The ISPS Code and The Cost of Port Compliance: An Initial Logistics and Supply Chain Framework for Port Security Assessment and Management

Abstract

Following a description of ISPS and non-ISPS security initiatives, the main risk factors and security threats to ports are identified and analysed, with a focus on the risks stemming from non-tangible assets, flows and processes. Similarly, the various economic approaches to risk management and cost control in shipping are reviewed, and their shortcomings highlighted from the perspective of port logistics and supply chain security. By adopting a channel orientation to ports, the paper suggests that the subject of port security must shift from the current agenda of port-facility security to the wider context of port supply chain security, with a view to ensuring superior security standards and practices in ports and across their supply chain networks. Based on the rationale of logistics integration and supply chain partnership, a conceptual framework to port security is proposed through integrating and optimising three initial models relating, respectively, to channel design and process mapping, risk assessment and management, and cost control and performance monitoring. Maritime Economics & Logistics (2004) 6, 322–348. doi:10.1057/palgrave.mel.9100116

Management of disruptions by seaports: preliminary findings

“…As a larger number of entities and individuals interact at the port community and due to the increased embeddedness of ports in supply chains, ports are exposed to more vulnerabilities especially in terms of potential risks and security threats (Pinto and Talley, 2006;Bichou, 2004). Being more susceptible to uncertainties of the supply chains they serve, agility would ensure swift actions at ports in avoiding the impacts of disruptive events (Paixao and Marlow, 2003;Bichou et al, 2007).…”

Evaluating Different Cost-Benefit Analysis Methods for Port Security Operations

“…The authors suggest a cost model that contains direct costs and indirect costs associated with costs of failure. Bichou (2004) finds that CBA is a model used to evaluate optimal policy decisions. According to him this model is useful while port authorities are interested to add value, e.g.…”

Security and Risk-Based Models in Shipping and Ports

“…Such contradictory findings may be explained by the variety of methods used to calculate the ISPS costs (unit versus average, initial versus running, etc. ), but can also stem from the different interpretations of the Code across world ports and terminals (Bichou, 2004;Bosk, 2006). While the ISPS Code provides general provisions on security requirements in ports, it does not prescribe detailed and uniform instructions on how to comply with them, for instance in terms of the exact instructions on the type and height of fences required for each port or terminal facility.…”