VZCZCXYZ0001
RR RUEHWEB

DE RUEHMD #1030 1451633
ZNR UUUUU ZZH
R 251633Z MAY 07
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC 2643
INFO RUEAHLC/HOMELAND SECURITY CENTER WASHINGTON DC
RHMCSUU/DEPT OF ENERGY WASHINGTON DC

UNCLAS MADRID 001030

SIPDIS

SENSITVE, SIPDIS

E.O. 12958: N/A
TAGS: ECON EWWT ENRG PARM PREL SP
SUBJECT: MEGAPORTS INITIATIVE: WORKING OUT THE KINKS IN
ALGECIRAS

REF: 06 MADRID 01705

¶1. (SBU) Summary. The Megaports program to scan for nuclear
or radiological materials in shipping containers was
implemented March 2006 in Algeciras with respect to scanning
import and export traffic. During meetings May 18, USG and
host nation officials agreed on a plan to implement the
transshipment (ship to ship transfers) element of the
Megaports program. Assuming this plan is successfully
implemented, it should serve as a model for higher-risk ports
in preventing illegal nuclear and radiological materials
hidden in transshipment containers from ever reaching US
ports. End Summary.

¶2. (SBU) When the Megaports initiative in Algeciras went
live in March, 2006 (see reftel), USG and host nation
officials intended that both the export/import traffic as
well as the transshipment traffic would be scanned. One year
later, only the export/import cargo, representing just 10
percent of total port traffic, is being checked under the
Algeciras Megaports program. During discussions the week of
May 15, Maersk company - serving as both the Algeciras
terminal operator as well as the major port shipping company
- indicated to Department of Energy (DOE) and Mission
officials that the implementation delay was due to factors
beyond their control. Maersk cited insufficient customs
staffing as well as pushback from local laborers, caused
primarily by a perception that transshipment cargo scanning
would result in lower productivity and hence lower pay.

¶3. (SBU) Though Algeciras itself is not commonly believed to
be a high risk port for shipments, the port's willingness in
2004 to partner with the Megaports program as well as its
unusually heavy flow of transshipment traffic (estimated at
90%) made it an attractive port for testing out ways to scan
transshipment containers. This type of scanning is
logistically challenging given the sometimes quick timeframe
in which cargo must be offloaded from one ship onto its
connecting ship. Megaports is currently being implemented in
a select few ports world-wide though primarily for
export/import traffic.

¶4. (SBU) When Embassy and DOE officials met with Spanish
customs enforcement on May 18, the Spanish customs team led
by Ignacio Gonzalez Garcia resolved to look into increasing
staffing to support the program. Gonzalez Garcia also agreed
to work with Maersk terminal operator to resolve
implementation issues brought on by labor pressures. The
local labor pushback, Gonzalez Garcia argued, could be
addressed by beginning implementation on a limited scope -
scanning a lower number of containers than originally
planned. Once local labor realized that productivity would
not be affected, then the scanning program could be expanded
to its full scope. Maersk, having originally suggested this
idea in previous meetings, would be amenable to implementing
this limited plan.

¶5. (SBU) Comment: Expansion of Megaports to Barcelona and
Valencia is on the agenda for the future. DOE's willingness
to move quickly on this expansion will depend in part upon
the successful implementation of the Algeciras transshipment
plan. Successful implementation of this initiative is a
priority for the Embassy, particularly given the benefits and
"lessons learned" it may impart when Megaports expands to
other ports world-wide that have shipments going to the US.









AGUIRRE