February 7, 2019 | Local, C4ISR, Security

Cyber-warfare could be entering a new and alarming phase, ex-CIA analyst tells MPs

Murray Brewster · CBC News

Online attacks on Canada's financial system could become far more destructive as more militaries around the globe get involved in cyber operations, a security expert and former CIA analyst told a House of Commons committee Wednesday.

Christopher Porter, the chief intelligence strategist for the cyber security company Fireeye, Inc., testified that as NATO countries share their expertise on how to defend against and defeat online threats, "major cyber powers outside the alliance" will likely do the same.

The consequences, he said, could be dire.

The West's imposition of sanctions on "some countries" has in the past been met with denial-of-service attacks on financial services websites, he said — attacks that have only been disruptive.

"In the future, they may respond with destructive attacks aimed at permanently disabling financial services or altering data in ways that undermine trust in the global financial system, such as by delaying or impairing the trustworthy settlement of collateralized government debt," Porter said.

"For countries sufficiently sanctioned and therefore increasingly outside that financial system anyway, there is little incentive not to do so during a confrontation."

Where the threat comes from

He did not name the countries he believes pose an imminent threat, but North Korea, Russia and Iran are widely known to possess sophisticated cyber capabilities and — in some cases — loose associations with groups of private hackers.

The Commons public safety committee is studying security in the financial sector. Wednesday's hearing focused on online threats.

"I am gravely concerned about the militarization of cyber operations," said Porter, who spent nearly nine years at the CIA and served as the cyber threat intelligence briefer to White House National Security Council staff.

"(The) proliferation of cutting-edge offensive cyber power, combined with an increased willingness to use it with minimal blowback and spiraling distrust, has set the stage for more disruptive and destabilizing cyber events, possibly in the near future."

The cyber espionage threat Canada faces is still "moderate," said Porter, but his organization has noted at least 10 groups from China, Russia and Iran that have targeted Canada in the last few years.

His grim assessment was echoed by another private sector expert who appeared before the committee. Jonathan Reiber, head of cybersecurity at Illumio, an American business data center, said most of Washington's efforts to get everyone to step back from the cyber-warfare brink have gone nowhere.

He also suggested that online militarization was inevitable. "Adversaries have escalated in cyberspace, despite U.S. efforts at deterrence," he said.

The United States, Canada and other western nations must take a more aggressive stance to deter cyber aggression by "defending forward" and conducting offensive cyber operations to disrupt hacking, Reiber said.

The Liberal government's defence policy, released in June 2017, gave the Canadian military permission to conduct those kinds of operations.

"Nation states have the right to defend themselves in cyberspace just as they do in other domains," Reiber said.

Mutual defence

Determining the point at which a online attack provokes a real world military response is something that NATO and many western countries have been grappling with over the last five years.

The alliance has a mutual assistance clause, known as Article 5, which requires NATO nations to aid an ally under attack.

Liberal MP John McKay, head of the public safety committee, asked whether NATO's decision-making mechanisms are nimble enough to keep pace with cyber attacks.

Porter said he believes the system is sound. The challenge, he said, is to get all allies on the same page.

"I think a bigger issue is who is going to call for such a response and under what circumstances," he said. "In the States, I think, you're always waiting for a cyber Pearl Harbour destructive event."

Such a massive attack is still less likely than a series of smaller events, he said, "a death by a thousand cuts" that might not rise to the level of provoking allies.

https://www.cbc.ca/news/politics/cyber-warfare-could-be-entering-a-new-and-alarming-phase-ex-cia-analyst-tells-mps-1.5008956

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January 16, 2019 | Local, Naval

Seaspan Announces Closing of Second $500 Million Investment by Fairfax Financial Holdings Limited
HONG KONG, Jan. 15, 2019 /CNW/ - Seaspan Corporation (NYSE: SSW) ("Seaspan") announced today the closing of the second tranche of the $1 billion aggregate investment commitment by Fairfax Financial Holdings Limited and its affiliates (collectively, "Fairfax") in Seaspan. As with Fairfax's initial $500 million investment in Seaspan, and pursuant to definitive agreements entered into on March 13, 2018 and announced on March 14, 2018, this second tranche of funding (the "Second Fairfax Investment") is structured as a $250 million issuance of (i) 5.50% senior notes due 2026 and (ii) approximately 38.46 million warrants (the "2019 Warrants"). Pursuant to a definitive agreement entered into and announced on May 31, 2018, Fairfax has agreed to immediately exercise the 2019 Warrants at an exercise price of $6.50per warrant, for additional equity proceeds to Seaspan of $250 million. As a result, Seaspan's aggregate proceeds from the Second Fairfax Investment will be $500 million. This brings Fairfax's total investment in Seaspan to $1 billion, the proceeds of which will be used to fund future growth initiatives, repay debt and for general corporate purposes. With the closing of the Second Fairfax Investment, Fairfax's aggregate shareholdings in Seaspan are 76.9 million Class A common shares or approximately 36% of shares outstanding. Fairfax continues to hold the 25 million seven year warrants, with an exercise price of $8.05, which were issued to it on July 16, 2018. Summary of Fairfax Investments1 Investment Date Issued/Exercised Proceeds to Seaspan 2025 Notes February 14, 2018 $250 million 2018 Warrants July 16, 2018 $250 million 2026 Notes January 15, 2019 $250 million 2019 Warrants January 15, 2019 $250 million 1 Does not include the 25 million seven year warrants outstanding as of the date hereof David Sokol, Chairman of Seaspan Corporation commented, "The closing of this follow-on Fairfax investment bolsters Seaspan's balance sheet for the future. Seaspan's management team and Board of Directors are proud to continue building upon the strong partnership created with Fairfax. This additional investment will enhance Seaspan's ability to execute on our long-term goals of deleveraging, strengthening our balance sheet, and creating value through disciplined and thoughtful capital allocation." Prem Watsa, Chairman and Chief Executive Officer of Fairfax said, "With the closing of this investment, we are excited to expand our partnership with Seaspan, which now represents one of Fairfax's largest investments." About Seaspan Seaspan is a leading independent charter owner and operator of containerships with industry leading ship management services. We charter our vessels primarily pursuant to long-term, fixed-rate, time charters to the world's largest container shipping liners. Seaspan's operating fleet consists of 112 containerships with a total capacity of more than 900,000 TEU, an average age of approximately 6 years and an average remaining lease period of approximately 4 years, on a TEU-weighted basis. Seaspan has the following securities listed on The New York Stock Exchange: Symbol: Description: SSW Class A common shares SSW PR D Series D preferred shares SSW PR E Series E preferred shares SSW PR G Series G preferred shares SSW PR H Series H preferred shares SSW PR I Series I preferred shares SSWN 6.375% senior unsecured notes due 2019 SSWA 7.125% senior unsecured notes due 2027 SSW25 5.500% senior notes due 2025 About Fairfax Financial Holdings Limited Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management. Investor Inquiries: Mr. Matt Borys Investor Relations Seaspan Corporation Tel. +1-778-328-5340 Email: mborys@seaspanltd.ca SOURCE Seaspan Corporation https://www.newswire.ca/news-releases/seaspan-announces-closing-of-second-500-million-investment-by-fairfax-financial-holdings-limited-848167000.html
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Skies Magazine October/November 2018 Issue
ADAPTING ON THE FLY “Agile” and “nimble” are the buzzwords as the Royal Canadian Air Force moves forward under new commander LGen Al Meinzinger. By Chris Thatcher AN INVESTMENT IN CAPABILITY Skies test pilot Robert Erdos flew Leonardo's AW101-612 search and rescue helicopter to see what upgrades might be in store for Canada's CH-149 Cormorants. By Robert Erdos
February 11, 2019 | Local, Aerospace

'Strategic messaging': Russian fighters in Arctic spark debate on Canada's place
Bob Weber / The Canadian Press Recent Russian moves in the Arctic have renewed debate over that country's intentions and Canada's own status at the top of the world. The newspaper Izvestia reported late last month that Russia's military will resume fighter patrols to the North Pole for the first time in 30 years. The patrols will be in addition to regular bomber flights up to the edge of U.S. and Canadian airspace. "It's clearly sending strategic messaging," said Whitney Lackenbauer, an Arctic expert and history professor at the University of Waterloo. "This is the next step." Russia has been beefing up both its civilian and military capabilities in its north for a decade. Old Cold-War-era air bases have been rejuvenated. Foreign policy observers have counted four new Arctic brigade combat teams, 14 new operational airfields, 16 deepwater ports and 40 icebreakers with an additional 11 in development. Bomber patrols have been steady. NORAD has reported up to 20 sightings and 19 intercepts a year. Commercial infrastructure has kept pace as well. A vast new gas field has been opened in the Yamal Peninsula on the central Russian coast. Control and development of the Northern Sea Route — Russia's equivalent of the Northwest Passage — has been given to a central government agency. Russian news sources say cargo volume is expected to grow to 40 million tonnes in 2020 from 7.5 million tonnes in 2016. Canada has little to compare. A road has been completed to the Arctic coast at Tuktoyaktuk in the Northwest Territories and work for a port at Iqaluit in Nunavut is underway. The first Arctic patrol vessel has been launched, satellite surveillance has been enhanced and a naval refuelling station built on Baffin Island. But most northern infrastructure desires remain unfilled. No all-weather roads exist down the Mackenzie Valley or into the mineral-rich central N.W.T. Modern needs such as high-speed internet are still dreams in most of the North. A new icebreaker has been delayed. Nearing the end of its term, the Liberal government has yet to table an official Arctic policy. Global Affairs Canada spokesman Richard Walker said in an email that the government is "firmly asserting" its presence in the North to protect Canada's sovereign Arctic territory. Walker said Canada cooperates with all Arctic Council members, including Russia, to advance shared interests that include sustainable development, the roles of Indigenous peoples, environmental protection and scientific research. "Given the harsh environment and the high cost of Arctic operations, Canada believes that cooperation amongst Arctic nations is essential," Walker wrote. "While we perceive no immediate military threat in the Arctic region, we remain vigilant in our surveillance of our Northern approaches." Canada needs to keep pace if only because it can't count on the current international order to hold, said John Higginbotham of the Centre for International Governance Innovation in Waterloo. "If the globalized system fragments, we're going to get a world of blocs. The blocs will have power to close international shipping channels. "It's a dreadful strategic mistake for Canada to give up our own sea route." Arctic dominance would also give Russia a potent card to play, said Rob Huebert of the Centre for Military and Strategic Studies at the University of Calgary. "It gives you presence," he said. "Whenever there's issues that happen to occur elsewhere, we've already seen the behaviour of the Russians — they start doing overflights of other countries to bring pressure." Norway, the Baltics and the United Kingdom have all reported increased airspace violations, Huebert said. Few expect Russian troops to come pouring over the North Pole. The country is sticking with a United Nations process for drawing borders in Arctic waters and is a productive member of the eight-nation Arctic Council. "There's vigorous debate over whether their posture is offensive-oriented," Lackenbauer said. "The Russians insist this is purely defensive. It also offers possibilities for safe and secure shipping in the Northern Sea Route. "They're not doing anything wrong." Canada would be mistaken to ignore the awakening bear, said Ron Wallace of the Canadian Global Affairs Institute in Calgary. "It's important for Canadians to be aware of their Arctic and the circumpolar Arctic and what's going on in the North," he said. Canada is unlikely to take much from Russia's command-and-control style of development, Wallace said, but there are lessons to learn. Combining civilian and military infrastructure is one of them. "That's the kind of thinking I haven't seen here, but that's the thinking the Russians are using," he said. "They see the northern trade route as an excuse to put up military bases at the same time they're working with the Chinese to open up trade routes for the export of their resources." That would also help fulfil federal promises to territorial governments, said Wallace. "Somewhere in the middle there is a better policy for northern Canada." — Follow Bob Weber on Twitter at @row1960 https://www.burnabynow.com/strategic-messaging-russian-fighters-in-arctic-spark-debate-on-canada-s-place-1.23629355

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