Transformation to Enable High Performance in Ports

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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. 6 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.
The Path to Growth The journey to becoming highperformers will vary from one port enterprise to another. Each business operates in a unique business environment, has a growth pattern and direction, inherits a cultural background and a history, and runs its own legacy processes and systems. Yet every port business stands to gain from visionary management and the structured strengthening of capabilities. Business leaders with foresight are adopting a blueprint-driven approach to growth for their business and drawing up a road map to become a high-performer, looking to systemize the creation of enterprise value built on three capabilities – terminal performance management, terminal enterprise management, and terminal operations management. Contact For more information on high performance for ports, please contact: Patrick Leung patrick.w.leung@accenture.com The key issue for any port aspiring to achieve high performance is the criticality of the window of opportunity today. As market growth continues apace, we are at a moment when existing market leaders may cement an outright leadership position, or when challengers may rapidly capture the new business and change the dynamics of their environments. The port enterprises that can systemize their business operations on a firm footing and replicate them rapidly will be the clear winners in the very near future. The time is now.
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Transformation to Enable High Performance in Ports

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