Transformation to Enable High Performance in Ports

Managing Terminal Operations
A starting point of any terminal
business remains the ability to
optimize the productivity of its
infrastructure, including the ability
to respond to the evolution of mega
vessels. But worldwide, terminal
operations are expanding from a
focus on “box shifting” to “service
flexibility,” which is key both to
attracting and retaining customers and
to maximizing profitability. Effective
terminal operations management
enables ports enterprises to extend
and leverage this operational agility
and thus, achieve high performance.
Increasingly, port businesses are
aligning their operations with the
requirements of shipping lines, which
are moving from port-to-port carrier
services to door-to-door logistics
providers. High performers in terminals
are already focusing on “mass
customization” – providing tailored
services that meet each customer’s
needs within an efficient operational
framework. Through supply chain
integration and other measures, they
are able to meet the varied demands
of shipping lines and other port
users, such as guaranteeing response
to late and unexpected changes
in schedules and requirements.
Greater workforce and capacity
flexibility, driven by well-managed
information processing and backed
by timely and deep management
statistical support, are essential.
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Good terminal operations management
strives to constantly deliver
more with less; that is, to deliver
improved manpower and asset
productivity and operational agility,
operating with lower unit resource
requirements and unit costs.
The distinctive capabilities building
block of a high-performance
business (see side box) usefully
frames the issues facing port
enterprises in this area. Tactically,
ports should take measures such
as an integrated berth-and-yard
planning strategy, maximizing
equipment utilization and reduction
of nonvalue-adding movements.
To improve terminal operations
management capability, operators
need to look beyond core terminal
operations. Transaction-oriented
processes in terminal operations
are the focus of a four-pronged
approach. Firstly, scenario analysis
supports decision making to optimize
resource deployment as early as
the planning stage; secondly, cost
analysis can control bottom-line costs
in fulfilling service commitments
and reviewing asset, manpower and
contractor performance and costing;
thirdly, process integration with
industry stakeholders is the basis
of integrated planning and service
integration with upstream and
downstream partners; and fourthly,
process integration with enterprise
functions (such as engineering repair
and maintenance) enhances crossfunctional
process efficiency.
Well-implemented terminal operations
management drives the construction
of a solid operational capability. As
with terminal enterprise management,
port businesses that leverage
terminal enterprise management
to deliver best practices that are
replicable in capacity expansion
are securing the future value of
the enterprise as it takes on the
challenge of growing dynamically.