goes live nGen goes live nGen - Hongkong International Terminals
goes live nGen goes live nGen - Hongkong International Terminals
goes live nGen goes live nGen - Hongkong International Terminals
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HIT<br />
Spring 2005 No.1<br />
HIT HI News<br />
The wait is finally over! <strong>nGen</strong> has<br />
arrived! Our completely<br />
redesigned terminal management<br />
system has gone <strong>live</strong> at <strong>Hongkong</strong><br />
<strong>International</strong> <strong>Terminals</strong> (HIT) on 16th<br />
February this year.<br />
The brand new <strong>nGen</strong> system replaces<br />
our award-winning 3P Terminal<br />
Management System that has served us<br />
faithfully for more than eight years. <strong>nGen</strong>,<br />
in short for Next Generation Terminal<br />
Management System, is a complete rewrite<br />
using enhanced process logics and the<br />
latest open computer technologies. With<br />
the implementation of <strong>nGen</strong>, the system<br />
4<br />
HIT Customer Survey 5 Focus on Gaolan 6 ICIS Scanning<br />
7 Hyundai Merchant Marine 11<br />
controls the entire scope of terminal<br />
operations from ship and yard planning,<br />
gate operations, vessel operations and<br />
interactions, yard configuration and<br />
performance, overall operations<br />
monitoring, equipment utilisation,<br />
productivity to costs optimisation. With<br />
extensive operational experience and<br />
powerful algorithms embedded in many<br />
different operating environments, <strong>nGen</strong> is<br />
able to offer the best automated operating<br />
solution to our customers.<br />
<strong>nGen</strong> is the first major system<br />
co-development project between HIT<br />
and Yantian <strong>International</strong> Container<br />
Entrepôt<br />
<strong>nGen</strong><br />
<strong>goes</strong> <strong>live</strong><br />
<strong>Terminals</strong> (YICT). Harnessing our expertise<br />
since day one, a diverse cross-terminal<br />
project team from Terminal Operations,<br />
Operations Development, and Information<br />
Services was pulled together to make <strong>nGen</strong><br />
a reality. The project team set a simple<br />
yet significant objective for itself to develop<br />
a scalable, functional, and reliable system<br />
that is better than any other commercially<br />
available terminal operation platform for<br />
the South China Division of Hutchison Port<br />
Holdings (HPH) and its subsidiaries<br />
throughout the world.<br />
This massive joint development effort<br />
has already proven itself when <strong>nGen</strong> went<br />
16<br />
Continued on page 2<br />
HIT News, Spring 2005<br />
Caring Company Award
2<br />
Leader’s Column<br />
A time for action:<br />
Meeting our<br />
customers’ needs<br />
Following the overwhelming response to our Customer<br />
Satisfaction Study last year, I mentioned that even though<br />
we think we are doing a good job, in some areas our<br />
customers think otherwise.<br />
As a result of the survey, we have taken concrete steps to address<br />
some of those issues and improve communications between HIT<br />
and our customers. The first step has been to launch the HIT<br />
Monthly Bulletin, an electronic bulletin which provides a regular<br />
update of events and news de<strong>live</strong>red directly to our customers on<br />
their desktops.<br />
We have also significantly reduced the waiting time at the Barge<br />
Centre, which will help improve efficiency, and save time and money<br />
for our customers.<br />
In terms of responsibility, we have now delegated customer<br />
account responsibility to our I.T. department, so that our clients<br />
know who to deal with directly when issues arise. This will help<br />
improve response time and provide peace of mind for our<br />
customers.<br />
We have also introduced a free shuttle bus service that links<br />
<strong>Terminals</strong> 4, 6 and 7 with Terminal 9. This service is free to all our<br />
customers and business associates.<br />
The overall message is that we always have to be aware of what<br />
our customers need; this can be accomplished through improving<br />
communications and de<strong>live</strong>ring the right solutions, or meeting those<br />
needs so that service excellence can be achieved.<br />
Eric Ip<br />
Managing Director<br />
<strong>Hongkong</strong> <strong>International</strong> <strong>Terminals</strong><br />
HIT News, Spring 2005<br />
Launch of n<br />
(continued from cover)<br />
<strong>live</strong> at YICT in 2003. In addition, HIT and YICT have<br />
collectively laid a robust collaboration platform for all<br />
future <strong>nGen</strong> launches to other HPH ports.<br />
As the Chairperson of the <strong>nGen</strong> Steering Committee,<br />
Edmond Leung, who still wears his <strong>nGen</strong> badge on his<br />
sleeve, has every reason to be proud of what his team<br />
has achieved.<br />
“It was both an exciting and nerve-racking time,<br />
working in the Command Centre with staff from so<br />
many departments. To ensure smooth system migration<br />
with no interruption to serving our customers, our<br />
people worked selflessly throughout the Chinese New<br />
Year holidays, giving up the opportunity to return home<br />
and spend the festive season with their families. The<br />
pressure was high but our people handled it very well.<br />
More importantly, we need to thank our valued<br />
customers for their full support of <strong>nGen</strong>,” said Edmond.<br />
“What is different about <strong>nGen</strong> is that the system<br />
becomes more accessible to all our business partners as<br />
well as our operational staff - achieved through improved<br />
design, streamlined operational flow and broader<br />
connectivity by integrating the information flow<br />
seamlessly throughout the extended business<br />
community,” said Edmond. Indeed, the interactive and<br />
community-based system allows our customers to have<br />
greater control of the supply chain, again on a 24/7<br />
basis, inter-operable through the latest internet<br />
technology.<br />
Customers can be assured of the reliability of <strong>nGen</strong>,<br />
which has been validated under stringent independent<br />
review by the Hong Kong Polytechnic University, where<br />
eminent professors from the Hong Kong Polytechnic<br />
University visited our Development Centre and reviewed<br />
the design documentation, project standards and<br />
procedures, as well as interviewed members from the<br />
project team. “They fully endorsed <strong>nGen</strong>’s architectural<br />
design and that gave us the green light to move ahead<br />
with the phased introduction of the system at YICT and<br />
HIT,” said Edmond.<br />
There are many new and unique features in <strong>nGen</strong>,<br />
some of which include scalability, real-time operator<br />
alerts, and configurable business rules.<br />
Using industry standard open platform technologies<br />
such as Java and XML, <strong>nGen</strong> is truly scalable across all<br />
non-proprietary computer system hardware. From a
Gen at HIT<br />
small feeder terminal<br />
operation requiring a<br />
small-scale server setup<br />
to large hub ports<br />
relying on full server<br />
room support, <strong>nGen</strong><br />
has been designed to<br />
support all platforms.<br />
W ith real-time<br />
operator alerts, each<br />
control staff can<br />
customise more than a<br />
dozen automated alerts<br />
to suit different<br />
situations. These alerts<br />
not only allow the<br />
operators to take<br />
appropriate actions at<br />
appropriate times, but<br />
also relieve on-the-job<br />
pressure. Operators<br />
today don’t need to<br />
look at the computer screen for lengthy<br />
periods of time anymore to look for<br />
problem areas!<br />
Finally, <strong>nGen</strong> has over one hundred<br />
user-definable business rules that can be<br />
fine-tuned. For example, an operator can<br />
adjust the laden box grounding and<br />
internal tractor deployment rules to meet<br />
customers’ specific operating requirements.<br />
No more reprogramming and compiling,<br />
as <strong>nGen</strong> now adapts effortlessly.<br />
“<strong>nGen</strong> truly <strong>live</strong>s out our motto of<br />
doing more with less. With <strong>nGen</strong>, HIT and<br />
YICT are well positioned to meet<br />
increasing throughput and productivity<br />
requirements well into the next decade<br />
and beyond. With scalability in mind, we<br />
have designed <strong>nGen</strong> to work in all HPH<br />
ports around the globe. Most importantly,<br />
we have an experienced team with people<br />
who are committed to implementing<br />
<strong>nGen</strong> wherever our business is located,”<br />
concluded Edmond.<br />
Customs<br />
EDI<br />
Customer<br />
Customer<br />
Customer<br />
Plus Plus Plus<br />
IVRS<br />
SMS<br />
OnePort<br />
Community Interface<br />
<strong>nGen</strong> Interface<br />
Planning<br />
Execution<br />
&<br />
Control<br />
Reporting<br />
<strong>nGen</strong><br />
Intelligence<br />
Modules<br />
Interface<br />
Lead Story<br />
Guider<br />
Ship Planning<br />
OMS<br />
Operations<br />
Monitoring System<br />
TRACS<br />
Terminal Reporting<br />
& Communication System<br />
TOPS<br />
Terminal Operation<br />
Planning System<br />
EDR<br />
Enterprise Data<br />
Repository<br />
Billing<br />
System<br />
HIT News, Spring 2005<br />
3
4<br />
Latest Update<br />
Customers have their say<br />
in wide ranging study<br />
As the container<br />
terminal business<br />
becomes more<br />
competitive, understanding<br />
customer needs and<br />
de<strong>live</strong>ring timely solutions<br />
have become critical factors<br />
in sustaining the company’s<br />
reputation as a market leader.<br />
HIT recently completed its<br />
most comprehensive and<br />
detailed survey to find out what<br />
our customers really think of us.<br />
The 2004 Customer Satisfaction<br />
Survey was the most in-depth and wide<br />
ranging study to date, with a more<br />
sophisticated methodology that provided<br />
<strong>Hongkong</strong> <strong>International</strong> <strong>Terminals</strong> (HIT)<br />
with detailed feedback from its major<br />
shipping line clients on its performance<br />
and service levels.<br />
The objectives were to measure the<br />
operational performance of HIT services<br />
compared to its competitors and the level<br />
of interaction between HIT and its<br />
customers, which will allow the company<br />
to highlight areas that need special<br />
attention and consequently improve<br />
service quality in those areas.<br />
The survey was designed to solicit<br />
upfront feedback from a broad ‘band’ of<br />
managers and officers working for<br />
customers, with primary aim to have a linear<br />
set of responses rather than ‘top down’<br />
solely from senior managers. One-to-one<br />
interviews were carried out between HIT<br />
staff and nominated personnel from 18<br />
major carriers calling at HIT over a threemonth<br />
period.<br />
HIT News, Spring 2005<br />
Service levels and facilities received high<br />
marks from customers who took part in the<br />
survey, notably for Hong Kong and Asia.<br />
This took into account the friendliness of<br />
HIT staff, how they rated yard facilities, and<br />
how reliable services are. Customers were<br />
also asked about how confident they feel<br />
in using HIT and provided feedback on the<br />
level of efficiency on the services provided.<br />
The study also aimed to establish<br />
benchmarks and tracking that can be used<br />
in future studies. The purpose of the study<br />
was not to find fault, but rather to provide a<br />
consistent and valuable communication tool that<br />
opens up new channels with HIT’s customers.<br />
Overall, the results reflected confidence<br />
in HIT staff because of their positive attitude<br />
and responsiveness and generally HIT’s<br />
facilities and management were rated<br />
highly. Close attention also has to be paid<br />
to improving flexibility especially when<br />
dealing with customer representatives.<br />
There were also responses that indicated<br />
that a continuous process of improvement<br />
should be implemented.<br />
Immediate action has been taken to<br />
launch the HIT Monthly Bulletin to provide<br />
customers with the latest information<br />
regarding a wide range of events, operational<br />
changes, new IT initiatives and service<br />
information, all of which are aimed at<br />
improving communications with our<br />
customers. HIT will continue to make use<br />
of the survey findings to address longerterm<br />
organisational issues and regularly<br />
seek improvements on proactiveness in<br />
keeping customers informed and flexibility<br />
to meet special needs.<br />
“ HIT scored well in customer service levels compared to other<br />
terminals in Hong Kong, China and the rest of Asia, and staff attitude<br />
also ranked highly. However, a significant area that could have further<br />
improvement is being more proactive. We have already taken<br />
concrete steps to address this pressing issue by increasing the level of<br />
communication with our customers and we will continue to address<br />
this area in our organisational developments. ”<br />
Ken Chou, General Manager -Strategic Planning, said:
China<br />
Magazine<br />
Deep water container port<br />
development underway at Gaolan<br />
The expansion of China’s economy<br />
and the rapid industrial and<br />
commercial development in the<br />
South China region have presented Gaolan<br />
with vast opportunities in shaping it to<br />
become an important shipping centre<br />
for production, distribution and<br />
manufacturing platform for the world.<br />
Strategically located at Zhuhai, one of<br />
the earliest special economic zones<br />
in China and most popular spot for<br />
foreign investment, Gaolan Port, or<br />
Zhuhai <strong>International</strong> Container<br />
<strong>Terminals</strong> (Gaolan) (ZICT(G)) as it<br />
is more commonly-known, is the<br />
only natural deep-water port on<br />
the western side of the Pearl River<br />
Delta (PRD).<br />
Driving the expansion at the<br />
port are the numerous growing<br />
industrial and manufacturing<br />
zones in Zhuhai, where foreign<br />
joint-venture manufacturers have<br />
migrated across the Pearl River to<br />
take advantage of the lower land<br />
and labour costs, and a range of<br />
tax incentives offered to newlyestablished<br />
businesses.<br />
“For two decades we have<br />
seen the eastern side of the PRD<br />
thrive with Shenzhen and<br />
Guangzhou becoming major<br />
production centres for global companies.<br />
In the last five to six years, companies have<br />
moved across the river and the industrial<br />
zones are rapidly growing as there is<br />
plenty of lower-cost land still available for<br />
development. Local, provincial and<br />
national governments are very supportive<br />
of this initiative as it is in line with their<br />
“Go West” policy. This environment is<br />
highly conducive to the development of<br />
our new dedicated container facilities,”<br />
said Alfred Leung, General Manager,<br />
Hutchison Delta Ports (HDP).<br />
Strategically, Gaolan is well-positioned<br />
on the western side of the PRD to<br />
consolidate cargo from the smaller river<br />
ports along the West River (Xijiang). The<br />
Phase I multi-purpose terminals are<br />
positioned to accommodate both<br />
container and bulk cargo, particularly coal<br />
for the local power plants and steel for the<br />
booming construction sector. Together<br />
with well-connected highways and<br />
railways network, cargo originating from<br />
the flourishing manufacturing bases<br />
throughout the entire South-western<br />
China region can now directly access<br />
Gaolan. The new phase, with more<br />
dedicated container berths, enables<br />
shippers in the region to further access<br />
international markets via Gaolan, making<br />
this region the gateway to the world.<br />
Collectively, with the growing trade at<br />
the HDP river terminals at Jiangmen<br />
<strong>International</strong> Container <strong>Terminals</strong> (JMCT)<br />
and Nanhai <strong>International</strong> Container<br />
<strong>Terminals</strong> (NICT), feeder services for both<br />
general and containerised cargo are made<br />
available and this enables shipping lines<br />
to get closer to the manufacturing centres<br />
in the PRD. Gaolan Port and all the other<br />
Delta Ports under the Hutchison Port<br />
Holdings (HPH) umbrella operate<br />
seamlessly and play an important part in<br />
contributing to the success of the Group.<br />
“As well as the ports at Nanhai and<br />
Jiangmen, there are other smaller ports<br />
with growing barge traffic along the West<br />
Gaolan Port Transportation Network<br />
River. Moving cargo by barge means that<br />
shippers do not need to incur highway tolls<br />
and delays due to traffic congestion can<br />
be avoided. In addition, a barge can move<br />
a large number of containers compared to<br />
one or two on a truck and trailer,”said Leung.<br />
With the rapid growth of economic<br />
and trade co-operation between China<br />
and the ASEAN countries, China has<br />
capitalised on the flow of goods traded<br />
between the region’s countries. Gaolan’s<br />
status as an important shipping hub will<br />
be further enhanced as China’s trade<br />
reforms result in significant economic<br />
growth for the country.<br />
HIT News, Spring 2005 5
6<br />
Information<br />
Technology<br />
Advanced security system on trial<br />
at HIT<br />
Safety and security are<br />
top priorities at all<br />
major container<br />
terminals around the world,<br />
and it is the same at<br />
<strong>Hongkong</strong> <strong>International</strong><br />
<strong>Terminals</strong> (HIT), where we are<br />
taking pro-active actions to<br />
pioneer the latest scanning<br />
equipment to help track the<br />
content inside the containers.<br />
As part of the Hong Kong Container<br />
Terminal Operators Association (HKCTOA)<br />
initiative, HIT has joined forces with the<br />
Science Applications <strong>International</strong><br />
Corporation (SAIC), a US-based research<br />
and engineering company to test the<br />
Integrated Container Inspection System<br />
(ICIS), equipped with radiographic imaging,<br />
radiation detection and Optical Character<br />
Recognition (OCR) technologies. The<br />
scanners are able to detect if there is any<br />
radioactive material and also if there are any<br />
suspicious materials inside the containers.<br />
A specially-designated ICIS truck lane has<br />
been allocated close to HIT Terminal 6 entry<br />
gate for testing the system, and is capable<br />
of scanning high volumes of containers in<br />
the normal flow of traffic. At the moment,<br />
there is only one other terminal operator<br />
at Kwai Chung besides HIT who is taking<br />
part in the same pilot project.<br />
“The drive-through scanning system at<br />
the two terminals at Kwai Chung is the first<br />
of its kind in the world. Similar scanning<br />
systems that have been supplied by SAIC to<br />
the other parts of the world are mainly stopand-go<br />
systems which are not suitable for<br />
coping with the high volumes of container<br />
HIT News, Spring 2005<br />
traffic at sizeable terminals such as HIT.<br />
The collaboration between HKCTOA<br />
and SAIC is aimed at testing the ICIS and<br />
ensuring that it meets the requirements of<br />
collecting the scanned images and data of<br />
all the containers entering the terminal<br />
through the gate, without disrupting<br />
normal terminal operations. If the ICIS is<br />
proven to be an effective solution for<br />
enhancing container security at the terminal<br />
and supported by the relevant authorities<br />
and the shipping community, it will be a<br />
natural progression for all terminal operators<br />
to adopt ICIS permanently throughout their<br />
terminals,” said Eddy Ma, General Manager,<br />
Terminal Operations.<br />
“We are anticipating that the US<br />
Customs will introduce tougher security<br />
measures, including the use of non-intrusive<br />
inspection devices to pre-screen containers<br />
at loading ports before they are loaded on<br />
ships bound for the United States. We are<br />
very confident that ICIS can meet even<br />
tougher requirements that are set forth by<br />
the US Customs,” he added.<br />
Also important to HIT is the impact the<br />
system has on traffic management both<br />
in the yard and also on the public highways<br />
leading to the terminal.<br />
“We have been monitoring the traffic<br />
flow through ICIS and whether it is causing<br />
a tailback onto the approach roads during<br />
peak periods. And the impact has been<br />
manageable so far,” added Eddy.<br />
“We have been in contact with the<br />
relevant government authorities to seek<br />
their views on the use of ICIS. For now,<br />
we are appraising the system with SAIC<br />
and HKCTOA and eventually when the<br />
system has been successfully tried, we will<br />
then consider the official use of the<br />
system,” said Eddy.<br />
ICIS System<br />
. Enables terminals to scan high<br />
volumes in normal traffic<br />
. Integrates data from many sources<br />
.<br />
.<br />
Reduces delays by collecting data<br />
quickly for later analysis<br />
Open architecture design facilitates<br />
integration and expansion
Customer<br />
Focus<br />
Hyundai Merchant Marine<br />
<strong>goes</strong> from strength-to-strength<br />
Hyundai Merchant Marine (HMM),<br />
one of the world’s major shipping<br />
lines, is expanding its container<br />
shipping operations on East-West and<br />
Intra-Asia routes over the next three years,<br />
according to Mr. J. K. Kim, Managing<br />
Director, HMM (HK) Ltd.<br />
“We have enjoyed considerable<br />
growth during the last three years and in<br />
order to meet future demand from our<br />
customers, we have ordered four Super<br />
Post-Panamax vessels with a capacity of<br />
8,600-TEU each, which will be de<strong>live</strong>red<br />
in 2008,” said Kim.<br />
“We will continue to achieve significant<br />
economies of scale by deploying these<br />
larger vessels on key routes, saving<br />
additional costs and making our operations<br />
more competitive. These ships will have a<br />
speed limit of up to 27 knots, which will<br />
help us become more responsive to<br />
customer demand.”<br />
These very large vessels have a<br />
maximum capacity of 9,000-TEU and<br />
comprise of the length of three football<br />
fields, some 339 metres from bow to stern.<br />
They also have a 45.6 metre beam and a<br />
draft of 24.6 metres.<br />
Additional HMM new vessels include<br />
an order for eight 6,800-TEU vessels, the<br />
first of which will be de<strong>live</strong>red during the<br />
second quarter of 2006 through to 2007.<br />
These larger vessels will be deployed on<br />
East-West routes, to be decided based on<br />
market demand.<br />
Completing the additions to the new<br />
container ship fleet are three 4,700-TEU<br />
vessels ordered in 2003 which are now<br />
under construction, and a further five<br />
vessels of a similar capacity which are due<br />
for de<strong>live</strong>ry in 2008.<br />
“We will be deploying some of the<br />
4,700-TEU vessels on Intra-Asia routes,<br />
again seeking economies of scale and<br />
competitive advantage by replacing<br />
smaller vessels,” said Kim.<br />
HMM is also looking to expand its<br />
presence in key Asian markets, notably in<br />
China, India and Vietnam during 2005.<br />
“We are opening our own offices in<br />
Ningbo, Mumbai and Ho Chi Minh City<br />
later this year to strengthen HMM’s<br />
presence in those markets. We have<br />
enjoyed sound financial results and are<br />
now looking to invest in areas where we<br />
see significant growth in the future,”<br />
said Kim.<br />
The HMM Group also has significant<br />
interests in bulk shipping, as well as a<br />
rapidly expanding fleet of petroleum<br />
product carriers.<br />
“HMM is also involved in container<br />
terminal operations and inland logistics,<br />
and we are continuing with our strategic<br />
investments in these sectors across Asia and<br />
around the world,” concluded Kim.<br />
HIT News, Spring 2005 7
8<br />
Quayside<br />
New crane de<strong>live</strong>ry to meet<br />
of giant carriers<br />
The next generation<br />
of Super Post-<br />
Panamax vessels are<br />
moving off the drawing<br />
board and into production<br />
in shipyards across Europe<br />
and Asia. Now HIT is taking<br />
steps to ensure that it can<br />
provide sufficient quay cranes<br />
to handle these new giants of<br />
the sea, well into the future.<br />
Five new quay cranes arrived at Kwai<br />
Chung recently from the Zhenhu Port<br />
Machinery Company (ZPMC) fabrication<br />
sites in Shanghai, all equipped to handle a<br />
reach of 23 containers across and a height<br />
of 43 metres. Three of these cranes have<br />
been deployed at designated HIT terminals<br />
throughout Kwai Chung.<br />
With vessels of 8,000-TEU already sailing<br />
the seas and plans for ships of more than<br />
10,000-TEU in the planning stage, container<br />
terminals have to ramp up their own facilities<br />
in order to accommodate these behemoths.<br />
These new 1,400 tonne cranes are part<br />
of an ongoing process at HIT to maximise<br />
the limited land available in the yard<br />
through automation, improved efficiency<br />
and increased productivity, according<br />
to Simon Wong, General Manager,<br />
Engineering Department.<br />
“In order to meet the need of handling<br />
a larger throughput of containers from<br />
Super Post-Panamax vessels, we have<br />
improved space management by stacking<br />
one over six and improved the<br />
performance of Rubber Tyred Gantry<br />
HIT News, Spring 2005<br />
Cranes through auto steering. This has been<br />
beneficial to overall yard handling<br />
performance. We have also upgraded<br />
container positioning determination equipment<br />
on yard cranes to accurately detect and<br />
retrieve containers,” said Simon.<br />
Saving precious seconds from quay crane<br />
move has a beneficial and cumulative impact<br />
on quay side efficiency. And the tractor<br />
alignment system has also proved to be a<br />
simple yet effective way of guiding drivers to<br />
the correct position for quay crane lifts. The<br />
yard crane lifts will be looked at next.<br />
“We use a set of lights that are<br />
illuminated when the tractor and trailer are<br />
in the correct position, without this the driver<br />
has to move his chassis backwards and<br />
forwards until the right alignment with the<br />
crane hoist,” said Simon.<br />
Eddy Ma, General Manager of Terminal<br />
Operations, looked at how the market was<br />
driving the change for larger vessels.<br />
“We are seeing an increasing demand<br />
for raw materials from China and<br />
manufactured products made in China for<br />
export around the world. Shipping lines are<br />
looking for economies of scale so as to reduce<br />
the cost of adding frequency to meet this<br />
growing demand for additional capacity on<br />
major east-west line haul routes,” said Eddy.<br />
“As a result of this, shipping lines are looking<br />
to deploy larger vessels to ensure that they have<br />
the capacity to meet this growing demand,<br />
particularly at the hub ports,” he added.<br />
With the larger vessels, increased draft<br />
is required in the access channel and also<br />
alongside the berth; and HIT has also taken<br />
the necessary steps to address this issue.<br />
“We have to pay close attention to the market<br />
and look at what is on the horizon in order to<br />
plan ahead. We have taken an holistic approach at<br />
HIT looking at how we can maximise efficiency<br />
in our 92 hectares facility which extends to<br />
operations on the quayside, quay lanes, container<br />
yard and the gates,” concluded Eddy.
demand<br />
HIT News, Spring 2005 9
10<br />
News<br />
A view from the top<br />
Ever wondered what it takes to<br />
become a quay crane operator?<br />
Well, it starts with a 24-day training<br />
schedule that includes theory, safety and<br />
on-the-job practical experience.<br />
Continuous assessment during the<br />
training period followed by a written test<br />
decides who will be selected to operate the<br />
giant waterfront cranes or the Rubber Tyred<br />
Gantry Cranes in the yard.<br />
“Our crane operators are given broad<br />
experience in handling all models of cranes at<br />
HIT during the training period,” said Lee Wing<br />
Chung, Superintendent, Terminal Operations.<br />
Such is the quality of the crane operator<br />
training in the yard, unmatched elsewhere,<br />
that the Hong Kong Government Labour<br />
Department has specially designated<br />
<strong>Hongkong</strong> <strong>International</strong> <strong>Terminals</strong> (HIT) as<br />
an approved centre for this course.<br />
“As an approved centre, we are<br />
authorised to train operators from outside<br />
HIT and upon the completion of the<br />
course, a list of licensed operators who<br />
passed our training programme will be<br />
submitted to the Labour Department<br />
where they maintain a record of all the<br />
certified cranes operators,” added Lee.<br />
This training also includes contractors from<br />
outside HIT who have no prior experience<br />
in handling the sophisticated machinery.<br />
It is a full-time job training and<br />
Cross-border rule relaxed<br />
China’s customs authorities have<br />
relaxed their cross border<br />
trucking rules, which would be<br />
greatly beneficial to shippers and trucking<br />
companies as their efficiency would be<br />
significantly improved.<br />
The old ‘four-up-four-down’ rule<br />
meant that driver, truck, chassis and<br />
container were considered one dutiable<br />
‘unit’ entering China from Hong Kong,<br />
and the same ‘unit’ had to return to<br />
Hong Kong complete, that is, in unit with<br />
the same registration details, in order to<br />
HIT News, Spring 2005<br />
deploying staff to operate HIT’s quay<br />
cranes, numbering more than forty to date.<br />
In addition, there are also on-the-job<br />
re-training programmes in place for new<br />
crane de<strong>live</strong>ries.<br />
“We ensure that our operators are kept<br />
well-informed, and trained only by highly<br />
qualified and experienced instructors, if<br />
there are any changes to the control<br />
systems of new cranes,” said Lee.<br />
The quay cranes at HIT are an integral<br />
part of Hong Kong’s skyline and the<br />
operators handling these 1,400 tonne<br />
machines have to have two to three years<br />
experience in the yard before they are<br />
considered to operate the cranes.<br />
“After two to three years in the yard,<br />
we look for RTGC operators who have the<br />
temperament and capability to handle the<br />
quay cranes and they then undergo<br />
retraining before they move onto the<br />
waterfront,” said Lee.<br />
So the next time you look at the giant<br />
quay cranes, remember the training and<br />
dedication that the operators need to<br />
operate the machines seamlessly. It is a<br />
wonderful feeling to operate the cranes,<br />
and a beautiful view from the top.<br />
avoid customs’ duty.<br />
Now the rule has relaxed. It is no longer<br />
a requirement for a driver with a laden<br />
container commencing its journey from Hong<br />
Kong to China to return in the same chassis<br />
and empty container. Now, only the same<br />
driver and truck have to return to Hong Kong.<br />
This change of rule means that truck<br />
drivers should be able to complete more<br />
journeys in one day, speeding up the flow<br />
of goods across the border and helping to<br />
improve the utilisation of trucks and drivers<br />
and equipment. Lok Ma Chau Border Crossing (photo courtesy of PMB)
ings<br />
virtual one-stop-shop to HIT<br />
IE<br />
ShareRing<br />
Crystal<br />
Outlook HRMS<br />
Enterprise<br />
HRMS<br />
Enterprise<br />
Emails &<br />
Calendar<br />
Past<br />
Throughput<br />
Reports<br />
Entrepôt is an inhouse<br />
portal that<br />
allows users to<br />
access a wide range of<br />
information and data through<br />
an integrated system.<br />
Key features include individual web<br />
pages that enable the user to customise<br />
their own home portal page incorporating<br />
a simplified log-in.<br />
“The idea is that everyone saves time by<br />
having access to job and task relevant<br />
information as soon as they log on to their<br />
home page. Previously, staff would spend<br />
an enormous amount of time searching for<br />
the information they need and accessing<br />
individual websites and databases. Now<br />
multiple links are accessible on one computer<br />
screen,” said Dr. K. K. Lai, Project Manager<br />
of Operations Development Department.<br />
Word documents, emails, Excel<br />
spreadsheets, charts and web pages can<br />
now be accessed directly through Entrepôt.<br />
HR<br />
Information<br />
“Ultimately the portal<br />
will save staff time and<br />
improve productivity for<br />
staff at HIT”<br />
ShareRing<br />
There are a range of e-services which<br />
all come under the Entrepôt umbrella,<br />
which means that much of the workflow<br />
can be automated.<br />
“For instance, we are currently<br />
working with Human Resources to enable<br />
staff to check their leave entitlement<br />
through Entrepôt, saving staff time in<br />
making individual enquiries via email or<br />
phone. In other areas we are also<br />
incorporating the regional engineering<br />
databases to see if there are some<br />
synergies between Business Units<br />
regarding availability and deployment of<br />
information,” added K. K.<br />
There are also useful external sources<br />
of information that HIT users can<br />
incorporate into their portal page such as<br />
general market information about the<br />
shipping market.<br />
Emails &<br />
Calendar<br />
Entrepot<br />
Throughput<br />
Reports<br />
Present<br />
HR<br />
Information<br />
“We wanted to develop a portal that<br />
was an aggregator of both day-to-day<br />
functional information such as email,<br />
calendar, tasks that were Internet-enabled<br />
with a high level of security that ensured<br />
that access to specific web pages was<br />
predetermined through the system, on a<br />
need-to-know basis,” said K. K.<br />
The next phase was really to provide a<br />
platform that incorporates the shared<br />
access of information between Business<br />
Units, strategic information related<br />
to all aspects of yard management,<br />
procurement, inventory and commercial<br />
information about customers.<br />
“Entrepôt also allows researchers to<br />
trace the authors of documents so they can<br />
quickly get to the source of the information<br />
they need,” added K. K.<br />
Finally K. K. looked to the future<br />
and considered the next phases of<br />
development for Entrepôt: “Ultimately the<br />
portal will save staff time and improve<br />
productivity for staff at HIT, our next goal<br />
is to extend Entrepôt to the Business Units<br />
under Hutchison Port Holdings in<br />
Southern China, then to all its global<br />
Business Units.”<br />
HIT News, Spring 2005<br />
11
12<br />
Events<br />
Record Turnout for HIT’s<br />
35th Anniversary Annual Dinner<br />
More than 60 percent of <strong>Hongkong</strong> <strong>International</strong> Terminal (HIT) staff, that is more than 1,000 people in<br />
numbers, turned up at the company’s Annual Dinner that was held at the <strong>Hongkong</strong> <strong>International</strong> Trade &<br />
Exhibition Centre on the evening of 24 February 2005.<br />
Marking the thirty-fifth anniversary of HIT, this event also featured an exhibition of photographs highlighting key<br />
events and milestones in the company’s history. The purpose of the exhibition was to enable new staff members to<br />
have an opportunity to learn more about the history of the company and its achievements.<br />
This event was made even more special with the attendance of three former senior managers, I. B. Kitchell, C<strong>live</strong><br />
Flegg and David Lewer.<br />
Guests were entertained throughout the night by a troupe of Indian drummers and dancers, a <strong>live</strong> band and group<br />
dancing, and left the night high in spirits.<br />
2005 South China Division (SCD)<br />
Management Seminar<br />
The annual HIT SCD Management Seminar 2005 was held on 20 &<br />
21 March in Macau this year, attended by more than 200 managers<br />
from the division.<br />
Mr. Eric Ip, Managing Director of HIT, kicked-off the seminar by<br />
giving an overview of the competitive environment of Southern China<br />
and providing an update on the new players in the industry.<br />
The focus of this year’s seminar is on “team building,” and several<br />
team activities were carried out to induce team spirits and generate cooperation<br />
among the members. Role-plays on selective market players<br />
were also carried out to enable participants to better understand the<br />
market situation and explore ways to react to unexpected changes in<br />
the marketplace.<br />
This year’s seminar was once again a huge success.<br />
HIT News, Spring 2005
Maiden<br />
Vessel Calls<br />
The M.V. MSC Maeva made its maiden call at HIT<br />
on 8 March 2005. The 8,089-TEU vessel originated from<br />
Chiwan and berthed at Kwai Chung for its onward<br />
voyage to Oakland, United States.<br />
Rugby Sevens<br />
More than fifty HIT staff and customers attended<br />
the Rugby Sevens 2005 that was held in Hong Kong<br />
over the third weekend of March. It was an exciting<br />
weekend that was full of adrenalin, as well as cheers<br />
and beers. Some were not so lucky though, who finished<br />
the games with a serious hangover!<br />
Visits<br />
Mexican Delegation<br />
HIT was delighted to receive a visit from Members of the<br />
Commission of Border Affairs of the Chamber of Senators<br />
of Mexico, Central Administrator of Customs Regulations<br />
of the Finance Ministry and the Consulate General of<br />
Mexico in Hong Kong on 26 January 2005.<br />
2005 Vice-Mayor of<br />
Xiamen Municipal<br />
Government and<br />
Delegation<br />
On 11 December 2004, a delegation comprising of senior<br />
officials from various Xiamen Government Bureaus and<br />
senior management of Xiamen-based companies visited HIT.<br />
Leading the delegation was Mr. Xu Mo, Vice-Mayor of<br />
Xiamen Municipal Government (fifth from right).<br />
HIT News, Spring 2005 13
14<br />
HIT People<br />
Looking at<br />
the changing face of HIT<br />
C. K. Poon, or better<br />
known to everyone<br />
as PCK, joined HIT<br />
in 1976 and has experienced<br />
some dramatic changes in yard<br />
operations and the industry as<br />
a whole. Now as Container<br />
Yard Operations Manager, he<br />
is surrounded by new<br />
technology, I.T. experts<br />
and is at the centre of<br />
HIT’s ongoing automation<br />
of yard operations.<br />
“The single biggest change in the last<br />
29 years is that there used to be many more<br />
workers in the yard, as we relied heavily on<br />
manual labour for our day-to-day<br />
operations in the seventies and eighties.<br />
Competitive pressure has led to many<br />
functions becoming automated and we<br />
now utilise technology more extensively.”<br />
“The next big change is the attitude of<br />
workers in the yard. In years gone by, many<br />
employees were happy to just do their work<br />
and return home. Now, there is a greater<br />
understanding that we are all working<br />
together to improve operations in order<br />
to benefit our customers,”said PCK.<br />
“Our staff now understand how HIT has<br />
to be more competitive and that everyone<br />
has a part to play in meeting our<br />
customers’ expectations. The company<br />
also provides adequate training to enable<br />
all staff members to improve in their jobs.<br />
Schemes like the Port Worker Development<br />
HIT News, Spring 2005<br />
Programme have been very successful, and<br />
it has enabled yard operations staff to move<br />
into management positions,” he added.<br />
Safety and security have also become<br />
primary considerations in recent times.<br />
Twenty years ago, yard staff relied on luck<br />
as a more relaxed attitude prevailed in<br />
waterfront operations in Hong Kong.<br />
“Now protective equipment is<br />
mandatory in the yard, safety helmets have<br />
to be worn and training is provided to all<br />
workers to reduce the risk of accidents. It<br />
is a lot safer now than in the early days<br />
when we relied on sheer luck,” added PCK.<br />
Security has also been a major<br />
consideration in yard operations,<br />
particularly during the last two years, and<br />
now sophisticated scanning equipment<br />
has been installed at HIT to reduce the<br />
risk of dangerous materials passing<br />
through HIT (Please refer to article on “ICIS<br />
Scanning” on Page 6).<br />
“We have a very well-trained safety and<br />
security department that works very closely<br />
with government inspectors and the<br />
police. They have very strict guidelines for<br />
all staff and contractors which help to keep<br />
the yard safe and secure. This is also a<br />
dramatic improvement from the days<br />
when I first worked for HIT.”<br />
On a social side, PCK is also the Head<br />
of HIT Annual Dinner Committee,<br />
whereby he helped to oversee and<br />
organised this annual event that was<br />
attended by more than 1,000 HIT<br />
employees in Hong Kong. (Please refer<br />
to the feature on “HIT 35th Anniversary<br />
Annual Dinner” on Page 12)<br />
PCK has been married for 31 years and<br />
has two daughters, Lai-yie, 29 years old,<br />
and Lai-ting, 27, and a son Cheung-hei<br />
who is 23. During his leisure time, PCK<br />
enjoys his time as a mahjong maestro,<br />
karaoke singing and horse-racing.
End of Legal Battle for<br />
River Trade Terminal<br />
Hong Kong’s River Trade Terminal (RTT)<br />
lost a six-year legal fight, meaning that it<br />
can no longer service ships carrying trade<br />
outside the Pearl River Delta. The decision<br />
by the Court of Final Appeal could slash<br />
the RTT’s revenues by as much as 50%.<br />
Singapore Signed New<br />
Agreement With US<br />
Singapore has signed an agreement<br />
with the US that allows the deployment of<br />
equipment to detect potential “dirty<br />
bombs” being trafficked through its port.<br />
The US and Singapore governments signed<br />
a declaration of principles that will lead to<br />
what described as “state of the art<br />
equipment” being deployed at the Port of<br />
Singapore to detect hidden nuclear and<br />
radioactive materials in shipments. The<br />
republic will be the first country in<br />
Southeast Asia to use the detection system<br />
in co-operation with the US.<br />
Planned IPO from<br />
Panalpina Group<br />
The Panalpina Group is set to go public,<br />
despite abandoning the idea a few years<br />
ago. The company said preparations for<br />
the planned initial public offering were<br />
scheduled to take place during the next<br />
few months to enable Panalpina to enter<br />
the stock market in Europe this year.<br />
FESCO Launches<br />
New Service<br />
Russia-based Far Eastern Shipping<br />
Company (FESCO) has launched a new<br />
service between the port of Busan in Korea<br />
and Sakhalin Island, Russia with a regular call<br />
every 12 days to support increased trading<br />
between the two fast-growing regions.<br />
Known as FESCO Korea Sakhalin Line (FKSL),<br />
the service’s port rotation includes: Busan -<br />
Ulsan or Masan (on inducement) - Korsakov<br />
- Kholmsk - Busan. FKSL is utilising one MV<br />
Pioneer vessel to handle all types of<br />
shipments, including heavy lift, breakbulk,<br />
roll-on/roll-off, and containerloads for<br />
bilateral and transshipment cargo from<br />
North America, Europe and Asia. If demand<br />
for the service is strong, a second vessel will<br />
be deployed to provide a fixed-day weekly<br />
service, says the company.<br />
New Rate Restorations<br />
To Be Implemented<br />
Members of the South East Asia and<br />
South Asia / Australia Trade Facilitation<br />
Agreement plan to implement rate<br />
restorations next month and later in the<br />
year. From April 1, rates for shippers<br />
sending cargo from Singapore, Malaysia,<br />
Indonesia, Thailand, Vietnam, India, Sri<br />
Lanka, Pakistan and Bangladesh to Australia<br />
are up by a minimum of $300 per TEU.<br />
Further hikes are expected in July and<br />
October. Member lines are: ANL<br />
Singapore, APL, Gold Star Line, Hanjin<br />
Shipping, HMM, K Line, Maersk Sealand,<br />
MISC, MOL, NYK Line, OOCL, P T Djakarta<br />
Lloyd, P&O Nedlloyd Limited, PIL and<br />
Regional Container Lines.<br />
Indian Government<br />
Committed to<br />
IWT Infrastructure<br />
The Indian government has made a<br />
commitment to improve the country’s Inland<br />
Water Transport (IWT) infrastructure.<br />
According to Minister of Shipping, Road<br />
Transport and Highways, Shri TR Baalu,<br />
priorities include: making the existing national<br />
waterways fully functional by providing the<br />
requisite infrastructure - terminals,<br />
navigational aids and so on; assisting IWT<br />
operators in acquiring suitable vessels<br />
through a vessel-building subsidy scheme;<br />
and encouraging private sector participation<br />
and public-private joint ventures.<br />
Asia Diary<br />
Drought Affects<br />
Thai - Laos Shipment<br />
Vessels transporting cargo between<br />
Loei in Thailand and the Luangprabang<br />
province of Laos stopped operating in<br />
February as this particular section of the<br />
Mekong River is drying up. According<br />
to Somchai Teeradamrongsak, deputy<br />
chief customs officer of the Chiang Khan<br />
checkpoint, Thai cross-border trade has<br />
ground to a virtual halt after seven<br />
months without rain. Cargo ships of<br />
between 100 and 200-tonne capacity<br />
could not make their regular journey<br />
between Thailand and Luangprabang,<br />
from where goods are normally<br />
distributed further inland in Laos.<br />
Vinpac Group Awarded<br />
Class A licence<br />
Hong Kong-based logistics company<br />
Vinpac Group has been awarded a Class-<br />
A licence for its branch office in Shanghai<br />
under the CEPA agreement. The Shanghai<br />
office is operating under the name<br />
of Vinpac Multitrans (China). Services<br />
include sea and air freight, land<br />
transportation, warehousing,<br />
transshipment, consolidated cargo,<br />
customs clearance, insurance, commercial<br />
inspections and transportation<br />
consultation in China.<br />
Many thanks to<br />
HIT News, Spring 2005 15
Community<br />
News<br />
Caring Company Award<br />
<strong>Hongkong</strong> <strong>International</strong> <strong>Terminals</strong><br />
(HIT) has, for the second<br />
consecutive year, won the<br />
“Caring Company Award” that was<br />
presented by The Hong Kong Council<br />
of Social Service (HKCSS). The Caring<br />
Company Award scheme recognises<br />
companies that fulfill at least two criteria<br />
among the following: volunteerism, being<br />
family friendly, employing vulnerable<br />
segments, partnering with the social<br />
service sector, mentoring of social<br />
organisations and giving to the<br />
community. This latest win establishes<br />
HIT’s ongoing efforts as a good<br />
HIT News, Spring 2005<br />
Chief Editor: Lily Chan<br />
Editor: Shirley Teo-Lam<br />
Writer: Russell Green - RTG Communications<br />
Graphic Designer: Derek Ying<br />
Terminal 4, Container Port Road South,<br />
Kwai Chung, Hong Kong<br />
Tel: (852) 2619 7557 Fax: (852) 2612 0083<br />
Email: gca@hit.com.hk<br />
www.hit.com.hk<br />
HIT News, Spring 2005<br />
corporate citizen, and recognises the<br />
firm’s active involvement and contribution<br />
to the community.<br />
Tsunami Relief<br />
Last Christmas should be a joy for all, but there was much heartache in<br />
Asia as a result of the Asia earthquake and tsunami. To help ease the<br />
sufferings and re-build the homelands for those affected, Hutchison<br />
Whampoa Limited (HWL) and Li Ka Shing Foundation have generously donated<br />
a total of HK$24 million specifically to this cause.<br />
Published by:<br />
<strong>Hongkong</strong> <strong>International</strong> <strong>Terminals</strong><br />
A member of the Hutchison Port Holdings Group<br />
"HIT News" is a quarterly publication by<br />
<strong>Hongkong</strong> <strong>International</strong> <strong>Terminals</strong> and is<br />
intended only as an informative journal on<br />
the company's business activities and<br />
issues related to the industry. No part of<br />
this magazine may be reproduced without the<br />
written permission of <strong>Hongkong</strong> <strong>International</strong><br />
<strong>Terminals</strong>. All rights reserved.<br />
The port operations of<br />
Hutchison Whampoa Limited