CASE STUDY $-$ Ports in a storm

Britain's ports handle $95$ percent of the United Kingdom's $($UK$)$ imports and exports, yet six months ago, disruptions in Calais caused chaos for freight this side of the Channel. So what has happened since $$ and what more can be done to keep trading routes open? $$If we can't get UK goods out to our principal export market, we ultimately risk hard$-$won contracts going elsewhere," says Tim Waggott, Chief Executive of the Port of Dover. Yet at its peak at the end of June $2015,$ disruption caused by striking French ferry workers resulted in the port of Calais being closed for four consecutive days and the suspension of some ferry sailings from Dover. In addition, hundreds of migrants stormed the Channel Tunnel to reach the Kathe resulting blockage to one of the UK's major trading routes initially cost the economy an estimated $1$bn$.$ As part of Operation Stack, over $6,000$ lorries were stranded in $30-$mile queues along the M$20$ in Kent. $$At its worst, foodstuffs were perishing in lorries, supermarkets were at risk of empty shelves, and production lines were in danger of not receiving key components," says Waggott. The Port of Dover handles $2\mathrm{.}5$ million freight vehicles annually and oversees Europe's busiest ferry operation and the UK's second$-$biggest cruise ship facility. And Waggott, who is also at the center of a campaign for a third crossing over the River Thames to ease a further trade bottleneck at Dartford, says the UK can ill afford any future disruption. $$The onus is on the UK government to work with its French counterparts to keep our $100$bn trade route open $24/7".$

Razor wire

The Government has taken action to resolve some of these issues, pledging $250$m in the autumn statement to solve Operation Stack. In August, it paid for a $30-$km high$-$security fence topped with razor wire to protect the Eurotunnel terminal at Calais. Patrols of police, security guards and search dogs have been stepped up$,$ and extra security cameras and infrared detectors have been installed. But John Keefe, public affairs director of Eurotunnel, which transported more than $1\mathrm{.}4$ million trucks carrying around $19$ million tonnes of goods on its shuttles last year, says the company has had to work hard to reassure customers that the route is secure again. $$Modern industry works on very sophisticated logistics$,$ and that means speed and reliability of transporting goods from one place to another $$ and the Channel Tunnel provides a vital link in that chain for the UK$,"$ he says. $$If the UK can't trade with Europe, many companies will move their manufacturing business and jobs to continental Europe. $$He adds that European governments must work together to find a long$-$term solution to the current migrant crisis, stressing that this is the only way to restore confidence fully.

Widespread impact

David Whitehead, CEO of the British Ports Association $($BPA$),$ says the Calais situation affected most of the UK$.$ The BPA's $96$ members range from large cargo handling ports and terminal operators to small leisure ports. $$It slowed trade considerably for a period and in other ports around the country," he explains. "Even Scotland's first minister, Nicola Sturgeon, said the fish export from Scotland was hit quite hard as quite a lot of it goes through Dover. $$Although he says trade returned to normal fairly quickly after the strikes, the Freight Transport Association $($FTA$)$ is concerned that its members will continue facing problems with migrant attempts to cross the Channel. $$We have seen an increasing number of migrants seeking to enter goods vehicles further away from Calais because of the heightened security measures introduced nearer the terminal," says Chris Welsh, the FTA's global and European policy director. "And in some cases, drivers have been intimidated. $$The FTA is now urging hauliers to join the Border Force accreditation scheme, which aims to enhance driver safety and vehicle security and enable members to reduce the risk of fines$$up to $2,000$ for each stowaway found in a vehicle. The Home Office says the UK government has "invested tens of millions of pounds to bolster security at the ports in northern France." $"$We continue to work with the French authorities and port operators to respond to the challenges of illegal migration at the UK border and ensure the safe and speedy passage of those using the Channel ports," a spokesman adds.

Question:

$1.$ Assume the role of risk manager for a UK$-$based manufacturing or retail business that relies heavily on imports and exports. Create an operational risk assessment utilizing the data from the case study and the four procedures we discussed in the course and present it to your management team. $(50)$

Note: In your response, you must state if "your company" operates in the manufacturing or retail sectors and give a brief synopsis of the company, no longer than $$ of a page.