Defense Transportation Journal

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The Official Publication of the National Defense Transportation Association

August 2016

www.ndtahq.com

Shifting Interdependent Tides: The State of the US-Flag Commercial Fleet Positive Train Control: Implementation Rolls on at BNSF Supply Chain Collaboration: The Best Defense Against Cyber Crime Thoughts on Logistics & Transportation in an Earthquake’s Aftermath

Interdependent and Interconnected


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| Defense Transportation Journal | AUGUST 2016

Defense Transportation Journal

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DECEMBER 2015


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| Defense Transportation Journal | AUGUST 2016


August 2016

FEATURES August 2016 • Vol 72, No. 4 PUBLISHER

RADM Mark H. Buzby, USN (Ret.) MANAGING EDITOR

Sharon Lo | sharon@ndtahq.com CIRCULATION MANAGER

Leah Ashe | leah@ndtahq.com

SHIFTING TIDES 8 The State of the US-Flag Commercial Fleet By Charles Diorio

POSITIVE TRAIN CONTROL 11 Implementation Rolls on at BNSF By Joseph Faust

PUBLISHING OFFICE

NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761

GRAPHIC DESIGN & PRODUCTION MANAGER

Debbie Bretches

ADVERTISING ACCOUNT MANAGER

Bonnie Coggin

ADVERTISING & PRODUCTION Carden Jennings Publishing Co., Ltd. Custom Publishing Division 375 Greenbrier Drive, Suite 100 Charlottesville, VA 22901 434-817-2000 x330 • F 434-817-2020

SUPPLY CHAIN COLLABORATION: 15 THE BEST DEFENSE AGAINST CYBER CRIME By Kate Yates

THOUGHTS ON LOGISTICS & 19 TRANSPORTATION IN AN EARTHQUAKE’S AFTERMATH An Interview with FEMA’s Kenneth Murphy By James Marconi

Defense Transportation Journal (ISSN 0011-7625) is published bimonthly by the National Defense Transportation Association (NDTA), a non-profit research and educational organization; 50 South Pickett Street, Suite 220, Alexandria, VA 22304-7296, 703-751-5011. Copyright by NDTA. Periodicals postage paid at Alexandria, Virginia, and at additional mailing offices. SUBSCRIPTION RATES: One year (six issues) $40. Two years, $60. Three years, $75. To foreign post offices, $45. Single copies, $6 plus postage. The DTJ is free to members. For details on membership, visit www.ndtahq.com. POSTMASTER: Send address changes to: Defense Transportation Journal 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296

DEPARTMENTS PRESIDENT’S CORNER | RADM Mark H. Buzby, USN (Ret.).......................................... 7 PROFESSIONAL DEVELOPMENT | Irvin Varkonyi......................................................25 CHAIRMAN’S CIRCLE.......................................................................................28 HONOR ROLL..................................................................................................29 BOOKSHELF IDEAS | Sharon Lo........................................................................... 30 INDEX OF ADVERTISERS.................................................................................... 30 www.ndtahq.com |

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NDTA Headquarters Staff

The 4th Annual

NDTA-USTRANSCOM

RADM Mark Buzby, USN (Ret.) President COL Jim Veditz, USA (Ret.) Senior Vice President, Operations Patty Casidy VP Finance Lee Matthews VP Marketing and Corporate Development

Fall Meeting October 31-November 3

St. Louis Union Station Hotel

St. Louis, Missouri

Leah Ashe Manager, Database James Marconi Director of Public Relations Rebecca Jones Executive Assistant to the President

“Delivering National Objectives: Operating in an Increasingly Disruptive World”

For a listing of current Committee Chairpersons, Government Liaisons, and Chapter & Regional Presidents, please visit the Association website at www.ndtahq.com.

EDITORIAL OBJECTIVES The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense logistics and transportation and the partnership between the commercial transportation industry and the government transporter. DTJ stimulates thought and effort in the areas of defense transportation, logistics, and distribution by providing readers with: • News and information about defense logistics and transportation issues • New theories or techniques • Information on research programs • Creative views and syntheses of new concepts • Articles in subject areas that have significant current impact on thought and practice in defense logistics and transportation • Reports on NDTA Chapters EDITORIAL POLICY The Defense Transportation Journal is designed as a forum for current research, opinion, and identification of trends in defense transportation and logistics. The opinions expressed are those of the authors and not necessarily of the Editors, the Editorial Review Board, or NDTA. EDITORIAL CONTENT Archives are available at www.ndtahq.com/ media-and-publications/past-dtj-editions/ Sharon Lo, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 sharon@ndtahq.com

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The Fall Meeting fosters the critical public and private partnership in defense transportation through frank discussion about new challenges, technologies and best practices. Join us for an in-depth look at disruptive technologies and trends that are—or soon will be—impacting how we support the warfighter. Speakers and panelists include: • • • • • • • • • • •

Gen Darren McDew, Commander, US Transportation Command (Keynote) Rick Boyle, Vice President, Commercial, Maersk Line, Ltd. Lt Gen Andrew Busch, Director, Defense Logistics Agency The Honorable Alan Estevez, Principal Deputy Under Secretary of Defense for Acquisition, Technology & Logistics Gen Carlton Everhart II, Commander, Air Mobility Command Rep. John Garamendi, 3rd District, California (invited) LTG Stephen Lyons, Deputy Commander, USTRANSCOM RADM Dee Mewbourne, Commander, Military Sealift Command Brad Nail, Senior Manager, Insurance and Public Policy, Uber MG Kurt Ryan, Commander, Surface Deployment & Distribution Command Dr. Loren Thompson, Chief Operating Officer, Lexington Institute

For more information and to secure your spot, visit www.ndtahq.com/events/fall-meeting.


PRESIDENT’S CORNER Interesting Times . . . RADM Mark H. Buzby, USN (Ret.) NDTA President

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s I sit here at my desk pulling together thoughts for this month’s issue of the DTJ, I must admit that my thoughts are drawn in a bunch of different directions. Events in our national political arena, the UK’s decision to exit the European Union, the opening of the new Panama Canal, a resurgent Russia, turmoil in the South China Sea, a reduced but still resilient and dangerous ISIL, a slowing Chinese economy, the cyber “Pearl Harbor” that looms, and a loose cannon (literally) in North Korea—any one of these (and many others) could fill a column with potential impacts to transportation, logistics, and our ability to support our national security in the coming days. Interesting times indeed. Rather than give these important issues lip service in a few paragraphs here, I invite you to join us in St. Louis from October 31 to November 3 at the NDTAUSTRANSCOM 2016 Fall Meeting. We will roll up our sleeves and take a closer look at the disruption—both good and bad—that is being thrust upon us at an ever increasing pace. I submit to you that the full impacts of these geopolitical and technological factors are not fully appreciated or understood by any of us, which is why it is so critical to build our collective situational awareness. Between our lineup of impressive speakers and the greatly expanded list of subjects addressed in our Transportation University classes and seminars, I am certain that you will come away with a better understanding of the dynamics at play. Judging by the early registration numbers, I’d say a lot of folks see it that way too. You can register at our

website: ndtahq.com/events/fall-meeting. From our founding day, NDTA has always existed to be the trusted partner with government and industry, a critical role that I believe that we fulfill extremely well. Our vibrant drumbeat of government-industry committee meetings, our co-sponsored annual Fall Meeting and NDTA’s new GovTravels symposium attest to this. A goal of ours has been to extend that relationship to other parts of government and the corresponding industry that serves it. We experienced tremendous success in the passenger travel sector this past spring and now count GSA and the Department of State as strategic stakeholders. Several new corporate memberships have resulted. Recently, I met with US Coast Guard Rear Admiral Paul Thomas, Assistant Commandant for Prevention Policy. He was very interested in establishing a formal engagement venue and drumbeat with US-Flag ocean carriers to discuss the requirements and challenges (read costs) associated with sailing under the Stars and Stripes. He was turning to NDTA and Jim Henry’s Sealift Committee as the trusted place to have the kind of productive dialog he was seeking. I think that’s pretty good testament to the fact that your Association continues to make a difference, and is as relevant today as it was in 1944. You’ll see Rear Admiral Thomas and several members of his staff in St. Louis at the Fall Meeting; please welcome him aboard. Enjoy the rest of your summer; sail, fly, drive, and train safe! Yours aye, Mark H. Buzby

TRANSPORTATION UNIVERSITY IS BACK AND BETTER THAN EVER! Held as part of the NDTAUSTRANSCOM Fall Meeting, Transportation University explores the topics and trends important to you. Attendees can pick and choose from 65 courses and seminars arranged around 13 “tracks,” including: • Transportation Security • Global Logistics • Legislation and Policy • Cyber Security • DOD Transportation • Passenger Travel Plus many more!

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Find the full class schedule and sign up now at www.ndtahq.com/events/ fall-meeting/university-courses

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The State of the US-Flag Commercial Fleet By Charles Diorio, General Manager, American Roll-On Roll-Off Carrier Photos courtesy American Roll-On Roll-Off Carrier

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n 15 June 2016, American Roll-on Roll-off Carrier’s (ARC) M/V Endurance departed from the port of Beaumont, Texas, laden with Army cargo. M/V Endurance had loaded a mix of tanks, trucks, tractors, wreckers, fuel tanks, cargo handlers and various other items bound for Kuwait. While Endurance is among the most militarily-useful, multi-purpose, and largest roll-on, roll-off vessels in the world, she is also one of a small number of commercial cargo vessels trading internationally in the United States-flag fleet. The US-flag international fleet has declined steadily since the end of World War II. The US oceangoing merchant marine 8

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fleet has declined by 82 percent since 1951, when the fleet peaked at 1,268 vessels.1 At the end of 2014, the US-flag international fleet was down to 73 vessels, a reduction of 25 percent in just four years.2 With the addition of two new vessels in 2016, ARC may soon operate 10 percent of the US-flag international fleet, but the overall trend line for the industry is steadily downward. The reality is that in order to provide the assets, mariners, networks and readiness the Department of Defense (DOD) requires, US-flag carriers must have cargo. Cargo fills the ships, ships employ mariners, those mariners are in turn available to crew government reserve vessels, and

the ships and related intermodal networks provide readiness to the US military. Unfortunately, cargo preference volumes have declined dramatically in just the past few years. The main driver for this is the cessation of combat operations in Iraq and Afghanistan, and the concurrent overall reduction of US forces’ overseas footprint. The Maritime Administration calculated that government-impelled cargo fell from a high of 5.6 million tons in 1991 to 2.2 million tons in 2014, with the majority of the decline from DOD cargo.3 Military cargo is estimated to reach a nadir of 1 million tons per year in 2016.4 As a result of these cargo reductions, the international fleet has expe-


rienced a precipitous decline. Holding on to these remaining American vessels is a national security priority, one that the Maritime Security Program (MSP) was meant to ensure. MARITIME SECURITY PROGRAM

The Maritime Security Program is a federal maritime financial sustainment program that provides for a fleet of modern US-flagged and US-crewed militarily useful sealift assets operating in international trade.5 The MSP fleet enables the US government to provide sealift for US armed forces utilizing the resources of the US-flag commercial fleet. The MSP fleet provides a US national security asset at a lower cost

than the government owning and maintaining an equivalent capability. MSP is critical to our nation’s ability to defend itself in time of war or national emergency, as it provides for a framework where the active, commercially viable, privately-owned US-flag commercial shipping fleet can be utilized by the US government. Indeed, as US Transportation Command Commander General Darren W. McDew wrote, “it is clear the United States must maintain the flexibility to deploy a decisive force at the time and place of our choosing.”6 The Maritime Security Program, an amendment to the Merchant Marine Act of 1936, was first passed in 1996, and originally comprised a fleet of 47 US-flag, militarily-useful vessels.7 The program was reauthorized in 2003 for effect until 2015, and simultaneously expanded to a fleet of 60 militarily-useful vessels. MSP was extended again, this time to 2025, by Congress in 2013.8 MSP provides its US-flag, ship-operating participants with a readiness retainer that helps to offset the higher costs of flagging, crewing, and operating a US-flag vessel. MSP permits companies to re-flag foreign-flag vessels less than 15 years old to US registry, thereby providing US-flag operators with the flexibility and increased efficiency to remain competitive in the international marketplace. The MSP program also requires all participating carriers to sign the Voluntary Intermodal Sealift Agreement (VISA), which sets forth ironclad obligations to the Department of Defense specifying how the companies’ vessels and intermodal systems can be utilized in support of US national emergencies. ARC is the largest ro-ro operator in MSP and VISA, providing nearly 50 percent of the total Ro-Ro square footage in the MSP fleet. Funding for the Maritime Security Program is subject to the annual appropriations process. The continued full funding of MSP is vital to the economic and military security of our nation. MSP not only ensures that our nation has the commercial sealift capability it needs, but also that the

country will continue to have the American citizen merchant mariners necessary to crew government and private vessels that sail in support of and supply our armed forces overseas. Congress authorized the current sixty-ship MSP fleet on the basis that it was, and continues to be, the most prudent, economical, and necessary solution to address the current and projected sealift requirements of the United States. A key part of the value proposition of MSP is the network of global services provided by the carriers. A study prepared for the National Defense Transportation Association (NDTA) by Reeve & Associates in August of 2006, “The Role of the United States’ Commercial Shipping Industry in Military Sealift,” indicated that the cost to the US government to replicate the vessels provided for by MSP is estimated at $13 billion, and added that it would cost the government a further $52 billion to replicate the related global intermodal system provided by the carriers that participate in the MSP program. This is compared to the moderately small sum of $186 million paid in total each previous year to the MSP participants.9 CURRENT AND FUTURE ISSUES

US-flag international carriers depend on the MSP readiness retainer to help offset the additional costs of flying the American flag. In recent years, the industry has reached a point where the current MSP stipend was not sufficient when combined with the drastically declining cargo base. With DOD cargoes alone down by upwards of 70 percent from the recent peaks in 2009-2010, a rebalancing was needed. Various studies to examine the operating cost differential between US-flag vessels participating in MSP and foreign flag vessels determined that when such factors as insurance, vessel maintenance and repair, total crew costs and ship management are considered, US-flag vessel operational costs are approximately $5 million to $7 million more than the costs for equivalent foreign flag vessels.10 www.ndtahq.com |

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ment reserve sealift assets are often operated to age 50 or more. There is little appreciable difference in the condition of an American vessel from 25 to 30 years. Most importantly, this would give the government five more years of MSP vessel usage at no additional cost to the federal budget. Adding five years to the expected life of a new vessel acquisition makes the investment calculations more favorable for American shipping lines. The commercial maritime industry, through MSP, is currently providing DOD with sixty vessels and follow-on intermodal systems and networks at a cost to the taxpayer of only $210 million, or $3.5 million per ship, for FY-2016. On a positive note, MSP stipends were recently authorized at $5M per vessel from FY-2017 through FY2021, but still need to be appropriated.11 An increase in appropriations for MSP to this level would provide this essential sealift capability to DOD at a cost of only $300 million, still only a fraction of the estimated $65 billion that it would cost our government to replicate this capability. One non-monetary way to counteract cost factors is to extend the age of MSP eligibility out an additional five years. Ships are long-term assets, eligible to participate in MSP for 25 years. Many shipping lines operate vessels in a commercial capacity out to 30 years of age or more, and US govern10

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CONCLUSION

The current state of the US-flag fleet is dire. The number of liner vessels in the international-trading, US-flag fleet has declined from 151 in 1990 to 73 at the end of 2014. These remaining 73 vessels are facing strong headwinds on preference cargo. The Export-Import Bank of the United States charter expired for a time in June 2015, and food aid is under attack from a variety of fronts. In addition, the industry may face yet another round of consolidations. When ARC’s M/V Independence II arrived on 17 May 2016 at the port of Szczecin, Poland to discharge Army cargo to be used as part of Exercise “Anakonda 2016”, a multinational exercise with 24 NATO and other partner nations, she was doing so as one of a small number of American vessels in the international trades. M/V Independence II and her 72 other US-flag counterparts are on the brink of a new reality. The cargo

preference laws and programs that have sustained them in the past may not be enough incentive to continue in trade in the future. With Operations Enduring Freedom and Iraqi Freedom now in the rear-view mirror, what is next for the US-flag fleet? As we encounter another change in the tide, it is worth reflecting that historically, our most important and enduring maritime laws were passed in the wake of the nation’s most challenging overseas wars, including the Merchant Marine Act of 1920 after World War I, the Cargo Preference Law of 1954 in the wake of World War II and the Korean War, and the previously noted Maritime Security Program of 1996 after the Gulf War. Lt. Gen. Stephen Lyons, Deputy Commander of US Transportation Command, recently wrote that “we must recognize and advocate for the critical combat enabler known as our nation’s strategic sealift… without strategic sealift, we join the ranks of most of the world’s armies— relegated to an in-garrison force that is likely ineffective at deterring its enemies.”12 The time for action is now, before the already small US-flag fleet shrinks further and puts our military readiness and national security at risk. Strengthening the Maritime Security Program is a place to start, but more action is needed. DTJ

1

“Study of the Impediments to US-Flag Registry Final Report,” Price Waterhouse Coopers. September 20, 2011. 2 US Maritime Administration, US Department of Transportation, “A Report to Congress – Impacts of Reductions in Government Impelled Cargo on the US Merchant Marine” (April 21, 2015) at 3. 3 US Maritime Administration, US Department of Transportation, “A Report to Congress – Impacts of Reductions in Government Impelled Cargo on the US Merchant Marine” (April 21, 2015) at 3. 4 Id., at 5. 5 Maritime Security Act of 1996, Pub. L. No. 104–239 as amended (46 U.S.C. App. § 1171 et seq.) 6 Darren W. McDew, “Losing our sea legs,” Virginian-Pilot, January 17, 2016. 7 Maritime Security Act of 1996, Pub. L. No. 104–239 as amended (46 U.S.C. App. § 1171 et seq.) 8 National Defense Authorization Act for Fiscal Year 2013, Pub. L. No. 112–239, § 3508 (2013). 9 Id. 10 US Maritime Administration, US Department of Transportation, “Comparison of US and ForeignFlag Operating Costs,” September 2011, at 1. 11 Consolidated Appropriations Act, 2016, Pub. L. No. 114-113 (2015). 12 Stephen Lyons, “Sailing to the fight, marching to victory,” Army Sustainment, May-June 2016.


POSITIVE TRAIN CONTROL Implementation Rolls on at BNSF By Joseph Faust, Director, Public Affairs, BNSF Railway

Photos courtesy BNSF Railroad

THE BASICS ON PTC

Positive Train Control (PTC) is a technology overlay of existing train operations that stops a train before certain types of accidents occur. It is a predictive, advanced safety technology designed to prevent train-to-train collisions, enforce speed limits, protect roadway workers and equipment, and prevent the movement of a train through a switch in the improper position. It accomplishes this through a combination of GPS, Wi-Fi and high-band radio transmission that determine the location, direction and speed of the train; warn the locomotive engineer of a potential problem; and take action by stopping the train if there is not a response by the engineers. THE PTC MANDATE

In 2008, Congress mandated that PTC technology must be implemented on routes that carry passengers and/or toxic-byinhalation (TIH) commodities—approximately 70,000 miles of track—by December 31, 2015. However, in November 2015, Congress extended that deadline three years to December 31, 2018 for all railroads. www.ndtahq.com |

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“Implementing PTC is hard work. This is the most complex technology our industry has ever attempted. BNSF leads the industry in PTC development and implementation, but we have to get even better to make it run smoothly on our railroad.�

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Railroads were required to submit revised PTC implementation plans to the Federal Railroad Administration (FRA) by January 27, 2016, outlining how and when they would have PTC fully installed and activated. A further extension for the technology’s implementation (until 2020) may be available for testing and fine tuning if a railroad has met certain requirements, including having an already installed and at least partially operational PTC system. “PTC is an important safety system that has already prevented incidents,” said Chris Matthews, Assistant Vice President, Network Control Systems. “Implementing PTC is hard work. This is the most complex technology our industry has ever attempted. BNSF leads the industry in PTC development and implementation, but we have to get even better to make it run smoothly on our railroad.” LEADING THE WAY

Today, BNSF has the only FRA-certified PTC system among the Class 1 railroads, and is running an average of 600 PTC trains daily in revenue service on 17 of its PTCmandated subdivisions. In fact, on June 11, the railroad reached 100,000 successful trips operating PTC in revenue service.

BNSF’s PTC implementation team expects to have more than 40 percent of the 86 PTC-mandated subdivisions operating in revenue service by the end of this year, and the team has already installed approximately 90 percent of the PTC communication support technology that includes signal, wayside, back office and locomotive hardware and software. BNSF will work closely with other railroads on jointly testing PTC system interoperability for wayside, locomotive and other technology, which will be essential to full industry-wide implementation. To further ensure the program’s success the PTC team recently implemented en-

hanced reporting tools and ToneUp, a new communication system for train crews to contact PTC support personnel directly for all PTC-related questions. “Many teams have been instrumental in our continued progress on PTC—from Engineering, to Mechanical, to Transportation, Technology Services and many more,” said Director Lesha Hampton, PTC Implementation, Network Control Systems. “Cross-departmental collaboration and support have been outstanding and continue to get even better as we move toward the deadline.” THE SCOPE OF IMPLEMENTATION ON THE BNSF NETWORK

The scope of BNSF’s PTC installation is immense, with 11,300 miles of track— roughly half of the BNSF system and 80 percent of BNSF’s freight density—and 5,000 locomotives to equip with PTC technology. PTC PROGRESS

BNSF submitted its formal PTC Implementation Plan to the FRA in January 2016, with a commitment to fully implement PTC on mandated subdivisions by

December 31, 2018. BNSF believes it is on target to meet this goal, but reserves its right to continue testing past the deadline as it enters the uncharted territory of addressing issues such as interoperability with other railroads. As of July 2016 BNSF has: • 20 of 86 PTC-mandated subdivisions operating in revenue service • 50 percent+ of 86 PTC-mandated subdivisions expected to be operating in revenue service by the end of 2016 • 100,000+ trains that have operated with PTC • 22,000+ BNSF employees who are PTC-trained

Types of PTC Systems in the United States ACSES (Advanced Civil Speed Enforcement System): A transponderbased system, in use on Amtrak’s Northeast Corridor originally put into use on the Northeast Corridor by the specific requirements of an Order of Particular Applicability. (Type Approved and Certified by FRA.) ETMS (Electronic Train Management System): A GPS- and communicationsbased system being deployed by BNSF Railway, originally put into use by the specific requirements of 49 CFR Part 236, Subpart H. (Type Approved and Certified by FRA for restricted use.) I-ETMS (formerly called Vital Electronic Train Management System): A GPS- and communicationsbased system, not yet ready for deployment. It is the system of choice for CSX Transportation, Norfolk Southern Railway, and Union Pacific Railroad. BNSF Railway is to upgrade to it when software is available, various passenger/commuter and other railroads are adopting it for compatibility and interoperability. (Type Approved by FRA.) ITCS (Incremental Train Control System): A GPS- and communicationsbased system used by Amtrak on its Michigan line, authorized for passenger train speeds up to 110 mph, originally put into use by the specific requirements of an FRAapproved waiver. ITCS certification through Amtrak’s request for expedited certification process is pending successful resolution of a few remaining issues prior to FRA approval for certification. Enhanced Automatic Train Control (E-ATC): A system that uses an underlying automatic train control (ATC) system, in conjunction with other “enhanced” features or systems to achieve the core required functionalities of PTC. These systems are often integrated with underlying cab signal systems (CSS) and centralized traffic control (CTC) systems, in addition to other signal or train control system enhancements the railroad elects to make, to meet the full requirements of PTC. Information courtesy of the Federal Railroad Administration

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PTC CHALLENGES

THE FRA’S ROLE

The FRA is providing support to all rail carriers that have statutory reporting and installation requirements to implement PTC, as well as rail carriers that are continuing to voluntarily implement PTC. That assistance includes: • Providing more than $650 million to passenger railroads, including nearly $400 million in Recovery Act funding • Issuing a nearly $1 billion loan to the Metropolitan Transportation Authority to implement PTC on the Long Island Rail Road and Metro-North • Building a PTC testbed in Pueblo, Colorado • Working directly with the Federal Communications Commission (FCC) and the Advisory Council on Historic Preservation to resolve issues related to spectrum use and improve the approval process for PTC communication towers

• Dedicating staff to continue work on PTC implementation, including establishing a PTC task force BNSF’S REMAINS COMMITTED

BNSF began developing and testing PTC before the Congressional mandate of 2008. It was the first freight railroad to put PTC into Revenue Service Demonstration in 2012, and is currently the only Class I railroad running PTC in Revenue Service. BNSF remains deeply dedicated to PTC deployment and continues to work with the passenger commuter rail lines so that their trains operating on BNSF tracks can also benefit from this technology. BNSF is equally focused on getting PTC implementation done right. It continues to test and implement the system as quickly as possible with transparency and partnership with the FRA. DTJ

Image by the Federal Railroad Administration

Positive Train Control is the biggest technological change ever implemented by the railroad industry, bigger even than the conversion from steam- to diesel-powered locomotives. The technological complexity of the PTC system and the scope of its implementation are unprecedented. Revenue Service operation will be challenging as BNSF works through issues unique to each location, as well as overall system issues with multiple PTC components. As the only freight railroad running PTC in Revenue Service, BNSF will continue to uncover new issues with PTC equipment, software and system integration. PTC reliability will be an ongoing focus due to its potential to have significant impact on overall network velocity and service reliability for BNSF customers.

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Supply Chain Collaboration:

the BEST DEFENSE Against Cyber Crime By John Weir, Government Services, Sales and Marketing, Crane Worldwide Logistics

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hysical threats and cargo crime have long been acknowledged within the international transportation environment. According to freight security firm CargoNet, rates of physical cargo theft have been dropping in recent years. In Q3 of 2015, cargo theft incidents in the US and Canada were down 23 percent from the same period in 2014. Industry experts are quick to warn that this reduction is not because of an overall drop in criminal activity, but because there is a shift from traditional cargo theft to cybercrime—the next generation of crime that will threaten the transportation industry, and may pose a far greater menace. As we move increasingly to digital information systems, the threat to our information systems, software and networks grows in parallel. Cyber security in the transportation environment is generally referred to as a subset of supply chain security and includes the threats of cyber terrorism, malware, data theft, as well as Advanced Persistent Threat (APT).

The logistics industry has embraced technology with high expectations of seamless transactions, upto-the-minute information and user-friendly interfaces. There is increased sharing of information between providers and their customers, often through web-based applications which are vulnerable to hackers. Add to this advanced tracking and tracing systems using RFID tags and GPS systems, and you have a wealth of information on every shipment at each step of the supply chain. While visibility and transparency is integral to effectively managing your supply chain, it’s also incredibly powerful, and leaves organizations vulnerable when it falls into the wrong hands. SUPPLY CHAIN CYBERCRIME

Cyber-attacks have been growing in number and in sophistication, and have already presented demonstrable risk through its targeting of carriers, ports, terminals and other transport operators.

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CYBER THREATS CYBER TERRORISM The use of computer network tools to shut down critical national infrastructures (e.g., energy, transportation, government operations) or to coerce or intimidate a government or civilian population. MALWARE Software programs—such as viruses, worms, Trojan horses and spyware—designed to damage or do other unwanted actions on a computer system. DATA THEFT The act of stealing computerbased information from an unknowing victim with the intent of compromising privacy or obtaining confidential information.

For surface carriers, a growing challenge is the theft of physical cargo, facilitated with cybercrime, through ‘fictitious pickups’. These schemes leverage a form of identity theft, with thieves seizing shipment and carrier information, and impersonating or creating fictitious trucking companies in order to collect and abduct cargo, defrauding shippers and carriers at numerous points along the supply chain. So well executed are these heists that cargo is willingly handed over to thieves by carriers or shippers, never to be seen again. Rates of fictitious pickups are rising, but go underreported due to a reluctance of victims to report crimes of this nature, as it exposes failures on their part to vet carriers responsibly. For ocean carriers, cybercrime has seen pirates hack carrier IT systems to access bills of lading in order to efficiently locate and target attacks on valuable cargo. The attacks are executed not only on specific vessels, but on particular containers on board, with well-informed pirates knowing details of the contents and location of these containers in advance. Cybercrime has also facilitated the international trafficking of drugs aboard vessels, the greatest example being the 2013 Port of Antwerp saga. The cyber-attack saw drug traffickers recruit hackers to breach IT systems that controlled the movement, location and security details of shipping containers. Emails to port staff embedded with malicious software, and later key-logging devices installed during a break in, allowed the criminals to access data remotely. Cocaine and heroin were hidden among legitimate shipments from South America, and upon arrival in Antwerp the stolen data allowed traffickers to intercept and seize the cargo with their own trucks before the true owner arrived. No industry is immune to cybercrime, but for the transportation industry, the stakes can be far greater than loss of personal property.

ONLY AS STRONG AS THE WEAKEST LINK

In the past, intense competition has hindered the process of information sharing in the transportation industry. In the commercial world, manufacturers, freight forwarders and carriers have been reticent to share the information that they would readily make available to one another due to the underlying fear of protecting their unique sale. However, as the pressure of globalization and competition continues to increase, transparency of information is in fact becoming a key differentiator in an effective supply chain. In the past, strategic procurement of a supply chain partner would give emphasis to cost-reduction. This approach is now seen as wholly outdated. A 2015 survey by Accenture of 225 organizations worldwide found those that had mastered procurement by collaborating with suppliers spent half as much on managing their supply chain as businesses without a collaborative model, yet saved 30 percent more.1 There are numerous quantifiable benefits to developing collaborative supplier partnerships, related to improved quality, accuracy and efficiency. Another advantage to collaborating closely with select trusted suppliers, rather than juggling many, is reducing access points and therefore limiting cyber security risks in the supply chain. Businesses often allow vendors access to their systems to conduct their work, and the more suppliers you allow access, the more inroads you begin to open up for hackers to exploit. With such a high volume of information being exchanged across multiple platforms at one time, the risk of exposure to cybercrime is significant. When information and security is linked across a supply chain, as it so often is in order to share information, the cyber-security of any one organization in that chain is only as strong

ADVANCED PERSISTENT THREAT A network attack, designed to steal data rather than cause damage, in which an unauthorized person gains access to a network and stays there undetected for a long period of time.

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Supply chain transparency must now go beyond the traditional visibility of the movement of goods. The data that supply chain transparency can provide is a meaningful insight that enables organizations to manage cyber threats more effectively with their supply chain partners. Vet your suppliers to ensure their organization and their systems meet your standards of security. Understand and screen your partners’ data management practices to ensure there are no holes in their system.


as that of the weakest organization. More often than not, this weakest link is also the smallest member of the supply chain, with the least resources to combat cyber threats. For cyber criminals, supply chains are a way into business systems. An example of this is the much talked about Target breach in 2013, where hackers targeted an HVAC contractor with a phishing attack, using the contractor’s connection with Target as an entry point for a breach that resulted in the financial information of over 110 million people being compromised. With cyber crime, who you partner with becomes extremely important in managing the risks at every step of the process. Likewise, within each organization, cyber-security is no longer a problem for the IT department, but for every employee, in every department. Systematic tracking of individuals, particularly through social media, allows cyber criminals to identify the weakest link and strike with minimal

risk. To truly ensure the strength of an organization’s cyber-security, it must remain a company-wide focus, with individual behavior often determining the success or failure of preventing a breach, despite company policies. “Cyber-security is a moving target and the threat is real. An attack on any point of an organization’s supply chain is an attack on the entire supply chain. Diligence, readiness and transparency by all involved parties are of the utmost importance,” said Adel Chaveleh, Chief Information Officer at Crane Worldwide Logistics. THE COST OF CYBER CRIME

In a joint report by Hewlett Packard and the Ponemon Institute on cybercrime, it is estimated that the average cost of cybercrime to American firms is $15.4 million in damages per year.2 Steps are being taken by prudent organizations and the government to help

The President’s Budget for Fiscal Year 2017 Securing the Digital Economy for All Americans Through Strengthened Cybersecurity. The Budget invests $19 billion in overall Federal resources for cybersecurity to support a broad-based cybersecurity strategy for securing the Government, enhancing the security of critical infrastructure and important technologies, investing in next-generation tools and workforce, and empowering Americans. In particular, this funding will support the Cybersecurity National Action Plan, which takes near-term actions and puts in place a long-term strategy to enhance cybersecurity awareness and protections, protect privacy, maintain public safety as well as economic and national security, and empower Americans to take better control of their digital security. www.whitehouse.gov/omb/budget

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So well executed are these heists that cargo is willingly handed over to thieves by carriers or shippers, never to be seen again. Rates of fictitious pickups are rising, but go underreported due to a reluctance of victims to report crimes of this nature, as it exposes failures on their part to vet carriers responsibly.

mitigate the danger from cyber security threats. The Obama Administration asked Congress to dedicate $19 billion to cyber security in its fiscal 2017 budget proposal. Internationally recognized programs such as the US Custom Service’s Container Security Initiative, as well as the C-TPAT, AEO, PIP, J-AEO and C-AEO have all helped to reduce the risk of terrorism and theft, however, these programs will not be sustainable if accurate data is not provided by the shippers. IT’S EVERYONE’S PROBLEM

The key to preventing cybercrime is understanding key vulnerabilities and managing them effectively. Never misjudge the value of the information your business digitally creates or stores. Whether intellectual property, customer details, financial information or otherwise sensitive data, even what appears to be the most benign information can prove extremely valuable to a criminal organization. Managing the threat of cyber security begins, but does not end, at home. Organizations must establish clear security policies and brief staff on how to manage potential security threats. Alongside investment in next generation security solutions and event correlation such as end point protection, perimeter security, and targeted attack protection, there is a need 18

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for risk management and well-enforced policies designed to defend the organization from cybercrime to be in place across the organization. The focus must be ongoing: almost a third of companies in the UK who suffered security breaches in 2015 cited a lack of priority from senior management as a contributing factor.3 Additionally, when it comes to cybersecurity, your organization is only as strong as the weakest link in your supply chain. Supply chain transparency must now go beyond the traditional visibility of the movement of goods. The data that supply chain transparency can provide is a meaningful insight that enables organizations to manage cyber threats more effectively with their supply chain partners. Vet your suppliers to ensure their organization and their systems meet your standards of security. Understand and screen your partners’ data management practices to ensure there are no holes in their system. Participate in ongoing collaboration and information sharing with long term, trusted partners throughout the supply chain process to help to identify security threats to any cargo shipments going forward, ensuring you are proactively working together to face imminent threats as they arise. While awareness of the impact of cybercrime is growing, and managing this

threat is making its way onto risk management agendas, this focus is not universal. A long list of countries currently have no cybercrime laws in place, leaving international transportation even more vulnerable. Another major challenge for the transportation industry is that often theft is not reported in order to avoid increased insurance rates or tarnished reputations. It could be that the penalties are currently too soft on carriers who do not report theft. It’s becoming clearer that the industry as a whole needs to work together to manage threats, report breaches, and build awareness of best practice, if anyone is going to successfully navigate the constantly changing tides of cybercrime. It’s apparent that both throughout and beyond the supply chain, collaboration is the transportation industry’s best defense against cybercrime. DTJ

1

2

3

Dempsey, M. (2015, Feb. 12). Supply Chain Partnerships Are Win-Win. Retrieved from Raconteur: http://raconteur.net/business/ supply-chain-partnerships-are-win-win Ponemon Institute LLC. (2015). 2015 Cost of Cyber Crime Study: United States. Traverse City: Ponemon Institute. HM Government. (2015). 2015 Information Security Breaches Survey. London: Crown.


Thoughts on Logistics & Transportation in an Earthquake’s

AFTERMATH AN INTERVIEW WITH FEMA’S KENNETH MURPHY

By James Marconi Director of Public Relations, NDTA

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W

hen the office building in southeast Washington, DC, began to sway, my first reaction was confusion. A few seconds later, rational thought kicked in and belatedly I accepted that yes, I was experiencing an earthquake. The 5.8-magnitude earthquake notably damaged the Washington Monument and National Cathedral1, among other buildings. Like many people that day, I had difficulty calling2 family via my cell phone to let them know I was okay. The less said about my long Metrorail ride home, the better. Though earthshaking, the 2011 quake wasn’t quite earth-shattering, at least not on the scale we typically associate with San Francisco or Japan.3 And then there is the Cascadia subduction zone, which I first learned about in a Pulitzer Prize-winning piece succinctly, and appropriately, titled “The Really Big One.”4 Since I live on the East Coast, I didn’t fixate too long on the devastating potential for the Pacific Northwest. But it’s a small world, as they say, and in June I learned a bit more at our Washington, DC Chapter’s monthly luncheon. The presentation by the Federal Emergency Management Agency’s (FEMA) assistant administrator for logistics gave a 50,000-foot overview of the agency’s transportation and logistics considerations in disaster planning, including the Cascadia subduction zone. Being both personally curious and professionally obligated, I requested an interview with Kenneth Murphy, FEMA’s Regional Administrator for Region X. If there’s one person in this country who has to think deeply about what an earthquake and tsunami combination would mean for the Pacific Northwest—and how to respond—it’s Murphy. The phone interview below is edited for length and clarity: Defense Transportation Journal: To start with, can you provide some basic background information on your responsibilities as the FEMA Region X administrator? Or to phrase that another way, what does a typical day in your life look like? Kenneth Murphy: I’m a regional administrator, appointed by the president. There are 10 regions in the Federal Emergency 20

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Management Agency, and I’ve got Oregon, Washington, Idaho, Alaska and 271 tribal nations. Our mission is to support our citizens and first responders, and to ensure as a region and as a nation that we work together to build, sustain, and improve our capabilities to prepare for, protect against,

Impacts are very, very difficult to determine. I think it’s safe to say that the impact would probably be unlike anything that we’ve ever seen before. There will be power outages, and a certain amount of roads, bridges, tunnels and different transportation modes that will be totally or partially inoperable. I think we’ll see those buildings that are old and were not built to the current building codes partially or fully collapsed. And then we’ll have a lot of secondary disasters like broken gas lines and broken water mains. respond to and recover from all hazards. I’ve got a very large geographic area here, so we have plenty of different types of hazards that we face in this region, especially earthquakes. DTJ: Speaking of which, the little bit of reading I’ve done about the Cascadia subduction zone seems to indicate that a major natural disaster—an earthquake—in your region is highly likely. So, what is your understanding of that threat and its potential impact on the region? Kenneth Murphy: The Cascadia subduction zone is two plates that sit out in the ocean, and these plates are pushing against each other. This subduction zone for earthquakes runs from northern California all the way up to Vancouver Island in Canada. So it’s something that sits off the coast anywhere from just a few miles to maybe 50 miles off depending on where you’re at. We really don’t have any good methods of prediction, although I hope we will someday. We do know that earthquakes in

the subduction zone happen every 300 to 500 years. The last one happened in January 1700, so about 317 years ago. We really don’t know when it will happen again—it could happen tomorrow, it could happen 200 years from now. We try and impress upon people that every day is earthquake season, and therefore we should take the time to be better prepared. Impacts are very, very difficult to determine. I think it’s safe to say that the impact would probably be unlike anything that we’ve ever seen before. There will be power outages, and a certain amount of roads, bridges, tunnels and different transportation modes that will be totally or partially inoperable. I think we’ll see those buildings that are old and were not built to the current building codes partially or fully collapsed. And then we’ll have a lot of secondary disasters like broken gas lines and broken water mains. And I failed to mention you have the tsunami that would also hit the West Coast of northern California, Oregon and Washington. So really, what I think we try and teach people is that we need to focus on lifesaving and life safety, and being better prepared; having a family plan, a preparedness kit, and the ability to make sure that your family is taken care of. Since it’s earthquake season every day, people can be trapped in buildings, cars, any numerous amounts of different places where they can be hit by falling debris or different types of things that they need to be aware of. We have been working, really for years, to learn more about what we have to deal with, figure out ways we can address some of these things. We really want to look at how we can deal with these at a local level, the state level, the tribal nation level, and then, of course, nationally. DTJ: To that point, if this type of event happened in the near future, what would the region’s needs be and what role would FEMA be taking to respond? Kenneth Murphy: FEMA’s role in this is the lead federal agency in coordinating at the local, regional and national level. Now, in all honesty if we had an earthquake here, I’m quite sure that myself and my


The Cascadia Subduction Zone off the coast of North America spans from northern California to southern British Columbia. This subduction zone can produce earthquakes as large as magnitude 9 and corresponding tsunamis. Image by FEMA/Mustafa Lazkani.

team here in the region would be disaster survivors, actually a part of the disaster. So as part of our plan, this becomes a national effort led by FEMA, and it really will take the entire nation to respond to this. FEMA will lead this effort to execute a preset list of duties and responsibilities to bring to bear on the region, and it will be handled out of Washington, DC. DTJ: I’m sure there’s quite a laundry list of responsibilities—what might some of those immediate actions be? Kenneth Murphy: Well you’re correct, the responsibility list is very large. Some of the

immediate things are to start shipping to locations in eastern Washington and eastern Oregon that are called incident staging bases. So immediately there will food, water, medical equipment, that type of thing, that will automatically be shipped to those areas to then be broken down and to be delivered to the disaster area. In this particular case, we have teams that will immediately start deploying to do search and rescue. This is literally hundreds, if not thousands, of people from across the nation to start going through rubble. Other teams will look at the shape of roads and bridges and airports, so that we can start preparing the transportation

system. Really some of the first things we will do for actually many days, if not weeks, will be lifesaving and life safety, making sure that we do everything to take care of the citizens that have suffered from this disaster. DTJ: Obviously it sounds like transportation and logistics capabilities would be essential to providing those lifesaving personnel and materials—the food, the medicine, the water—in the aftermath of the quake and tsunami. What are some of the current challenges that you’re thinking about and grappling with in terms of logistics and transportation? www.ndtahq.com |

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Soldiers with the 11th Transportation Battalion guide a shipping container off a vessel at the Port of Tacoma, Washington. The battalion and other units from Fort Eustis, Virginia, the Washington State Army Reserve and National Guard provided logistical support during Cascadia Rising 2016, an exercise which addresses the response from government agencies in the event of a catastrophic disaster in the Pacific Northwest. Photo by US Army/Sgt. Eliverto V Larios.

FEMA generators are unloaded from a C-17 military cargo plane. FEMA shipped generators from its warehouses to help provide electric power to critical facilities in American Samoa following an earthquake, tsunami, and flooding that devastated much of the island in 2009. Photo by FEMA.

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And I would also suggest—and we’ve thought about this a lot—that some of the actual planners and logisticians that do this work for these major corporations can easily advise us how to do this better. With these kinds of disasters, you have to make a very wise choice of what goes on the first truck or the first airplane. You don’t want to make a mistake on what goes in or what comes out, so we want to use the private sector’s expertise to help citizens during these events.

Kenneth Murphy: Oh, you’re absolutely correct, this is really going to become a logistics effort in how we’re going to move goods and people everywhere. We anticipate initially that the east-west road network—and this would be on the western sides of Oregon and Washington—will probably be unusable, and so on our initial list of taskings is to ask the Department of Defense to dispatch part of the US Navy’s 3rd Fleet up along the Oregon and Washington coast to try to bring in supplies along those coastal communities. In communities on the other side, closer in to the valleys along the Interstate 5 transportation route, one of the things we’re trying to figure out is how we can make a very quick assessment of the road network, primarily some of the major roads that people would depend on to bring in goods and services, to determine their status so we can either use them, or come in and try and repair them. Same thing with bridges and tunnels. We want to make sure we have this infrastructure safe before we can actually allow people to use them. With a major earthquake like this we can also expect aftershocks, so that’s something that we’ll constantly be watching for. DTJ: Sure. And so you mentioned a few of the government resources and parts of the government and military that might be brought to bear. Could you elaborate what your current thinking is with regard to how the private sector might play a role in logistics and transportation? Kenneth Murphy: The bottom line is the private sector can do a much better job at this. I think it is government’s responsibility to recognize these folks, whoever they are, who have the capability, have the technology. They know how to quickly deliver goods and services to the public.

So it is important that we’re working with the private sector whether it’s to deliver food, fuel, general goods, whatever the case may be. And I would also suggest—and we’ve thought about this a lot—that some of the actual planners and logisticians that do this work for these major corporations can easily advise us how to do this better. With these kinds of disasters, you have to make a very wise choice of what goes on the first truck or the first airplane. You don’t want to make a mistake on what goes in or what comes out, so we want to use the private sector’s expertise to help citizens during these events. DTJ: To that point, are there any partnerships that are currently in place, or that you’re looking to grow in the near term? Kenneth Murphy: We’re always looking to partner with the private sector and grow into relationships. There are so many pieces and parts to the private sector. But we have a good relationship at different levels of government. At FEMA’s level, we try to work with the headquarters of these national corporations or associations that can help us. So we’ve done quite a few exercises, including some virtual tabletop exercises with our private sector partners. We try to focus especially on the private sector that can help us with food, water and medical supplies, but there are so many other private sector entities that we should and need to develop relationships with. One of the things that happens during disasters is that at some point in time, we’re doing the right things to get the economy running again. So that could be making sure that roads are open for trucks to be transporting goods, or ports are open to transport things by ship. So many of those relationships still need to be built, and that’s an area we continue to work on.

DTJ: Great. To bring it back to those relationships, whether it’s with other government entities or the private sector, could you talk a little bit about the planning that FEMA has done, particularly the Cascadia Rising exercise that just concluded a few weeks ago? Kenneth Murphy: Well, we’ve had a plan that’s been written for about three to four years, and I think the centerpiece of that plan that has really taken the time to work out is what we call an execution matrix. Based on our best knowledge of what we can expect or should expect, the minute the earthquake happens these tasks are automatically executed by the federal government or the state government. We try to advocate that this be done at each level of government, so if one of us in a leadership position is not available or we are killed by the event, we can start executing the plan, and start taking care of people, moving goods. There’s just a huge list of tasks that simultaneously have to happen across a very large geographic area. So we do exercises like the recent Cascadia Rising exercise, and we will get ready to start updating the plan to make it even better. DTJ: I know that Cascadia Rising just ended very recently, but are there any initial lessons-learned or takeaways that have stemmed from that? Kenneth Murphy: This is pretty true with just about every disaster; you’re going to have communications challenges. I actually worry a lot about how we communicate. I think everybody realizes by now how dependent we are on e-mail, our smartphones, social media and the different forms of communication that we have. We really need to figure out how we’re going to manage if some of that is not available. I know for sure that just us using the system and the ground shaking in an earthwww.ndtahq.com |

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The US Navy’s Military Sealift Command ship USNS Bob Hope (T-AKR 300) lowers a conex box to a causeway ferry during the Joint Logistics Over-the-Shore exercise, also part of Cascadia Rising. JLOTS is the process by which rolling stock and containers of military cargo are moved from ship to shore without the benefit of a port. Photo by US Navy/MC3 Charles D. Gaddis IV.

quake is going to bring the communications systems—if they don’t totally break—to a very slow halt, so we can’t rely on them. We really need to figure out how we are going to address that. Because when we’ve had disasters across this country, whether it’s floods, wildfires, tornadoes or hurricanes, communications always go south. Another common lesson is, how are we going to manage without power? We’re very dependent on electricity to run things, so communications and power are probably the two things that we seriously have to figure out how to fix. Most disasters across the United States, you can literally drive to the disaster, and fix things. If you’re in an earthquake, you might not be able to do that. So we’re going to have to be inventive and creative, because without good communications or electricity, it’s just going to slow us down and make the job of response and recovery more difficult. DTJ: Absolutely. And it sounds like in both cases, when you’re dealing with gaps 24

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in technology and systems are down, it’s very much back to basics. Kenneth Murphy: Absolutely back to basics. And I think we have the technology, we just have to be smart about how we bring it into this area once a disaster happens. It’s just good government to make sure people realize that what we take for granted will not necessarily be there for them to use. DTJ: We’ve covered a decent amount of ground here. Is there anything else on the topic, either the scope of a potential event or the response that I missed that you’d like to highlight? Kenneth Murphy: Well, I would just highlight that every day is earthquake season, and that should be something people take seriously. I think an earthquake is a survivable event, and a lot of that is going to depend on preparedness, starting with the individual. Each one of us can make

a difference, if we take the time to prepare ourselves; having some food, water, clothing, to last for at least a week if not a couple of weeks, and then having a plan with our family. Do I know where my spouse is? Do I know where my kids are? Can I communicate? And I think that really will make a difference, if we as individuals and families prepare. And that way, we can help each other, our neighbors, our communities, survive this event. DTJ

REFERENCES 1

2

3

4

Oskin, Becky. “Why a 2011 earthquake in Virginia damaged the Washington Monument.” The Washington Post. 11 May 2015. Web. Kang, Celia and Ylan Q. Mui. “Cellphone service falls short after earthquake.” The Washington Post. 23 Aug. 2011. Web. “Great Tohoku, Japan Earthquake and Tsunami, 11 March 2011.” National Centers for Environmental Information. National Oceanic and Atmospheric Administration. Web. Schulz, Kathryn. “The Really Big One.” The New Yorker. 20 July 2015. Web.


PROFESSIONAL DEVELOPMENT Transportation University – Exploring New Learning Paths Irvin Varkonyi, Past President, NDTA DC Chapter and Master Instructor, APICS DC Metro ivarkonyi@scopedu.com

T

he second annual Transportation University, an integral component of the NDTA-USTRANSCOM Fall Meeting, offers opportunities for exploring new learning paths in defense related transportation and logistics, targeting an audience of active duty, government civilians and commercial defense contractors. The experience of the 2015 Transportation University provided the foundation from which the 2016 program will nearly triple the number of classes and seminars. The 2016 program will broaden its foundation with respect to government agencies and commercial organizations. The Department of Homeland Security and the Department of Transportation will offer presentations on issues related to transportation cyber security threats. These will be joined by sessions offered by the US Transportation Command.

Transportation University has nearly tripled the number of classroom sessions and seminars. Classroom sessions will be very interactive and offer limited seating. Seminars will offer noted speakers and panels updating the transportation, logistics and travel management communities on the latest developments.

A VARIETY OF TRACKS WILL BE OFFERED

Among the 65 classes and seminars offered, attendees will discover an array of tracks organized by broad topical fields of interest. These tracks are for convenience, and attendees are free to enroll in courses/ seminars in multiple tracks. There are courses for all levels of experience, rank and grade in DOD, USG and industry! 1. Acquisition – The business of sourcing equipment and services for DOD 2. DOD Transportation – Strategic overviews of the transportation world 3. DOD Surface Transportation – Perspectives on freight movement via rail, motor and maritime modes 4. Enabling DOD Transportation Resources – Perspectives on available resources to optimize DOD transportation 5. Global Logistics – The art and science of logistics in a globalized environment 6. Introduction to Transportation

7.

8. 9.

10. 11. 12. 13.

Modes – Learning the basics of air, truck, maritime and rail transportation IT Systems & In-Transit Visibility – Demonstration of tools and processes for end-to-end visibility of cargo movements Professional Development – Enhancing individual knowledge and skill sets Transportation Research Board (TRB) – Research from TRB Military Transportation Committee (part of the National Academy of Sciences) Transportation Security – Perspectives on the secure movement of cargo and travelers Legislation & Policy – Information on working with current transportation legislation and policy issues Passenger Travel – Examination of passenger movement and travel services Cyber Security – Essential lessons on maintaining a secure cyber environment

HIGHLIGHTS FOR 2016

Transportation University has nearly tripled the number of classroom sessions and seminars. Classroom sessions will be very interactive and offer limited seating. Seminars will offer noted speakers and panels updating the transportation, logistics and travel management communities on the latest developments. While the focus of the Fall Meeting is on transportation and logistics, recognition of the valuable and critical role of passenger travel in the success of logisticians will be reflected in sessions offered by the Defense Travel Management Office (DTMO), along with travel management contractors. These sessions and seminars will enhance knowledge of logisticians when they require movement to duty stations. A series of “how to” sessions have been added to offer introductory content on the main transportation modes for defense needs—rail, maritime, air and See Prof. Devel., pg. 30 www.ndtahq.com |

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OUR VISION

To be the world’s leading professional association for individuals working in the global logistic/ transportation system and related industries so we may maximize our contribution to the national security and economic growth of the United States.

OUR MISSION

To foster a strong and efficient global logistics and transportation system to support the economy and national security of the United States by: • Advancing the knowledge and science of logistics and transportation within government and industry. • Facilitating the sharing of knowledge between government and logistics/transportation related industries. • Educating members on the important issues affecting the global logistics/transportation system.

OUR VALUES

Values form the foundation for all that we do in our organization and for our Nation. Our values are our spirit. They are what we believe, what we stand for, and our moral and ethical fiber. The men and women who make up our membership around the

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globe are dedicated to improving our association today and into the future. Our commitment and competency are reflected in our core values: • Integrity: We conduct our business in an open, honest, ethical manner. Exhibit the courage to speak out and express our opinions. Do what is morally and ethically right. Comply with the intent and the “letter” of policies and laws. • Teamwork: We maximize our collective talents through teams and partnerships based on mutual trust, fairness, respect, cooperation and communication. We promote and recognize creativity and innovation. • Service: We pursue excellence in all of our endeavors. We anticipate and respond to member and partner needs by providing quality products and services. We take pride in our work and commitment to quality. • Action: We will listen well, consider the ideas of others, seek counsel and then act decisively. Relentlessly press for action to resolve an issue or to reach a solution. • Diversity: We value our members, employees, and supporters, their capabilities and differences, plus the unique contributions that each brings to our organization.


CUT AT LINE & MAIL OR FAX TO: National Defense Transportation Association | 50 S. Pickett St., Suite 220, Alexandria, VA 22304-7296 | (FAX) 703-823-8761

Costs are minimal, but the rewards are great! >> Contact NDTA for more information at 703-751-5011 or visit www.ndtahq.com <<

NDTA MEMBERSHIP

Maybe you know someone who would like to join. The National Defense Transportation Association (NDTA) is a non-political and non-profit educational Association composed of government, military, and industry professionals dedicated to fostering a strong and efficient global transportation and logistics system in support of national security. Membership in NDTA affords opportunities to serve and educate the community in your area of expertise as well as other special benefits.

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CORPORATE MEMBERSHIP

Corporate membership in NDTA provides increased exposure and networking opportunities for those companies wanting to do business with the US government or military. Membership should be a key part of any business plan where the defense and government logistics, transportation, travel and distribution system is the target market. Corporate membership will offer your team the opportunity to be a part of the discussion and share ideas with top military, government, their execution teams, and industry leaders—the individuals who are setting and influencing the transportation, travel and distribution agenda for today and the future.

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Life (after 62 years old) $450.00

State Zip Email

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Regular – 3 Years $150.00 Military/Government – 3 Years $135.00 Regular – 1 Year $55.00

Chairman’s Circle Plus (global or national company with multiple operating entities)

Military/Government – 1 Year $50.00

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Young Leaders (under 35 years of age) $40.00

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CHAIRMAN’S CIRCLE

These corporations are a distinctive group of NDTA Members who, through their generous support of the Association, have dedicated themselves to supporting an expansion of NDTA programs to benefit our members and defense transportation preparedness.

AAR CORP. + PLUS Agility Defense & Government Services + PLUS AIT Worldwide Logistics, Inc. + PLUS American President Lines, Ltd. + PLUS American Roll-On Roll-Off Carrier Group, Inc. (ARC Group) Amtrak + PLUS Atlas Air Worldwide Holdings + PLUS Bennett Motor Express, LLC + PLUS Boyle Transportation, Inc. + PLUS Concur Technologies, Inc. + PLUS Crane Worldwide Logistics, LLC + PLUS Crowley Maritime Corp. + PLUS FedEx + PLUS Final Mile Logistics + PLUS Freeman Holdings Group + PLUS Hapag-Lloyd USA, LLC + PLUS Innovative Logistics, LLC + PLUS Intermarine, LLC - US Ocean + PLUS International Auto Logistics + PLUS Interstate Moving | Relocation | Logistics + PLUS Landstar System, Inc. + PLUS Leidos + PLUS Liberty Global Logistics-Liberty Maritime + PLUS Maersk Line, Limited + PLUS National Air Cargo + PLUS Norfolk Southern Corporation + PLUS Omni Air International + PLUS Panalpina + PLUS Schuyler Line Navigation Company, LLC + PLUS TOTE, Inc. + PLUS United Airlines + PLUS Universal Logistics Holdings, Inc. + PLUS Best Western International BNSF Railway Bristol Associates CEVA Logistics Choice Hotels International CSX Transportation Echo Global Logistics, Inc. Global Logistics Providers LLC 28

| Defense Transportation Journal | AUGUST 2016

+ PLUS

R & R Trucking Hybrid Enterprises Raith Engineering & Mfg. Co. W.L.L. International Shipholding Corporation SAIC Knight Transportation The Pasha Group La Quinta Inns & Suites U.S. Bank Matson Navigation Company Inc. Union Pacific Railroad National Air Carrier Association UPS Portus Walnut Industries, Inc.


HONOR ROLL

OF

SUSTAINING MEMBERS AND REGIONAL PATRONS

ALL OF THESE FIRMS SUPPORT THE PURPOSES AND OBJECTIVES OF NDTA

SUSTAINING MEMBERS 1-800-PACK-RAT AAT Carriers, Inc. ABF Freight System, Inc. ABF Logistics Accenture Federal Services Admiral Merchants Motor Freight, Inc. Air Transport International, Inc. Airlines for America Al-Hamd International Container Terminal American Group LLC American Maritime Officers American Moving & Storage Association American Trucking Associations Army & Air Force Exchange Service Arven Freight Forwarding Arven Services, LLC Associated Global Systems Atlas International ATS Specialized, Inc. Avis Budget Group aVolt Incorporated Baggett Transportation Company Benchmarking Partners, Inc. Bertling Logistics Inc. Boeing Company Bollore Logistics C.L. Services, Inc. Carlson Rezidor Hotel Group Chalich Trucking, Inc. Coyne Airways Coyote Logistics, LLC REGIONAL PATRONS Advantage Rent A Car Agile Defense, Inc. Alaska Marine Lines Alaska West Express Amyx Association of American Railroads C3 Express Logistics, Inc. C5T Corporation Cargo Experts Corp. Cavalier Logistics CeLeen LLC Ceres Terminals Incorporated CGM-NV a NovaVision Company Chapman Freeborn Airchartering

CWT SatoTravel DAMCO DHL Express Eagle Freight, LLC Engility Corporation Enterprise Holdings Erickson Incorporated Estes Forwarding Worldwide, LLC Europcar Car & Truck Rental Evanhoe & Associates, Inc. Executive Moving Systems, Inc. Extended Stay America Hotels FlightSafety International FMN International, Inc. GE Aviation General Dynamics/American Overseas Marine GeoDecisions Greatwide Truckload Management Green Valley Transportation Corp. Hanjin Intermodal America, Inc. Hertz Corporation Hilton Worldwide IBM Institute of Hazardous Materials Management Intercomp Company Intermodal Association of North America (IANA) International Longshoremen’s Association (ILA), AFL-CIO International Organization of Masters, Mates & Pilots Kansas City Southern Keystone Shipping Co.

KGL Holding KROWN1 FZC Kuehne + Nagel, Inc. LMI Lockheed Martin Lockheed Martin Aeronautics Logistic Dynamics, Inc. Manufacturing Skill Standards Council Marine Engineers’ Beneficial Association Marriott International Martin Logistics Incorporated Mayflower Transit McCollister’s Transportation Systems, Inc. Mercer Transportation Company Meridian Global Consulting LLC National Motor Freight Traffic Association, Inc. National Van Lines, Inc. Network FOB, Inc. Northern Air Cargo Inc. Omega World Travel Omnitracs, LLC One Network Enterprises, Inc. Oracle ORBCOMM Panther Premium Logistics PGL Pilot Freight Services PODS Port of Beaumont Port of San Diego Ports America

Pratt & Whitney Preferred Systems Solutions, Inc. Prestera Trucking, Inc. Priority Solutions International Priority Worldwide Services Ramar Transportation, Inc. Roadrunner Transportation Systems Sabre Travel Network Savi SBA Global Logistic Services Scotlynn USA Division, Inc. Seafarers International Union of NA , AGLIW Sealed Air Corporation Sealift, Inc. Secured Land Transport SEKO Logistics Southwest Airlines Teradata Corporation Textainer Equipment Management (U.S.) Limited Transportation Institute Transportation Intermediaries Assn. (TIA) Travelport Tri-State Motor Transit Co. (TSMT) TSA Transportation LLC TTX Company Tucker Company Worldwide, Inc. United Van Lines, Inc. USA Jet Airlines USA Truck, Inc. Volga Dnepr Airlines Women In Trucking Association, Inc. XPO Logistics – Supply Chain

Chassis King, Inc. Columbia Helicopters, Inc. Dalko Resources, Inc. DB Schenker DPRA, Inc. DTI Enterprise Management Systems Fox Rent A Car Hospitality Logistics International Hub Group, Inc. John D. Odegard School of Aerospace Sciences Kalitta Charters, LLC Lineage Logistics LMJ International Logistics, LLC MacGregor USA, Inc. Madison Hospitality

MCR Federal, LLC mLINQS Move One Logistics Naniq Global Logistics LLC NCI Information Systems, Inc. NFI NJVC Oakwood Worldwide Overdrive Logistics, Inc. Overwatch, Inc. (a division of Avalon Risk Management) Owner-Operator Independent Drivers Association Pak Shaheen Freighters (Pvt) Ltd. Patriot Contract Services, LLC Philadelphia Regional Port Authority PITT OHIO

Port Canaveral Port of Port Arthur Radisson Resort At The Port Reckart Logistics, Inc. RST Freight Seatac Marine Services Southeast Vocational Alliance Staybridge Suites McLean-Tysons Corner Hotel TechGuard Security Tennessee Steel Haulers Trans Global Logistics Europe GmbH UniTrans International, Inc. Wapack Labs Corporation YRC Freight

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Cont’d from Prof. Devel., pg. 25

We Were Soldiers Too By Sharon Lo

W

e Were Soldiers Too is a documentary series by Bob Kern on the history of the Cold War through the careers of the veterans who served during this critical time in history. There are three books in the series: We Were Soldiers Too: Serving as a Reagan Soldier During the Cold War (ISBN-13: 978-1508645290) is the author’s autobiography. It describes his personal account of military service from November 1980 until March 1988, when Kern quickly went from a naive seventeen-year-old boy to a dedicated soldier. He also details the historical events that were happening during President Reagan’s time in office as the world faced the possibility of nuclear war and the difficulties of serving during that time period. Kern was inspired to write the book for soldiers who had served honorably, but despite a willingness to go to war and sacrifice their lives for their country if called upon, had never been in combat. Kern had himself struggled with feelings that somehow his service was less valuable or honorable for this reason. Book two in the series, We Were Soldiers Too: A Historical Look at Germany During the Cold War From the US Soldiers Who Served There (ISBN-13: 9781523677528), covers the careers of seventeen veterans who served in Germany from 1960 to 1989. The shocking speed at which the Nazis had invaded Europe during WWII played a factor in the US maintaining a significant force in Western Germany during the Cold War. Each chapter of the book describes the story of a veteran who served during this era—their experiences and feelings about serving just an hour away from what the author describes as ground zero for nuclear war. Similar to book two, the recently released third book in the series, We Were Soldiers Too: The Unknown Battle to Defend the Demilita-

rized Zone Against North Korea During the Cold War (ISBN-13: 978-1535088145) gives the stories of nine veterans who had served in South Korea from 1962 through 1991. These veterans served on the most defended border in the world—the demilitarized zone (DMZ) between North and South Korea. The soldiers were responsible for enforcing the armistice agreement that ended the Korean War and this was not a task for the faint of heart. The North Koreans violated it almost daily sending spies, marauders, hit squads and ambush patrols into the southern controlled portion of the DMZ in an effort to destabilize South Korea. The books give a unique and under-communicated perspective on what it was like to have served during such a politically tense time period. And the series will not end with these three—the author is already working on books four, The Cold War at Sea, and five, Radar Operators at Cold War HotSpots, with even more ideas in the pipeline. What started with his own autobiography has turned into so much more for Kern, “the response from Cold War veterans on each book so far has been overwhelming. The gratitude I get from these veterans has made this a project of passion to me.” Kern has also used the series to try to change legislation in his home state of Indiana where benefits are only available to disabled veterans who served during a time of war. He feels confident legislation will be introduced to extend the state’s benefits to disabled Cold War veterans. In addition, he is working with his representative in Washington DC to appear in front of the House Committee on Veteran’s Affairs and request a Cold War Service Medal or ribbon be awarded to Cold War veterans, and noted in their military records. Each of the three books is available in paperback on Amazon for $9.99 or for download to Kindle for $2.99. DTJ

truck. These sessions will provide foundational information for these modes: What are the important attributes in transporting goods by rail? How do changes in the global economy impact maritime capacity? What is the difference between UPS and passenger focused airlines which also carry cargo? How are new rules affecting trucking? One of the rapidly increasing threats in transportation has been in the cyber arena. How are cyber threats impacting the movement of goods and information for transporters and related stakeholders of such third party logistics firms? How should shippers work with their carriers on cyber issues? Several sessions from 2015 will make encore presentations such as professional credentials in supply chain management. Two of these organizations will be APICS and the Council of Supply Chain Management Professionals. What is the value of a professional credential while you are on active duty or a government civilian? What is the value when you transition into the commercial sector? OSD Transportation Policy will offer a reprise of Transportation Policy 101. Representatives of the Transportation Research Board will offer insights from academic research on the state of transportation assets. The USTRANSCOM components, consisting of Military Surface Deployment and Distribution Command (SDDC), Air Mobility Command (AMC) and Military Sealift Command (MSC) will update their training sessions from 2015. The benefit of Transportation University to local NDTA chapters is to serve as a model to collaborate with your chapter members, universities and military representatives to consider a “mini-Transportation University,” perhaps offering a half day version of two to four sessions on topics of interest to your chapter and local military. This can bolster your chapters and better integrate military and commercial members. Classes are filling up so I encourage you to register now. See you in St. Louis! DTJ

DTJ INDEX OF ADVERTISERS APL............................................................... Cover 3 ARC.............................................................. Cover 2

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| Defense Transportation Journal | AUGUST 2016

Bennett.......................................................... Page 4 Budget......................................................... Page 17

FedEx........................................................... Cover 4 Landstar........................................................ Page 3


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We’ve got your six. You can count on FedEx. We pride ourselves on providing innovative solutions for all our customers, but it takes on special meaning when we deliver for the men and women of the U.S. Armed Forces. For fast, reliable service for your urgent shipments, trust FedEx. FedEx. Solutions That Matter.

®

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| Defense Transportation Journal | AUGUST 2016

©2014 FedEx. All rights reserved.


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