Chapter 4: Transport

What this chapter covers

This chapter describes the Department's transport portfolio outcome, Outcome 2, and reports on performance for the individual programs and administered items. Each report includes:

  • an overview of the program's functions and how it is delivered
  • a summary of the program's results against the key performance indicators and deliverables and the targets published in the 2011–12 Portfolio Budget Statements (PBS)
  • a summary of the results for any administered items delivered by the program in 2011–12, and
  • a detailed report on the performance of the program in 2011–12 against the applicable components from the 2011–12 PBS.

Outcome and programs

Figure 4.1 shows the relationships between Outcome 2 and its programs, and identifies the business divisions responsible for delivering the programs.

Figure 4.1 Outcome 2 and programs

Outcome 2
An efficient, sustainable, competitive, safe and secure transport system for all transport users through regulation, financial assistance and safety investigations.
2.1 Transport Security
Division or Office
Office of Transport Security
Office of the Inspector of Transport Security
2.2 Surface Transport
Surface Transport Policy
Policy and Research
2.3 Road Safety
Surface Transport Policy
Policy and Research
2.4 Air Transport
Aviation and Airports
Policy and Research

Program 2.1—Transport Security


The Department took further regulatory action responding to the air cargo security threat following the events of 29 October 2010, where improvised explosive devices were detected in air cargo that was consigned in Yemen for transport to the United States of America. The Department worked with key Australian Government agencies to assess and respond to the immediate threat and to develop a longer term strategy to mitigate vulnerabilities, including clarifying the extra-territorial effect of air cargo examination notices.

The Department concluded negotiations with the United States Transportation Security Administration resulting in the recognition of Australia's Air Cargo Security Regulatory Framework as commensurate with the US framework, with official validation advice provided in January 2012. During this time, the Department updated regulatory measures that mandated technological screening of cargo bound for international destinations, in relation to air cargo passing through Australia to the US.

The Department undertook an extensive policy review associated with:

  • the Government's response to the Parliamentary Joint Committee on Law Enforcement's Inquiry into the Adequacy of Aviation and Maritime Security Measures to Combat Serious and Organised Crime, and
  • the Australian National Audit Office's audit of the management of the Aviation Security Identification Card (ASIC) and Maritime Security Identification Card (MSIC) schemes.

This work, which is primarily focused on enhancements to the ASIC and MSIC schemes, was being progressed in close consultation with the aviation and maritime industries and Australian Government agencies.

Transport security outcomes were advanced by engaging with all stakeholders, including international institutions and partners, regional dialogue and bilateral activities. The Department continued contributing to international capacity building, including last-ports-of-call assessments, and delivered professional development and assistance domestically and internationally.

On 31 May 2010, the Minister for Infrastructure and Transport formally directed the Inspector of Transport Security, Mr Mick Palmer AO APM, to conduct an inquiry into offshore oil and gas resources sector. The Inspector of Transport Security formally submitted the inquiry report to the Minister on 7 June 2012 and it was tabled in Parliament on 25 June 2012.


Program 2.1 was delivered through the Office of Transport Security and the Office of the Inspector of Transport Security. Program 2.1 is designed to ensure a more secure Australian transport system through clarity of roles and responsibilities between transport industry participants and the Australian Government. Operators are responsible for facility-level preventive security, with the Australian Government oversighting compliance. The objective is to minimise the risk of a terrorist attack against the Australian transport system.

Summary of performance

Tables 4.1 and 4.2 summarise the Department's results in delivering Program 2.1 against the key performance indicators and deliverables and their targets published in the 2011–12 PBS.

Table 4.1 Summary of performance—Program 2.1 key performance indicators

Key performance indicator Target Result
Activity is underpinned by a sound understanding of the threat and security risk environment as it affects transport security. Sound understanding of threat and risk is demonstrated through the analysis of available intelligence and vulnerability indicators; appropriate action by the Department and industry to mitigate against new or emerging threats and the heightened likelihood of attacks; appropriate briefings and threat-related products by the Department to industry. 11–12 Achieved 10–11 Achieved 09–10 Achieved
The Department analysed more than 600 threat assessments and intelligence reports from Australian intelligence agencies and the National Security Committee, and continued its outreach into the National Counter Terrorism Committee framework.

The Department consulted broadly with government and industry on evaluation of transport security products. Technical and intelligence exchanges continued internationally.
Policy and regulatory activity ensures that industry achieves effective and sustainable transport preventive security outcomes. Effective policy leads to timely changes in transport security legislation and facility level transport security plans/programs, provides a framework for preventative security mitigation measures, minimises unintended consequences for transport operators and can be implemented at the facility level/operating environment in a flexible manner.

Effective regulatory activity is demonstrated by a high degree of compliance and enhanced security culture by industry operators, a reduction in transport security vulnerabilities with appropriate departmental compliance activity.
The Aviation Transport Security (Air Cargo) Act 2011 amended regulations came into effect on 5 June 2012. These changes will strengthen air cargo security by:
  • making cargo clearance simpler
  • allowing clearances to be earlier in the supply chain
  • making it easier to identify a cargo's security status
  • providing greater assurance that once cargo has been cleared it has been kept securely, and
  • establishing better ways for secure transfer of cargo between regulated industry participants.
The Aviation Transport Security Amendment (Screening) Bill 2012 was introduced into Parliament on 16 February 2012. The Bill contained amendments to support the introduction of body scanners at Australia's eight international gateway airports.

The Maritime Transport and Offshore Facilities Security Amendment Regulations 2011 (No. 1) took effect on 4 August and 11 September 2011. These Regulations more effectively regulate the maritime transport sector by clarifying operation of the Maritime Security Identification Card framework, prescribe four discrete categories of passenger ships, new minimum standards for maps of security-regulated ports and zones, clarify arrangements for cleared zones, and enable the Secretary to grant certain exemptions for regulated Australian ships.

The Maritime Transport and Offshore Facilities Security Amendment Regulations 2012 (No. 1) took effect on 1 July 2012. This regulation makes consequential amendments to the Maritime Transport and Offshore Facilities Security Regulations 2003, arising from amendments to the Shipping Registration Act 1981, to enable crew members of ships on the new Australian International Shipping Register to apply for and be granted a Maritime Security Identification Card.
The transport security context domestically and internationally is influenced to advance Australian interests. The Department works with international partners and bodies to improve international transport security frameworks and awareness, and works with other international regulators to develop effective preventive security measures in response to terrorist threats.

The Department incorporates international aviation and maritime agreements and utilises international best practice guidance materials in Australia's national transport preventive security regimes.

The Department works with other government agencies to develop nationally consistent surface and mass transport security outcomes, and to provide risk mitigation advice to transport critical infrastructure.
Engagement continued with domestic and international security technology representatives to harmonise requirements, maintain awareness and influence development of emerging technologies for transport security. This included supporting several Australian research projects.

The Department continued to engage in international discussions on maritime security including piracy through the Maritime Safety Committee of the International Maritime Organization and the Contact Group for Piracy Off the Coast of Somalia. The aim was to ensure internationally agreed maritime security guidance and measures supported government and industry to prevent unlawful interference with maritime transport. The Department continued to influence development of other bilateral and multilateral maritime security initiatives.

The Department continued to work with state and territory governments to develop a nationally consistent approach to surface transport security and provided risk mitigation advice to transport-critical infrastructure owners and operators through the work of the Trusted Information Sharing Network.
Results Key
Achieved All targets for 2011–12 were met or exceeded.
Substantially achieved Targets were mostly met, and any issues are being managed.
Partially achieved Some targets were met, and any issues are being managed.
Not achieved None or minimal progress was made against targets in 2011–12.

Table 4.2 Summary of performance—Program 2.1 deliverables

Deliverable Target Result
Implement National Aviation Policy Statement. Implement National Aviation Policy Statement initiatives. Enhancements to the Visitor Identification Card (VIC) scheme came into effect on 21 November 2011. They included a 28-day limit to a VIC issued to a person at a particular airport in any 12-month period, and centralised management arrangements at airports.

The Department completed a reduction in the number of Aviation Security Identification Card Issuing Bodies by revoking the status of inactive or low-activity ones. The number remaining is 46.
Any legislative or policy component of a transport security risk mitigation strategy is delivered efficiently and with the minimum adverse impact on industry and the travelling public. Policy, legislation and regulation development complies with Office of Best Practice Regulation standards. Initiatives in the maritime sector were expected to reduce regulatory burden through new legislative provisions for broader options for industry to meet required security outcomes.

The Accredited Air Cargo Agent Scheme started on 6 June 2012 to enhance security arrangements for the road transport of cargo. The scheme complements the existing Regulated Air Cargo Agent Scheme with a simpler regulatory environment for smaller operators while maintaining security outcomes. This reduces costs and improves flexibility.

The Office of Best Practice Regulation was consulted in relation to all legislative changes.
Work with international regulators in targeted last ports of call locations to develop effective preventive security measures. Annual engagement with key regional regulators, international bodies and industry participants. Twenty last-port-of-call aviation security assessments were conducted at airports selected using risk-assessment methodology. The assessments informed the Office of Transport Security's international engagement, capacity building and relevant policy development.
Percentage of ‘high risk’ cases subject to compliance activity within 12 months. 95%. In 2011–12, 97.1 per cent of high-risk participants were subject to compliance activity.
Effective administration of regulatory approval processes. Regulatory responsibilities are met. Regulatory responsibilities were met, with 99.8 per cent (597) regulatory approvals processed within the time frame expected by legislation.

There was one instance where a decision was not reached within the statutory consideration period. The Department liaised with the affected industry participant to resolve the situation.

The regulatory approvals workload increased 19 per cent over the previous 12months, as a result of regulatory approvals accompanying the implementation of new policy and legislative amendments to the Aviation Transport Security Act 2004 and the Aviation Transport Security Regulations 2005, along with the expiration of existing plans and programs and implementation of screening measures in accordance with the Maritime Transport and Offshore Facilities Security Act 2003 .
Industry forums are consulted as required to inform policy and legislation development. All regulated industry sectors are consulted at intervals not exceeding 12 months. All regulated industry sectors were consulted at regular intervals.

The Office of Transport Security engaged through consultative forums and meetings with stakeholders in aviation, air cargo, maritime, surface and offshore oil and gas transport sectors.

In addition to existing industry forums, targeted industry consultative forums were developed to engage industry regarding identity security. The Department assisted the Attorney-General's Department in developing a serious and organised crime industry forum.
Sector specific risk context statements and transport security advisories reviewed and issued in a timely fashion to inform industry and Government preventive security measures. Sectoral Risk Context Statements are produced and disseminated to industry within four months of receipt of a sectoral threat assessment. Transport Security Advisories are issued within seven days of receipt of significant intelligence or following a security incident with relevance to transport preventive security outcomes. A Risk Context Statement on Land Freight Security was produced and distributed.

During 2011–12, 19 Transport Security Advisories were produced and released.
Inspector of Transport Security undertakes inquiries as directed by the Minister. Reporting outcomes of inquiries to the Minister and Secretary in a timeframe as specified by the Minister. On 31 May 2010, the Minister for Infrastructure and Transport formally directed the Inspector of Transport Security to conduct an Inquiry into the security of offshore oil and gas resources sector. The Inspector formally submitted the inquiry report to the Minister on 7 June 2012 and it was tabled in Parliament on 25 June 2012.
Efficient and effective management of administered items. Items are administered in accordance with relevant legislation, published guidelines and ANAO guidance. Administered items were delivered in accordance with relevant legislation, published guidelines and ANAO guidance.

Table 4.3 provides a summary of the results achieved by each of the administered items under Program 2.1.

Table 4.3 Summary of performance—Program 2.1 administered items

Administered Item Result
Aviation security enhancements
Improving international aviation security. Engagement with key regional regulators, international bodies and industry participants was progressed.

Aviation training for national transport security staff in the Philippines continued to be delivered in 2011–12. The program funds attendance at International Civil Aviation Organization (ICAO) accredited security courses by Filipinos and a training facility in the Philippines to enhance the Philippines' capacity to comply fully and consistently with ICAO standards.
Regional passenger screening. The regional passenger screening program was managed on time and within budget. There were 40 courses in Australia in 2011–12 in the use of hand wands and 219 staff participated.
Strengthening aviation security
Optimal technologies at international gateway airports. The Optimal Technologies at International Gateway Airports Program provided funding of $11.4 million in 2011–12. A total of 23 funding agreements were entered into helping the airports to purchase 24 explosive trace detection machines, 29 body scanners, 21 multiview x-ray machines and 11 bottled liquid scanners.

Having the multiview x-ray machines and bottled liquid scanners at transit screening points of the eight international gateway airports enabled a partial relaxation of restrictions on liquid, aerosol and gel items. Under the changes, eligible duty free items may pass through if cleared by screening.

The Department conducted a voluntary trial of body scanners at Sydney and Melbourne international airports in August and September 2011. The trial generated significant interest from the travelling public with over 23,000 scans conducted. The trial allowed the Department and airport operators to refine practices and procedures ahead of the introduction of the technology during the 2012–13 financial year. The Department demonstrated a body scanner at Parliament House in March 2012 to assist parliamentarians considering legislation.
Regional and domestic aviation security. The Regional and Domestic Aviation Security Program provided funding to 21 new entrant airports to assist with purchasing basic screening equipment required to meet regulatory changes introduced on 1 July 2012. Funding under this program was also provided for additional explosive trace detection machines at existing domestic screened airports. Total funding of $12 million was paid under this program. In total, 33 funding agreements were executed to provide 33 explosive trace detection machines and 21 basic screening kits.

The budget and actual expenditure for each administered item is listed in Appendix A.

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Last Updated: 17 November, 2014