the value of the cargo. An armed guard from the U.S. to Buenos Aires costs can range from $1250 to $2500.

The ATLAS GSM/Satellite WW Security System can cost, depending on the level of services selected, as little as "pennies-a-day".

The Green Lane which is designed to permit expedited entry into both US and EU ports, in the near future, assuming all security mandates are adhered to, could allow a Container Ship to unload TEU's with a Priority Clearance and return to its Port of Origin for another load in record time. With the ATLAS GSM/Satellite WW Security System installed, savings of $4000+ or more, per journey, could be realized... after deducting the costs of the ATLAS GSM/Satellite WW Security System.

And, when compared with the ever increasing costs of bunker Fuel, demurrage and all the other fixed and variable operational costs of a Container Ship -- which could be delayed for weeks for a physical inspection or refused entry into EU or U.S. Port -- the price paid for an ATLAS GSM/Satellite WW Security System changes from being a liability to an asset almost instantly.

*ATLAS Monitor Series PATENT PENDING

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About AEGIS, ATLAS and MPS:

ADDRESS: 1052 S. Powerline Rd. Deerfield Beach, Fl. 33442 PHONE: 1-954-428-6880

AEGIS is positioned to be a key player in the Defense, Logistics and Security markets worldwide. AEGIS, through its wholly owned subsidiaries Asset Tracking Logistics And Security (ATLAS) and Maritime Protective Services, Inc. (MPS), provides Security Assessments, Risk Analysis, and Advanced Security Solutions to maritime, government and commercial markets on a global basis. The Company's services are available for a broad base of clients to protect their most important assets around the world. The Company offers all clients a wide range of innovative security solutions combining cost effectiveness and ease of integration. AEGIS has positioned itself resourcefully in the expanding threat mitigation, crisis management and governmental compliance arenas and has begun establishing itself as a leading provider of anti-terrorism, threat analysis services and security solutions to a number of international organizations.

Tracking and monitoring systems, designed and developed by ATLAS, provide unparalleled surveillance, detection and response capabilities for a variety of security applications. The company's command and control Monitoring systems are capable of integrating data streams from multiple sources, addressing international requirements for an interoperable, integrated and synchronous detection and response platform for supply chain cargo security. These intelligent systems allow large volumes of data to be concurrently analyzed and feature intuitive user environments that provide automatic threat notification and recommended response solutions. Furthermore, it allows owners, operators, shippers, and all other stakeholders and officials around the world the potential for secure collaboration in real-time using satellite linked, web-based Geo-Spatial multi-dimensional tracking technologies.

ATLAS command and control systems have been designed to be utilized by organizations internationally to secure and protect critical assets in United States and around the world.

Security assessment and planning, administered and managed by MPS, involves Security Assessment and Vulnerability Estimates (SAVE), which provide clients with total security solutions tailored to match their individual and budgetary requirements. Conducted by career military and security experts, this dual-edged process identifies and mitigates areas of vulnerability and recommends appropriate solutions for immediate and follow-on security improvements.

The MPS SAVE process is complemented by a system that ensures rapid and accurate report generation. Each client receives a Security Assessment Baseline Report and a comprehensive Exclusive Security Plan, both of which meet stringent reporting and compliance standards under the guidelines or mandates from: United States Coast Guard; MARAD, IMO (ISPS Code), MCA, Transec, Bureau Veritas. MPS is approved to act as a Recognized Security Organization (RSO) by: Greece, Nigeria and Malta. The SAVE process also includes a program for ongoing analysis, drills, exercises, information updates and administrative and management modifications. This ensures the long-term safety and accuracy of the information and physical assets within an organization, and effectively positions MPS as the ideal provider of follow on security services and technology solutions.

Additionally, MPS provides another critical and meaningful service through its unique affiliation with Florida Institute of Technology (Florida Tech): its expanding series of special maritime security courses held at multiple locations in the US, the UK and at locations throughout the world. The fact that a firm, such as AEGIS (through MPS), can offer course attendees Continuing Education Units (CEU's) from Florida Tech, for specialized, internationally recognized security courses, is only one of the novel ingredients in this unique initiative. Both of these Florida-based institutions are acknowledged leaders in the United States... and this partnership, which is designed to investigate and discover ways to preserve and enhance the economic and social integrity of the United States through a combination of academic, technological, scientific and logistical pursuits of Biospheric Solutions, will not doubt propel them into new and more dramatic roles on the international stage.

To learn more about AEGIS, ATLAS and MPS, their technology, systems, services and offerings, contact them directly by calling: U.S. 1-954-428-6880 or U.K. +44(0)1202 684686.

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