HIT Company Visit 7th April,2014
It is honor to have a chance visiting Hong Kong largest container port business in 7/4.Kwai Chung Cargo Terminal is one of the landmark in Hong Kong which represent the success of Hong Kong. In 1980-90s, the intermediate trade business contribute 70% of GDP.
Hong Kong International Terminals Limited (HIT) is a member of HPH Trust, the world's first container port business trust listed in Singapore. HIT is also a part of Hutchison Port Holdings Limited's (HPH) global network of port and logistics operations, and continues to have access to services and resources enjoyed by companies within the HPH Group.
Situated in the Kwai Tsing container port area of Hong Kong - one of the busiest container ports in the world.
HIT operates twelve berths at Terminals 4, 6, 7, 8 and 9. Established in 1969, HIT has continuously set industry benchmarks for productivity, efficiency and value-added services. Using modern management techniques, state-of-the-art computer systems and award winning IT applications, HIT has become a pinnacle of industry excellence.
HIT plays a key role in the continuing development of the port of Hong Kong, ensuring the port has the resources, facilities and people required to achieve smooth and efficient handling of container cargoes.
As global trade and the needs for logistics chain management increases, HIT has diversified its operations beyond the traditional role of a container port operator. HIT has leveraged the strength of HPH and developed a logistics network covering the Pearl River Delta and the rest of South China, based on the principles of efficiency, productivity and cost-effectiveness. The ultimate goal is the creation of an integrated supply chain network, with total logistics management services.
We were invited to the HIT tower, the staff gave an detail introduction of HIT. After briefly introduce HIT to us, she brought us to the control tower and shown us the IT system they used, nGen.
Next Generation Terminal Management System (nGen) is a complete rewrite of award winning 3P Terminal Management System using much enhanced process logics and the latest open computer technologies. With the implementation of nGen, the system controls the entire scope of terminal operations from ship and yard planning, gate operations, vessel operations and interactions, yard configuration and performance, overall operations monitoring, equipment utilization, productivity to costs optimization. With extensive operational experience and powerful algorithms embedded in many different operating environments, nGen is able to offer the best automated operating solution to their customers.
Using industry standard open platform technologies such as Java and XML, nGen is truly scalable across all non-proprietary computer system hardware. From a small feeder terminal operation requiring a small-scale server setup to large hub ports relying on full server room support, nGen has been designed to support all platforms.
With real-time operator alerts, each control staff can customize more than a dozen automated alerts to suit different situations. These alerts not only allow the operators to take appropriate actions at appropriate times, but also relieve on-the-job pressure. Operators today don't need to constantly stare at the computer screen anymore to look for problem areas!
Finally, nGen has over one hundred user-definable business rules that can be fine-tuned. For example, an operator can adjust the laden box grounding and internal tractor deployment rules to meet customers' specific operating requirements. No more reprogramming and compiling, as nGen now adapts effortlessly.
nGen truly lives out our motto of doing more with less. With nGen, HIT is well positioned to meet increasing throughput and productivity requirements into the next decade and beyond.
Background
Hong Kong International Terminals Limited (HIT) is a member of HPH Trust, the world's first container port business trust listed in Singapore. HIT is also a part of Hutchison Port Holdings Limited's (HPH) global network of port and logistics operations, and continues to have access to services and resources enjoyed by companies within the HPH Group.
Situated in the Kwai Tsing container port area of Hong Kong - one of the busiest container ports in the world.
HIT operates twelve berths at Terminals 4, 6, 7, 8 and 9. Established in 1969, HIT has continuously set industry benchmarks for productivity, efficiency and value-added services. Using modern management techniques, state-of-the-art computer systems and award winning IT applications, HIT has become a pinnacle of industry excellence.
As global trade and the needs for logistics chain management increases, HIT has diversified its operations beyond the traditional role of a container port operator. HIT has leveraged the strength of HPH and developed a logistics network covering the Pearl River Delta and the rest of South China, based on the principles of efficiency, productivity and cost-effectiveness. The ultimate goal is the creation of an integrated supply chain network, with total logistics management services.
Presentation
We were invited to the HIT tower, the staff gave an detail introduction of HIT. After briefly introduce HIT to us, she brought us to the control tower and shown us the IT system they used, nGen.
nGen
Next Generation Terminal Management System (nGen) is a complete rewrite of award winning 3P Terminal Management System using much enhanced process logics and the latest open computer technologies. With the implementation of nGen, the system controls the entire scope of terminal operations from ship and yard planning, gate operations, vessel operations and interactions, yard configuration and performance, overall operations monitoring, equipment utilization, productivity to costs optimization. With extensive operational experience and powerful algorithms embedded in many different operating environments, nGen is able to offer the best automated operating solution to their customers.
Using industry standard open platform technologies such as Java and XML, nGen is truly scalable across all non-proprietary computer system hardware. From a small feeder terminal operation requiring a small-scale server setup to large hub ports relying on full server room support, nGen has been designed to support all platforms.
With real-time operator alerts, each control staff can customize more than a dozen automated alerts to suit different situations. These alerts not only allow the operators to take appropriate actions at appropriate times, but also relieve on-the-job pressure. Operators today don't need to constantly stare at the computer screen anymore to look for problem areas!
Finally, nGen has over one hundred user-definable business rules that can be fine-tuned. For example, an operator can adjust the laden box grounding and internal tractor deployment rules to meet customers' specific operating requirements. No more reprogramming and compiling, as nGen now adapts effortlessly.
nGen truly lives out our motto of doing more with less. With nGen, HIT is well positioned to meet increasing throughput and productivity requirements into the next decade and beyond.
Q & A
1. As compared with other container terminals in Pearl River Delta (PRD) like Yantian International Container Terminals, HIT does not closely link to railway. Do you consider it as a disadvantage? Why or why not?
Although HK has it own limitation, we still have stable and efficient terminal logistics. We have a deep harbor which is over 15.5 meter that allows huge cargo ship to park. The golden advantage which keeping us on the top position is that we are a free transction harbor with easy customs declaration process. Moreover, a large bundle of route was connected from HK to all over the world. These advantages facilitate HK terminal stay at high ranking.
2. What contingency plans for the extreme situation of bad weather just like black rain extreme weather?
We set several precaution measures to tackle the extreme weather. For example, before the typhoon signal number 8 is hoisted, empty cargoes transaction are ceased. It is because empty boxes are relatively light and easier to be blown down. The existing empty boxes will be transported to places where sheltered from strong wind and leashed with thick ropes.
Also, we will inform the cargo ship company that they are not allow to park at the pier due to the potential dangerous to threaten our facilities.
Blocks will be plugged into the rail of the cranes to prevent moving by the wind.
Staffs must go to the resting rooms and buildings until the typhoon ended.
During the T8, we will keep contact with Hong Kong Observatory to get the newest information.
3. Recent years the cargo throughput in Southern China region such as Shenzhen port keeps on increasing. Would this bring threats to port development in Hong Kong? How do the container port operators like HIT deals with the fierce competition to maintain its leading position?
Hong Kong leading position in Southern China region is still stable as our service structure is different from our competitors. 70% of our cargo transaction was transshipment while 70% of PRD are mainly export.
4. Last year, labour dispute adversely impacted HIT’s corporate image and brought a huge financial loss to HIT. What are the procedures and policies for HIT to prevent labour strike in order to maintain normal operation of HIT and harmonious employer-employee relationship?
We keep improving the labor relationship with our staff and outsourcing company. In last year, we increase more toilet and rest room for the workers in order to provide better environment. We have renewing the cranes system which allows remote control. It let our staff can monitor and control the crane by moving the joystick and sitting in the office. Moreover, we will sit in the briefing of outsourcing company to listen their opinions. Even for employees coming from external companies (outsourcing), HIT also seeks for their comments or feedbacks.
5. What system is using by HIT to control such a huge terminal?
We are using the computer system nGen to keep our efficiency. nGen can calculate the arrival time of the cargo ship accurately and can estimate how many resources we need to put in on each project.
Reflection
During this company visit , we have learnt how complicated is the system of a cargo terminal is. While the powerful computer system nGen tackle tones of data to optimize the resource allocation.Also, HIT shows us how important communication is. With better labour relationship, HIT staffs can enjoy a better working environment and HIT get better efficiency simultaneously. While good communication with shipping company can let HIT allocate it resources better due to more accurate estimation of arrival time and resources required. Keep check with HK government can ensure all goods export and import are legal and keep track with the latest weather.
Moreover, HIT let us know that HK has its present leading position in terminal industry required sustain evaluation and improvement, Such as making the crane can be remote controlled, keep on develop more suitable computer systems,etc.
With this chance, we learnt how important the terminal contributed to HK. Moreover, it raise our interest in logistic and supply chain by letting us know how important it is.
References:
1. HIT home page. (2014). Retrieved April 30, 2014, from http://www.hit.com.hk/
2. Fact sheet from HK government descripe the port on HK http://www.gov.hk/en/about/abouthk/factsheets/docs/port.pdf
