HIT Group Company Visit

Company Background

Hong Kong International Terminals Limited (HIT) was established in 1969, operated in Kwai Tsing Container Terminals. HIT is one of the world’s busiest container ports and owns 12 berths at 4 Terminals. HIT has been using advanced IT systems, equipment, and modern management techniques to improve productivity and efficiency of the operation.  HIT has expanded in the Pearl River Delta to develop its cost-effectiveness and efficiency port and logistics network, so that HIT can create an integrated supply chain network with a full set of logistics value-added services.

Introduction by HIT's Representative

The representative came from Human Resource Team and she was responsible for introducing her company to our class during the visit. Firstly, she introduced HIT’s infrastructure, history and future development in Hong Kong.

She mentioned that Hong Kong was regarded as a free container port, which meant containers could enter in or out without inspection by customs offices. This can save a lot of time and cost. Besides, she started to introduce more about HIT’s infrastructure and facilities. About twelve berths at Terminals 4, 6, 7 and 9 are operated by HIT. Equipped with the latest quay cranes capable of handling 24-across container vessels.

Next, she showed a timeline of the comprehensive development history of HIT from the establishment of HIT to the present. For the most significant development of HIT was the Yantian International Container Terminals in Shenzhen. The container throughput has reached 123 million, even more than Hong Kong. In the future, HIT plans to build a strong relationship with other oversea terminals.

Secondly, it came to Q&A session and finally led us to walk around the container port.

Guide Tour

We first came to the exhibition room of HIT. A big demonstration screen showed HIT's name and logo. A staff with HIT staff card came out and self-introduce herself. She came from Human Resouces Team and she would guide our visit for the visit. She firstly introduced the background information of HIT. HIT was a member of HTH Trust and regarded as the largest international container port in Hong Kong. 

At this moment, the screen showed a timeline of HIT history. The staff explained what happened at each year and pointed out some significant event of HIT, like HIT handled its 100 millionth TEU in 2006 and developed Yantian International Container Terminals in Shenzhen since 2009. 

In this picture, it showed that the general information of the Ports Yantian. The total area of Ports Yantian is 373 HA, the berth length is 8212 metre and the deep alongside is 14 to 17.6 metre. 

Yantian International Container Terminals (YICT) is a natural deep-water port and the leading gateway serving import and export container traffic generated by its immediate cargo hinterlands. 

After that, we came in front of a model that displayed the complete container terminal. The staff continue described the basic facilities and route of the terminal. 

Here was an earth model showed the old pictures of the terminal. 

Next Generation Terminal Management System (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.

The Operations Monitoring System (OMS) helps operators visualise terminal operations and container stacking information. Graphic overviews cover the entire container yard down to the details of an individual container, and this predicts yard congestion so that operators can take pre-emptive action.

There are a lot of containers at the port. 

Container ship carried the hugr amount of cargo and was waiting to unload on the port. 

The container-lifter was ready to lift the cargo. 

The container truck was used to carry the containers. Finally, we ended this visit.

HIT has introduced a lot of new technologies in its operations to improve efficiency and customer satisfaction. How does HIT help its front-line staff adapt to these new practices?

In order to help front-line staffs adapting the new practices due to introducing new technologies in daily operation, HIT provides job training to the staff for them to familiar with new practices. Since on job training is conducted at the job site, this will also minimize the influences to the productivity.

Moreover, there is a remote operation system in HIT. This system can help to provide a better working environment and at the same time provide help to the front-line staff if they need.

Question and Answers

Q. How far is it until HIT reaches its freight handling capacity and is there any consequent plan in response to this issue?

The capacity of freight handling in HIT is almost full. So, HIT should improve the inventory management to maximize the use of capacity.  For example, it developed a demand strategy to calculate the  expected demand more accurately.

Apart from controlling the inventory, HIT fighting for more space and land from the government for containing more containers.

Q. There are many ports located in Mainland China and some of them such as Shanghai, Dalian and Qingdao contain superior geographic advantages. How can HIT overcome the challenges brought by main ports in the mainland?

HIT, the port in Hong Kong, usually acts as an intermediate destination of the shipment. After combining small shipments into a large one or dividing the large shipment at the other end, the shipment will then be transferred to another destination.

Although it is cheaper to handle the containers in the mainland, there are still some characteristics of HIT which make the company remains competitive. The most important one is the free trade policy of Hong Kong. Most of the containers are not required to perform random checking while arriving Hong Kong unless HIT receiving notification from the Customs, suspecting the shipment is violating the law. With the aid of high productivity of HIT, the ports in Hong Kong is known as the world’s leading “catch-up port”, where time lost on the route is assured to be made-up at the facilities. This enviable reputation can help HIT overcome some of the challenges brought by the mainland. ​

Q. HIT has introduced a lot of new technologies in its operations to improve efficiency and customer satisfaction. How does HIT help its front-line staff adapt to these new practices?

HIT used the Next Generation Terminal Management System(nGen) to increase their operations efficiency. 40% harbours in the global are using this system. nGen can control the entire scope of terminal operations, including ship and yard planning, gate operations and vessel operations.

For adapting these new technologies, HIT will provide a set of on-site training for staff to improve their capability of using these softwares. With using these new technologies, the controllers are allowed remote operation in operation centre. It can improve the working condition.  

Q. What are your competitive advantages over your competitors in the logistic industry?

The major competitive advantage of HIT over the competitors in the logistic industry is the infrastructure and technology introduced to the operation. HIT has already been using an eProcurement system and an eFinance system for back-office automation. Moreover, using the nGen operation system, developed by HIT in-house, to run its fleet of automatic stacking carriers and quay cranes will also increase both efficiency and productivity at the port.

In terms of customer service, the commercial team of HIT will also provide extra help on request by the customer. For example, HIT can provide extra equipment if it is needed for the ship parking at the port.

Q. What role does HIT hope to play in the Chinese Government’s One Belt One Road Initiative?

HIT plays an important role under the policy as HIT has more than 20 harbours, which are the transportation points in the One Belt One Road. It is important to import and export products between different countries. Thus, HIT has more opportunities to provide service in this new channel and expand new customer base.

Q. Asian shipping industry has been suffering from sharp declines in recent years due to more and more factories have been moving to Africa, how will HIT react to this unfavorable trend?

Although we saw that more factories have been moving to Africa, it did not directly impact in the operation aspect of HIT. However, it should point out that the decline of shipping industry can be contributed to the dropped of global trading. It is a challenge for HIT as it will directly affect the demand for service of the container terminal.

Q. How HIT can achieve the highest operating efficiency of the immediate

transhipment with the lowest operating costs?

HIT has a transportation team especially for internal transshipment. The transportation team is needed to transport merchandise between harbour and warehouse. In order to reduce the cost of inbond transportation, HIT developed a system that it will calculate the distance between harbour and the trucks. Then, it will arrange the most nearest and available truck to take the transport order. Under this strategy, HIT can reduce the delivery time and the operating cost.

Q. What are the major challenges faced by HIT in their daily operation?

As HIT applied some advanced system for operation and monitored by professional teams, it can perform stable and effective daily operation. However, it would has exception during some special situation such as the  extremely bad weather. The impact of  the special case is unpredictable so HIT have to formulate some emergency plan to response it.

Q. What exact measures does HIT incorporate into its daily operations to align with its corporate value of environmental protection?

HIT has implemented some environmental plans. For example, 90% of the diesel-driven RTGCS converted into hybrid RTGCs. The change of fuel is environmental-friendly as Hybrid RTGCs consume 30-50 % less fuel than diesel-driven RTGCs, produce 50% less carbon emissions.

Also, HIT keen on developing renewable energy in response to sustainable development. For example, the has developed the shore power in Yantian, one of the container terminal of HIT.

Shore power or shore supply is the provision of shoreside electrical power to a ship at berth while its main and auxiliary engines are shut down. When vessels use shore power, they tap landside electricity for their power needs at berth instead of running diesel-fuelled auxiliary on-board engines. Using shore power reduces noise and emissions, including CO2 and SO2.