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2 federal agencies announce RFID plans

WASHINGTON-The Department of Homeland Security and the U.S. Postal Service announced plans to deploy radio frequency identification technology, an emerging wireless capability predicted to generate more than $1 billion in Western Europe alone by 2007.

Asa Hutchinson, undersecretary for border and transportation security at Department of Homeland Security, said RFID will be tested to improve the border patrol and security.

“We are driven by a vision of the way our borders can and should operate in the future, and that future is getting closer and closer with every layer of US-VISIT (Vision for 21st Century Immigration and Border Management System) we deploy,” said Hutchinson.

Hutchison added: “Through the use of radio-frequency technology, we see the potential to not only improve the security of our country, but also to make the most important infrastructure enhancements to the U.S. land borders in more than 50 years. Working with our border partners, we intend to see that it’s done in the right way and at the right pace.”

The technology will be tested at a simulated port this spring. Beginning July 31, testing will commence at the ports of Nogales East and Nogales West in Arizona, Alexandria Bay in New York, and Pacific Highway and Peace Arch in Washington. The testing, or “proof of concept,” phase is expected to continue through spring 2006.

Meantime, the U.S. Postal Service awarded a minimum $4 million contract to I.D. Systems Inc. of Hackensack, N.J., to implement the firm’s RFID-based Wireless Asset Net industrial equipment tracking and management system at postal facilities nationwide

“This wireless system provides real-time information for managing our vehicle fleet in a safe, efficient and cost-effective strategy. The results from this system will aid postal managers in increasing efficiency while sustaining a safe work environment, which are goals in our blueprint for the future-the Transportation Plan,” said Thomas G. Day, vice president of the USPS.

RFID technology, which Wal-Mart is championing for inventory management, also has been embraced by the State Department for smart passports and the Defense Department for inventory tracking.

In a new report, Juniper Research said Germany and the United Kingdom will account for 40 percent of the more than $1 billion in revenue from RFID applications in Western Europe.

Juniper said the most significant use will be in the supply chain and logistics sector, where RFID will be used to drive increased efficiencies from producer to retailer. In the retail market, success for RFID will come from niche applications such as the library sector and within mass transportation. The most likely solution for companies operating in the supply chain, according to Juniper, will be to implement a mobility solution comprising a hybrid of RFID technology plus a mobile element such as global positioning system or GSM technology.

“RFID in Europe is seen as a way of increasing business efficiencies. To date most trials have been in-house or between two trading partners, but as technology standards develop businesses will have the confidence to deploy it more widely across their supply chains.” said report authors Susan Griffin and Colin Williams.

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