Company Visit - HIT

Company Visit - HIT

Date: 9 April, 2014

Background

Hong Kong International Terminals (HIT) is a member of Hutchison Port Holdings Trust (HPHT), the world's first container port business trust, which is listed in Singapore. Situated in Kwai Tsing container port area of Hong Kong, HIT operates twelve berths at Terminals 4,6,7 and 9. Since its establishment in 1969, HIT has played an important role in the port industry both in Hong Kong as well as within the HPH global network of ports. Over the past four decades, HIT has continuously set industry benchmarks for productivity and efficiency. With modern management techniques, cutting-edge computer systems and award winning IT applications on port operations, HIT is a pinnacle of industry excellence. 

As global trade and the needs for supply 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 final goal is the creation of an integrated supply chain network, with thorough logistics management services.

Feedback

In this company visit, we had been thoroughly exposed the application of logistics and supply chain management, also the real-life operation and industry practices of the world's leading port developer. Firstly, the friendly guide displayed us some diagrams about the HPH's international network, comprises 319 berths in 52 ports, spanning 26 countries throughout Asia, the Middle East, Africa, Europe, the Americas and Australasia. Over the years, it has expanded internationally into other logistics, transportation-related and hotel businesses, including cruise ship terminals, distribution centres, railway and repair facilities. In fact, the HPH port network handled a combined throughput of 76.8 million TEU worldwide up to 2012, which reveals its well-established assets and industry-leading reputation.

Afterwards, we took a glance at the Control Tower and IT demonstration of Terminal Management System, which ensure shipping lines receive world-class service. A terminal-management platform that controls the entire scope of HIT's operations, such as yard planning, entry/exit gate monitoring, equipment utilization and cost optimization. Several activities throughout the terminal are coordinated in here, using the Operations Monitoring System (OMS), which provides a detailed overview of terminal operations, together with Closed-Circuit Television System (CCTV) and trunk radio systems. Other softwares, like the Tractor Appointment System, Tractor Identity Card System and Mobile Terminal Message System, render information to external drivers that facilitate the speed of delivery and collection of containers. 

Finally, we had participated the guided tour by HIT shuttle bus, which illustrated the operation process for an export container from the time it is received at the terminal gate until it is loaded onto a vessel; while there are some spot highlights that features important facilities and locations, such as entry/exit gates, parking area, quay cranes, RMGC and etc. 

Q&A Section

1.      It is important for company to be sustainable. How do you handle the policy of CSR to create a sustainable business?

Ans: As a leading container terminal, HIT is committed to protecting natural environment and resources in our earth, and also to conduct business in an ethical and socially responsible manner, like recycling energy, promoting traffic safety and educational programs. manner.

2.      How do you expand your scale of business when there are limited spaces in KWAI CHUNG? Will there be saturated one day for HIT to handle the cargo?

Ans: They answered that HIT strives for implementing the IT systems to optimize the capacity utilization in Kwai Chung port, moreover, it is crucial to speed up the cooperation between processes so that the delivery time of cargo distribution can become faster. Another supplementary place for port containers would be Tuen Mun. 

3.      How would you adapt or utilize the new infrastructure of the government, Hong Kong–Zhuhai–Macau Bridge?

Ans: It can facilitate more river trades between Hong Kong, Zhu Hai and Macau, where those places are the main transshipment port for exports and imports. As a result, the overall deistribution network can become wider and more convenient to save delivery time.

4.      How would you settle the industrial relation issues, have you found out any better methods after the terminal strike last year?

Ans: HIT announced a new incentive programme in 13 April 2014, in order to share the fruits of economic success with workers in a bid to maintain the status of the Hong Kong port as a transhipment hub. Under the incentive programme to be launched on 1 May, over 95% of workers who maintain their productivity at the same level as the second half of 2013 and work on their normal shifts will receive an incentive income equivalent to 4.1%. 

5.      How do you avoid errors when handling that massive amount of containers everyday?

Ans: HIT makes every effort to strictly monitor the ship and yard operation through multiple IT systems which are stated as above, so as to reduce the mistakes that troubles the customers. 

6.      What are the contingency procedures in case of natural disaster such as adverse weather condition?

Ans: To prevent the loss and damage, HIT has settled various shelters, warehouses and specific industry equipments to protect the cargoes against the adverse weather condition, like typhoon, flood, heavy rains and so on.

7.      As there are some rumours and scandals of HIT being explosive of labours, what will HIT do to improve images and motivate the workers?

Ans: HIT has reached agreement with external contractors on service contracts for 2014-2015. External contractors have simultaneously announced a pay raise for workers amounting to 10.1%. The pay increase includes 6% in basic salary and an additional 4.1% in incentive income. The 6% raise in basic salary is higher than last year’s inflation rate of 4.3%.  

8.      How do you enhance its competitiveness among those strong players, e.g Shanghai, Singapore?

Ans: To enhance the competitiveness, Hong Kong should initially recognize its natural endowments for a freeport, which refers to the high transit time and reliability on delivery cargoes. Then, it should keep on to continuous improvements on economic advantages, like duty-free, mature financial infrastructure, state-of-the-art Information Technology and human resources expertise. 

9.    How do you track the cargoes to see whether there is any dangerous or illegal goods?

Ans: It should be mentioned that a specifically monitored area is used to handle those dangerous or illegal goods, like chemicals.