of our initial investment in 2011, but we also recognised a gain of
approximately HK$155.5 million in the quarter.
The Trust held notable records in other respects in 2015 as well.
In June, YICT simultaneously handled four mega-vessels – three
18,000-plus TEU container vessels, along with one 11,000-plus TEU
vessel. This was a significant first for the Trust, reinforcing YICT’s
position as a mega-vessel hub in the region. As the port operator
with the largest capacity to service mega-vessels in South China,
YICT continues to be the preferred port-of-call for this vessel type.
Plans are underway to enhance the mega-vessel handling
capabilities of our ports. The first berth of West Port Phase II
commenced operations in February 2016. In 2016, we also
expect the completion of the YICT Phase III Expansion South
Berth, which allows us to handle the increasing number of calls
from mega-vessels.
In October 2015, the Trust’s cumulative throughput in Hong Kong
reached 200 million TEU – the result of hard work, a collaborative
relationship with local industry and our reputation for speed,
reliability and ecient terminal management.
OPTIMISING FOR THE FUTURE
Shipping lines continue to augment their mega-vessel fleets,
form carrier alliances and expand the coverage of vessel-
sharing schemes to achieve economies of scale, enhance
eciency and strengthen competitiveness. The rise of mega-
vessels and formation of shipping alliances call for superior
handling capabilities and better vessel berthing management.
Capacity must be eectively managed to ensure a steady and
stable supply of berths.
“Optimising for the Future” was our guiding theme for 2015. The
key initiative was to continuously review and improve our internal
processes and resource deployment eciencies, leverage
our advanced port infrastructure and systems to achieve and
maintain world class best practices and capabilities. Through
better resource planning and allocation, continuous process
improvements and internal process reviews, we were able to
further strengthen our core competencies and dierentiate
ourselves as the preferred service provider in the region.
This initiative also meant driving productivity without
compromising safety standards, and maintaining profitability
against a backdrop of diering economic cycles, rising
costs, general volatility and unpredictable demand. In
2015, our emphasis was on deploying high-tech, intelligent
port management operations and infrastructure, providing
scalable solutions, nurturing a strong culture of innovation and
empowering our workforce. The key highlight was our HK$1.8
billion equipment investment plan to sustain the long-term
development of the Trust’s assets.
In the area of process improvement, we launched BOXplus
(Building Operations Excellence), a 40-week efficiency
enhancement study, at HIT. This project was the first large
scale endeavour to reduce vessel turn-around time, streamline
operations, enhance handling capabilities, optimise resource
utilisation and crane maintenance and improve customer
service. After 10 months, HIT achieved marked improvements
in berth productivity and accuracy of estimated time of vessel
departure, setting an important milestone in the Trust’s pursuit
of eciency.
PAVING THE WAY FORWARD
Our success is built on the eort and support from our people,
who have always been the core of our operations. We therefore
focused highly on sta development initiatives during the year,
oering a series of educational programmes, skill competitions,
apprenticeships and internships. These initiatives were designed
to better empower our workforce with the latest skills and
knowledge and also foster better teamwork.
Cargo volumes for 2016 are expected to remain soft given the
cloudy global trade outlook and anticipated eects of a China
slow-down. However, we are encouraged by gradual recoveries
of economic activities, as well as improving trade relations in
other markets. We anticipate a stable U.S. economic outlook for
2016 and a mild increase in U.S. outbound cargoes, but believe
that volumes towards Europe will likely remain flat.
Looking ahead, the Trust will benefit from the groundwork laid in
2015 around eciency and infrastructure improvements. As we
head into 2016, we remain committed to enhancing the quality
of our assets, our operational fundamentals and our returns
to Unitholders. We will continue to focus on tari and cost
improvements, and work towards shaping the Trust to become
even more future-ready in the years to come.
FOK Kin Ning, Canning
Chairman
019
ANNUAL REPORT 2015
HUTCHISON PORT HOLDINGS TRUST
