MEGAPORTS KAOHSIUNG - PROGRESS SO FAR AND PROSPECTS FOR THE

UNCLAS TAIPEI 001014 SIPDIS SENSITIVE SIPDIS STATE FOR EAP/TC ENERGY FOR NNSA MICHAEL BEDKE HONG KONG FOR CBP RICHARD POWELL DHS FOR CSI VINCENT HUANG E.O. 12958: N/A TAGS: EWWT ETTC ENRG KNNP PARM PTER TW SUBJECT: MEGAPORTS KAOHSIUNG - PROGRESS SO FAR AND PROSPECTS FOR THE FUTURE ¶1. (U) Summary: The Megaports Program in Kaohsiung has made notable progress toward implementation over the last year. Support for the program is strong among Taiwan agencies, and AIT sees no substantial obstacles to successful implementation in the near future. As the world's sixth busiest container port with a growing cargo volume, this program (as well as the Container Security Initiative in both Kaohsiung and Keelung ports) is important to U.S. trade security. AIT looks forward to continuing to work with Washington agencies to bring this project to successful completion. End summary. Progress to Date -------------- ¶2. (U) The Megaports Program in Kaohsiung has made notable progress toward full implementation since the AIT-TECRO Memorandum of Understanding for the program was signed just under a year ago on May 30, 2006. The Department of Energy Megaports Kaohsiung team has traveled to Kaohsiung and Taipei on five separate occasions since then. --June 2006 - The team visited to meet with officials and terminal operators and prepare for a technical survey of the port. --July 2006 - The technical survey was conducted to prepare a conceptual plan for the installation monitors at the port. --October 2006 - The team secured agreement from port authorities and terminal operators for the conceptual plan to identify radiation monitor locations. --January 2007 - A larger team conducted the engineering survey during two weeks to begin preparing a detailed and comprehensive plan for construction and installation of the monitors. AIT is currently waiting for the next DOE visit to secure the necessary commitments from port officials and terminal operators to the construction and installation plan. During the visit, the Megaports team will seek to secure Taiwan Customs approval to allow the DHS Container Security Initiative (CSI) Office in Kaohsiung to monitor alarms generated by Megaports radiation detectors. This approval will be sought based on an agreement between DHS Customs and Border Protection and DOE to work together to implement Megaports projects around the world. Strong Support in Taiwan -------------- ¶3. (SBU) AIT is eager to move forward with the Megaports Program in Kaohsiung. We have devoted considerable resources to this effort in both Taipei and Kaohsiung. If approvals are secured from Taiwan Customs, the CSI team in Kaohsiung will also play an important role in implementation. Support from the Taiwan stakeholders is also strong. Cooperation from Customs and Harbor Bureau authorities in Kaohsiung has been excellent. The agencies that oversee them in Taipei are also committed to the project at the highest levels. Terminal operators have expressed reservations about specific elements of the installation plan. However, DOE Megaports officials have successfully addressed many of their concerns, and, to date, they are fully cooperating with implementation of the program. We do not foresee any major obstacles to fully realizing the program in Kaohsiung. Important to Trade Security and U.S.-Taiwan Relations -------------- -------------- ¶4. (U) Comment: The Megaports Program in Kaohsiung will make an important contribution to enhancing U.S. trade security. Taiwan is the United States' ninth largest trading partner and Kaohsiung is the world's sixth busiest container port. Although the port has slipped in world rankings, its container volume continues to grow. Last year, 9.7 million TEU's passed through the Port of Kaohsiung up 3.2 percent from 2005. Because Taiwan's cooperation with the program is so strong, we believe an exceptionally effective system can be implemented here as has been the case for CSI. ¶5. (SBU) We also believe that disruption in the Megaports Program now could cause serious repercussions for other programs in Taiwan such as CSI and overall security and enforcement cooperation. YOUNG