The ISPS Code and the Cost of Port Compliance: An Initial Logistics and Supply Chain Framework for Port Security Assessment and Management

Abstract

Following a description of ISPS and non-ISPS security initiatives, the main risk factors and security threats to ports are identified and analysed, with a focus on the risks stemming from non-tangible assets, flows and processes. Similarly, the various economic approaches to risk management and cost control in shipping are reviewed, and their shortcomings highlighted from the perspective of port logistics and supply chain security. By adopting a channel orientation to ports, the paper suggests that the subject of port security must shift from the current agenda of port-facility security to the wider context of port supply chain security, with a view to ensuring superior security standards and practices in ports and across their supply chain networks. Based on the rationale of logistics integration and supply chain partnership, a conceptual framework to port security is proposed through integrating and optimising three initial models relating, respectively, to channel design and process mapping, risk assessment and management, and cost control and performance monitoring.