Oracle, Nexus Seek Share of U.S. Border Improvement Spending
Added: (Fri Mar 29 2002)
Pressbox (Press Release) -
Oracle, Nexus Seek Share of U.S. Border Improvement Spending
By Tamra Santana
Washington, March 28 (Bloomberg) -- Oracle Corp. and Nexus Group International Inc. may benefit as the U.S. spends as much as $5 billion on face-recognition systems, cargo sensors and other tools to boost border security.
Nexus subsidiary AcSys Biometrics Corp. is working with Oracle, Maximus Inc., DynCorp Inc. and Tyco International Ltd.'s Sensormatic Electronics Corp., to implement a face-recognition system that would clear frequent border crossers through inspections quickly.
The U.S. is ``looking for some way to distinguish the good guys from the bad guys,'' said Elizabeth Dickson, an adviser on immigration services at Ingersoll-Rand Co.
The $5 billion in border improvements, along with increased passenger and baggage checks at airports and rising Pentagon spending in the wake of the Sept. 11 terrorist attacks, are providing opportunities to companies with security-related products.
President George W. Bush said the U.S. is working to better secure its 2,000-mile border with Mexico and 5,525-mile border with Canada, without slowing the $2 billion worth of goods that cross the borders each day. Canada is the largest U.S. trading partner and Mexico is the second largest.
The U.S. and Mexico trade almost $700 million in goods a day, most of it by truck, and about $1.3 billion in goods crosses the U.S.-Canadian border each day, with about a third of that related to U.S. automotive plants. International travelers spent $82 billion in the U.S. in 2000 and supported 1 million jobs.
Fighting Terrorism
Bush, who has said border protection is instrumental in fighting terrorism, has set aside $5 billion of the $27 billion emergency-spending request he sent Congress earlier this month to improve security at airports and borders.
Bush announced a border-security arrangement with Mexico last week that he said will let people who cross the border regularly get ``pre-clearance'' and access to express lanes. It also aims to coordinate U.S. and Mexican computer technology, strengthen law- enforcement cooperation, and put in place new tracking procedures for truck and rail cargo.
The U.S. also intends to make better use of electronic seals on vehicles and license plate readers to keep routine traffic flowing while screening suspicious cars at border crossings.
The facial recognition system ``frees up the agents to more closely monitor those that they think might be a threat,'' said Jerry Janik, president of Ontario-based AcSys.
A pilot program of AcSys's facial-recognition technology will begin within about a month at a U.S. port of entry, Janik said. Janik declined to identify the port and said it is unclear how much the system will cost.
Without Stopping
Under the AcSys system, vehicles that frequently cross the border would be able to enter the U.S. without stopping for an inspection, Janik said. Those vehicles would be equipped with a tag that would be read by a computer as the vehicle approaches the border. A camera and computer will verify that the driver of the vehicle is the same person identified by the tag.
Electronic Data Systems Corp. and Ingersoll-Rand are also working to develop ways to help the U.S. keep goods and people moving across the borders.
Privately held B.O.T. Engineering of Campbellville, Ontario, is working to sell its cargo sensor technology to the Customs Service, the Department of Justice and the Transportation Department, said David Bot, president of the Canadian company.
The sensors, which can be as small as a box of cigarettes, can detect whether a container has been tampered with, has diverted from its expected route or whether the cargo's seal has been broken.
Nuclear Warheads
The sensors have already been deployed in securing nuclear warheads, Bot said. The challenge is making a sensor that can be used commercially and one that is cost effective, he said.
``If we could establish trusted shippers and containers, these could come into U.S. ports uninhibited,'' Bot said. That way, inspectors can focus on the cargo more likely to be a potential threat, he said.
Ottawa-based AiT, has been talking with officials at the Immigration and Naturalization Service and the Customs Service about using its facial-recognition technology to better secure the borders, said Bernard Ashe, chief executive of the company.
Science Application International Corp., a privately held company in San Diego, makes X-ray machines the size of car wash equipment that allows customs inspectors to detect contraband hidden in trucks and automobiles.
The machines cost from $1.2 million to $1.8 million a unit. The U.S. operates 47 units around the country and is about to deploy 36 more.
Customs Service spokesman Jim Michie says it is too early to identify which companies the U.S. will join with to secure the borders.
The INS would not comment on which companies may be awarded contracts by the U.S.
In addition to the emergency spending, Bush has asked Congress for $2.1 billion in new funds to help ease bottlenecks at its borders with Mexico and Canada since the U.S. increased inspections after the Sept. 11 terror attacks.