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Container Security Initiative: Is India Serious About Its Maritime Trade?

Vijay Sakhuja
Research Fellow, Observer Research Foundation, New Delhi

The port of Colombo in Sri Lanka will soon be the first South Asian port to be Container Security Initiative (CSI) compliant. The port will host United States Customs officials who will pre-screen all export and selected transshipment containers bound for the United States. These inspections will be carried out by X-Ray container-scanning equipment and an automated targeting system based on intelligence and risk-assessment. The facility will be operational by September 2005.

Meanwhile, reports suggest that the issue of CSI was discussed during India's External Affairs Minister K Natwar Singh's two-day visit to the United States. S Jaishanker, Joint Secretary (Americas) who accompanied the External Affairs Minister had earlier visited Washington to discuss possible cooperation on CSI. Washington is keen that New Delhi participate in the US-led CSI and allow posting US Custom officials to help monitor shipping containers leaving Indian ports.

Post-9/11 attacks, the US felt an urgent need to secure its ports for fear of disruption due to terrorist attacks and had proposed CSI. The CSI consists of four core elements. These are: (a) Establishing security criteria to identify high-risk containers (b) Pre-screening containers before they arrive at U.S. ports (c) Using technology to pre-screen high-risk containers and (c) Developing and using smart and secure containers. Today, thirty-four seaports across the world have become CSI compliant. Ironically, in South Asia, no seaport is as yet capable of meeting the security requirements as stipulated in the CSI.

According to a recent report, the worldwide container traffic is projected to grow from 104 million in 2005 to 400-460 million TEUs in 2010 and 510-610 million in 2015. Asia will be the dominant player in the global shipping industry and will be led by China and India. In the Indian context, the government is committed to enhancing its foreign trade and has even announced plans to invest US$10 billion from its foreign exchange reserves for development of its container terminal facilities at ports across the country. This is part of the new national maritime policy that envisages raising the capacity of ports and promotes transshipment cargo with emphasis on public-private partnerships.

At present, Indian cargo is first moved to Colombo, Dubai and Singapore for further transshipment to the United States or other CSI compliant ports. This results in delays as also raises transportation costs which impacts on both traders and India also looses revenue.

Besides, there is also credible evidence that containers can be used for transporting men and materials including weapons of mass destruction for terrorist activities. Late last year, bomb disposal squads of the Indian Army and the National Security Guards diffused live rocket shells from the scrap consignment that arrived at the Bhushan Steel Company from Iran. This US$25,000 consignment loaded in shipping containers left Bander Abbas in Iran on board M V Kuo Long. The containers were bound for the Inland Container Depot (ICD), Tughlakabad, near Delhi via Mundra port in Gujarat.

Container security is technology intensive. It needs detection/scanning systems that would look for contraband, drugs, weapons, human cargo and even WMDs. There is thus an urgent need to install equipment to scan containers to examine hidden compartments and check contents without unloading the container. Although the government has already identified 15 ports for deployment of scanning equipment, no progress has been made so far. Only Nhava Sheva Port at Navi Mumbai has been equipped with scanning equipment.

Electronics Corporation of India Ltd (ECIL) in collaboration with OSI Systems Inc is manufacturing scanning and security systems in India. These systems will not only help security agencies but also support the custom officials at the ports and airports to electronically inspect the containerised cargoes thereby generating more revenue from undeclared goods.

Terrorists are not just targeting the United States; they're targeting globalization and the global economy. The threat of global terrorism around the world has put a special emphasis on trade and transportation security. It has forced governments and private industries to find new ways to respond. A country like India that is pursuing an export-driven growth strategy cannot afford to ignore security threats to its transportation infrastructure. Given the growing export potential of India, it is important that all seaports and airports in India go for scanning security systems.

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