DOE’s Megaports Initiative Has Had Limited Success Initiating Work at High Priority Foreign Seaports and Lacks a Comprehensive Long- Term Plan to Guide Its Efforts

DOE’s Megaports Initiative has made limited progress in beginning to  install radiation detection equipment at seaports identified as high priority  by its Maritime Prioritization Model. DOE has completed work at two  ports and signed agreements to initiate work at five others, two of which  were ranked in the 20 highest priority ports by DOE’s model. First, some foreign governments have concerns that the flow of commerce  at their ports could be disrupted by participating in the Initiative in both the  short- and long-term. DOE officials also told us that they are close to signing  agreements to initiate work in five additional countries. Through the End of Fiscal Year 2004, DOE Had Spent About $43 Million on Megaports Initiative Activities, but Total Program Costs Are Uncertain

Since the inception of the Megaports Initiative in fiscal year 2003 through  the end of fiscal year 2004, DOE had spent about $43 million on Megaports  Initiative activities. DOE’s current plan is to install radiation detection equipment at a total of  20 ports by 2010 at an estimated cost of $337 million, but several  uncertainties may affect the Initiative’s scope, cost, and time frames for  completion. Second, DOE is currently assessing whether the Initiative’s scope should  increase beyond 20 ports. DOE Faces Several Operational and Technical Challenges in Preventing Nuclear Smuggling at Foreign Seaports

In its effort to install radiation detection equipment at foreign seaports,  DOE faces several operational and technical challenges. Additionally, some nuclear materials can be shielded with lead  or other materials to prevent radiation from being detected. Further, environmental  conditions specific to ports, such the existence of high winds and sea spray,  can affect the radiation detection equipment’s performance and long-term  sustainability. DOE Is Developing Methods to Overcome Technical Challenges Posed by Ports’ Physical Layouts and Cargo Stacking Configurations

When implementing its Megaports Initiative at foreign ports, DOE has the  specific challenge of trying to screen all cargo passing through a port. However, to date, DOE has not developed such a plan for the Initiative. DOE’s $15 million estimate for the average cost  of installing equipment at a port was based on the department’s prior  experience installing radiation detection equipment at Russian land  borders, airports, and seaports. Recommendations for Executive Action

We recommend that the Secretary of Energy, working with the  Administrator of the National Nuclear Security Administration, take the  following two actions:  Develop a comprehensive long-term plan to guide the future efforts of  the Initiative that includes, at a minimum, (1) performance measures  that are consistent with DOE’s desire to install radiation detection  equipment at the highest priority foreign seaports, (2) strategies DOE  will employ to determine how many and which lower priority ports it  will include in the Initiative if it continues to have difficulty installing  equipment at the highest priority ports as identified by its model, (3)  projections of the anticipated funds required to meet the Initiative’s  objectives, and (4) specific time frames for effectively spending program  funds.
Why GAO Did This Study

Since September 11, 2001, concern has increased that terrorists could smuggle nuclear weapons or materials into this country in the approximately 7 million containers that arrive annually at U.S. seaports. Nuclear materials can be smuggled across borders by being placed inside containers aboard cargo ships. In response to this concern, since 2003, the Department of Energy (DOE) has deployed radiation detection equipment to key foreign seaports through its Megaports Initiative (Initiative). GAO examined the (1) progress DOE has made in implementing the Initiative, (2) current and expected costs of the Initiative, and (3) challenges DOE faces in installing radiation detection equipment at foreign ports.

What GAO Found

DOE's Megaports Initiative has had limited success in initiating work at seaports identified as high priority by DOE's Maritime Prioritization Model, which ranks ports in terms of their relative attractiveness to potential nuclear smugglers. Gaining the cooperation of foreign governments has been difficult in part because some countries have concerns that screening large volumes of containers will create delays that could inhibit the flow of commerce at their ports. DOE has completed work at 2 ports and signed agreements to initiate work at 5 other ports. Additionally, DOE is negotiating agreements with the governments of 18 additional countries and DOE officials told us they are close to signing agreements with 5 of these countries. However, DOE does not have a comprehensive long-term plan to guide the Initiative's efforts. Developing such a plan would lead DOE to, among other things, determine criteria for deciding how many and which lower priority ports to complete if it continues to have difficulties working at higher volume and higher threat ports of interest. Through the end of fiscal year 2004, DOE had spent about $43 million on Megaports Initiative activities. Of this amount, about $14 million was spent on completing installations at 2 ports. Although DOE currently plans to install equipment at a total of 20 ports by 2010, at an estimated cost of $337 million, this cost projection is uncertain for several reasons. For example, the projection is based in part on DOE's $15 million estimate for the average cost per port, which may not be accurate because it was based primarily on DOE's work at Russian land borders, airports, and seaports. Additionally, DOE is currently assessing whether the Initiative's scope should increase beyond 20 ports; if this occurs, total costs and time frames will also increase. DOE faces several operational and technical challenges in installing radiation detection equipment at foreign ports. For example, DOE is currently devising ways to overcome technical challenges posed by the physical layouts and cargo stacking configurations at some ports. Additionally, environmental conditions, such high winds and sea spray, can affect radiation detection equipment's performance and sustainability.