Defense Transportation Journal by Defense Transportation Journal

The Official Publication of the National Defense Transportation Association

December 2017

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HIGHLIGHTS FROM THE NDTA-USTRANSCOM FALL MEETING SDDC Experiences Change, Mission Success in 2017 NDTA-USTRANSCOM Fall Meeting Wrap-Up NDTA Expo Photo Album

| Defense Transportation Journal | DECEMBER 2017

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(previously known as England Air Force Base – KAEX) • Serves as the deployment platform for the Army’s Joint Readiness Training Center (JRTC) at Ft Polk, LA. • Extensive facilities which serve as an Intermediate Staging Base (ISB) from which units in training can simulate further deployments into a combat theater. • Supports military aviation units, but has civilian and military facilities to receive or deploy a brigade at a time. The military maintains facilities and equipment to ship and receive cargo and aircraft. • Alexandria is truly a full service operation for military deployments.

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December 2017

FEATURES December 2017 • Vol 73, No. 6 PUBLISHER

SDDC EXPERIENCES CHANGE, 9 MISSION SUCCESS IN 2017 By Frederick L. Rice

VADM William A. Brown, USN (Ret.) MANAGING EDITOR

Sharon Lo | sharon@ndtahq.com CIRCULATION MANAGER

NDTA-USTRANSCOM 11 FALL MEETING WRAP-UP

Leah Ashe | leah@ndtahq.com PUBLISHING OFFICE

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

NDTA EXPO PHOTO ALBUM 22

GRAPHIC DESIGN & PRODUCTION MANAGER

Debbie Bretches

ADVERTISING ACCOUNT MANAGER

Bonnie Coggin bcoggin@cjp.com

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

DEPARTMENTS PRESIDENT’S CORNER | VADM William A. Brown, USN (Ret.)....................................... 7 PROFESSIONAL DEVELOPMENT | Irvin Varkonyi......................................................27 CHAIRMAN’S CIRCLE.......................................................................................28 HONOR ROLL..................................................................................................29 BOOKSHELF IDEAS | Sharon Lo........................................................................... 30 NDTA STAFF WELCOME..................................................................................... 30 INDEX OF ADVERTISERS.................................................................................... 30

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

We encourage contributions to the DTJ and our online publication, The Conduit. To submit an article or story idea, please see our guidelines at https://www.ndtahq.com/media-and-publications/submitting-articles/. www.ndtahq.com |

| Defense Transportation Journal | DECEMBER 2017

PRESIDENT’S CORNER New Seat, New Vantage Point VADM William A. Brown, USN (Ret.) NDTA President & CEO

his is my first “President’s Corner” since I joined NDTA on 4 October. Having served most recently as the Vice Commander at USTRANSCOM and then as the Joint Staff, Director for Logistics, I was looking for the next challenge as I transitioned from active duty. I had no idea I would end up here at NDTA—the transition has been great. I have been helped by so many—the Joint Staff, the NDTA staff and friends. My family and I are grateful for the opportunity to serve in the important mission of the NDTA. As a military leader, I witnessed firsthand how the NDTA ensures government

and industry work more collaboratively. My predecessor, Rear Admiral (Ret.) Mark “Buz” Buzby, and the Board of Directors led a necessary transformation of NDTA over the past several years. Transformation may be a bit of an overstatement, but in this case it is a good term to use to give the credit to Buz Buzby and the Board that they deserve. Working through the Committees and US Transportation Command to focus the Fall Meeting on educating defense and industry on the complexities of the logistics business, standing up a Cyber Committee, informing the membership of major issues

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impacting logistics, and instilling a sense of common purpose between defense and industry—these were all accomplishments on the Buzby Watch. The Honorable Mark “Buz” Buzby is a “secret sauce” kind of leader. We will miss him dearly here at NDTA, but we know where to find him and trust he will continue to build on the transformation as he serves as our nation’s newest Maritime AdSee Pres. Corner pg. 26

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NDTA Headquarters Staff VADM William A. Brown, USN (Ret.) President & CEO COL Jim Veditz, USA (Ret.) Senior VP Operations Patty Casidy VP Finance Lee Matthews VP Marketing and Corporate Development Leah Ashe Manager, Database Kimberly Huth Director of Public Relations

GovTravels:

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“The Future of Government Travel” March 5-7, 2018 Hilton Mark Center in Alexandria, VA

Rebecca Jones Executive Assistant to the President 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 to members on www.ndtahq.com. 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

| Defense Transportation Journal | DECEMBER 2017

NDTA is pleased to announce that registration is now open for GovTravels 2018. GovTravels is the only event where decision makers from government and industry gather to meet, learn and collaborate on common travel issues. Our 2018 theme is The Future of Government Travel. If you work in passenger travel and related services for the federal government, a state government, or the private sector, GovTravels is for you. We are proud to co-sponsor this important event again with the Defense Travel Management Office, and we’ve created an exciting program with input from DTMO, the General Services Administration, and private sector stakeholders. This year’s speakers include leaders such as Mike Premo, President and CEO, Airlines Reporting Corporation, and John Bergin, Business Technology Officer, Department of Defense Chief Information Officer. NDTA is also hosting a full-scale exposition, where organizations can highlight their travel solutions and offerings, and attendees can benefit from the sharing of information. For more information, please visit www.ndtahq.com/events/govtravels/. We look forward to seeing you in March 2018!

Soldiers and transporters from SDDC’s 599th Transportation Brigade offloaded cargo and equipment from the M/V Jean Anne at Pearl Harbor in October in support of 25th Combat Aviation Brigade’s return from training at the National Training Center. Photo by Donna Klapakis.

SDDC Experiences Change, Mission Success in 2017 By the SDDC Public Affairs Office

hough the Military Surface Deployment and Distribution Command (SDDC) experienced significant changes during the second half of 2017, the command’s role as a key member of the nation’s Joint Deployment and Distribution Enterprise is more effective now than ever. CHANGES IN LEADERSHIP

SDDC recently welcomed three new senior leaders to its Headquarters Command Team. In August, Command Sgt. Maj. Dana “Spence” Mason, Jr., replaced retiring Command Sgt. Maj. Kevin McKeller as SDDC’s Senior Enlisted Leader. Mason comes to SDDC from Redstone Arsenal, Alabama where he served as the US Army Security Assistance Command Senior Enlisted Leader. Mason’s experience as a senior Noncommissioned Officer includes leadership positions with the 1st Armored Division, 82d Airborne Division, and 8th Theater Sustainment Command.

Since arriving at SDDC, Mason has been focused on his duties, stating, “My top priority will always be the accomplishment of the organization’s mission and the welfare of its service members, civilians and family members.” The SDDC Command Team also gained two new senior officers, with Colonels Deacon Maddox and Lillard Evans arriving in September. Together, they bring a combined total of 50 years of service in the US Army along with a wealth of knowledge and operational experience to SDDC.

Command Sgt. Maj. Dana “Spence” Mason, Jr. replaced retiring Command Sgt. Maj. Kevin McKeller as SDDC’s Senior Enlisted Leader in August 2017. Photo by US Army/Released. www.ndtahq.com |

Maddox, SDDC’s new Deputy Commander, comes from comPERSONAL PROPERTY/HOUSEHOLD GOODS mand of the Letterkenny Army Depot in Chambersburg, PennFor the past eight years, SDDC was responsible for the managesylvania. His career began in 1994 when he entered the US Army ment of the DOD’s Personal Property Program (DP3) which overOrdnance Corps following graduation from the Virginia Military sees more than 500,000 household goods and 70,000 privately Institute. owned vehicle moves annually for service members and Defense Maddox is a veteran of Operations Iraqi Freedom and Joint EnDepartment civilians. deavor, and has more than 14 years of experience leading troops On October 1st, responsibility for this program transferred to at the platoon, company, and battalion levels. Additionally, he the United States Transportation Command (USTRANSCOM). has two years of Organic Industrial Base experience commanding Prior to the transfer, USTRANSCOM operated the Defense PerArmy civilians at the brigade level sonal Property System or DPS, the and has also served a Joint tour at DP3’s electronic application that ofthe White House Military Office fers 24-hour access throughout the By taking an operational approach to the as a logistics program manager. entire move process via the website surge period, Ryan was able to synchronize Evans, SDDC’s new chief of www.move.mil, while SDDC manthe command’s five active duty Transportation staff, is very familiar with the aged the DP3. While administered Brigades along with its Reserve Component force, command. In his previous asby two separate units, the DP3 and signment, he served as the comits DPS web interface did not operthe Deployment Support Command, to provide mander of SDDC’s 595th Transate as effectively or efficiently as they “speed of war” movement timelines to increase portation Brigade, headquartered could, prompting the consolidation readiness at the combatant commands. at Camp Arifjan, Kuwait. of both under USTRANSCOM. Evans earned his commission “Although DP3 met customers’ as a Transportation Corps officer requirements, the program’s conin 1990 through the South Carolina State University ROTC prosolidation provides the unity of effort and alignment to enhance gram and has served in multiple staff and leadership roles across the relocation experience of military members, DOD civil servants, the Army. and their families,” said Col. Ralph Lounsbrough, Personal ProperIn his first meeting with his staff directors, the new chief made ty Division chief in USTRANSCOM’s Strategy, Capabilities, Polhis role clear. “My job is to help the commanding general achieve icy, and Logistics Directorate. “A consolidated DP3 management mission success,” said Evans. structure also offers one entry point for program inquiries, requests, and concerns from the military branches and the moving industry.” OPERATION LOMBARDI SWEEP

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| Defense Transportation Journal | DECEMBER 2017

From July to November, SDDC experienced a surge period in mission requirements that the Army has not seen in many years. Commanding General Maj. Gen. Kurt Ryan designated this period as Operation LOMBARDI SWEEP, deriving the name from legendary NFL football coach Vince Lombardi’s play that involved the precision timing of all players on the field moving at a high rate of speed. By taking an operational approach to the surge period, Ryan was able to synchronize the command’s five active duty Transportation Brigades along with its Reserve Component force, the Deployment Support Command, to provide “speed of war” movement timelines to increase readiness at the combatant commands. Over the course of five months, Operation LOMBARDI SWEEP involved the successful movement of the equivalent of two full Army divisions as SDDC’s Surface Warriors moved over 22,000 pieces of equipment to four continents by truck, rail and ship. SDDC is a unique Army command, headquartered at Scott Air Force Base, that delivers world class, origin-to-destination distribution solutions. The command is composed of approximately 5,000 military and civilian surface transportation experts, both active duty and Reserve, making it possible for Warfighters to have what they need, when they need it. As the Army Service Component Command to US Transportation Command and a Major Supporting Command to US Army Materiel Command, SDDC plans, coordinates and synchronizes surface deployment and distribution capabilities as a key member of the nation’s Joint Deployment and Distribution Enterprise by delivering and sustaining the Joint force when and where needed to support our nation’s objectives. DTJ

The 5th Annual

NDTA-USTRANSCOM

Fall Meeting October 10-13, 2017

•

St. Louis Union Station Hotel

•

St. Louis, Missouri

“Force Projection...Assuring Access: Cyber & Physical” NDTA-USTRANSCOM Meeting Confronts Challenge of Assuring Access

oday’s geopolitical landscape poses more potential challenges for defense transportation than any point in the past 25 years. The fifth annual National Defense Transportation Association (NDTA)/ US Transportation Command (USTRANSCOM) Fall Meeting addressed the challenges of assuring access—physical and cyber— necessary for military force projection. The event, held October 10-13, returned for a second year to the historic St. Louis Union Station Hotel in St. Louis, Missouri. More than 1,230 professionals, representing more than 225 organizations in government, the military, the private sector and academia, attended.

With a 71-year heritage—and a unique co-sponsorship between NDTA and USTRANSCOM—the Fall Meeting remains the authoritative forum for defense transportation, logistics, supply chain management and distribution. “This annual meeting is critical to maintaining the working relationships between the military and the private sector,” said Vice Adm. (Ret.) Andy Brown, NDTA’s President and CEO. “Our national security is stronger because of the conversations we have here. And the learning opportunities—our speakers, panelists, Transportation Academy courses and committee meetings—covered an incredible breadth

and depth of timely topics. As NDTA’s new President, I have the highest respect for the professionalism that our stakeholders and staff bring to this event.” FedEx Chairman and CEO Frederick W. Smith headlined as the 2017 keynote speaker, his first time speaking at the event since 1996. His speech—printed in full in this issue of DTJ—highlighted several challenges for the transportation industry, including the national economic environment, the current state of transportation, and the growing threats to cybersecurity. Gen. Darren McDew, Commander, USTRANSCOM, also delivered a featured presentation during the October 11 plenary session. “Our nation’s ability to project and sustain force around the world is what makes America a superpower. Our adversaries know this and are preparing to challenge that capability in every domain,” said McDew, prior to the meeting. “Bringing together logisticians from the commercial sector and the Department of Defense is key to addressing these challenges. Ultimately, logistics readiness is warfighting readiness.” Fall Meeting speaker, Dr. Phyllis A. Schneck, Managing Director and Global Leader of Cyber Solutions, Promontory, addressed blockchain, Artificial Intelligence (AI) and emerging cybersecurity technologies, and how they can help mitigate the current threat landscape for shipping, transport and another critical indus-

NDTA-USTRANSCOM Fall Meeting summary material, produced by the NDTA staff, is intended to provide an overview of presentations and should not be considered verbatim. This information does not necessarily represent the official position of the US government or any of its entities, NDTA or any of its corporate members. We regret any errors or omissions. For more information regarding the meeting please visit NDTA’s website at www.ndtahq.com. www.ndtahq.com |

tries. In case you missed it, check out the October 2017 DTJ for our one-on-one interview with Dr. Schneck. Other notable speakers and panelists included Chiderah Okoye, Executive Director, Venly Institute; Tom Fellows, General Manager, Venly; and Joe Reagan, President and CEO, St. Louis Regional Chamber. The Fall Meeting also offered more than 70 educational courses, dubbed Transportation Academy, across 13 topical tracks. Expert instructors, including several flag and general officers like McDew, presented on subjects ranging from acquisition and analytics to DOD transportation and legislation/policy. “We are very pleased with the positive feedback we received from attendees and instructors at our 2017 Transportation

Academy,” said Irvin Varkonyi, the informal “dean” of Transportation Academy. “There was a strong diversity of subjects which impact the mission of USTRANSCOM and the members of NDTA. I believe we succeeded in our goal to provide updates on standard training subjects, as well as encourage attendees to move beyond their comfort zone in topics such as cybersecurity and innovations.” Concurrent with the Fall Meeting, NDTA also hosted its annual Fall Exposition at the St. Louis Union Station Hotel. This annual event aims to help government and private sector professionals build and strengthen working relationships through informal discussions between key decision makers. With strong backing from 31 corporate sponsors, the historic Midway hall hosted a

USTRANSCOM Moving into the Future

STRANSCOM Commander, Gen Darren W. McDew, USAF, took the stage at the NDTA-USTRANSCOM Fall Meeting to talk about the future and what impacts changes in the world today would have in the years to come. However, in order to look forward, the General said we must also look back. He explained that throughout history “experts in their fields spent time debating why something wouldn’t work. But… [others] spent more time worrying about how it would work or, even better, how it could change the world if it did. Innovation is more than just coming up with new ideas, it’s having the willingness to implement them.” The concept of USTRANSCOM, which first emerged because of the GoldwaterNichols Act, had many naysayers. Opponents of the idea said it couldn’t be done and even that it shouldn’t be done, including the Services. In its beginning, USTRANSCOM was only authorized to act in times of war. The commander was dual-hatted with primary duties at Air Mobility Command. Nevertheless, the command proved itself during Operations Desert Shield and Desert Storm, especially after its role expanded. Subsequently, there was no longer question of the command’s value and it was also granted peacetime authorities. After 9/11 everything changed again, and the command’s roles and missions expanded even further. Today USTRAN12

| Defense Transportation Journal | DECEMBER 2017

COM is not just a command, not just something born out of necessity, not just a command that was tested and hardened in battle, it is much more—it is a distribution process owner because of those that had a vision of what could be. McDew explained a sociology theory that humans are value programmed between the ages of 11 and 12 years old. Val-

All of the command’s logistics and global movement operations are coordinated on unclassified and commercial networks. War plans are created on secure networks, but out of necessity they are executed by commercial partners on unsecured commercial networks. It is a wakeup call.

ue programming is a result of a foundation built upon your education and experiences and, once it’s locked in, it sets a baseline for your thoughts and behavior. The decisions you make thereafter are influenced by your past. McDew believed that in adult life people experience similar value programming—as you grow in your career you are value programmed by your career, your leaders, your successes and challenges, and your experiences.

packed house showcasing 67 exhibitors to the more than 1,230 attendees. A kickoff reception the evening of October 10 featured musical performances by Norfolk Southern’s “The Lawmen” Band, and BNSF again provided its classic rail cars for two hourslong train excursions across the Mississippi river and back to Union Station. “With a 17 percent increase in exhibitors, this year’s Expo was dynamic and conducive for the sharing of information, and establishing and strengthening relationships,” said Lee Matthews, NDTA Vice President for Marketing and Corporate Development. “Although technology continues to improve the ways we communicate, this year’s Expo demonstrated that there is no substitute for face-to-face interaction.” During the Cold War, Operations Desert Shield and Desert Storm, Vietnam, and post-9/11 value programs for many military leaders and personnel have been shaped based on the circumstances of the era in which they served—but can they break free from the thinking of that era? “We have a mix in the force today of all those kinds of generations, but what are we building in today’s force? Today I believe the changing character of war will define our time. The most significant changes are result of emerging technologies, volatile geopolitics, shifting demographics. These considerations are not only changing societies and the way we fight, they’re also changing why, how, and where wars are fought, as well. And, who is fighting them,” said McDew. He then described an incident that occurred in June 2017 when 20 American vessels operating in the Black Sea reported to the US Maritime Administration their GPS was malfunctioning, displaying their position 25 miles away from where they actually were despite it reporting that the data was safe within 100 meters. This occurred because a regional actor was spoofing their systems. “We put so much faith in these digital tools that we often take their veracity and their security for granted. But what happens when the actions of an adversary shake our confidence? Can we trust our systems? More importantly, can we trust ourselves if and when we realize an adversary has compromised our digital networks? Our adversary doesn’t have to stop us, all they have to do is slow us down…It doesn’t matter if we have the biggest military or the best equip-

ment if we can’t get it to where it needs to go,” explained McDew. General McDew recounted being asked during his Senate confirmation hearing what he though was the greatest threat facing the US, to which he replied ‘cyber.’ He felt that domain challenge was the most challenging of our time and where we were headed. Today, cyber is one of USTRANSCOM’s four command priorities. He tasked the USTRANSCOM team with conducting a contested environment war game, which culminated in a number

of eye-opening results for the command. First, everybody assumes things will get wherever they need to go on time, every time—an assumption that cannot be rested upon. Second, USTRANSCOM may be an especially vulnerable spot for DOD cyber. All of the command’s logistics and global movement operations are coordinated on unclassified and commercial networks. War plans are created on secure networks, but out of necessity they are executed by commercial partners on unsecured commercial networks. It is a wakeup call. Some might have thought that the catastrophic 2017 hurricanes that impacted our ability to provide logistics support in Texas, Florida and Puerto Rico was a wakeup call, but everyone knew those were coming. McDew pondered what would happen if it was not a natural disaster. When that kind of impact comes from someone who decides to hack our systems, how in the world do we go back? USTRANSCOM is now leading this discussion within DOD and is making actionable changes to improve their cyber posture. They are migrating to the cloud for better encryption, better security, to empower

trusted transactions, and to increase storage capacity which will ensure surge capacity all the time and instantaneously. They are also working on incorporating big data. In doing so, some day very soon the command will harness advanced algorithms and machine learning, and maybe even artificial intelligence. They are also looking at autonomous systems capabilities, which McDew said US adversaries are already utilizing. Finally, in line with USTRANSCOM’s big data initiative, they are in the midst of conducting a transportation management proof of principle in order to determine when they will start implementing it. “As an enterprise we have got to harness that power [of data], but we have to also acknowledged the risks.” “Cyber defenses must be integral and baked into everything we do going forward, and we have to have an actual rigorous industry standard, including self-reporting,” said McDew. “We must move forward together as an enterprise, as an industry and we have to bring society with us. We can’t do it alone,” he said, adding that the US must take a whole of society approach to the norms and standards of cyber protection.

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Assuring Worldwide Access: Combatant Command J4s MODERATOR

LtGen John Broadmeadow, USMC, Deputy Commander, USTRANSCOM PANELISTS

• COL Donald Wols, USA, US Special Operations Command (SOCOM) • RADM Paul Verrastro, USN, US European Command (EUCOM) • Brig Gen Mark Camerer, USAF, US Africa Command (AFRICOM) • BG Charles Hamilton, USA, US Forces Korea (USFK) • Col William Truax Jr., USMC, US Southern Command (SOUTHCOM) • Brig Gen Evan Miller, USAF, US Pacific Command (PACOM)

tGen Broadmeadow began by putting the combatant commands into context, explaining that they each took a regional view of the world. Yet, they all have global responsibilities to ensure that their regions are supported by all of us. He challenged attendees to consider where they fit within the global distribution network, saying that it includes much more than simply planes, rail, ships, trucks, or any of the other things they do. Broadmeadow described industry as the fourth component of USTRANSCOM who not only provide transportation, they provide necessary services including access. As Gen McDew had mentioned in his speech, integrating this fourth component 14

| Defense Transportation Journal | DECEMBER 2017

can prove challenging, especially in terms of moving from a military secret environment into unclassified business-oriented environment. He also expanded on the issue of cyber, calling it essential to what the global distribution network does. “We’re in a data business that happens to do transportation. The planes, the ships, the rail cars— those are critical for us, but none of them move without data. And this integration of data is not only our greatest opportunity to maintain our ability over our adversaries, but it also represents our most critical vulnerability.” SOCOM’s “regional view” spans the globe. While their challenges are global, they are also unique in the types of operations they do which require many different types of support. COL Wols explained that what SOCOM does is not unique in terms of where or how it operates; size and rapidness cause the command’s largest challenges. Wols shared five main points with the audience: 1. Special Operations Forces (SOF) is global; 2. As a result, they operate in austere environments which requires creative arrangements for low volume, low frequency support and enabler capabilities; 3. Planning factors such as authorities and funding are tough in a trans-regional environment; 4. The majority of special operations require not special operations support; and 5. Nearly all SOF operations are at the request of and under the authority of the Geographic Combatant Commands.

According to RADM Verrastro, EUCOM is a theatre in transition. It is moving its focus from security cooperation and assurance, to deterrence and defense due to new threats and challenges. “I’m a strong believer that credible logistics really equals deterrence,” said Verrastro. As a part of this shift in focus, EUCOM is working on improving its posture, increasing its speed and having more options. EUCOM must ensure that the theater is logistically set to rapidly pivot from peacetime to contingency operations to the full spectrum, as needed. With increased activity in the theater, EUCOM is also looking at ways to change its relationship with industry from transactional to strategic. The sheer area AFRICOM covers, four times the size of the United States, is often overlooked. When you start thinking about covering such large distances without much infrastructure, the challenges become evident. Further complicating matters explained Brig Gen Camerer, African countries are often very sensitive to foreign presence on their soil. AFRICOM is confronting some major issues on the continent such as terror groups, political unrest, and illicit trafficking and networks. This work relies on EUCOM and SOF forces, as AFRICOM does not have its own assigned forces. AFRICOM also relies heavily on its com-

Broadmeadow described industry as the fourth component of USTRANSCOM who not only provide transportation, they provide necessary services including access.

mercial partners in order to accomplish Camerer’s priorities of sustaining those forces and maturing the logistics network. He explained that commercial partners in Africa are often capable of getting things done that military cannot do. USFK is focused on ensuring the US is able to defend its interests, and those of its allies, in a very important and volatile place. BG Hamilton described the Korean Peninsula as a relatively small part of the region with its own unique set of problems. The top challenge on the strategic side is

the increase in provocations. To put this into perspective Hamilton said, “In 2017 alone, Kim Jong Un has fired 22 missiles in 15 separate tests, that’s more than were fired during the entire regimes of his father and grandfather combined. Additionally, he has just completed North Korea’s sixth nuclear test.” Furthermore, the Korean Peninsula has some of the world’s most complex terrain, is surrounded by the world’s largest armies and the regions contains the greatest number of nuclear powers. Because of tensions in the region, Non-combatant Evacuation Operations (NEO)—force protection, getting supplies and troops in, and potentially getting civilians out—is one of the USFK’s major concerns. Much of the response to Hurricanes Maria and Irma related to SOUTHCOM, however, Col Truax reminded the audience, Mexico and Puerto Rico do not fall

under their AOR [Area Of Responsibility] causing some confusion during relief efforts. He explained that SOUTHCOM is generally divided into sub-regions—the Caribbean, Central America, the Indian Ridge and the Southern Cone. Two further distinctions can be made for Naval Station Guantanamo Bay and Brazil. SOUTHCOM has a lack of distribution networks creating significant logistics challenges. It also has a low volume, low frequency logistics demand. Despite this, significant opportunities exist in SOUTHCOM. Doing things in a way that US partners and the US military both understand is still a significant problem, but one that Truax wanted to work on with others. Stretching half the globe, and with a true variety of nations in its region, is PACOM. According to Brig Gen Miller, the PACOM concept of operations is changing, forcing the command to think more

about being mobile. There is also great competition in the region such as competition from China over rights to the South China Sea. He also expressed concern that the US needs to be better at using data to make fast, accurate logistics decisions at the speed of war. The PACOM J4 is focused on six lines of effort: understanding and being able to operate resilient locations all over the AOR; connecting those locations in a multi-modal, dynamic, fast, accurate decision making process; understanding what directive authority for logistics and what logisitic command and control really means; making sure that we think about how to integrate all of the people and teams that help bring to bear materiel during a crisis or contingency; how to integrate with partners and allies; and how to create strategic connections with all stakeholders.

Hot Topics in Transport: Open Skies, CyberAttacks, and Robots

ficiently and safely, be it food, artillery, or information. I first learned that lesson as a Marine in Vietnam when I saw the challenges the military faced in distributing 760,000 tons of supplies each month there. Those operations made a strong impression on me that played into the founding and development of FedEx which, as you know, created a new industry based on moving goods and information fast and efficiently. As FedEx has grown, we now deliver not only by planes and trucks, but also by rail, ship, the Internet—and even bicycles. If you think about it, transportation isn’t just the bedrock of organizations such as the NDTA and FedEx; transportation is at the heart of all we do as humans. Since the beginning of civilization, the world has depended on transportation and its infrastructure to move people, animals, and goods from location A to Z and all points in between. And as infrastructure became more intricate, nations had to make sure their networks were safe and reliable. In the United States, organizations like the Departments of Defense and Transportation have long protected our nation, its citizens, and our infrastructure from threats seen and unseen. That’s where units like the Civil Reserve Air Fleet (CRAF) play a critical role to the DOD and to our nation’s air mobility resources. FedEx is proud to be a CRAF member, along with 23 other air carriers.

We believe it’s our patriotic duty to use our transportation network and logistics expertise to help our troops and our country. The partnership among the NDTA, the United States Transportation Command and CRAF provides a non-political framework for solving today’s logistics challenges. Today I’d like to talk to you about several of those challenges—three topics critical to our industry and our nation: • First, the current state of America, both politically and economically, and how that affects our ability to get things done; • Second, the current state of transportation, both its issues and some new technology; and • Third, the growing threat of cybersecurity.

This speech was delivered by Frederick W. Smith, Chairman & CEO of FedEx, on October 11, 2017 during the NDTA-USTRANSCOM Fall Meeting. It has been reformatted and reprinted here in its entirety with permission.

t’s a pleasure to be here today, and I’d like to thank Chairman of NDTA’s board Bill Flynn and Retired Admiral Mark Buzby for the invitation. I’ve known Bill for many years, and it was an offer I was pleased to accept since the National Defense Transportation Association is so important to FedEx. And under your great leadership, Mark, the NDTA has flourished. I know the same is happening at the Maritime Administration since you’ve taken the helm there. Congratulations also and welcome to Vice Admiral Andy Brown, the incoming President and CEO of this great organization, which FedEx has worked with for 42 years. During that time, many FedEx team members have worked closely with the NDTA. Some of them are here today, and I’d like to thank them for their service to the NDTA. Would you please stand? No one knows better than this audience how important it is to get things places ef-

Let’s turn our attention first to the state of America. Our economy is growing too slowly. We’ve been muddling along at one to two percent GDP growth, but need to return to the three percent rate America enjoyed for so long. Our national debt has grown to over 100% of GDP since 2006. We owe more than $20 trillion. Federal investment is at the lowest level since the late 1940s as a percent of GDP, and business investment is also muted. That’s unfortunate since investment is a key driver of job growth. www.ndtahq.com |

While dealing with these issues, we’re also facing one of the most politically divided periods in our history. We are sorely lacking in rational discourse today, and its absence is contributing to what I consider to be a broken political system. Both parties have become quite polarized in their viewpoints: Red states have become redder and blue states bluer. Congressional districts are drawn in ways that diminish the influence of moderates. If it weren’t for our business institutions, industries, and universities seeding innovation and invention throughout society, we’d get almost nothing done. With both parties gravitating to extremes and without the willingness to compromise, we cannot move America forward. So far, we haven’t been able to fix health care or create new tax laws that stimulate investment and job growth. We haven’t really begun to fix our country’s deteriorating infrastructure. All of us here feel that pain first-hand. Did you know that the American Society of Civil Engineers gives America a D+ grade on our infrastructure? I don’t know about you, but I don’t want to travel on a D+ bridge that could turn into an F while I’m on it. While we’re dealing with these big issues at home, US leadership is called upon to manage volatile relationships around the globe. North Korea, China, Russia, Iran, Venezuela, and the constant threat of terrorism all bring serious challenges to be handled with careful strategy and sensitivity. So many issues—and people—hang in the balance. I hope some of you saw the Wall Street Journal op-ed piece that UPS CEO Da16

| Defense Transportation Journal | DECEMBER 2017

vid Abney and I co-authored last month. FedEx and UPS are certainly fierce competitors, but we chose to write this essay because we also fiercely agree on basic policies to move America forward. We advocated for the following action: 1. Reform and lower business taxes to increase GDP and wages by incentivizing investment, the main driver, as I said, for increasing the incomes of American workers. In addition, we must also adopt a territorial vs. global tax system to flow capital back to the United States economy which will result in a tax system on par with our major trading partners. 2. Invest in infrastructure. Better infrastructure will make us faster to market, save money, and make our goods and services more competitive worldwide. The greatest nation in the world can no longer tolerate rough roads, deteriorating bridges, and antiquated technology. By the way, a Brookings Institution analysis found that 14 million people have jobs directly related to infrastructure. That’s about eleven percent of the population. Infrastructure investment and modernization will create even more jobs. 3. Negotiate to ensure more open global trade. Currently, we have freetrade agreements with 20 countries and enjoy a surplus with those partners in manufacturing, agriculture, and services. On a per-capita basis these 20 countries buy 13 times as many US goods and services as other nations. The way forward is more trade, not less!

I hope our lawmakers will engage in positive discourse, find common ground, and take action on these vital issues. Let’s move on to the second topic—the transportation industry itself. One of the biggest issues in aviation transportation is a recurring debate over America’s Open Skies policy. In the past few years several of our US legacy passenger carriers have asserted that three state-owned Middle East airlines are engaging in unfair competition. These US airlines argue that our nation should renegotiate, freeze, or even cancel the US-UAE and US-Qatar Open Skies agreements. That viewpoint doesn’t represent all airlines. A cargo carrier like FedEx depends on Open Skies to efficiently run its global air cargo network that links the shipping public to more than 220 countries and territories. But it goes beyond individual business interests. Because of Open Skies, the US Department of Defense can depend on carriers like FedEx to deliver essential supplies to US military bases overseas. For example, we have unparalleled air cargo service across the Middle East, an area with sizeable US military operations. And our CRAF-committed aircraft are specifically capable of accommodating military equipment. Without these Open Skies agreements in full force, the US military would face longer transit times for getting their defense supplies to critical locations, thereby impairing the military’s readiness levels and potentially our country’s national security. We hope aviation organizations and experts everywhere will voice their support to Washington for a strong Open Skies policy. Switching gears, one of the most exciting things in transportation these days is new technology. Let’s face it: Most of us can’t go a day without looking at our personal technology, reading about technology, or simply drooling over the latest technology. FedEx is no different. We’re exploring all kinds of new technologies to make our supply chains faster, safer, more efficient, and less expensive. Let me share a few examples. In aviation, we’re currently testing new technologies on a Boeing 777 Freighter, as part of that company’s “ecoDemonstrator” program. Its goal is to improve environmental performance and safety on aircraft of the future. New technologies on our plane include: • A compact thrust reverser to save fuel, • Flight deck improvements to make operations in and out of airports more efficient, and

• Prototype parts using innovative manufacturing techniques that reduce material waste. We’re very proud to be working with Boeing to bring future benefits to the entire aviation industry. Speaking of environmental performance, FedEx works hard to deliver its shipments in responsible and sustainable ways. As a heavy user of fossil fuels, we know how important it is to reduce our consumption and use alternatives. With jet fuel, our goal is to have a third of it blended with biofuels by 2030. At FedEx Ground, some facilities have equipment that can blend biodiesel into the fuel mix. FedEx Freight has a compressed natural gas fueling station in Oklahoma City that serves more than 100 CNG [Compressed Natural Gas] trucks in the region. We have an agreement with a supplier for 100% renewable diesel, and we are using this product in Southern California. We are leaving few alternative-energy stones unturned: electric and hybrid vehicles, hydrogen fuel cell-powered vehicles, solar energy, compressed natural gas are all part of our sustainability mosaic.

Another technology everyone likes to talk about is robots, which have fascinated people for many years. One of the most common themes in science fiction is that of robots taking over the world. Today, of course, robots are becoming more common—in offices, warehouses, hospitals, and the military—with no uprisings in sight. FedEx has mobile robots that look a bit like R2-D2, but have names such as Lil Rico and Area 51. They can pick items off shelves and deliver them to technicians. They can travel longer distances—

building to building—and handle ramps, thresholds, and elevators. If a door is locked, they can call or text the person in that room to allow access. Robotics has begun to permeate FedEx operations: • We’re introducing mobile robots in our supply chain warehouses to move customer products to assigned locations, saving time and cost. • We are testing robotic automation that can unload shipments off our trucks and put them onto conveyor belts for further sorting.

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Because of Open Skies, the US Department of Defense can depend on carriers like FedEx to deliver essential supplies to US military bases overseas.

We are exploring other transportation technologies in vehicles, particularly for heavy, long-haul trucks since industrial fleets will likely lead the way in autonomous driving. One technology we like is platooning. Trucks, in this case with drivers, line up behind a lead truck on the highway, much like bicyclists form a peloton and draft off the cyclists in front of them. This formation is more fuel efficient than normal traffic patterns. In the brave new Internet of Things, these trucks would communicate with each other, the driver, and a company headquarters about their location, road conditions, traffic patterns or weather—and then make driving adjustments based on what they “learn” from the data through artificial intelligence.

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• One of my favorite robots looks like a giant green Roomba vacuum. It’s actually a robotic tugger and can move goods, especially oversized packages, around warehouses, yards, and tarmacs without accidents, due to its 3D sensors. One technology everyone’s interested in is drones and I know the military has much more experience with drones than we do. However, FedEx is exploring some options for our business. Given the number of natural disasters occurring recently, we’re looking at using drones in disaster recovery situations, both in assessing damage done to our facilities and to those around us. We’re also considering drone use in monitoring the perimeters of our facilities and in checking equipment in our yards and on our tarmacs. For all the great rewards new technologies bring, we’re also seeing greater risk in the form of increased criminal cyber-activity in networks worldwide. That brings us to topic number three: the ongoing challenge of cybersecurity. What better time to talk about it, with October being National Cybersecurity Awareness month. At FedEx, we’ve long known that information about the package is as important as the package itself. Now, so do digital thieves. In 2016, there were 1.4 billion data records exposed, up 85% since 2015 and

In 2016, there were 1.4 billion data records exposed, up 85% since 2015 and identity theft accounted for 59% of the data-breach incidents.

identity theft accounted for 59% of the data-breach incidents. According to Cybersecurity Ventures, cybercrime damage costs are predicted to reach $6 trillion annually by 2021. The recent proliferation of attacks such as the WannaCry and Petya viruses, and the Equifax breach have caused massive damage to accounts of people and companies around the world. FedEx has first-hand knowledge of how a malicious attack can impact a company’s operations. During the summer we suf18

| Defense Transportation Journal | DECEMBER 2017

fered significant operational challenges due to a Petya attack on our recently acquired company, TNT Express. This was not an ordinary cyber-attack. We believe it was the result of a nationstate targeting the Ukraine and companies that do business there. It is widely believed

Secretary Duke says that the DHS is working to improve cyber-threat information-sharing internationally since cyberspace is inherently global. The department collaborates with the world community to exchange and advocate for best practices and state-of-the-art mitigations. In recent

that these were weaponized cyber-tools stolen from the US government. While no data breach is known to have occurred, the worldwide operations of TNT were significantly affected. Despite the attack, the TNT core shipping services are in place, and all facilities operational. Petya was one of the strongest military attacks ever released. We survived it, we learned from it, and hardened our systems. We’ve become stronger as a result. One thing is certain: Cyber-attacks have completely taken away business as usual. We have to look at, think about, and process our work differently. Our military increasingly needs to work with counterparts and civilians from very different cultures. We must have collective security and collective action. It will take all of us–government, the military, and the private sector—working together. The Executive Order that the president [Trump] signed, Strengthening the Cybersecurity of Federal Networks and Critical Infrastructure, and the Department of Homeland Security (DHS) role in securing our safety are vital to America. I think Acting Secretary of Homeland Security Elaine Duke summed it up well: “Our adversaries . . . continue to develop advanced cyber-capabilities. They have deployed them to undermine critical infrastructure, target our livelihoods and innovation, steal our secrets, and threaten our democracy. Cybersecurity has become… one of the Department’s core missions.”

Congressional testimony she assured her audience that DHS, the US Secret Service, and other enforcement partners will “aggressively investigate, disrupt, and dismantle criminal actors and organizations using cyberspace to carry out their illicit activities.” At FedEx, we will continue to fortify our systems to offer our customers safe, secure delivery of their shipments, information about those shipments, and their personal information as well. For us, security is the cornerstone of reliability, and reliability is the main thing our customers pay us for. I know all of us will continue to prepare for every possibility to keep our assets safe, be they people, networks, equipment, or cyberspace. To sum up, I strongly believe that coalitions among government, business, industry, and the military will reinforce American innovation, growth, and infrastructure expansion. Organizations like the NDTA, the US Transportation Command, and cargo and passenger carriers working together will help create the solutions to challenges we face industry-wide and nationwide. Nothing is more important than all of us joining forces to keep our nation’s transportation networks fluid yet secure. General McDew, I hope you don’t mind if I borrow the mission statement of your organization: “Together we deliver.” That sums up the ultimate mission for all of us, and it creates immeasurable value for our troops, our customers, and our nation at large.

Moving the Enterprise Forward This speech was delivered by NDTA’s newly installed Chairman of the Board John Dietrich on October 12, 2017 during the NDTA-USTRANSCOM Fall Meeting. It has been reformatted and reprinted here in its entirety with permission.

hank you, and good morning, everyone. It’s a pleasure to be with you all today. I am humbled and honored to take up the role as Chairman of the NDTA. I want to thank Bill Flynn for his leadership as Chairman of the NDTA. I also want to thank Bill Kenwell for his service as Vice Chair. I know first-hand how seriously they took their roles. Their significant investment of time and effort has paid dividends in advancing the goals and objectives of NDTA. I also want to thank Jim Veditz for unselfishly stepping in to assume a leadership role during Admiral Buzby’s transition back to government service. Speaking of Admiral Buzby, or should I say, the Honorable Mark Buzby, I want to thank him

for his very successful albeit too brief tenure as CEO of NDTA. Congratulations Admiral and I wish you the very best in your new role as Maritime Administrator. Finally, I want to recognize and congratulate Admiral Andy Brown, on his appointment as President and CEO of NDTA. Andy, I really look forward to working with you. I also want to congratulate all the other newly elected Board members including Bill Woodhour, our new Vice Chairman; Kirsten Knott of FedEx; and the Honorable Alan Estevez, who has been a great supporter of NDTA and is a deeply experienced addition to the Board. I look forward to working together with all of you. Since its start 73 years ago—in 1944 during the height of World War II—the National Defense Transportation Association has emerged as a leading association of government, military, and industry professionals. The NDTA is a unique organization— one that is dedicated to fostering a strong and efficient global logistics transportation system in support of our economy and national security. Working through the NDTA provides each of us with a great

opportunity to advance the knowledge and science of transportation and logistics within government and industry. We have seen some great examples of that at this conference over the last few days including from General McDew and Fred Smith. Working through NDTA gives us the opportunity to facilitate the sharing of knowledge regarding transportation and logistics between government and industry. It also gives us the opportunity to educate our members about out important issues affecting global transportation and logistics. The collection of over 70 NDTA Academy courses at this conference alone is a great example of that! Going forward, I look forward to working closely with Admiral Brown and the NDTA Board and executive staff, standing committees and chapter organizations to deliver on the NDTA’s goals. One of the most important goals, as confirmed by both Admiral Brown and General McDew, is to facilitate strong working relationships and the exchange of ideas. It also includes fostering strategic communication among military, government,

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and corporate members, particularly as they may enhance mission security, mission assurance and Homeland Security. And, finally, to create value for all of our members. To borrow from USTRANSCOM’s motto, and with commercial industry as the fourth component, “Together, We Deliver.” From an industry standpoint, we are indeed living in interesting times! As has

Other examples of NDTA’s commitment to minimizing cyber threats include the Sea and Airlift Cyber Sub-Committees that were developed to explore practical approaches and collaboration with USTC to minimize risk.

been discussed over the last couple of days, we continue to see incredible expansion of technology, emerging markets and global trade. But we also all must recognize that we are in a period of geopolitical unrest and global threats, physical and cyber, the likes of which we have not seen before. As a result, it is critical now more than ever that industry and USTRANSCOM and all of government leverage the strong relationships that have been built to best position ourselves for the challenges that lie ahead. From any perspective, freight transportation, including air, ocean, rails and trucking industries are not only a primary driver of a worldwide economy but also a critical component of our national defense. As USTRANSCOM describes it, its partnership with industry leverages a global enterprise of logistics expertise and commercial partners that is critical to our national defense. Together, we must maintain our competitive edge with the “Power of Projection.” The resilience of the US economy and the US Defense Transportation system depends on a multimodal transportation system that efficiently, safely and securely links businesses in and outside the United States with consumers, suppliers, and markets here and abroad, all in coordination with USTRANSCOM. We must continually work together to reposition our transportation system to reflect changes in the physical and geopolitical landscape. Reflecting on the news of recent days, today’s geopolitical landscape 20

| Defense Transportation Journal | DECEMBER 2017

poses more potential challenges than at any time since World War II. As National Intelligence Director Daniel Coats noted recently in his worldwide threat assessment to the Senate Select Committee on Intelligence: • Russia is likely to be more assertive in global affairs and more unpredictable in its approach to the United States; • China will continue to emerge as a major global power and will continue to pursue an active foreign policy—especially within the Asia-Pacific region; • North Korea’s arms program, public threats, and defiance of the international community pose a complex and increasingly grave national security threat; and • Iran will remain an enduring threat given its support for terrorist groups and militants and its development of advanced military capabilities. These and other emerging challenges require that we must be prepared to face a more contested global environment going forward with increased risks for air and sea transportation. In addition to considerations about physical access, cybersecurity is another significant challenge that we must address squarely. Director Coats’ threat assessment points out that “our adversaries are becoming more adept at using cyberspace to threaten our interests and advance their own.” And as we have heard throughout this conference, particularly from General McDew, cyber threats remain a major concern for USTRANSCOM. This is the case because nearly 90% of our missions are executed over unclassified and commercial networks. NDTA clearly recognizes these threats and the need for a collective effort to support the defense transportation requirements of our nation—both in terms of physical access and cybersecurity. As an example, I would like to highlight our Cybersecurity Best Practices Committee, led by Ted Rybeck, which provides a forum for exploring and understanding cybersecurity policies and requirements in the supply chain sector. The committee is helping to define specific implementation requirements for IT systems for companies doing business with the government. One such standard is NIST 800-171. National Institute of Standards and Technology Special Publication 800-171 was developed for use on contractor and other nonfederal information systems and networks to pro-

tect controlled unclassified information. To provide adequate security, federal contractors must, at a minimum, implement NIST 800-171 by December 31, 2017. Most requirements in the standard are about policy, process, and configuring IT securely. Other examples of NDTA’s commitment to minimizing cyber threats include the Sea and Airlift Cyber Sub-Committees that were developed to explore practical approaches and collaboration with USTC to minimize risk. These committees are focused on information sharing, as well as operational considerations of cyber threats to ensure mission assurance. In that spirit, I would like to return to the partnership that brings us here to St. Louis. One of the primary purposes of our meetings is to strengthen our relationships and partnership. On the industry side, I have seen amazing examples of interest and patriotism to assist in our common objectives. To succeed will require continued commitment by NDTA and our members, and USTRANSCOM, as well as teamwork by all parties. I think we are well-prepared for that effort. And I look forward to teaming with all of you to achieve it. As a final note, I believe Andy Brown and I need to immediately get working on arranging next year’s keynote speaker as Fred Smith is going to be a tough act to follow! Thank you.

Case Studies in Cyber Security SPEAKER & MODERATOR

Chiderah Okoye, Executive Director, Venly Institute PANELISTS

• Tom Fellows, General Manager, Venly • Joe Reagan, President & CEO, St. Louis Regional Chamber of Commerce, and incoming Chair, Association of Chamber of Commerce Executives • VADM William A. Brown, USN (Ret.), President & CEO, NDTA

s. Okoye set the tone of the panel saying, “We will only be successful when businesses start viewing implementing strong cyber security as good business practice that they would want to do anyway. Everyone in this room under-

stands that their best practices are only as good as the implementation of the supply chain partners that you rely on.” She continued that we should remind ourselves of the importance of our publicprivate partnership, given that no other country in the world depends as much as the US does on its private sector to deliver its national defense. If we don’t find a way to secure our entire supply chain from end-to-end we will be subject to the same vulnerabilities that come with the weakest link in our supply chain. Those weak links would put the DOD supply chain in harm’s way, which would be unacceptable. One way around that unacceptability would be to stop using smaller organizations all together, relying only on the larger prime contractors to manage all of the work. Conversely, if cost of compliance is viewed as being too high or too complicated, those smaller firms will opt out of serving the DOD themselves. The combinations of these factors would hurt the US economy which relies on small business job growth. The National Institute of Standards and Technology (NIST) Compliance 800-171 is a baseline standard. It addresses how an or-

ganization’s operations deal with cyber security including such areas as virtual and physical access, personnel training, and internal procedures. Essentially the standard takes cyber security and distills it into a scorecard. While the standards speak to protect and control unclassified information, all carriers that support DOD will be required to adhere to this standard regardless of maintenance of controlled unclassified information (CUI). Target’s cyber breach is one example of a high-profile incident that could just as easily have occurred within a supply chain. It was not actually Target itself that was breached— it was a small, family-run HVAC company serving Target that got attacked and in turn allowed the malicious actors access to Target’s management system. That HVAC contractor is not an unusual situation—they are one of the 28 million small businesses that make up the fabric of the US economy. There is simply no way to upscale every one of these companies one at a time—so how can we collectively rise to that challenge? Across the US there are 7,000 local chambers of commerce. If we look at securing systems by engaging chambers it becomes a more attainable goal and cyber security is al-

ready becoming a prerequisite part of the lifecycle of metrics that effective chambers and businesses are using.

While the standards speak to protect and control unclassified information, all carriers that support DOD will be required to adhere to this standard regardless of maintenance of controlled unclassified information (CUI).

The combination of smart contracts, social media, cloud-based applications, Artificial Intelligence (AI), blockchain, and other new technologies is creating an undisciplined network of information sharing and storage unlike anything before it. Coping with this complexity while ensuring mission effectiveness without loss of speed or loss of capability is the responsibility of all within the DOD supply chain and must be integrated on all levels. DTJ

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Booths from military, government, industry, and academia, were “on board” for the 2017 NDTA Expo located in The Midway at the historic St. Louis Union Station Hotel, which was once the world’s largest and busiest train station. The Expo afforded an opportunity for professionals to network and share the latest advances in transportation and logistics. The event’s kick-off reception featured live music by Norfolk Southern’s “The Lawmen” Band. The next two evenings’ activities included two hourslong train excursions in classic rail cars across the Mississippi river and back to Union Station courtesy of BNSF.

22 | Defense Transportation Journal | DECEMBER 2017 Participation and attendance at the NDTA Exposition does not imply support or endorsement by USTRANSCOM, its component commands, or any other US government entity.

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American Roll-on Roll-off Carrier (ARC) • BNSF Railway • Crowley Logistics Inc. CSX Transportation • Erickson Incorporated • Liberty Global Logistics, LLC Southwest Airlines • The Pasha Group • Transportation Institute • U.S. Bank Freight Payment

BRONZE SPONSORS AAT Carriers • Accenture • Baggett Transportation • Chalich Trucking Inc. Hapag-Lloyd USA, LLC • Leidos Innovations • Port of Port Arthur • SAP • Tri-State • Wally Park

Proceeds from the NDTA Sponsorship Program support the NDTA general operating fund. Participation in the NDTA Sponsorship Program does not imply support or endorsement by USTRANSCOM, its component commands, or any other US government entity.

| Defense Transportation Journal | DECEMBER 2017

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www.ndtahq.comSCAC-BYLE | 25

Cont’d from Pres. Corner pg. 7 ministrator. Congratulations and Godspeed to you and your team at MARAD, Buz! I would be remiss if I did not point out the role of the NDTA Board of Directors in supporting the initiatives Buz and the NDTA staff have implemented. The Board, and in particular, the Executive Committee—Bill Flynn (former Chairman), Bill Kenwell (former Vice Chairman), Jim Henry (Sealift), Randy Martinez (Air) and John Collins (Surface) have been the enablers who keep the momentum up. Many of my first impressions have been shaped by the recent NDTA-USTRANSCOM Fall Meeting in St. Louis. I was in awe of the amount of planning, coordination and work that goes into putting on an event for 1230+ people. It was all worth it if, in the end, we created that collaborative and action-oriented environment. By all accounts, the Fall Meeting proved a great success. The support from the USTRANSCOM senior leadership was pivotal and set the tone for the entire meeting; we very much appreciate USTRANSCOM’s leadership in that regard. Also, the Chairman, Bill Flynn, secured Mr. Frederick W. Smith, Chairman and CEO of FedEx, as a keynote speaker. He was profoundly rich with perspective, so we have included a copy of his speech here in the DTJ. Here’s just one important quote: “Organizations like the NDTA, the US Transportation Command, and cargo

and passenger carriers working together will help create the solutions to challenges we face industry-wide and nationwide. Nothing is more important than joining forces to keep our nation’s transportation networks fluid yet secure.” As of this writing, I have just returned from Jacksonville and was reminded of all the great, ongoing work by defense and commercial providers for hurricane relief efforts in Puerto Rico and the Caribbean. The collaboration between companies to provide shipping, trucks and drivers is impressive, and it gets to the very ethos of many of our NDTA companies to “do what is right.” On my visits I am continually impressed by the outstanding culture in the workforce of many of the companies. And their dedication to the DOD mission is real, not talk. This is important because our nation must deter our adversaries. The networks, people and infrastructure industry use in non-DOD ventures is potentially available for DOD in time of crisis. A small business, 18-wheeler tire shop may not realize they are part of an important network—but they are. We must continue to recognize and see the value of these networks. It is the same in all of the industries we deal with—airlift, sealift, rail, truck, and passenger travel. Programs like the Civil Reserve Air Fleet (CRAF) and Voluntary Intermodal Sealift Agreement (VISA) are the shining examples of preexisting arrangements that provide our nation with airlift and sealift net-

works in times of emergency or crisis. There may be other opportunities for leveraging networks. But in the end, like in the example of the Puerto Rico relief, the rapid expansion of a network may depend on the relationships built—company to company or government to industry—during the course of business in non-crisis periods. One of my first impressions about our Association is the sincere affection for the organization that so many have. And it’s not just the Board, etc.—it’s the folks in our chapters, industry, and the logistics enterprise at large. So many have told me that they “love” the NDTA. Wow. I’m grateful to be on the team. But it would not be possible were it not for volunteers at all levels—in industry and the government. The most important thing I can say is ‘Thank You’ for all you do. My pledge to you is the same as many NDTA officers have taken in the past: “Do you hereby pledge, that you will faithfully execute the duties of your office, to the utmost of your ability, and to obey the laws of our God, our Country and our organization, and to exemplify to all in your conduct: good citizenship, good fellowship, and all the ideals of the National Defense Transportation Association?” “I do.” I look forward to working with each of you. My door is open always. Let me know how I can help you as an individual or as an organization. God Bless America and each of you. DTJ

DEFENSE TRANSPORTATION JOURNAL Statement of Ownership, Management, and Circulation as required by the Act of August 12, 1970; Section 3685, United States Code, for Defense Transportation Journal, published bi-monthly at Alexandria, Virginia, for September 2017..

2017 NDTA DISTINGUISHED SERVICE AWARDS The NDTA Distinguished Service Awards recognize active members for their unusual and commendable service, dedication, and assistance in furthering the aims and objectives of the association. Robert Sherrill

North Pole Chapter

| Defense Transportation Journal | DECEMBER 2017

1. Location of known office of publication: 50 South Pickett St., Suite 220, Alexandria, VA 22304. 2. Location of the headquarters of general business office of the publisher: 50 South Pickett St., Suite 220, Alexandria, VA 22304. 3. Publisher: National Defense Transportation Association, 50 S. Pickett St., Suite 220, Alexandria, VA 22304; Publisher, VADM William Brown, USN (Ret.); Managing Editor, Sharon Lo. 4. Owner: National Defense Transportation Association, 50 South Pickett St., Suite 220, Alexandria, VA 223047296 (an incorporated association). 5. Known bondholders, mortgages, and other security holders owning or holding 1 percent of more of total amount of bonds, mortgages or other securities: There are none. 6. Average number of copies each issue during the preceding 12 months: Total 5,279; paid circulation by mail, 5,062; sales through dealers, carrier or other means, 240; free distribution by mail or other means, 0; total distribution 5,277; copies not distributed, 40. Percent paid and/or requested circulation: 97%. Sharon Lo, Managing Editor.

PROFESSIONAL DEVELOPMENT STUDENTS ARE SAYING…

Quotes from Attendees of this Year’s Transportation Academy Compiled by Irvin Varkonyi, President, SCOPE Consulting ivarkonyi@scopedu.com

Meg Hardtner – Chief, Domestic Freight Services, SDDC J3 I went to the Transportation Policy class, which was very interesting, and followed it up with LTL and Trucking updates. I went there to learn more about classifications. It was good because some of the issues we see at SDDC are shippers who fail to use the correct commodity codes when they’re cutting their bills of lading and it seems we’re constantly having to get on them. I went there for more information to arm myself. I went there to learn more to be able to explain to the shippers what happens when they don’t use the correct commodity code.

Shelton Metcalf – Senior Associate, Seacor Holdings Seacor is a maritime carrier providing logistics for the military. I attended the Global Distribution Network and the TRANSCOM Acquisition sessions. They were very informative. The Transportation Acquisition was very tactical and helpful in navigating the bureaucracy of the different divisions of TRANSCOM. The Global Network session was strategic and forward looking. There were high quality speakers at both of the sessions. I will definitely return next year for Transportation Academy.

Christopher “CJ” Dabo – DOD Program Manager, Interstate Van Lines I went to see Opportunities in the Era of Transformation. The speaker from CBB Transportation Engineers, Shawn Leight, had a lot of visual aids including videos. It was thought provoking on the technology taking place, innovations in technology and how it changed industry. The other session I attended was a threat brief from a cybersecurity perspective and the speaker did a fantastic job. Jeff Stutzman can scare people. NDTA has provided good classes on these cyber issues.

Paul Levine – Executive Director, National Motor Freight Traffic Association I sat in on the Cybersecurity session presented by DOT Volpe Center. Our association was mentioned as participating in Cyber Security for trucking. We’ve contracted with Volpe to do work for the association. There was another Volpe session that discussed autonomous vehicles, but I think its going to be a while before you see autonomous trucks. There’s a lot more to do in practical terms. I’ve seen a lot of tests. It’ll take some time before we get something that’s practical and useful

Rebecca Bessler – Student, Merchant Marine Academy, Kings Point, NY Transportation Academy has been awesome. I attended the IT session discussing different cargo tracking devices. It was very informative and there were many different points of view in the Q&A part. We also went to the cybersecurity session which I found very interesting. Cybersecurity is a very real issue. Particularly for the military cyber warfare is one of our main issues. It is our number one concern. I hadn’t thought about how cybersecurity affects shipping as well.

Elizabeth Banner – AMC HQ FM and Debra Byrd – AMC A2 We attended the Unmanned Aerial Vehicle session. We also went to the Leadership session and Joint Logistics with George Topic and Col Husemann. The UAV session was very interesting to know their vision and where they’re going. We had no idea that BNSF could look at the railroad tracks like that with UAVs. The Leadership session was very interactive and a lot of fun to see how to work better with others.

Angie Hemphill – Chief, Special Requirements, SDDC I attended Cyber, Arms Ammunition and MG Ryan’s Force Projection. I have a soft spot for the SDDC sessions and was pleased at how we were able to convey our mission to such a large joint audience, as well as the carriers. We hear this mission every day at work, but to hear the response received from the audience was very good.

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CHAIRMANâ&#x20AC;&#x2122;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, LLC + PLUS American Roll-on Roll-off Carrier + PLUS 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 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 World Transport Ltd. + PLUS Schuyler Line Navigation Company LLC + PLUS Senator International Freight Forwarding LLC + PLUS TOTE, Inc. + PLUS United Airlines + PLUS Western Global Airlines + PLUS AeroCapital, LLC ArcBest BNSF Railway Bristol Associates Central Gulf Lines CEVA Logistics Choice Hotels International CSX Transportation CWTSatoTravel DHL Express 28

| Defense Transportation Journal | DECEMBER 2017

Echo Global Logistics, Inc. Global Logistics Providers LLC JM Ship, LLC KGL Holding La Quinta Inns & Suites Matson National Air Carrier Association Portus R & R Trucking

SAIC Sealift, Inc. The Pasha Group Toll Global Forwarding Transportation Institute Tri-State U.S. Bank Freight Payment Union Pacific Railroad Universal Logistics Holdings, Inc. UPS

HONOR ROLL

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. Accenture Federal Services Admiral Merchants Motor Freight, Inc. Advantage Rent A Car Air Transport International, Inc. Airlines for America Alabama Motor Express, Inc. 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 World Group International ATS Specialized, Inc. Avis Budget Group aVolt Incorporated Baggett Transportation Company Benchmarking Partners, Inc. Best Western International Boeing Company Bollore Logistics C.L. Services, Inc.

REGIONAL PATRONS ACME Truck Line Agile Defense, Inc. Alaska West Express Amyx C5T Corporation CakeBoxx Technologies Cartwright International Cavalier Logistics Ceres Terminals Incorporated Chassis King, Inc.

Carlson Rezidor Hotel Group Chalich Trucking, Inc. DAMCO Daybreak Express Delta Air Lines Enterprise Holdings Erickson Incorporated Estes Forwarding Worldwide, LLC Europcar Car & Truck Rental Eurpac Evanhoe & Associates, Inc. Extended Stay America Hotels FEDITC FlightSafety International General Dynamics/American Overseas Marine GeoDecisions Greatwide Truckload Management Green Valley Transportation Corp. Hanjin Intermodal America, Inc. Hertz Corporation Hilton Worldwide IBM Intercomp Company Intermodal Association of North America (IANA) International Association of Movers International Longshoremen’s Association (ILA), AFL-CIO International Organization of Masters, Mates & Pilots Keystone Shipping Co.

KROWN1 FZC Kuehne + Nagel, Inc. LMI 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. Northern Air Cargo Inc. Northern Neck Transfer Inc. Omega World Travel Omnitracs, LLC One Network Enterprises, Inc. Oracle ORBCOMM 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

PTS Worldwide Radiant Global Logistics Ramar Transportation, Inc. Roadrunner Transportation Systems Sabre Travel Network Savi Seafarers International Union of NA , AGLIW SEKO Aerospace & Aviation Skylease 1, Inc. Southwest Airlines The Parking Spot TMM, Inc. Transcor Transportation Intermediaries Assn. (TIA) Travelport TSA Transportation LLC TTX Company Tucker Company Worldwide, Inc. United Van Lines, Inc. USA Jet Airlines Vetcom Logistics Volga Dnepr Airlines Wally Park Wapack Labs Corporation Women In Trucking Association, Inc. XPO Logistics YRC Freight

Columbia Helicopters, Inc. Dalko Resources, Inc. DB Schenker Duluth Travel, Inc. (DTI) Enterprise Management Systems HLI Government Services JAS Forwarding John D. Odegard School of Aerospace Sciences Kalitta Charters, LLC Kansas City Southern Lineage Logistics

LMJ International Logistics, LLC MacGregor USA, Inc. Madison Hospitality MCR Federal, LLC mLINQS Move One Logistics NFI NovaVision Inc. Oakwood Worldwide Overdrive Logistics, Inc. Owner-Operator Independent Drivers Association

Patriot Contract Services, LLC Philadelphia Regional Port Authority PITT OHIO Port Canaveral Port of Port Arthur Seatac Marine Services Staybridge Suites McLean-Tysons Corner Hotel TechGuard Security Trans Global Logistics Europe GmbH Ultimate Air FZ LLC (Central Asia Development Group Inc)

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The General vs the President

By Sharon Lo Managing Editor, DTJ & NDTAGram The General vs. the President: MacArtur and Truman at the Brink of Nuclear War by H.W. Brands (Doubleday, 2016) ISBN: 9780385540575, 398 pages, Hardcover $16.00, Kindle $14.99.

hen I passed The General vs. the President on the shelf at my local library, I was interested in seeing if this was a good fit for bookshelf reviews since we haven’t had a historic book in a few issues. But what made this a real page-turner for me was its timeliness in light of the recent nuclear tensions with North Korea. The book takes place post World War II during a time when peace was considered rather fragile. North Korea had invaded South Korea, beginning the Korean War. President Harry Truman managed to fend off the Northern invasion without evoking response from the Soviets, however provocation by General Douglas MacArthur had caused the Chinese to enter the fight in support of N. Korea. This escalated the situation, as the Chinese were allies with the Soviets—the only other nation who held the nuclear bomb. The world was on edge, as newspaper headlines asked if World War III was on

General Douglas MacArthur greets President Harry S. Truman upon his arrival at Wake Island for a conference to confer on the Korean War, October 15, 1950. US Department of Defense image/Released.

its way. Truman subsequently fired the General for his role in escalating the war, though of course there is much more history behind their relationship and the story certainly does not simply end there. Truman was an unpopular president who turned into a great leader, but during the time was really unprepared for the presidency and was very much learning as he went. MacArthur by contrast was described as “wildly popular” a war hero whose larger-than-life persona preceded him, though many regarded him as a loose cannon. The story is told from multiple perspectives, including (as you would expect) from Truman and MacArthur themselves, as well as enlightening glimpses into how

the clash and the two men were viewed by the world and those closest to them. While the events of the book all took place in the public arena, author H.W. Brands utilized a bevy of once classified communications and correspondence to fill in what newspapers and transcripts of government hearings could not capture. Additionally, memoirs penned by several relevant figures played a role in shaping the narrative. In light of current events related to North Korea, reading this book was enlightening and incredibly relatable. And I will add that, despite knowing how it ends, the story kept me intrigued as I delved back to this pivotal era in American—and world—history. DTJ

Kimberly is an Air Force Veteran, who served in a variety of capacities during her career. Most notably, she was the Advisor to the Commander of USTRANSCOM, Public Relations Member, Director of Threat Working Group, and Office of Special Investigations Special Agent. In addition to her duties with the Air Force, Kimberly has worked closely with NDTA’s Industry Partners. She was instrmental in developing the relationships that were vital to meet the evolving logistical challenges faced by our Nation. As for this new challenge ahead, Kimberly says, “I am excited to find innovative ways to share the incredible value of NDTA to a larger audience. The importance of the relationships between Industry, Academia and

Defense Professionals is even more vital now-as our Nation (Industry and Defense) strives to meet evolving global logistical challenges.” Welcome to the team Kimberly!

WELCOME | Kimberly Huth

DTA is pleased to welcome Ms. Kimberly Huth as its new Director of Public Affairs. If she looks familiar to you, that’s because she is—Kimberly has supported the Association through a variety of outside roles for 13 years. Most recently, she served as the Director of the US Air Force, Air Mobility Command’s Threat Working Group at Scott AFB, Illinois. In this role, she was responsible for managing, facilitating, and coordinating global messaging, policy and threat information on behalf of the Commander of Air Mobility Command. 30

| Defense Transportation Journal | DECEMBER 2017

DTJ INDEX OF ADVERTISERS American President Lines, Ltd..........................31 American Roll-on Roll-off Carrier (ARC)..............2 Avis Budget Group...........................................13 Bennett Motor Express, LLC...............................6 Boyle Transportation, Inc..................................25 DHL Express......................................................7 Evanhoe & Associates, Inc................................17 FedEx Government Services.............................32 Freeman Holdings Group....................................3 International Association of Movers..................10 Landstar Transportation Logistics, Inc................4 PTS WORLDWIDE, INC......................................21 TOTE, Inc.........................................................19 Wapack Labs Corporation................................21

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We’re not in the military, but we’re proud to serve the U.S. We take our job and yours very seriously. At FedEx, you can count on us for access to networks in more than 220 countries and territories and the flexibility to handle anything that comes your way. And you can trust that there’s pride in everything we do.

| Defense Transportation Journal | DECEMBER 2017