The Rising Cyber Risk to Smart Ports for Australia and the Region

As the maritime industry undergoes a digital transformation, smart ports have revolutionised operations with cutting-edge technology, data analytics, and automation. These advancements have significantly improved efficiency, safety, and logistics management, supporting the United Nations Trade and Development call for an equitable transition to smart ports and decarbonisation of the shipping industry.

However, with these benefits come rising risks, particularly for ports in Australia's region, which are increasingly targeted by cyber threats and other security challenges.

Sention recently facilitated a cyber-security workshop and real-time tabletop exercise in Colombo, Sri Lanka. The rising threat of cyber-security for critical infrastructure such as ports was the focus of the program delivered in collaboration with CRDF Global and the US Department of State for East Asian and Pacific Affairs.

With maritime trade set to increase at a rate of 2% year on year, ports across the globe are increasingly implementing new technologies to improve port efficiency. The industry is ripe for digital disruption to tackle a multitude of structural inefficiencies, labour challenges, inefficient handovers between providers (up to 16 for one shipment), cumbersome documentation flows, costly manual processes, lengthy and painful customer interactions, and other operational issues. Venture capital flows into transport and logistics are also growing rapidly, including a series of digital start-ups, to $12 billion in 2015, up from $2 billion in 2013.

With so much transformation occurring, the digital infrastructure that powers smart ports is a prime target for cyberattacks. These attacks can cause major disruption to port operations, leading to significant economic losses and supply chain delays. By way of example, in 2022 Australian ports and associated supply chains were significantly disrupted when cyber threat actors hacked DP World. They exploited an unpatched Citrix application, halting the movement of more than 300,000 containers.

Another example of the changing risk profile for critical infrastructure is the Port of Colombo. As a rapidly growing maritime hub for the South Asian Region, cargo originating from and destined for Europe, East and South Asia, the Persian Gulf, and East Africa connects through the Colombo Port. While shipping revenue has increased recently due to diversion from the Red Sea attacks, the Port is one of many undergoing Smart Port development, requiring training, exercising, and vulnerability assessments to identify current and emerging cyber risks.

The exercise facilitated by Sention drew together participants from Sri Lanka, India, and Thailand ports, addressing key phases of cyber-security planning and response, as well as elaborating on the gaps and challenges being faced.  The following provides a brief overview of key vulnerabilities.

Operational Vulnerabilities

Smart ports rely heavily on interconnected systems and the Internet of Things (IoT) for real-time data and automation. While these technologies streamline operations, they also introduce vulnerabilities. Compromising IoT devices or control systems can lead to unauthorised access and manipulation of port operations, affecting everything from cargo handling to navigation systems and transport.

Supply Chain Dependencies

The global nature of maritime logistics means that Australian ports are deeply integrated into the international supply chain. A cyber-attack or operational failure in one port can have cascading effects throughout the region. For instance, an attack on a major shipping line or logistics provider can disrupt schedules, causing delays and financial losses for businesses relying on timely deliveries. The longer the disruption the greater the financial loss leading to broader implications like reputational damage.

Regulatory and Compliance Challenges

As smart ports adopt new technologies, they must also navigate a complex landscape of regulations and compliance requirements. Ensuring compliance with national and international cyber-security standards is crucial but can be challenging. Ports must continuously update their security protocols and invest in training to stay ahead of evolving threats. The Colombo exercise identified the lack of integrated training between onsite port authorities, IT teams, government agencies, and stakeholder representatives.

Geopolitical Risks

Australia's strategic position in the Indo-Pacific region makes its ports critical assets in global trade. This importance also makes them targets for geopolitical adversaries seeking to disrupt trade routes or exert economic pressure. Cyber-espionage and state-sponsored attacks are growing concerns, necessitating robust defense mechanisms.

Mitigation Strategies

To counter these rising risks, Australian ports, and those in our region, must adopt comprehensive cyber-security measures and resilient operational practices. Key strategies include:

• Enhanced Cybersecurity Protocols: Implementing advanced cyber-security policies and plans, regular system audits, and real-time threat monitoring.
• Training and Awareness: Educating staff and contractors on cyber-security best practices and fostering a culture of vigilance.
• Collaborative Defense: Engaging in information sharing and collaboration with government agencies, industry partners, and international bodies to stay ahead of emerging threats.
• Third-party Protection: Reviewing the nature and maturity of third-party entities including vessels, carriers, exporters, banks and shipping companies.
• Resilient Infrastructure: Investing in robust and redundant systems to ensure operational continuity in the face of cyber-attacks or system failures.
• Regulatory Compliance: Keeping abreast of and adhering to evolving cybersecurity regulations and standards.

Conclusion

The rise of smart ports in Australia's region heralds a new era of efficiency and innovation in maritime operations. However, disruption through cyber-attacks will have cascading operational, supply-chain, and reputational impacts on many sectors. Reducing cyber vulnerability to these critical infrastructures requires a proactive and unified approach. By adopting comprehensive cybersecurity measures, fostering collaboration, and ensuring regulatory compliance, Australian ports and those within the region can protect themselves against the growing threat landscape and secure their pivotal role in global trade.