HIT (7 April 2014)

Hongkong International Terminals (HIT) is a member of HPH Trust, the world's first container port business trust listed in Singapore. HIT is also a part of HPH's 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 and 9 and another two through its joint venture with COSCO Pacific Limited at Terminal 8 (East). HIT and COSCO-HIT handle over 50 per cent of Kwai Tsing's container port traffic.

Established in 1969, HIT has continuously set the 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 the centre of excellence for the group, Hutchison Port Holdings. 

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 HIT does not closely link to railway, it is not a disadvantage. The geographical location of Hong Kong harbor already have a benefit. There is a natural deep water harbor in Hong Kong that can be berthed by huge ships. Some harbor in other countries are not available to large ship. This natural benefit could allow Hong Kong to become the main hub in world trading. Moreover, the customs declaration system in Hong Kong is convenient which could facilitate the logistic business also. Without railway, there are still many opportunities for the business of HIT.

2. 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?

     Although the export amount of some China container port operators are much larger than those in Hong Kong, the target market of them are different from Hong Kong. In Hong Kong, over 70 percent of export are indirect export with 30 percent direct export. On the contrary, the business of Shenzhen container port, for example, operates with 70 percent direct export with 30 percent indirect export. Therefore, the target markets are different and are not totally compete fiercely against Hong Kong. 

Furthermore, HIT is focused in continuously improving the efficiency. Even though, the area of Hong Kong container port is comparatively much smaller than that of China, the exporter still can handle large amount with cargo in a efficient way.

3.      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?  

HIT mainly have 3 policies for improving the relationship between employer and employee.

1. HIT always improving the facilities of labors. For example, in the recent year, they increase the number of toilets and the lounges of labor a lot. They also refurbished the lounge of labor.

2. HIT have a remote operation system. That's mean some of the labor no need to work on the goods yard, they only need to control the crane or other heavy machineries in a indoor site, which improving their working environment a lot.

3.HIT always increase the communication between worker and employer. They offer many briefings to both their employee and sub-contract workers.

4.      What contingency plans for the extreme situation of bad weather just like black rain extreme weather last Sunday?

Before the bad weather such as signal number 8 is hoisted, HIT will stop the empty cargoes transaction and the cargoes will be leashed with thick ropes. Also, HIT will inform ship company that container ship cannot be parked.
After the signal number 8 is hoisted, there is instruction that all staffs except emergency staffs must go to buildings until typhoon signal is off. HIT keep close contact with Hong Kong Observation to get latest weather information. 

5.      To run such a huge container port, we know that HIT have applied lots IT system such as Next Generation Terminal Management System (nGen), Operations Monitoring System(OMS), Radio Data System(RDS) etc. In order to well-organize it among those systems, which systems that your company value most that your company is proud of it?

Among those IT systems applying in HIT, nGen is the main system for HIT. nGen is a system invented by HIT and has been making a difference for customers since 2005. nGen controls the entire scope of terminal operations, including ship and yard planning, gate operations, and vessel operations; plus overall operations monitoring, equipment utilisation, productivity, and costs optimisation. By using nGen, HIT has highly improved its efficiency.

Learning Reflection

After visited HIT, we have learnt how to apply the high technology into logistic system such as nGen etc. Also HIT also is a important terminal in Hong Kong. We have traveled around the terminals and saw the different between the traditional and new technology. HIT is improving the working condition so as to improve the labor welfare.

source:
http://www.eurobrandsindia.com/blog/2010/04/04/market-entry-india-part-iii-exporting-to-india/
http://www.federalreserve.gov/pubs/ifdp/2005/831/ifdp831.htm
http://www.hit.com.hk/en/Innovation/Improving-Efficiency.html
http://hk.next.nextmedia.com/article/1231/17075618