Port Security Conference

April 28 2003

Firms partner to offer container security solutions
Sunnyvale, Calif.-based gas-detector specialist RAE Systems is partnering with Sweden's All Set Tracking AB, a provider of container tracking systems, to respond to the Maritime Transportation Security Act. The goal of the partnership is to offer joint solutions that address the security and integrity of the ocean freight that enters the United States' 361 seaports each year.

"Last year, more than 13 million shipping containers entered the United States, and less than two percent of these were inspected," said Bob Chen, CEO of RAE Systems. "Manual inspection of each container is simply not possible, so the role of pervasive, integrated container sensing and communications technologies is critical to our homeland defense. Our agreement with All Set Tracking provides a powerful technology solution to this important issue, and will offer peace of mind to shippers and citizens alike."

RAE Systems says its hazardous environmental detection products can be customized for almost any maritime situation where a chemical, gaseous or radiological threat exists. The products can be calibrated to detect hundreds of different chemicals, a broad range of toxic substances, gamma and neutron radiation.

RAE Systems chemical and gas sensors are ultra-sensitive and can detect VOCs and other toxins within the 1 ppb--10,000-ppm range in the confined space of a cargo container. Unlike dosimeters, which provide weighted averages over time, RAE Systems' radiological sensors are 20-50 times more sensitive than Geiger Muller or He tube technology of the same size and deliver instantaneous feedback.

Under terms of the marketing and engineering agreement, RAE Systems and All Set will jointly design a series of sensors and sensor interfaces for "Smart and Secure Container" products in coordination with and to be manufactured by CIMC (China International Marine Containers Co. Ltd.) to meet the needs of specifically identified market segments. CIMC is the largest manufacturer in the world of new ISO freight containers, with approximately a 40% market share and annual production of in excess of 700,000 TEUs (twenty-foot equivalent units).

In addition to the new (OEM) container market, RAE Systems and All Set will develop a similar set of sensors for the existing world fleet of some 13 million ISO intermodal freight containers to interface to All Set's ALLSeal product line.

RAE Systems will have primary responsibility for sensor and related power supply design while All Set will have primary responsibility for design and development of the container e-sealing, processing and radio communications components and responsibility for the mechanical design of the container through its collaboration with CIMC.

"We are pleased to include RAE Systems as a team member for our CIMC/All Set Safe and Secure Container initiative," said Karl Bohman, CEO of All Set. "The need for enhanced security in the global intermodal transportation chain is clear and immediate, and the available market is quite substantial."

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