Operational
Review
FUTUREPROOFING OUR OPERATIONS
Despite softening market conditions and economic uncertainties,
the Trust was able to deliver on major growth targets and
proactively took measures in light of new challenges, changing
customer demands and increasing stringent environmental and
safety regulations.
Trust-wide asset enhancement over the years resulted in numerous
operational accomplishments in 2015, most significant of which
were the Trust’s Hong Kong operations achieving its 200 millionth
TEU and YICT receiving four mega-vessels simultaneously for
the first time in June. Simultaneously servicing three 18,000-plus
TEU container vessels, along with one 11,000-plus TEU vessel
concurrently, was a testament to YICT’s superior mega-vessel
handling capabilities in the region.
At the core of this was a significant push to further increase
operational productivity and eciency, and to encourage
innovation in a way that enables the Trust to enter into new cycles
of progress and value creation. Vigorous steps in the form of
expansion plans, investments in new technologies and equipment,
process improvement, training, as well as enhancements to the
work environment were undertaken in 2015.
These initiatives laid the groundwork for stable full year results
reflective of the Trust’s solid fundamentals, foresight, adaptability
and resilience. Although full year throughput dipped slightly, cost
and tari improvements helped deliver an increase in operating
profit. To continue safeguarding the interests of its unitholders,
partners and employees, the Trust embarked on a drive to
futureproof its assets: its Ports, People and Processes.
PORTS, PEOPLE, PROCESSES
In line with the strategy of “Optimising for the Future”, the
Trust has committed to a HK$1.8 billion equipment investment
plan to acquire or upgrade its assets to facilitate long-term
development. New plans were also put in place to modernise
port infrastructure, augment handling capacities and
capabilities. Initiatives included, but are not limited to the
installation of mega QCs, RTGCs and purpose-built barge QCs.
In 2015, YICT welcomed four new QCs. With a higher lift height
of 52 metres and a longer outreach of 70 metres, each of the
new QCs serve to accommodate the increasing number of
mega-vessels around the world. To enhance its yard stacking
capacity and container handling eciency, YICT also received
22 1-over-6 RTGCs that can stack up to six tiers of containers. In
Hong Kong, HIT took delivery of two new QCs with lift height of
46 metres and 12 1-over-6 electric RTGCs.
As part of an ongoing review of its operations, the Trust
launched the BOXplus Building Operations Excellence project
in February 2015. This 40-week eciency enhancement
programme focused on reducing vessel turn around time by
7-10%. To achieve this goal, a cross-functional team worked to
streamline operations, enhance handling capabilities, optimise
resource utilisation, reduce crane-maintenance related
downtime and improve customer service.
This pilot project, supported by the operations, engineering and
commercial departments of HIT, concluded with significant
improvements in berth productivity and accuracy of estimated
time of vessel departure while reducing operational delays
and preventive maintenance related downtime. These results
translated to savings in cost of services, particularly during
the third and fourth quarters. Lessons from this project will be
brought to scale and applied across the Trust’s other assets to
ensure best practices are replicated.
In 2015, HIT conducted a trial run of remote-controlled
RTGCs. These cranes are operated remotely from an oce
environment, improving operator comfort and workplace safety.
Technologies utilised in this project include high speed data
transmission networks, leading Radio Frequency Identification
(“RFID”), optical recognition, and cameras that deliver live
videos. After extensive testing, four remote-controlled RTGCs
were successfully deployed at HIT’s Container Terminal 9.
Following the completion of this trial, HIT will convert another 25
of its conventional RTGCs to remote-controlled RTGCs. Trucks
will be equipped with RFID to enable automatic identification
as they pass through dierent checkpoints inside the terminal.
These initiatives will support the Trust’s goal of improving
operational eciency, industrial safety and providing an
improved working environment.
In 2015, the Trust continued to use technology to help centralise
control, improve berth and yard utilisation and oer real time
feedback necessary for quicker response. Critical investment
was made in the area of communications, where it adopted 3G
internal tractor pagers as a next step to strengthening in-yard
wireless signal reception capabilities and lowering internal
tractor turnaround times.
Similarly, automation has become the backbone in
revolutionising port management. With an annual throughput
of over 12 million TEUs, the location and eciency of YICT’s
OPTIMISING FOR THE FUTURE
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