For sea ports across the globe, the need to have cargo scanning equipment has become a regulatory necessity in the fight against prohibitive goods being transported between countries, but ensuring that the equipment is well maintained and at the peak of operational efficiency can be a constant challenge for those engineers tasked with the job of monitoring and servicing the scanners. Currently, more than 80 percent of the world’s trade is being conducted by ship and this is constantly growing. The 2006 Maritime Security Bill has forced major changes in the US port industry, making port managers’ focus on their security provisions and policies. The bill created deadlines for cargo screening technology and forced all US ports by 1st January 2009 to have cargo screening equipment in place. With increasing legislation and regulation being implemented, emerging market port managers, such as Puerto Rico, have found themselves in a position where they need to provide a security screening service at the same level as mature ports. For the port managers this is a daunting task financially, as traditionally cargo container screening has come at a high capital expenditure cost and at a low revenue rate. But what if it were possible to have this all taken care of for you? You’re able to have the expertise of a security supplier, trained and experienced operations staff, and any maintenance work carried out without needing to track down the parts and labour required – and all for a manageable monthly fee. Rapiscan Systems has seen increased demand from this new breed of customers to provide not only products, but also a complete service from the technology to the staffing right through to management of training, Rapiscan Systems S2 Global is the first to answer this demand by providing ‘Security Screening as a Service.’
Changing model for changing demands
Traditionally, customers that required the full security scanning service would put their request out to tender and adopt the ‘Build-Operate-Transfer’ (BOT) project method. This involves selecting a consortium for the contract and, under the management of a developer, each of the individual parts of the project are put together by different companies before being handed over to the end customer as the full package in a ready to use format. The equipment which is under the BOT period for 10 years, is then fully managed and maintained by the end customer with them holding full responsibility for ensuring that it is working at full operational efficiency. This model has caused many problems for port managers in the past, from staff management, technology/product management through to revenue and capital expenditure. For the port manager, security is just one element of their remit and they require their security solution to be time efficient and flexible. The nature of cargo security scanning requires technically advanced equipment to be maintained to a high level by expertly trained operators. The ‘Achilles heel’ for customers has been their ability to maintain the equipment at optimum efficiency due to the need to invest time and resources into keeping up with the software upgrades, the availability of replacement parts and installation. Moreover, due to the costs involved and with customers facing ongoing budget cuts, the equipment can easily appear to be run down and often doesn’t last the full 10 years that it should under BOT, resulting in slow through-put as the equipment is not working at its full operational efficiency.
Time for a change
Whilst the consortium business model may have been practical and functional previously, it is no longer working as the changing regulations has meant that a greater level of time and resources has to be allocated. As a result, customers have been looking to security providers to offer a wider scope of services to meet their business demands and challenges. Furthermore, there has been an increase in developing countries adopting cargo security scanning procedures from scratch because regulations, linked to the international threat levels and the restriction on prohibited substances by advisory bodies, are being imposed on regions. The challenge of bringing everything together, and meeting the regulations, can be daunting for those just starting out as they may not know where to start; from choosing the right equipment, to maintaining operational efficiency, all the way through to employing and training the operators so they know what to look out for. Rapiscan Systems now provides a complete ‘Security Screening as a Service’ via their S2 Global Screening Solutions Turn Key range, which eliminates the problems caused by the consortium method and has revolutionised the way in which port security works. They are now the only leading vendor to become the sole provider for the whole security screening solution.
Bringing Security Scanning into the 21st Century
Using this new model, customers are able to go directly to the manufacturer and have a consultation with experts regarding their requirements and specifications so that they essentially receive a bespoke service. This means that they are given the advice that they need to make informed decisions and understand what will work best for their environment, whilst ensuring compliance with the regulations in their region. Working with your security scanning as a service provider, the equipment can then be installed, maintained and operated by their expert engineers. This removes the need for the customer to spend large amounts of capital up-front and to spend time hiring the staff needed and training them in all areas of the cargo scanning process, whether it is image analysis, field engineer, operations etc. The staff provided by Rapiscan Systems will know exactly what to look out for and how to deal with any problems that may arise. Should any repairs or upgrades need to be undertaken they will be carried out by the service provider immediately. This means that the port and cargo operator will never suffer any prolonged periods of downtime due to broken equipment, thus increasing their operational efficiency and ensuring maximum levels of throughput.
Financial Factors to Consider
Security Screening as a Service gives customers the chance to generate revenue and eliminates the original lump sum required in the consortium model. An additional benefit of this approach is that it operates under a managed services contract, ensuring ultimate flexibility for the customer. For many sea ports, they do not have the capital available to them to purchase the equipment needed, and this managed service model removes this problem. For a fixed service fee they are given a full, ready to use scanning solution. The customer deals through one single point of contact for any issues or concerns that arise, the service provider is able to reduce headcount by providing experienced staff, supply parts for the equipment and improve the whole service, all at a lower cost and with less management headaches than a consortium. At the end of the contract, which similar to the BOT period is normally 10 years, the provider pulls the equipment out of the environment unless the customer wishes to purchase the equipment outright from the provider. For those authorities that have a lack of capex, it is also possible for them to make a real return on their investment by adopting a ‘pay-per-scan’ process. By charging freight companies using the scanning service, the port operator can recoup the costs of the contract, or even turn security screening into a revenue stream rather than a cost.
Evolution of port security
With the security industry globally being impacted by different threats from terrorism, political to contraband it requires security screening manufacturers to provide flexible security solutions as customers are finding themselves under increasing pressures from new legislation and regulation. This is not only seen from the port industry but also across the spectrum of the security industry by Rapiscan Systems who are now rol
ling out the Security Screening as a Service model across the board, allowing customers to efficiently provide security in a way that is financially sound.
For those countries adopting a security scanning procedures for the first time, offering Security Scanning as a Service is the ideal way of obtaining all the equipment and expertise required to ensure a high level of service and achieve greater throughput of cargo in a shorter period of time – ultimately improving levels of operating efficiency. This model still has a long way to full adoption by authorities, and we are taking an active role in educating the market so that they can realise the true benefits of Rapiscan Systems S2 Global Screening Solution and the new way of a ‘Turn-Key’ Service.