GE and CIMC Complete First Commercial Test of Tamper Evident Secure Container, Paving Way for Commercially Viable Cargo Security

Business Wire, Jan 12, 2005

WASHINGTON, D.C. -- GE's Security business (NYSE: GE) today announced it has successfully completed the first commercial field test of the Tamper Evident Secure Container (TESC). The TESC is a new generation of freight container that integrates GE's CommerceGuard(TM) container security device into a standard maritime shipping container to make cargo security affordable for manufacturers and shippers and protect container integrity throughout the supply chain.

The redesigned container was developed jointly by GE and China International Marine Containers Group Ltd.(CIMC), the world's leading manufacturer of maritime shipping containers. The security device technology used in the TESC is licensed by GE from All Set Marine Security AB. Unisys Corporation (NYSE: UIS), the global IT services and technology company, was the systems integrator and observer for the test.

Unisys, with more than 12 years of container security testing and integration expertise, was responsible for the testing and analysis of the project results. Unisys tested more than 15 different security breach attempts in Mainland China, Hong Kong, and the United States. All 15 were properly detected and communicated by the TESC containers. "The test results of the TESC project are very encouraging", said Greg Baroni, president, Unisys Global Public Sector. "Embedding the container security device within the infrastructure of the container enhances both the security and financial viability of this solution. We've tested many container security technologies and the container security device is the current gold standard."

"The future of global commerce depends on the ability of the shipping industry and government agencies to improve cargo security while streamlining the flow of goods," said Greg Burge, president of Monitored Solutions for GE's security business. "With the successful completion of the TESC test, we have demonstrated a solution that meets the security demands of government and enables the ports to move goods efficiently at a cost-per-shipment that is viable for shippers is available today."

A Sensible Approach

The TESC solution is a combination of physical enhancements and an electronic integrated Container Security Device (iCSD), a technology that allows the shipper to arm the container using a unique, encrypted code after it is stuffed and sealed with a traditional bolt seal. As the container passes within range of the global wireless reader infrastructure - similar to common electronic toll collection systems - the iCSD tells logistics and customs officials where the container is located, when it arrived and if unauthorized personnel opened it en route. This information gives manufacturers, customs officials and importers the data they need to determine if a particular container was compromised at any point throughout the supply chain. Because the iCSD, which is integrated into the doorframe of the TESC solution, uses public wireless communication infrastructure and a point-to-point approach, it's significantly less expensive to operate than other technologies. "Supply chain security is critically important to our customers and the well-being of the global economy. However, until now, the cost of securing a container and building the necessary information sharing infrastructure has been cost prohibitive to exporters, which are competing in an extremely competitive global economy," said CIMC's David Wong, CTO. "The successful test of the TESC proves that security doesn't have to be expensive, especially when the features are built into the container. We believe our customers will get behind this approach."

CIMC, based in Shenzhen, China, is the world's largest manufacturer of shipping containers. In fact, 50 percent of all new freight containers are manufactured by CIMC.

GE's CommerceGuard System also includes Container Security Devices that can be installed in less than a minute and without using tools to retrofit the world's existing population of freight containers. Both types of devices, the CSD and the iCSD, share the same wireless reader infrastructure, making the overall system cost effective to globally deploy.

The technology was invented by All Set Marine Security AB of Sweden and is exclusively licensed to GE by All Set. The physical enhancements to the container, including improved door locking mechanisms, tamper-proof hinges and improved placement for a door seal, were designed and built into the container by CIMC. Unisys provided systems integration services and oversaw the deployment of the project

What's In the Box?

Each year, more than nine million freight containers arrive at U.S. ports, approximately 50 percent more than 2001 because of the proliferation of global trade and "just-in-time" manufacturing and retailing strategies. The increased threat of global terrorism has raised awareness that these containers are a vulnerable point in the supply chain.

In response, initiatives including C-TPAT, a partnership between U.S. Customs and Border Protection and the trade community, are being developed to implement security standards that better protect the entire supply chain - from foreign loading docks to American ports of entry. In exchange, companies that meet security standards set by Customs and Border Protection will get a "green lane" through U.S. ports, which translate into greater supply chain efficiency and significant cost savings for businesses.