NEWS HOME <<


Screening Needs a Stimulus


The 9/11 Commission Act's mandate that 100 percent of cargo transported on passenger aircraft be screened for explosives by August 2010 reflects a critical security need of the U.S. transportation system. Few people realize most air cargo is transported in the belly of passenger planes. Few also realize that, although carry-on baggage has long been screened, until the 9/11 Act, aircraft operators were not required to screen air cargo.

Action by Congress has changed this, but the real effectiveness of the screening may depend on another high-profile law, the American Recovery and Reinvestment Act.

I believe the U.S. could greatly improve the effectiveness of its air cargo screening measures by allocating a small portion of stimulus money to the Transportation Security Administration's Certified Cargo Screening Program.

Meeting the August 2010 deadline puts a huge burden on the air cargo industry, primarily because the mandate for 100 percent screening does not provide for funding to entities to meet the requirements. Industry stakeholders must voluntarily foot the bill for adopting procedures, acquiring equipment, hiring staff, training, implementation, coordination and insurance.

Many stakeholders are small companies operating on razor-thin profit margins. As much as possible, they will try to pass the cargo screening costs to shippers, which would raise the price of goods.

The stakeholders - and the manufacturers and buyers they serve - further fear 100 percent screening will cause paralyzing delays and bottlenecks, which could cripple their business and hurt overall economic recovery. In addition, the stakeholders face potentially huge liability if they make a mistake in cargo screening and an air catastrophe results.

Stimulus funding would provide critical assistance. A small amount of funding would provide huge benefits to the stakeholders. There are a couple possible sources for funds. First, the TSA is allotted approximately $1 billion to spend on projects to improve airport security. Approximately $30 billion more was allocated for transportation investments. That money was given out to states and metropolitan planning organizations, largely free of any criteria or requirements for what projects it should be spent on.

Looking at the TSA funds first, of the $1 billion allocated for aviation security projects, $700 million is dedicated to screening checked baggage and $300 million is allocated for checkpoint explosives-detection technology. Strangely, no funds are allocated to improving air cargo screening capabilities.

According to a Sept. 10 press release, the Department of Homeland Security has obligated more than 30 percent of its aviation security-related stimulus funds and was on track to obligate more than 50 percent by the end of September. Thus, as of this month, approximately $500 million in stimulus funds dedicated to aviation security remains outstanding.

Allotting some of the remaining stimulus funds to air cargo security would meet the dual requirements of infusing resources into local economies quickly while meeting critical security needs.

The stakeholders even have a government-mandated shovel-ready project that the stakeholders need money to implement. On Sept. 16, the TSA issued the Interim Final Rule for the Certified Cargo Screening Program, a voluntary program intended to help meet the 100 percent screening milestone by allowing entities in the air cargo supply chain to screen cargo away from an airport and transport it to the airport securely, without the need for rescreening. Upon acceptance of screened cargo from a CCSP participant, aircraft operators must verify the chain of custody for the cargo is unbroken.

Any company in the cargo supply chain can become a Certified Cargo Screening Facility. A forwarder can become a CCSF to screen its customers' cargo, for example. The TSA is encouraging companies to establish independent air cargo screening facilities. The agency and some in the industry believe operators of certified facilities could sell their services to forwarders and shippers, operating as security "car washes" open to any person needing cargo screened.

Once cargo is screened by a CCSF with secure delivery capability, it can be sent directly to the aircraft, bypassing the line of cargo awaiting on-site screening.

A second source of funding is the nearly $30 billion allocated for transportation investments given to states and metropolitan planning organizations. Many airports are operated by local municipalities and act as critical transportation hubs for local economies. The ability to move air cargo quickly will provide a key competitive edge come August 2010. An airport without sufficient air cargo screening capabilities will lose business to airports supported by strong CCSFs.

State and local governments should use these transportation funds to help local companies become CCSFs and ensure their airports remain competitive in the post-9/11 world.

The dual goals of improving aviation security, while assisting economic recovery, are worthy of stimulus funding. Providing stimulus funding to companies in the air cargo supply chain to help them carry out the government's CCSP accomplishes both.

John Knab is an attorney at Garvey Schubert Barer in Washington, D.C. He can be contacted at jknab@gsblaw.com.

 

###