Securing the logistics supply chain for the 4th industrial revolution

This research methodology paper was started and needs to be finalized:

Research Statement
Whilst Jamaica boasts a strong telecommunications network, the fourth industrial revolution demands an adoption of information and communication technologies (ICT) that has not yet been fully evident in Jamaica. Issues of cybersecurity, intellectual property rights, privacy and a governance framework are lagging behind global standards. The success of the Jamaica Logistics Hub Initiative (JLHI) is dependent on investments in innovative digital technologies and a sustainable digital economy that will drive social and economic gains; the adoption of international ICT best practices is critical to the success of the JLHI.
1. Abstract
2. Introduction
1.1 Research Context – This was the original starting point for the research that requires adjustment.
The transformative and facilitative effect of the Internet on today’s society, and global trade and commerce is undeniable. As noted by CCICADA, “the invention of cyber space is arguably the greatest technological achievement of modern humanity, allowing instant communication between people oceans apart and supercharging economic activity with real-time communications and just- in-time commerce.”
This type of development however, comes with inevitable negative risks:

In June 2013, Belgian and Dutch authorities reported the arrest of a dozen suspects and the seizure of 1044kg of cocaine and 1099kg of heroin. The criminal group had smuggled the drugs through the harbour of Antwerp to The Netherlands, after using hackers to access the computer systems of harbour companies and container terminals.
The hacking techniques used involved sending mails with attachments containing Trojans to staff members at these facilities; and further, breaking into offices to install key logging devices to capture passwords. Stolen data were then forwarded to a server owned by the criminal group.
Once the computers were under their control, the group followed their container and upon arrival, unloaded it at a location and time of their choosing. The criminal group’s driver was then able to access the container before normal harbour staff would.
The situation outlined above is not unlike the threats being faced by businesses on a daily basis, albeit to varying degrees of success. Rear Adm. Marshall Lytle, assistant commandant responsible for US Coast Guard Cyber Command, in his keynote address to the Maritime Cyber Security Seminar and Symposium held at Rutgers University in March 2015, noted, “The (cyber) threat is very real. These intrusions and attacks are taking place every minute and every second of every day.”
However, the fact of the occurrence of this specific aforementioned incident, with such a high degree of success, at a major European port, with arguably exponentially greater levels of resources at its disposal than a Jamaican port to see to its security, is noteworthy.
At their 24th Inter-Sessional Meeting, CARICOM Heads of Government identified the threat of cybercrime with the same top priority level as gangs and organised crime. They rightly noted that, “Human health and welfare (have) been transformed as a result of technological progress. The Region’s economic prosperity, (and) the daily functioning of governments and citizens are becoming increasingly dependent on electronic networks and information systems. Technology is therefore vital to the Region’s development, but it has also given leverage to cyber criminals.”

As the Region becomes more interconnected through the increased levels of connectivity and advanced internet infrastructure, increased numbers of internet users, increased use of internet payments, and convergence of systems, CARICOM is becoming more susceptible to potentially damaging cyber-attacks.”
Quite poignantly, it was also observed that a “…lack of resources and trained personnel places the Region at particular threat in this area compared to other jurisdiction. The gap in cyber regulatory systems and enforcement mechanisms provides a permissive and fertile ground for criminals

This paper looks at the central role of data security in the development of a logistics hub, a new node on the global logistics supply network. It is well known that threats against even the newest, most sophisticated systems begin the moment they are launched. It examines potential security threats to cyber systems; the possible operational, reputational and financial implications of such threats being realised; the extent to which states have access to the necessary expertise to monitor and maintain such systems to guard against these threats; our capacity to meet the continuing development needs of these expert resources to maintain currency; and our ability to build and maintain widespread awareness amongst the entire port employees population, given the ubiquitous nature of the threat.
In his presentation to the 2015 CCICADA Maritime Cybersecurity Conference titled, “Comparing Results of Maritime Cybersecurity Studies from Selected Countries,”Caldwell identifies these cyber threat actors as:
• Bot-network operators
• Business competitors
• Criminal groups
• Hackers
• Insiders
• Foreign Nations
• Phishers
• Spammers
• Spyware or malware authors
• Terrorists
(reference – CARICOM Crime And Security Strategy 2013: Securing The Region 4 Caldwell)

Security has been an issue since the onset of the shipping industry. As with the ownership of all property, the need to keep property safe has been a relevant issue as loss of ownership could mean loss of income, status, social well-being, livelihood , etc.

As the shipping/maritime/logistics industry has evolved the scope of the security related issues so too have evolved. The focus has invariably been on securing property – vessels, cargo and lives – a crew is required to and the ship and bring the ship and cargo into port. This has led to a proliferation of treaties, codes and policies surrounding the protection of vessels, cargo and lives at sea and in ports. The terrorist attacks of 9/11 have brought an increased and different focus on the matter – not lost is the safeguarding against weapons of mass destruction. The safety net has been widened from looking at security within national waters and a country’s own borders, to ensuring that safeguards are in place from ports of origin, to mitigate against such risks. Responses include changes to existing codes and introduction of new ones – ISPS (International Ship and Port Facility Security) to in the regional context – The Megaports Initiative.
Ports have been spending increasingly on improved technology to identify and minimise threats – 100% scanning of cargo, improved access control, expanding into underwater monitoring.

The use of and improvements in the technology have not been limited to security, as ports and the logistics sector are equally concerned with efficiency and by extension being more competitive. The more efficient an operations is – the more this is seen to improve its competitive position (among both refectories of course).

Regionally, the Caribbean Shipping Association and the Port Management Association of the Caribbean award eagerly sought after prizes annually that allows regional ports to market themselves as efficient – the bases for assessment include time taken to work a vessel – unload and offload cargo, management of delays, accidents on the ports. Ports have been relying more and more on technology to give them the reduced operating costs, improvements in throughput and heightened security.

In the regional context, the logistics players have been looking at and introducing solutions such as Single Window systems, Port Community System, Customs Management Systems, Risk Management Systems, Port management systems. In response worldwide and locally, providers of solutions have been improving on Video surveillance systems, Access control systems, crane management systems – scanners attached to cranes that detect differences in manifested weight and actual weight, scanners to detect cargo with radiation and the list goes on and on. Players within the sector have been looking at the overall improvements in the delivery of service by technology providers – moving to software as a service model – accessing services on the Cloud.

Whilst these signal a focus on the inclusion of digital technologies, unless properly implemented and supported, they present the potential for exploitation. The study seeks to look at the advancement of these technologies necessary for an efficient sector, within the context of controls.

1.2 Significance of the Study
The Jamaican economy has been in decline for some decades, the hope for economic growth has been tied to developments in the maritime ad logistics sector, namely the expansion of the Panama Canal. The government has set out to develop a plan for the development of the sector with a view to developing Jamaica as the fourth node in the global supply chain.

These plans signal to the world that Jamaica will present itself ready to play on this grand stage and will provide the facilities and supporting services necessary for the success of its plans. Many underlying issues of security and governance are deemed lacking in the small island nation state and will require serious consideration and require efforts to be put in place to ensure that the economy/governance framework are given the necessary support structures for the plan to succeed.
This study delves into the state of readiness and seeks to posit an approach for the way forward.

1.3 Key concepts
Digital innovation and the Internet of Things Cybersecurity
Governance structure in a digital world Impact of the fourth industrial revolution
Relation to existing research – See Literature Review
Scope and limitations of the study

Definition of terms
• What is the fourth industrial revolution? Marriage between the fourth industrial revolution and ICT – exploration of the internet of things
• An exploration of digital technology – what is it, ow does innovation in the sector drive logistics, evidence of digital technologies affecting logistics hubs and logistics centred-economies
• Exploration of a digital economy – key components and measures of success
• What are the requirements for an economy driven by digital technologies?
• Exploration of the ideals/aims of the JLHI – what are the key success factors, how does the JLHI master
plan see the use of ICT as a critical success factor?
• What is cybersecurity and the issues related to the logistics hub – traditional view of maritime and transport
security/securing the logistics chain? Exploration of the legislative framework – challenges with existing laws and examination of proposed changes; issues related to terrorism and proliferation of weapons of mass destruction – linkage to megaports initiative
• What are the global standards for a successful governance framework?
• What is the intellectual property landscape – shortcomings against international standards and
examination of proposed changes
• What are issues related to privacy – shortcomings against international standards and examination of proposed changes

3. Literature Review
The literature review will include both academic and non-academic writings including trade journals. The studies done on the issues related to ICT and the logistics sector both locally and globally will be explored; this will include the works of;
1. Professor Anthony Clayton – on the challenges with cybersecurity
2. Deniece Aiken – the maritime legislative landscape vis-a-vis the Jamaica Logistics Hub
3. Nathan Associates – Jamaica Logistics Hub Initiative: Market Analysis and Master Plan
4. Ivelaw Griffith – Review of the Caribbean Security landscape
5. Assessment of the Singapore model vis-a-vis Jamaica – initiatives taken by the Singaporean
government
6. World Economic Forum – fourth industrial revolution and global rankings
7. Stimson Centre – weapons of mass destruction

8. Exploration of presentations on cybersecurity and relation to the logistics sector in general and the JLHI in particular
9. GoJ’s legislations on cybersecurity and privacy
10. Alicke, Rachor, Seyfert – Digital Supply Chains
4. Research Methodology
Qualitative research
Examination of primary and secondary sources including GoJ’s publications – Vision 2030 Goals, JHLI Master Plan, exiting and proposed legislation, World Economic Forum (WEF) publications of international rankings for ICT and cybersecurity, research publications – transformative effect of digital technologies on economies, digital technologies vis-a-vis the logistics sector, the fourth industrial revolution and cybersecurity issues for the transportation sector

The methodology will include interviews of noted scholars and industry professionals in the areas of cybersecurity and logistics within the region to include Professor Clayton, Dr Fritz Pinnock, Dr Ibrahim Ajagunna, members of the JHLI initiative.

5. Data Presentation and Analysis
6. Summary, Conclusions and Recommendations

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