Defense Transportation Journal

The Official Publication of the National Defense Transportation Association

August 2017

www.ndtahq.com

The Current State of Sealift Civil Aviation’s Tactical Role Creative Logistics Solutions to Afghanistan The Port of Baltimore’s Place on the Cutting Edge Air Mobility Command by the Numbers

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| Defense Transportation Journal | AUGUST 2017

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| Defense Transportation Journal | AUGUST 2017

August 2017

FEATURES August 2017 • Vol 73, No. 4 PUBLISHER

COL James E. Veditz, USA (Ret.) MANAGING EDITOR

Sharon Lo | sharon@ndtahq.com CIRCULATION MANAGER

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

GRAPHIC DESIGN & PRODUCTION MANAGER

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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

THE CURRENT STATE OF SEALIFT 10 A Conversation with Capt. Bill McCarthy, Military Sealift Command

By James M. Marconi

CIVIL AVIATION’S TACTICAL ROLE IN UPLIFTING 13 US MILITARY IN DYNAMIC THEATERS Industry and Government Must Work Together to Sustain This Vital Resource

By Don Wetekam

CREATIVE LOGISTICS SOLUTIONS 17 TO AFGHANISTAN

By Harry Hussein, Matt Gehrling and Carolyn Boyajian

THE PORT OF BALTIMORE’S PLACE 20 ON THE CUTTING EDGE An Interview with the Maryland Port Administration

By James M. Marconi

AIR MOBILITY COMMAND BY THE NUMBERS 27

By Air Mobility Command

DEPARTMENTS 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

PRESIDENT’S CORNER | RADM Mark H. Buzby, USN (Ret.).......................................... 7 PROFESSIONAL DEVELOPMENT | Irvin Varkonyi....................................................... 8 CHAIRMAN’S CIRCLE.......................................................................................28 HONOR ROLL..................................................................................................29 INDEX OF ADVERTISERS.................................................................................... 30 We encourage contributions to 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 |

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PRESIDENT’S CORNER WELCOME NEW CORPORATE MEMBERS

Relieve the Watch

as of August 1, 2017

RADM Mark H. Buzby, USN (Ret.)

CHAIRMAN’S CIRCLE • AeroCapital, LLC

NDTA President & CEO

B

y now I am sure many of you are aware that I have been confirmed by the Senate and sworn in as Administrator of the Maritime Administration.

It has been quite a process, and a real “civics lesson” on how our government functions and how people are selected to serve. Makes me wish I had paid more attention in 8th Grade Civics class! It has been a positive experience thus far, and I’m sure I’ll face my share of challenges ahead. Still, I am excited to be given the opportunity to serve our Nation one more time, and in an area where I have abilities to make a difference. I have been very impressed by Secretary Chao and look for-

ward to helping her develop and advance an agenda in the maritime industry.

While I am proud and honored to have been selected for this new role in our government, I am disappointed to have to leave NDTA much sooner than I had hoped and planned. By my predecessor LTG Ken Wykle’s standards (12 years as President), I was just getting started!

Nonetheless, in my three short years as President I am proud of the progress that we have made to strengthen the Association and reinforce its value to both our government and industry stakeholders. That was a key focus of mine coming in, to ensure that we still had a valid mission and were executing that mission efficiently and effectively.

Part of that effort involved placing a new emphasis on one of our traditional core mission areas: education. Beginning with the 2015 Fall Meeting, we’ve collaborated closely with our co-sponsor US Transportation Command (USTRANSCOM) to refocus the “meeting” into an educational forum with Transportation University (now Transportation Academy) forming the centerpiece for three days of concentrated learning and exchange of ideas. Transportation Academy has grown to over 60 classes, seminars, and panels with offerings for entry-level through senior executives. USTRANSCOM Commander General McDew will be presenting one of the courses this year, and he has been See Pres. Corner pg. 30

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PROFESSIONAL DEVELOPMENT

NDTA Headquarters Staff COL Jim Veditz, USA (Ret.) Acting President Patty Casidy VP Finance Lee Matthews VP Marketing and Corporate Development Leah Ashe Manager, Database James Marconi Director of Public Relations 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

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| Defense Transportation Journal | AUGUST 2017

CYBER SECURITY—

Combatting the Weakest Link—Highlighting Transportation Academy at the Fall Meeting Irvin Varkonyi, President, SCOPE Consulting ivarkonyi@scopedu.com

I

t seems that each day we hear of cyber threats in the news. Sometimes we find ourselves personally involved as victims in cyber hacking. Perhaps our credit card information has been stolen through a third party such as a retail store. Or our Social Security numbers have been stolen and appear on loan applications with false information. Or shipments of our organizations are delayed while our transportation carrier’s service is temporarily stalled as their systems are blocked. The implications of cyber threats will be explored through several courses at this year’s Transportation Academy at the NDTA-USTRANSCOM Fall Meeting in St. Louis, 10-13 October.

In late June, snack maker Mondelez International had thousands of their servers and computers rendered useless and production lines at some factories ground to a halt after the “Petya” cyber hack. Shipping and invoicing had been disrupted for a couple of days. According to Reuters, shipping giant A.P. Moller-Maersk, which handles one out of seven containers shipped globally, said the Petya cyber-attack had caused outages at its computer systems across the world. The attack came as computer servers across Europe and in India were hit by a major ransomware attack. “Global cyberattack Petya is affecting multiple businesses,” Maersk said on Twitter. The breakdown affected all business units at Maersk, including container shipping, port and tug boat operations, oil and gas production, drilling services, and oil tankers, according to the company. The IT breakdown extended across the company’s global operations. FedEx’ TNT European unit was also impacted for several weeks.

Do we understand cyber threats? Do we understand the implications? How is Supply Chain Risk Management (SCRM) impacted by cyber threats, along with other

global threats that have the power to disrupt massive supply chains? Transportation Academy will feature nine sessions on the topic of Cyber Threats and SCRM: • Michael Dinning, DOT Volpe Center for Transportation – Cyber Attacks: How to Minimize Your Risks • Jeff Stutzman, WaPack Labs – Cyber Threats and Our Globe • DOD Cyber Crime Center (DC3) Keeping You Left of Boom (USTRANSCOM Instructor) • Kaye Ortiz, Trusted Foundry – The DOD Trusted Foundry Program • DHS Roles and Responsibilities with Cyber Security and Industry (DHS Instructor) • Jim Johnson, Office of the Secretary of Defense (OSD) Office of Supply Chain Integration – OSD and Supply Chain Risk Management • Joey Alonso, Quortum – Insider Threats • Jennifer Bisceglie, Interos – Supply Chain Risk Management • Rizwan Jaka, Oracle – The Cloud Last May, President Donald Trump signed a Cybersecurity Executive Order.

As US government officials and networks have been hacked in recent years, Trump’s homeland security advisor, Tom Bossert, said the order is designed to fulfill the President’s pledge to ‘keep America safe, including in cyberspace.’1 The executive order focused on three distinct areas where cyber threats are present—protecting federal networks, updating antiquated and outdated systems and directing all department and agency heads to work together ‘so that we view our federal IT as one enterprise network,’ said Bossert.2 The executive order came during the midst of the continuing investigation of cyber hacks from other nations, including See Prof. Devel. on pg. 26

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The Current State of Sealift

A Conversation with Capt. Bill McCarthy, Military Sealift Command

By James M. Marconi Director of Public Relations, NDTA

W

ithout sealift capacity, the nation’s wars do not get fought. Historically, government-owned ships and US commercial vessels have delivered about 90 percent of the supplies needed to sustain US armed forces abroad.

That government-private collaboration, actualized through agreements like the Maritime Security Program, remains a pillar of national defense.

On the government side of the sealift equation, the US Navy’s Military Sealift Command (MSC) maintains 23 ships—both government-owned and long-term commercial charters. That’s not including a variety of commercial vessels chartered as needed on a short-term basis. In fiscal year 2016 alone, MSC’s dry cargo ships moved 394,498 measurement tons of cargo, and tankers transported 37,255,667 barrels of fuel.

Capt. Bill McCarthy is MSC’s current Sealift Program Manager, responsible for overseeing ship participation in operations and military exercises worldwide. McCarthy has spent close to three decades as a

civilian mariner, including 12 years as a master on various MSC ships that provide food, fuel, ammunition and other supplies to US Navy warships at sea.

He moved to an ashore position in late 2016, and transitioned into the top slot in the Sealift Program this past May. The following conversation is lightly edited for clarity.

DTJ: Thanks very much for taking the time to interview today. To start out, can you talk about some of the highlights and achievements from MSC’s sealift program in the past year?

McCarthy: We have three business lines, or areas of responsibility, under the sealift program—dry cargo, tankers and surge sealift.

If you look at each one of our business lines, we are at or above historical quantities in movements of military cargo and DLA [Defense Logistics Agency] fuel. We transferred 394,000 metric tons of cargo last year, and 37 million barrels of fuel. I think that is our biggest achievement, that we’re at our his-

torical highs. And we worked closely with our MARAD [Maritime Administration] partners and successfully activated numerous organic ships to meet critical missions.

DTJ: Which missions in particular?

McCarthy: We have a lot of ammunition movements, and we supported Pacific Pathways last year, which was a large exercise.

DTJ: I think that gives me a little bit of the background. Looking through the rest of the year and ahead to 2018, what are your top three goals and initiatives for managing the program?

McCarthy: I would say number one, to im-

prove the readiness of our surge fleet. The ships are aging, so we’re looking at a more holistic review of the ships to ensure that we are able to activate them successfully. So most certainly it’s to improve readiness to be able to support the movement of cargo for the United States Navy in time of conflict.

Above: The crew of the MSC-chartered tanker Maersk Peary departs from the National Science Foundation’s McMurdo Station, Feb, 7, 2017. The U.S. Coast Guard Cutter Polar Star’s crew safely escorted the tanker from the station and through the frozen Ross Sea of the coast of Antarctica. (U.S. Coast Guard photo by Chief Petty Officer David Mosley)

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Registration is now open for the 5th annual NDTA-USTRANSCOM Fall Meeting, scheduled October 10-13 at the historic St. Louis Union Station Hotel.

This year’s theme is Force Projection – Assuring Access: Cyber and Physical.

During the Meeting, we’ll look closely at the challenges that face the defense logistics enterprise in the current security environment.

The Fall Meeting provides the forum to foster our critical public and private partnership in defense transportation through frank discussion about new policies, technologies and best practices. Additional information and registration is open at

www.ndtahq.com/events/fall-meeting/ – reserve your spot now! www.ndtahq.com |

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activation success rate since February of this year until present from that historical low of about 60 percent to about 92 percent. We’re 12 of 13 successful activations since February.

So there are many challenges, but one thing that MSC is very adept at is identifying the problems and concentrating our efforts to address those problems, and alter our models when necessary.

DTJ: As a follow-up to that, are there any current plans or studies between MSC and MARAD to develop common readiness standards for ships in ROS? An M1126 Stryker is lowered into general purpose, heavy lift ship MV OCEAN GLORY during a backload of equipment at Chuk Samet, here, from exercise Hanuman Guardian, July 12. Military Sealift Command’s contracted voyagecharter MV OCEAN GLORY recently conducted a backload of about 250 items in Thailand as part of U.S. Army Pacific’s mobility operation PACIFIC PATHWAYS 16-2. (U.S. Navy photo by Grady T. Fontana/Released)

The second goal is to increase training afloat so that our mariners, although they meet the Coast Guard requirements for the positions they fill, that they’re trained in mission-specific areas to move the critical supplies for our armed forces.

And then I think the number three goal is to recruit and promote a diversified workforce within the program itself, so that we have the right people in the right positions.

DTJ: That’s a good segue into my third question. Obviously unless activated, all of the surge sealift ships are maintained in ROS [reduced operating status] 5 at various layberths around the country. You mentioned aging ships, but could you discuss some of the other current challenges that maintaining those vessels entails?

McCarthy: Yes. So the ROS 5 model— which is reduced operating status, able to

activate in five days—is a very difficult model to maintain. The expectation is for an aging fleet to lay inactive for many years, and then to activate in five days and get underway. As you can imagine, it is very challenging. We have struggled out of the gate on occasion. Most recently, if you look back to last year, from the mid-March to September/October timeframe, we had a mission activation success rate of 60 percent.

However, that brought a lot of focus from MSC and from Admiral Mewbourne on what really is the state of readiness and what are the difficulties in the ROS 5. So like I said, we took more of a holistic approach and we look at more than just the reporting of CASREPs [casualty reports].

We’d look at how long since the ship was last activated, what the manning is, CASREPs, Coast Guard requirements, how ABS [American Bureau of Shipping] has any outstanding items. And we have increased our

McCarthy: Yes. There is presently an on-

going study that analyzes the differences in maintenance practices and readiness standards between both MARAD’s Ready Reserve fleet and MSC’s surge fleet. Hopefully the outcome will be that the recommendation is to standardize the way we report readiness and to accurately define what readiness is, because everybody looks at it a little differently.

Some may say, well the ship isn’t reporting any issues, so it must be ready. But in ROS 5, there may not be opportunities where you’re alighting off the ship and exercising equipment. And you don’t know that until the last minute. So we’re looking at how we can analyze both MSC and MARAD, and come together where we will standardize our reporting.

DTJ: You said that the study is currently ongoing. Is there a planned release date, or is it just progressing as it progresses?

McCarthy: No, it was a 90-day study, so we’re probably less than a month into it.

See Sealift on pg. 30

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Civil Aviation’s Tactical Role in Uplifting US Military in Dynamic Theaters Industry and Government Must Work Together to Sustain This Vital Resource

By Don Wetekam, Chairman, AAR Airlift Photos courtesy of AAR Airlift

t’s no secret that the civil aviation sector provides valuable support to overseas Department of Defense (DOD) operations worldwide. The Civil Reserve Air Fleet (CRAF) is a strategic asset that augments the DOD’s organic airlift capacity in times of expanding requirements. The CRAF executes long-haul personnel and cargo transport services to and from major hubs, many of which sustain longstanding OCONUS [Outside Continental United States] DOD bases.

The somewhat routine nature of these routes supports a robust CRAF upon which DOD can call to meet urgent/emergent tasks. As such, the Part 121 operators who make up the CRAF benefit by having mid- to long-term visibility into DOD international air transport requirements.

But what about the tactical support requirements at the other end of those large hubs? More and more, US military forces are spread thin, whether in remote corners of combat zones in Afghanistan or farflung jungles of sub-Saharan Africa. Rather than permanent or semi-permanent bases, these camps may be active for only a matter of months, before the mission moves on to new territory. Even in places like Afghanistan where US ground forces have been present since the early 2000s, the changing nature of sectarian violence in various regions demands constant reallocation of resources, and thus, an agile logistics support network to sustain it.

SIGNIFICANT ROLE PLAYED

A handful of Part 135 operators deliver a substantial portion of the DOD’s tactical intra-theatre airlift support to meet this ever-present set of requirements. Although lesser known than the CRAF, the sheer magnitude of personnel and cargo moved by these Part 135 operators is significant.

For example, AAR Airlift, which has been operating fixed-wing and rotary-wing aircraft in Afghanistan since 2004, has logged over 242,000 flight hours transporting more than two million passengers and delivering over 238 million pounds of mail and cargo in and around Afghanistan. At the peak of the US presence in Afghanistan, AAR Airlift had more than 40 aircraft in-country, and operated from eight bases. While AAR Airlift had the largest aviation footprint of any DOD contrac-

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tor during the surge, it was only one of several contractors delivering this vital service in support of US Central Command operations, which demonstrates the scope of DOD’s reliance on this civil contractor community to execute missions.

Rather than flying designated routes requiring multi-day stopovers like the CRAF carriers, tactical airlift providers embed operations for extended periods of time—sometimes years—living and working alongside the military units they serve. Therefore, Part 135 operators supporting DOD units overseas face a unique set of challenges in executing their customers’ missions.

to inform day-to-day operations. Again, this differs from how the CRAF is managed, with global operations administered centrally from the Tanker Airlift Control Center. On any given day, US Transportation Command commanders know what capability is available within the CRAF fleet, whereas the tactical operations are decentralized. To a large extent, this management approach is driven by necessity, as commanders in the field may have access to the best intelligence information to direct tactical resources. Nonetheless, the overall commercial tactical airlift support fleet is not managed as one strategic asset.

UNIQUE CHALLENGES OF TACTICAL SUPPORT

The commercial sector has repeatedly demonstrated its agility and ingenuity when faced with changing requirements.

When military commanders had an urgent requirement to establish a tactical airlift unit at a remote base in Afghanistan, AAR Airlift fielded a turnkey, twohelicopter operation less than 30 days after notification. And industry has developed new capabilities to support the warfighter, like a fixed-wing, precision airdrop capability to resupply troops engaged in active hostilities, or night vision operations for aerial recovery and licensed medical treatment of injured soldiers. When industry delivers these capabilities, it’s done in coordination with the Federal Aviation Administration, the government contracting officer, in-theatre leadership, and in compliance with host-nation regulations. The tactical airlift sector is extremely adaptive in building service solutions to meet the challenges in the field.

The embedded nature of tactical airlift operations requires a robust maintenance and logistics support apparatus.

Line and base maintenance functions must often be performed without the benefit of traditional hangar facilities.

Inventory analyses must take into account both the harsh operating environ-

Rather than flying designated routes requiring multi-day stopovers like the CRAF carriers, tactical airlift providers embed operations for extended periods of time—sometimes years—living and working alongside the military units they serve. Therefore, Part 135 operators supporting DOD units overseas face a unique set of challenges in executing their customers’ missions. ments, which may reduce mean time between key component overhauls, and the lead time required for the transport and customs clearance of critical spares.

Operating in semi-permissive environments comes with elevated risk. In concert with contracting officials and commanders in the field, operators develop unique protocols to understand and safely manage those risks, and use daily intelligence reports and threat analyses

RAPID STAND UP

COMPLICATED LOGISTICS REQUIREMENTS

With these feats come the back-end support functions. Part 135 operators embedded with military units use a rotational workforce to get the job done.

So in addition to ensuring the skills, training, and qualifications of its highly regulated workforce, companies are also responsible for pre-deployment exercises such as obtaining work permits or travel visas; morale, welfare, and recreation resources, including connectivity to family stateside; and sometimes life support to include lodging, meals, and medical care.

www.ndtahq.com |

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Food Programme. For instance, AAR Airlift landed a contract in 2015 to provide the first commercial search and rescue service to the UK Ministry of Defence in the Falkland Islands, building on AAR’s expertise of embedding with military operations and delivering highly specialized aviation operations in austere environments. Still others seek utility work overseas, such as firefighting or construction. While seasonal work can be profitable, the cost to ferry or transport these aircraft often makes chasing one-off jobs an impractical long-term business strategy. Under the current ad-hoc approach, when an urgent DOD requirement for tactical airlift support arises, the commercial aircraft and associated support assets may not always be available for immediate mobilization into theatre in the same way a 747 can. The support elements required to deploy this type of operation are much greater.

NEED COMPREHENSIVE PUBLIC-PRIVATE APPROACH

The tactical airlift support providers deliver a highly specialized service, which solves a complex problem for DOD forces.

And while the nature of conflicts around the world may change, the need for commercial long-haul and tactical airlift support will remain. The use of industry resources allows the DOD to focus its resources on capabilities squarely on its warfighting mission.

Industry also helps support covert operations. When a large military presence may be unwelcome by locals or undesirable to commanders, the commercial providers are able to deliver a low-key presence to augment Special Operations forces.

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READINESS AT RISK

As we’ve seen, this industry has proven to be an invaluable asset in its ability to adapt, respond, and embed as a true mission partner.

When the surge is over and the dust settles, what’s next for these tactical airlift providers?

Without a long-term strategy to promote the health of the industry—such as the longhaul routes that feed a lifeline to the CRAF when operational requirements are low— these tactical support operators must turn to new markets. Some support friendly nation governments and militaries, or find work in the non-governmental organization marketplace such as the United Nations or World

A more comprehensive approach to the procurement and contract management of this tactical force would further enhance safety in these high-risk environments and strengthen the future viability of this crucial capability.

Safety is paramount for all aviation professionals, and the commercial tactical airlift industry occupies a space unlike any other. Due to the unique mission sets this industry delivers, procurement, contract management, and regulatory oversight must all be aligned so that risks can be appropriately assessed and managed.

Additionally, a strategic approach to the management of this industry would deliver enhanced services and responsiveness for DOD forces. The tactical airlift providers truly deliver a turnkey service, which requires a high level of technical expertise and institutional knowledge. An approach, which recognizes the significant contribution and long-term need for this resource, would provide enhanced stability for the industry, foster healthy competition, and drive innovation.

In addition to the traditional/historic war-fighting efforts, for the foreseeable future, it’s likely DOD missions will continue to expand in pursuit of non-state actors as well, elevating the role of tactical airlift support operators. The effective strategic management of this critical resource can further enhance mission success. DTJ Don Wetekam is a retired Air Force Lieutenant General and serves as Chairman of AAR Airlift.

Creative Logistics Solutions to Afghanistan

By Harry Hussein, VP Sales and Marketing, Liberty Global Logistics, LLC, Matt Gehrling, Senior Logistics Manager, Liberty Global Logistics, LLC, and Carolyn Boyajian, Traffic Manager, Liberty Global Logistics, LLC Photos courtesy Liberty Global Logistics, LLC

A

s a landlocked country, Afghanistan is dependent on air and land transportation solutions to receive foreign imports.

In light of this, maritime trade and operations rely heavily on the accessibility of Pakistani seaports as a midway stop before transporting goods into Afghanistan via the border between both countries. However, as a consequence of the ever fluctuating security situation in the region, and with the addition of the tenuous relationship between Pakistan and Afghanistan, the status of the border connecting the two countries can be unpredictable at times.

This potential issue not only places the people of Afghanistan at a disadvantage, but also hinders the maritime industry’s ability to provide the US troops housed in the depths of Afghanistan with the necessary equipment the United States Government has contracted carriers to deliver to them.

At times, closed for consecutive weeks, the movement of cargo and commodities across

the border has been drastically impacted, as the movement of people has instead taken precedence when the border is reopened, as it serves as a quick relief for congestion. As a result of this, the capability to move both commercial and military-support cargo is further impacted. Due to the unknown timeliness of reopening the border, Afghan cargo deliveries planned to move through Pakistan are often put on hold, and cargoes sit in long queues at the Chaman Border post. Many times, customs clearance and managing the movement of cargo during the different weekly off-days that Pakistan and Afghanistan observe only adds to the list of complications to overcome. The most recent closure is the outcome of a survey dispute, which most would deem trivial being that the border holds such significance to the livelihood of the people on the Afghani side of it. The commercial sealift industry and its service partners have continually

found ways to meet these challenges, minimizing the impact of these delays. As one of only three prime contract holders of both the USC-8 and Multi Modal 2 Contracts, Liberty Global Logistics LLC (LGL) utilizes solutions set forth by the industry, which includes alternate routing and most notably air solutions, centered on ensuring a timely movement of cargo to its final destination.

LGL is a United States-based multimodal transportation and logistics company, as well as a Voluntary Intermodal Sealift Agreement (VISA) participant. Utilizing their fleet of Pure Car/Truck Carriers (PCTC), including state of the art vessels flying the US-flag, LGL specializes in heavy equipment, rolling stock and breakbulk cargoes while delivering unique global transportation solutions in the ever changing daily challenges our customers face in the International supply chain. For over twelve years, LGL has continued to supwww.ndtahq.com |

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port the movement of US Department of Defense cargo to and from the continental United States into the Mediterranean, Middle East, Northern Europe and Far East, including numerous successful deliveries of cargo destined for Afghanistan.

In 2016, along with four other service providers—APL, Farrell, NAC and KADM—LGL was re-awarded the Multi Modal Contract by US Transportation Command, in which they already have five

Liberia; and lastly, Italy. Under the new Multi Modal Contract, LGL has completed several special missions, while supporting current on-going operations as well. The newest award has their teams coordinating the transit of several break-bulk cargo pieces from the White Sands Missile Range located in New Mexico, to the Isle of Benbecula, Scotland via the Grangemouth, UK seaport.

The combined sealift and airlift carriers proudly accept these awarded missions,

The most recent closure is the outcome of a survey dispute, which most would deem trivial being that the border holds such significance to the livelihood of the people on the Afghani side of it. The commercial sealift industry and its service partners have continually found ways to meet these challenges, minimizing the impact of these delays. years of experience completing missions.

Industry has been very successful in finding various multi-modal solutions achieving unique results. Some of LGL’s most noteworthy successes under the original contract include operations from Karachi, Pakistan to Afghanistan; Riga, Latvia to Afghanistan; Jebel Ali, UAE to Afghanistan; Qatar to the Republic of Chad; Hawaii to Vietnam; and from the US to Dakar, Senegal; Monrovia,

supporting the United States Government with deployment, redeployment retrograde, Ebola crisis and sustainment requirements. Extensive planning and coordination is a matter of fact for all missions beginning from the bidding process, through the awarding phase, and on to the execution of the movement. At LGL, the execution involves not only key stakeholders within their organization, but also

their subcontractors, US agencies and receiving parties, all of which are fully engaged throughout the mission. Detailed concept planning for operations involving customs clearance, convoy security, applications for overfly permits, transit monitoring and extensive delivery coordination with the US Military at the beginning and end of the route are all key components to ensuring a successful mission. While every mission is unique and carries its own difficulties, each is met head-on with the intent of going above and beyond, taking all matters into consideration, and using their expertise in logistics for a completely successful outcome.

Over the course of LGL’s participation under the Multi Modal 2 Contract, LGL has collaborated to remedy a vast list of challenges. By providing a comprehensive logistics and delivery service through leading various operational plans, LGL has successfully executed several missions. Whether it be border closures, weather-related delays, washed-out bridges, extended holidays, or any other potential cause of delay, it remains imperative that the US Government and Military receive the services it needs from an industry it can depend on. DTJ

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| Defense Transportation Journal | AUGUST 2017

An Interview with the Maryland Port Administration

By James M. Marconi, Director of Public Relations, NDTA Photos courtesy Ports America Chesapeake

I

t’s no secret that the Port of Baltimore is thriving and growing thanks to a strategic location, key investments in infrastructure, and significant public-private partnerships. Last summer, the port welcomed the new, larger ships that can now fit through the Panama Canal—one of the few ports on the East Coast capable of doing so. In March, The Baltimore Sun reported that container traffic increased by 20 percent in January to hit record levels.

What drives the port’s recent successes, how will the port capitalize on trends in technology and trade, and what role does it play in the broader region? I had a conversation with two officials from the Maryland Port Administration (MPA)—Donovan Murray, General Manager, Intermodal/Trade Development and Richard Scher, Director of Communications. The following interview has been edited for length and clarity.

DTJ: Thanks for taking time out of your schedule to interview today. As a starter, I’m hoping you can talk a bit about your Intermodal/Trade Development team’s role with the MPA. Mr. Murray: Sure. So I’m the general

manager of the team here. We report up into operations at the port. And we are a relatively new group—we’ve only been in existence less than three years, and we were created out of a growing need to better connect customers of the port with all of the various logistical components along the supply chain. Our group is primarily container focused when it comes to connecting directly with the customers.

Within that context the beneficial cargo owner, the BCO, is front and center in that relationship. The best way to think of them— those are the folks who have their names on the sides of the distribution centers, the big importers, but that’s taking nothing away from our import/export customers as well.

So in that discussion supporting those BCOs, we will help coordinate and facilitate

with terminal operators, with chassis providers, with truckers, with freight forwarders— everything that has to do with the movement of the cargo and those touchpoints.

Our group will also become involved in regulatory issues that affect our customers’ ability to move cargo through the port with velocity. So things like federal agency coordination—our group has that responsibility on behalf of the MPA—we are the conduit between all of the federal agency partners.

There’s about a half a dozen primary ones, but believe it or not there are 47 total federal agencies that have some level of purview over cargo moving in and out of the United States.

So not only in formal structured monthly meetings of FAQWG, Federal Agency Quality Work Group, we’ve had that in the port for over 20 years. That’s a formal gathering that meets monthly with the heads of all of the respective federal agencies here in the greater Baltimore area. And we discuss regulations, policies, issues, and concerns from not only the government side that we can communicate to our mutual customers, but then also we can share challenges, concerns and requests for assistance from our port customers back in through the federal agencies, about either changes in their business models, heightened inspections, whatever it may be that they need more assistance and direction.

We also have the ability, outside of those formal settings, to meet with those individual government agencies and the BCOs together. That is something unique in Baltimore, that our BCO customers have reported they don’t get that level of cooperation and assistance from the other ports, let alone the other federal agencies in those ports.

We also work closely with our MDOT [Maryland Department of Transportation] partners, such as the SHA [State Highway Administration] and MDTA [Maryland Transportation Authority], on helping overweight, over-dimensional cargo movement through the port, and helping to coordinate and facilitate the dialogue so that our MDOT partners understand the parwww.ndtahq.com |

21

ticular issues, concerns or challenges that port customers have that may be different than other trucking interests or other cargo interests moving through the port.

DTJ: That’s a fairly extensive and impressive

sounding workload. You’d mentioned that your team is about what, six or seven folks?

Mr. Murray: Yes, we have a total of six people.

DTJ: I was absolutely fascinated by the

presentation you gave to our Baltimore Chapter earlier this year. I’ll admit that even living in the DC region, I really didn’t know how large an impact the Port of Baltimore has on a national scale. Could you walk me through the basics of the port’s scope and its basic components?

Mr. Murray: Certainly. The port at large

is grouped into two basic types of terminals—we have public terminals and we have private terminals. The MPA has five main public terminals, where we own the land, and operators lease space on our various facilities to be able to handle the different types of cargo, primarily general cargo.

General cargo is loosely framed as containers, automobiles, other ro/ro [roll-on/roll-off ] cargo, break bulk, special project cargo. By and large we do not get involved in bulk commodities. For the most part those are handled by private terminals, of which we have about 30 in the Port of Baltimore. So overall it’s a mix of public and private terminals with about threedozen in total at the Baltimore waterfront.

And we do enjoy a wonderful collaborative relationship and partnership. Our

boat companies, you have pilots, you have vessel boarding agents, you have freight forwarders—many different components that either physically help vessels and cargo move, or you have those from [an] administrative perspective that manage the documentation, the entries, the coordination and the logistics. It’s really a healthy and collaborative mix that makes up the entire port.

DTJ: There’s obviously a quite a significant public-private partnership at the port, particularly at the Seagirt Marine Terminal. What specific benefits have been realized through MPA’s relationship with Ports America Chesapeake in that case?

Mr. Murray: I guess you could say there are a few different benefits. One is the obvious physical benefit. I think many folks in the area remember almost four years ago, when four super-post-Panamax cranes were making their way up the Chesapeake Bay, shipped in from China on a special ZPMC vessel designed to carry them underneath both the Bay Bridge and the Key Bridge for their final assembly point at Seagirt Marine Terminal.

Our public-private partnership with Ports America is an industry first in the maritime space. Those cranes and the berth were the initial investment, about $100 million worth of what is a $1.4 billion commitment under the lease terms from Ports America Chesapeake. There’s the physical infrastructure component of getting us ready to handle super-post-Panamax vessels up to 14,000 TEUs here in Baltimore.

What it also did for the port, though, is elevate us in stature to be able to com-

General cargo is loosely framed as containers, automobiles, other ro/ro cargo, break bulk, special project cargo. By and large we do not get involved in bulk commodities. For the most part those are handled by private terminals, of which we have about 30 in the Port of Baltimore. So overall it’s a mix of public and private terminals with about three-dozen in total at the Baltimore waterfront. primary role is really an economic engine for the state. So as long as cargo is moving through docks in the Port of Baltimore, we know that is a win and we will help the private operators attract that cargo as well.

And we do have wonderful private terminal port operators here in Baltimore.

Outside of the public and private terminals themselves, there are many different types of companies that help the movement of cargo through Baltimore. You have tug22

| Defense Transportation Journal | AUGUST 2017

pete for that cargo. Currently on the East Coast, New York, Norfolk and Miami are the only three other ports that have air draft, water draft and crane infrastructure to handle vessels of 14,000 TEUs. As we get deeper into the discussion, we’ll talk a little bit about the rapidly changing global landscape of ocean shipping and why it’s important for those ships to handle as much cargo as efficiently as they can in ports that fit their distribution network.

DTJ: I think that’s probably a good segue into asking essentially, where does the port fit into the flow of international trade?

Mr. Murray: So Baltimore, unlike many other ports, is a very diverse port, when you look at our commodity mix. In terms of valuation of cargo, we’re number nine in the nation, in terms of tonnage, we are number 13, but that does not come from just one or two commodity slices.

Baltimore has been a market leader, and held the position for many years as number one in the nation for autos and ro-ro cargo. We’re also very strong in several bulk commodities such as sugar, coal, gypsum, aluminum, which I think really speaks to our earlier discussion points on the collaborative and healthy mix of public and private terminals here in Baltimore.

DTJ: To elaborate on that specifically, there are exports heading out of the port—what are they and where are they headed to?

Mr. Murray: So as part of that commodity mix, Baltimore will export about as many automobiles and pieces of high-end heavy cargo as it imports. You can no longer look at the name plate on a car or the manufacturer and categorically say that’s an import or an export. We will export Toyota out of the country and we’ll import Ford into the country, which again speaks to the nature of the evolving global trade that we’re involved in.

We import a tremendous amount of paper products, both finished rolled paper and pulp. On the export side—again in addition to autos and the high-end heavy cargo—for containers, containers are more commodity driven.

So out of the United States at large, really the three highest commodities you’ll see in the container world are waste paper, logs and lumber, and metal scrap. While we do have trading partners to really every major continent in the world, most of the containerized exports are headed to Asia as those raw materials, and turned around into finished goods that the country will then import.

Europe will see a little more mix of the construction equipment, the tractors, the automobiles again, and that high-end heavy cargo.

DTJ: The Baltimore Sun reported recently

that the port of Baltimore set a new record in general cargo handled in 2016 on the public side. Is that record primarily due to increased volume coming through the Panama Canal?

Mr. Murray: It’s really supported by several

different things. Panama Canal growth is certainly one of them, although for the last 3+ years, Baltimore has been receiving those same size vessels through the Suez Canal.

But in addition to that, we just spoke about Baltimore’s diverse port, the different types of cargo that we handle. It may be a crude analogy, similar to your retirement plan or your stock portfolio, you don’t want to overweigh heavy in one sector. You want to have good diversity, which I think the steady growth that we have experienced here speaks to that point of containers, autos, ro-ro, break bulk, project cargo that we’re able to capitalize as a port.

Baltimore also sits in the middle of the nation’s third wealthiest consumer market.

So ports like New York and LA Long Beach, which are ranked at number one and number two respectively, have the good fortune of port locations, very large terminal facilities and very large consumer markets. Well again, Baltimore is sitting in the number three wealthiest consumer market in the nation. More shippers are starting to realize that advantage of getting goods to the ultimate destination where consumers will purchase them, and reducing the inland transportation costs associated with longer movements coming into other gateways.

So it’s really a combination of factors, that when you look at our trend lines, it’s not beholden to one specific commodity, it’s not beholden to one specific ocean carrier, it’s not beholden to one specific event. It’s really been an accumulation of several factors. For the last seven years, the port has seen really steady growth, which speaks to our diversity.

DTJ: In addition to those natural advan-

tages that you had mentioned, what types of initiatives are MPA making in order to keep the port competitive and take advantage of the current trends in trade?

Mr. Murray: Well, there are a couple things in the short term—specifically in the containerized world, the tremendous global consolidation of the ocean carrier market.

Thirty years ago, there used to be 50 ocean carrier options that shippers had.

Through consolidation, liquidations, et cetera and the alliance structure—in which several ocean carriers have joined together and offer one service, even though they all contribute vessels to that service—when you spin that forward to today, shippers are really left with only three choices in

ocean shipping for the primary trade lanes, what are called East-West trade lanes.

There will always be niche carriers in smaller trade lanes, particularly the NorthSouth trade lanes, but for the bulk of the ships—almost 90% of the world’s tonnage—it’s controlled by three main alliances.

We are now starting in April with this continued consolidation in the marketplace, and Baltimore will have two of the three global alliances that will call our port here.

DTJ: Right along with that, you had men-

tioned at our chapter meeting initiatives that

the state is pursuing to build infrastructure— including rail—to handle some of those flows.

Mr. Murray: In the longer term we know we’re growing cargo volume here and we know we’re attracting the alliances. Baltimore is really about a 95% truck port. We want to be able to expand our reach. We tick off every single major box, when you look at Class A or premier port infrastructure and capabilities, save double-stack rail.

Looking at the two Class 1 railroads that serve Baltimore, the CSX option through the Howard Street Tunnel was the one that the

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23

state decided to pursue. We are in roughly equal thirds contributing [funds] as the State of Maryland, CSX, and we’ve petitioned the federal government for a FASTLANE grant for the final third to give us double-stack clearance through the Howard Street Tunnel.

That tunnel currently handles both international and domestic freight. It can handle almost every manner of cargo including multi-level auto racks, which are the cars that are carried via train. But unfortunately, there’s clearance at times as slight as three inches. We need to go through either the undercutting or the notching and reinforce process inside the tunnel to give us double-stack clearance.

What’s exciting about the project is the technology that’s now in the market will enable us to use the existing tunnel and just undercut a little or reinforce above, which does two primary things. It greatly reduces expenditure, and it greatly reduces the timeline for that project to come to fruition.

So the total project expense is about $425 million. We did not receive the first round of FASTLANE grants in April [2016], but we understand that the project was very well received in Washington. We were strongly encouraged to submit our project again.

But the important thing with that is while the FASTLANE grant application to the federal government was pushed back, the timeline for the project has not been. There are key preparatory steps that needed to happen within the Howard Street Tunnel, most notably a drying out of the tunnel, a reconfiguration of the water-sewer system that runs through that area. And so CSX with their leadership in good faith has gone forward with millions of dollars to continue that project timeline forward. So when the FASTLANE grant is awarded, we’re not starting from day one. We’re already in the project timeline. So that five year completion date, when we originally mapped out the project timeline, should remain relatively unaffected.

DTJ: Shifting subjects and pivoting a bit, how does the port affect employment opportunities in Maryland, both directly and indirectly?

Mr. Scher: First of all, the port of Baltimore

is one of Maryland’s largest economic generators. We’re responsible for about 13,600 direct jobs, right at the port itself, and nearly 130,000 jobs in the state of Maryland that are linked to activities at the port of Baltimore. So basically, those are your second and third-removed qualifiers. We have a formula 24

| Defense Transportation Journal | AUGUST 2017

that we use. And these are jobs that are impacted by activities at the port of Baltimore.

So if the port was not here physically, or not as successful as it has been, then those jobs throughout the state would be impacted.

The port itself is not a standalone company or standalone entity. It’s made up of not only public marine terminals, but privately owned marine terminals and other businesses. [But] if you were to take the port of Baltimore as one company, it would rank ninth in the state of Maryland among other standalone companies such as Northrop Grumman, Johns Hopkins, and Giant Food.

DTJ: And beyond that, the port’s activity

touches on a number of relevant current issues—infrastructure, trade and as you mentioned, local jobs. What do you see as the biggest challenges facing the port?

Mr. Murray: So starting off locally, growth for us is a wonderful thing to have, but we also need space to manage that growth.

One thing we don’t want to do is jeopardize the business that helped get us into the position that we are in right now by not being able to accommodate those companies’ growth plans and having the infrastructure and land to effectively manage that growth.

We recently went through a reauthorization of MIZOD, the Maritime Industrial Zone Overlay District that was created 11 years ago by this collaborative effort. Mixed use of residents and heavy industrial doesn’t really go so well, so what MIZOD is intended to do is really protect the jobs on the waterfront where many Marylanders earn their living.

If you expand outside of the local footprint, and we start to look at what the port is really all about, it’s about global trade. All ports are susceptible to the alliance structures that we spoke of earlier. Baltimore is in a wonderful position that we have two of the three main shipping options, but it can be good news/bad news. If you get three of the three, then you are suddenly challenged to be able to accommodate a much more rapid increase of freight in which your infrastructure, your service providers, this entire network that makes up the port community needs to be able to respond to very quickly.

Of course the downside is that with only three global choices, if you go from two to one, all of a sudden you have a massive virtual hole in volume that’s moving through.

One thing that none of us can control at this point is obviously trade policies, irrespective of anything that the port may

do, and irrespective of anything the carrier alliances may try to do. Trade policies can have far reaching effects on the port, and all ports’ ability to not only manage volume, but be able to predict and project where that volume need will come from, what the customers’ needs may be. If it changes import/export flow, if it changes commodity mix…there are many variable that would be outside of our control, but ultimately our customers expect us to be able to respond to and have the facilities in place to accommodate their needs.

DTJ: So I guess the natural follow-up question is—and obviously for the factors that are within the MPA’s control—what steps or incentives can the port provide to better ensure that the right mix and volume of cargo is coming through?

Mr. Murray: I don’t know if there’s a sim-

ple answer to that question. Supply chain and logistics are becoming an increasingly complex and time-sensitive component of truly our customers’ financial success—how quickly they can produce, how quickly they can move products to market, and sell. That is part of Baltimore’s value proposition; making sure that we’re bringing in the proper port partners that can support the customers both current and future that we’re trying to attract. Making sure that they understand the advantages of Baltimore, not only locally here in the port environment about the facilitation on the MPA level, but then for them also to understand in that supply chain dynamic, other regulations such as electronic logging devices that will restrict driver capacity, and utilizing the port of Baltimore in its geographic location and market access to better manage those driver resources.

Just by a change of port selection and doing nothing else, those shippers can take advantage of our location and better utilize those driver resources versus longer and more expensive inland spends.

Mr. Scher: It’s really important for us at

the Port Administration to continue to invest correctly in infrastructure. Donovan talked to you before about the public/private partnership that we have with Ports America Chesapeake for our Seagirt Marine Terminal. And that’s obviously been—the term is overused but it’s certainly apropos here—it’s been a game changer for us because it’s actually opened up doors

What’s exciting about the project is the technology that’s now in the market will enable us to use the existing tunnel and just undercut a little or reinforce above, which does two primary things. It greatly reduces expenditure, and it greatly reduces the timeline for that project to come to fruition. to container business that we would not have had open without having the deeper berth and supersized cranes.

And then other things we’re doing besides that…obviously we’re reinforcing berths at our other marine terminals, we’re doing things like filling in fruit slips, and creating more laydown area for cargo. It’s for us to continue to keep our eye on the ball, and make sure we’re ahead of the game in anticipating what future needs are and make those necessary infrastructure investments.

DTJ: You may both have just answered my next question, which is what other changes do you expect to see at the Port of Baltimore in the short- to mid-term, say, in the next 5 years?

Mr. Scher: Well Donovan talked about the Howard Street Tunnel and double stack.

You asked us a second ago about challenges.

Because we are doing well, and we are growing, land is a huge challenge for us. But obviously right at the top of that list is double stack rail. We are in the process of working through that now and we feel cautiously optimistic about our chances to secure that FASTLANE funding. And that would be huge for us, if we’re fortunate enough to receive that funding and we’re able to get started with making those adjustments to

the tunnel. It’s huge for us. Until we get that, until it’s a done deal, that double stack capability is certainly an issue for us.

DTJ: We’ve covered quite a number of topics in the past half an hour. Hopefully I’ve covered a good chunk of ground. Is there anything else that you’re keen to highlight?

Mr. Murray: Part of the role here in sup-

porting the logistics and supply chain side of our customers’ business are things like commercial real estate. You know we just spoke about land, so it’s not only land to physically handle cargo on and off the water and interchange it off the facilities, but that cargo needs to go somewhere. So it’s engaging with commercial real estate so that they understand our mutual customers’ needs.

When they want to put a new pin in the map, when they want to build a new building, when they want to take advantage of a new distribution opportunity, we help facilitate those relationships between the BCOs and the commercial real estate.

Hand in hand with that is economic development and how we, at both the county and the state level, maximize that opportunity for that BCO. Whether we like it or not, ports and states are in a competitive position, and we need to ensure that our story is told best and customers understand all of the resources that can be

brought to bear for the benefit of that new potential customer coming in.

On a port-wide and statewide level, the one thing we really didn’t touch on was the environmental initiatives that the MPA puts forward. At a high level, the MPA really has industry-unique and innovative programs you will not find at other ports. We are a freshwater port here, which presents tremendous dredging challenges. Even with those challenges, as we said earlier, Baltimore is one of only three ports on the East Coast that has all the three major components necessary to handle a super-neo-post-Panamax vessel. Almost half of our capital budget every year is spent managing dredged material.

What we do with that are two major things—I’ll say two-and-a-half. One, we create more cargo space. So Richard just mentioned a fruit slip that’s on the western portion of the port of Baltimore that we’re filling in next to Masonville that will become more car parking for future automobile and ro-ro traffic in the port.

The port has also rehabilitated thousands of acres of wetlands in the Chesapeake Bay. Most notably Hart-Miller Island and Poplar Island, which are absolutely wonderful environmental stories of migratory birds that now nest at these islands that were almost eradicated off the map, solely because the port came in with the dredge material and recognized a need that the state had and that the environment had, to be able to recreate these.

The third thing, and it’s really a half thing that we’re in the process of examining, is called innovative reuse. So the tremendous amount of material that we dredge every year, exploring landside uses for that not directly in the port space, for things like road subsurface or construction materials or something that we can possibly either provide or sell commercially in the market that would have the same properties, characteristics, et cetera, of currently sourced materials.

With all that said, Baltimore is a leader in many environmental initiatives; so much so, that companies like REI have chosen to route 100% of their East Coast cargo through Baltimore because of our environmental initiatives. Not only have they chosen to route 100% of their cargo through Baltimore, they’ve looked at their other corporate partners and encouraged them to do so as well, knowing that at least on a port level, their partners’ cargo would be handled in as environmentally responsible a manner as possible. DTJ www.ndtahq.com |

25

Cont’d from Prof. Devel. on pg. 8 Russia. The Congress will review the budget requirements needed for the executive order.

Similarly, to the evolution of Homeland Security, where terminology, best practices and such have evolved with experience including those from catastrophic events, so too has cybersecurity evolved. In order to put teeth in the President’s executive order, a common framework was needed to be the basis for the common language of Cybersecurity. The National Institute of Standards and Technology (NIST) has made an effort to create a language for communication and collaboration within this space.

“The framework operates as a “Rosetta Stone” that helps translate sector specific risk management jargon and “creates a common understanding amongst the sectors around various risk management terms and phrases,” according to the Financial Services Sector Coordinating Council.5 The NIST standard has been adopted by about 30 percent of US companies since its release in 2014, a number that could reach 50 percent by 2020.3 NIST states, “We’ve created some structure in this world, but a single cohesive language has not evolved out of that. The US needs to determine exactly how we are going to exist and communicate in cyberspace.”4 “The framework operates as a “Rosetta Stone” that helps translate sector specific risk management jargon

and “creates a common understanding amongst the sectors around various risk management terms and phrases,” according to the Financial Services Sector Coordinating Council.5 Some highlights of the Cybersecurity sessions at Transportation Academy include: MICHAEL DINNING, DOT VOLPE CENTER

Volpe’s activities include the following in the realm of cyber security in transportation: • Identifying and assessing the vulnerabilities of major systems nationwide • Preparing a transportation control system security roadmap with information on how to enhance transportation control system security • Developing a national cyber incident response plan • Creating a prototype research and simulation cyber laboratory for testing and validating transportation control system cybersecurity measures • Developing transportation-based scenarios for cyber exercises at the national level • Providing stakeholder outreach, awareness, educational support, and enhanced professional capacity building • Expanding collaborative cybersecurity efforts to other US and international members of the transportation community DOD CYBER CRIME CENTER (DC3)

DC3’s mission is to deliver superior digital forensics and multimedia (D/MM) lab services, cyber technical training, technical solutions development, and cyber analytics for the following DOD mission areas: cyber security (CS) and critical infrastructure protection (CIP), law enforcement and counterintelligence (LE/CI), document and media exploitation (DOMEX), and counterterrorism (CT).

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| Defense Transportation Journal | AUGUST 2017

The Trusted Foundry Program was initiated in 2004 to ensure that mission-critical national defense systems have access to leading-edge integrated circuits from secure, domestic sources. It is a joint DOD/ National Security Agency program, administered by NSA’s Trusted Access Program Office (TAPO).The program includes “foundry capability, plus a full-range of microelectronics services from design through prototyping, packaging and assembly, photomask manufacturing, and aggregation…77 suppliers accredited by DMEA to be trusted,” states the program.

Plan to follow the Cyber Security and Supply Chain Risk Management track at Transportation Academy. Or plan to attend some of the other thirteen tracks in addition to Cyber Security. DTJ 1

Jackson, D., & Elizabeth Weise. (2017, May 11). President Trump signs cybersecurity executive order. Retrieved from USA Today: https://www. usatoday.com/story/news/politics/2017/05/11/president-trump-signscybersecurity-executive-order/101556518/ 2 Ibid 3 Reid, J. K. (2017, June 20). Why the NIST framework needs to be the common language of cybersecurity. Retrieved from Federal News Radio: https:// federalnewsradio.com/commentary/2017/06/why-the-nist-framework-needsto-be-the-common-language-of-cybersecurity/ 4 Ibid 5 Cybersecurity “Rosetta Stone” Celebrates Two Years of Success. (2016, February 18). Retrieved from NIST: https://www.nist.gov/news-events/news/2016/02/ cybersecurity-rosetta-stone-celebrates-two-years-success

2016 was a busy year for Mobility Airmen: flew 28,190 Missions, conducted

280,868

flying hours and transported

887,399

personnel and

347,460

PERSONNEL

1 AMC aircraft departs every 2.8 minutes

Active Duty/Civilians:

365 days a year

AF Reserve

EVERY DAY

tons of cargo

48K

Air National Guard:

35K 41K

Numbers are approximate and may fluctuate

The Air Mobility Command’s mission is to provide air mobility: Right Effects, Right Place, Right Time. Explore how AMC is doing just that and more in...

AMC

BY THE NUMBERS

MAF AIRCRAFT

C-5 C-17 C-20 C-21 C-32 C-37 C-40 C-130 KC-10 KC-135 VC-25

57 222 5 19 4 12 11 324 59 396 2

www.amc.af.mil

SORTIES

AEROMEDICAL EVACUATION

943

Patient Movement

4,038 AIRLIFT

37,640 AIR REFUELING

29,602

FUEL TRANSFERRED

OPERATIONAL HIGHLIGHTS In 2016 Mobility Airmen flew 28,266 airlift sorties and 633 air evacuation missions, and transported approximately

369,617

passengers and

224,229

tons of cargo in support of overseas contingency operations.

1.1B lbs

www.facebook.com/theofficialairmobilitycommand

@AirMobilityCmd www.ndtahq.com |

27

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, 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 Innovative Logistics, LLC + PLUS Intermarine, LLC - US Ocean and Partriot Shipping + 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 CEVA Logistics Choice Hotels International CSX Transportation CWTSatoTravel Echo Global Logistics, Inc. 28

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Global Logistics Providers LLC International Shipholding Corporation La Quinta Inns & Suites Matson National Air Carrier Association Portus R & R Trucking

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

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. 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 Cavalier Logistics Ceres Terminals Incorporated Chassis King, Inc. Columbia Helicopters, Inc.

Carlson Rezidor Hotel Group Chalich Trucking, Inc. DAMCO Daybreak Express Delta Air Lines DHL Express Eagle Freight, LLC Enterprise Holdings Erickson Incorporated Estes Forwarding Worldwide, LLC Europcar Car & Truck Rental Eurpac Evanhoe & Associates, Inc. Extended Stay America Hotels FlightSafety International General Dynamics/American Overseas Marine GeoDecisions Greatwide Truckload Management Green Valley Transportation Corp.

Hertz Corporation Hilton Worldwide IBM Intercomp Company Intermodal Association of North America (IANA) International Longshoremen’s Association (ILA), AFL-CIO International Organization of Masters, Mates & Pilots Keystone Shipping Co. KGL Holding 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 Teradata Corporation Textainer Equipment Management (U.S.) Limited The Parking Spot Transcor Transportation Intermediaries Assn. (TIA) Travelport TSA Transportation LLC TTX Company Tucker Company Worldwide, Inc. United Van Lines, Inc. USA Jet Airlines Volga Dnepr Airlines Wally Park Wapack Labs Corporation Women In Trucking Association, Inc. XPO Logistics YRC Freight

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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Cont’d from Pres. Corner pg. 7 extremely supportive in promoting the value of NDTA and the educational benefits available at the Fall Meeting.

Another area where NDTA has stepped up in a big way is in facilitating understanding and coordination between USTRANSCOM and industry in the area of cyber security information sharing and mission assurance.

Our efforts are still in their early stages, but we are making progress to address the unique challenges that exist in a supply chain that flows primarily through commercial channels, coordinated on non-secure networks.

Uniquely, our process is being led by industry senior executives who are addressing the issue through an operational lens vice a technical Cont’d from Sealift pg. 12 DTJ: To pivot a little bit, at previous points in the past year or so Rear Adm. Mewbourne has pointed to potentially contested environments in times of conflict. How does that reality impact the way you think about—and plan for—the sealift mission?

one. General McDew was confident enough in our efforts to specifically mention NDTA in his recent testimony before Congress.

So while am sorry to move on, I do so believing that I abided by my unwritten charge to myself in every command that I have had: “leave it better than you found it.” I hope that is true in this case.

I have immensely enjoyed working with our Chairman Bill Flynn, and Vice Chairman Bill Kenwell, both seasoned executives who were very patient in guiding me along as I figured out how to be a CEO. I could not have hoped for better friends and mentors. The other members of the Board of Directors—all volunteers with huge responsibilities in their “day jobs”—have been spectacular in their support, and willingness to take on issues through their committees.

The NDTA office staff continues to punch well above its weight and gets things done without fanfare; we would not have much of an association without the hard work of Jim, Rebecca, Patty, Lee, James, Leah, Sharon, Carl, Irv and Dan. Greg Reid was a tremendous help in getting us focused on a clear way ahead. My thanks to them all.

The good news is that I will still be an active participant in NDTA programs and events in my new role, and I look forward to continuing to work alongside you for the benefit of our men and women in uniform— be you corporate member or individual.

It has been a privilege.

an onboard condition inspection, whether it’s a transit to a shipyard, whether it’s a sea trial, we put on additional personnel and conduct sensitive environment exercises.

Most recently we had the [USNS] Yano and [USNS] Shughart underway, and we had them steaming in formation, conducting zig-zag maneuvers, practicing EMCON,

DTJ: Broadly speaking, what do you need from the US commercial sector to maintain the historically strong relationship between MSC and private industry?

I think it was a wakeup call for the program, the operating companies, and for mariners. The expectation of free and uncontested access as we saw in the Gulf wars—where vessels could freely maneuver in the sea lanes from point A to point B—may not be the condition of the next conflict, where we’re looking at a contested environment with near-peers.

McCarthy: I think it was a wakeup call

for the program, the operating companies, and for mariners. The expectation of free and uncontested access as we saw in the Gulf wars—where vessels could freely maneuver in the sea lanes from point A to point B—may not be the condition of the next conflict, where we’re looking at a contested environment with near-peers. And there might be EMCON [Emissions Control] requirements, or zig-zag or steaming in formation so that we can avoid areas where there may be submarine threats.

So like I said, I do think it was a wakeup call. To respond to that, Military Sealift Command has stood up a contested environment working group, and making recommendations not only to the Sealift Program, but also for CLF [Combat Logistics Force] ships and basically all the programs throughout MSC. The Sealift Program itself is looking to increase its training, so that when we get ships underway for various reasons, whether it’s 30

| Defense Transportation Journal | AUGUST 2017

so that the mariners themselves would get some familiarity with how to operate in that contested environment.

DTJ: In testimony May 2 before the Senate Armed Services Committee, Gen. McDew highlighted the threat posed by a shrinking pool of US merchant mariners and USflagged ships. By DOD policy, MSC looks to the US-flagged commercial market first when chartering ships. Does the current state of the US-flagged fleet create any difficulties in meeting MSC’s mission requirements?

McCarthy: By state, if you mean the de-

cline of US-flagged ships, then I would say, yes. The situation that presents itself is we have cargo offerings, and the same vessels offer in for those cargo movements. When the number of movements required exceeds the US-flagged vessels that are available, we are then required to activate organic vessels.

So that takes out of our reserve capacity.

Yours aye, Mark H. Buzby

McCarthy: So you’re correct, we’ve always had a very strong relationship, and we’ve always enjoyed honest and open dialogue with the US commercial sector. But it is even more important now to keep that open and honest dialogue going, so that MSC is aware of the state of readiness of the ships that our commercial mariners man and operate for us as those ships age.

DTJ: Is there anything important I missed about sealift that you want to discuss?

McCarthy: I think we’ve pretty much covered everything. The sealift program is critical for the strategic defense of the United States. We move a tremendous amount of cargo, rolling stock and fuel for the warfighter, and I’m proud to be the Sealift Program Manager. DTJ

DTJ INDEX OF ADVERTISERS American President Lines, LLC...........................31 American Roll-on Roll-off Carrier (ARC)................2 Avis Budget Group.............................................18 Bennett Motor Express, LLC.................................4 Erickson Incorporated........................................26 Evanhoe & Associates, Inc..................................23 Farrell Lines.........................................................6 FedEx Government Services...............................32 Landstar Transportation Logistics, Inc..................9 Liberty Global Logistics, LLC..............................19 Oakwood Worldwide..........................................12 Port of Port Arthur..............................................12 Senator International Freight Forwarding, LLC......3 Trans Global Logistics Europe GmbH....................7

We cover your bases.

APL’s dedicated U.S. flag services connect mainland U.S. with Asia, the Mediterranean, the Middle East, as well as U.S. territories, Guam and Saipan.

As your trusted partner in ocean transportation and logistics for nearly 170 years, APL delivers mission-critical supplies and equipment to our troops, on time and on target.

To learn more about how we support the U.S. military, visit www.apl.com/usflag

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| Defense Transportation Journal | AUGUST 2017

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