Cubic Corp. [CUB] has launched a new business initiative focused on port and maritime security and hopes to assist federal regulators and the domestic and international port and shipping communities in achieving compliance with new seaport security laws.
In addition, the company hopes to take advantage of its systems integration capabilities, technology and product base to offer its potential customers systems solutions to some of their security needs.
“We can offer port security plans, training, maritime security technologies and others solutions,” Peter Miller, the head of Cubic’s new Maritime Security Program, tells TR2. “We’re involved in command and control functions, teaching command and control systems, homeland security training exercises, training programs related to nuclear, biological and chemical weapons for the Defense Threat Reduction Agency.”
Miller also points out that through Cubic’s Transportation group the company has expertise in smart card systems for access control in demanding environments. The company also does various work with security camera systems, underwater inspection systems, sonar and small boat barriers, he says.
“The point is we have a large toolbox,” Miller says.
Miller joined Cubic recently after working as the director of port security at the Port of Tampa in Florida.
“Hundreds of ports around the globe are trying to meet the new U.S. standards by 2012, along with the International Ship and Port Facility Security Code, which took effect in July 2004,” Miller says. “If a foreign port doesn’t meet the U.S. container standards, the U.S. government can prohibit that port from doing business in America.”
Miller says that various U.S. federal agencies such as the Coast Guard and Customs and Border Protection lack the manpower to ensure the inspection and certification of all containers entering the country and therefore need contractor support.
The initial target of Cubic’s business opportunities in port and maritime security will be helping foreign ports comply with U.S. and international laws, Miller says. The Department of Homeland Security has funding available for contractors to work with these ports, he says.
Cubic also will try to work directly with the world’s large port terminal operators, such as Hutchison Port Holdings, Dubai Ports World, PSA and APM, Miller says. A third target will be individual countries whose sea ports may not be operated by one of the large terminal operators, he says. Cubic already has an international presence that it can leverage for this, Miller adds.
Miller says that few U.S. and international seaports meet all of the U.S. and international security laws, which means there are plenty of business opportunities.
So far Miller is the only full time employee Cubic has hired for its new port security practice. Miller has three other advisors who work in U.S. ports on commercial security. Once Cubic begins to generate revenues he expects these advisors will join him as full time employees.
The Maritime Security Program will report within Cubic’s Applications business unit, which is part of the Defense group.