Company
Background
HIT, established in 1969, is a member
of Hutchison Port Holding Trust (HPHT). It is located in Kwai Tsing container
port area of Hong Kong and operates 12 berths at Terminal 4,6,7 and 9. HIT
plays an important role in the development of the port of Hong Kong to achieve
smooth and efficient handling of container cargoes. HIT has been dedicated to set
industry benchmarks for productivity, efficiency and value-added services with
the use of modern management techniques, state-of-the-art computer systems and
award winning IT applications.
Visit Outline
The visit was
impressive that we never thought before. Visit was started with a brief
introduction of HIT. The HIT staff showed us the model with 1:1500 scales of
the terminals and told us the information relating to the location,
infrastructures and facilities of HIT and the divisions of 52 ports
in 26 countries under Hutchision Port Holdings. At the same time, we had chances
to ask for the questions prepared before the visit. After that, we moved to the
Control Tower to watch a video about the Terminal Management System, including
nGen, Yard Operations and Quay Side Operations. Then, it came to the last part
and the most exciting part of the visit. We took the shuttle bus traveling
around the terminal. We could closely see how the cranes work and spectacle of
loads of huge containers.
Supply
Chain Aspects
In the visit, we can
see how important of a comprehensive terminal management system to facilitate
logistics. For example, nGen improves a lot on efficiency. nGen is a
terminal-management platform that controls the entire scope of operations at
HIT, including ship and yard planning, the entry/exit gate monitoring,
equipment utilization and productivity and cost optimization. It can offer the
best automated operating solution to customers. There are various systems to
enhance customer satisfaction, including Electronic Data Interchange and
Customer plus, Tractor Appointment System, Mobile terminal message System. All
of these can deliver real and direct benefits to customers. Apart from the
service operation, we also know why HIT can sustain its competitive advantage
even there is a fierce competition with ShangHai and Singapore.
Learnings
from the Visit
We have learnt how complicated is the system of a cargo
terminal is after visiting HIT. With the help of technology development, nGen
in particular, HIT can tackle data so as to optimize the allocation of
resources, which sustain their competitive advantage.
Moreover, HIT, as a leading position of terminal industry in
Hong Kong, not only cares about making profit, but also put attention on
community. They try hard to minimize the adverse impact on our natural
environment and give
a helping hand to the underprivileged as well.
Last but not least, visiting HIT aroused our enthusiasm on the
terminal industry, which has closely and tightly relationship to logistics and
supply chain.
Q&A during the Visit
1.
It is important for company to be sustainable. How
do you handle the policy of CSR to create a sustainable business?
In term of sustainability, HIT has environmental programmes to minimize the impact on environment, such as controlling the emission of pollutants, recycling energy and conserving resources. HIT regularly measures the level of air and noise pollution, so that they can ensure they are within the standard and provide a better working environment to labour. Moreover, HIT recycles some solid wastes like papers, cans. Dynamic oil purifiers recycle lubricant and hydraulic waste oil. HIT won the Transport and Logistics Sector Gold Award at Hong Kong Awards for Environmental Excellence (HKAEE) 2009 in recognition of its outstanding performance in the areas of "Green Leadership", "Programme and Performance" and "Partner Synergy".
Regarding the community care, HIT plays an active role in Dock School Programme. It aims to match a school to each port in the Group's global network, and provides assistance by sponsoring scholarships and other educational initiatives.
In term of sustainability, HIT has environmental programmes to minimize the impact on environment, such as controlling the emission of pollutants, recycling energy and conserving resources. HIT regularly measures the level of air and noise pollution, so that they can ensure they are within the standard and provide a better working environment to labour. Moreover, HIT recycles some solid wastes like papers, cans. Dynamic oil purifiers recycle lubricant and hydraulic waste oil. HIT won the Transport and Logistics Sector Gold Award at Hong Kong Awards for Environmental Excellence (HKAEE) 2009 in recognition of its outstanding performance in the areas of "Green Leadership", "Programme and Performance" and "Partner Synergy".
Regarding the community care, HIT plays an active role in Dock School Programme. It aims to match a school to each port in the Group's global network, and provides assistance by sponsoring scholarships and other educational initiatives.
2.
How would
you adapt or utilize the new infrastructure of the government, Hong
Kong–Zhuhai–Macau Bridge?
HIT would not directly utilize it because it cannot replace the shipping line of customers. Also, out bounding by trucks is dropping since 1997.
HIT would not directly utilize it because it cannot replace the shipping line of customers. Also, out bounding by trucks is dropping since 1997.
3.
How do you
avoid errors when handling that massive amount of containers everyday?
There is a operation management system to let the staff know where the
containers are and a back up in a software system to avoid errors.
4.
What are the
contingency procedures in case of natural disaster such as adverse weather
condition?
As for operating the ports 7 days a week
and 24 hours a day, HIT keeps close relationship with the HK observatory for
the sake of extreme weather. There are some measures to make sure the terminal
is able to minimizing the effects on extreme weather condition.
Typhoon
1
HIT
triggers its monitoring mechanism by maintaining a close contact with the Hong
Kong Observatory to keep track of the tropical cyclone / typhoon and prepares
to secure its container yard and equipment. On-site wind-monitoring equipment
measures local wind speeds at HIT. If speeds exceed 61kph, an alarm will be
activated to alert people in the container yard.
Typhoon
3
Precautions:
1.
Scheduling on-berth vessels to stop work and leave the Terminal for shelters,
2.
Announcing to the public the time when the Terminal will close and securing the
container yard and equipment before a higher signal is hoisted.
3.
Stacks of containers are leveled out, as protruding containers are more
susceptible to damage.
4.
Ships move away from berths.
5.
Quayside cranes are firmly secured and yard cranes are moved to designated
positions and anchored.
6.
Container stacks are made rigid with special fittings.
HIT will cease all terminal operations at Typhoon 8/9/10.
6. How do you enhance its
competitiveness among those strong local players, e.g Shanghai, Singapore?
The main advantage is that HIT operates fast and
efficiently. HIT also has an advantage on the location, which is a part of
China. In China, only Chinese ships can move the cargoes through China’s port. However,
only Hong Kong can act as an
intermediate for the foreign ships, then cargoes will be shipped to China via
Hong Kong. That’s why ports in China are mainly focus on export; while Hong Kong is a Hub in the global world and focus on
re-export. HIT is a free port, which allow to ship many products except oil,
fuel and perfume.
7.
How do you track the cargoes to see whether there
is any dangerous or illegal goods?
Before the container ship enters the port, the cargo list
should be sent to the Annjane system and Customs Department. The list includes
the information such as container numbers, weight, size and type. When the ship
enters HIT, Customs inspect regularly to ensure there are no prohibited goods
on ship. Double-checking practice is used to the doubted cargoes.
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