Post Visit Review of HIT

BRIEF BACKGROUND INFORMATION OF HIT

Hong Kong International Terminals (HIT) which is located in Kwai Tsing port is one of the busiest containers port in the world.It operates twelve berths at Terminals 4, 6, 7 and 9 From 1969, HIT continuously to devote effort in other to enhance its efficiency, capacity, technology systems and value-added services. 

Q&A SECTION

1. HIT owned a special management system called nGen, it is a system that control the whole function of the terminal. What are the competitive advantages you gained from it? If nGen encounter any technical or unexpected problems, are there any safety measures for HIT to continue the terminal operations? 

HIT is using Next Generation Terminal Management System (nGen) to manipulate the whole terminal which has making a great different to itself and customers. According to the introduction of nGen, it controls the entire scope of terminal operations, including ship and yard planning, gate operations, and vessel operations; plus overall operations monitoring, equipment utilization, productivity, and costs optimization. This totally enhance its efficiency and also provide immediately real-time situation and alert to the control center . This can save more resources so HIT can utilize its resources in a more efficiency way. Furthermore, as nGen is created by HIT, it can match customer needs without reprogramming and compiling. With nGen system, it is surely a competitive advantages for meeting the increasing productivity and capacity of the terminal in the coming decade.

On the other hand, once nGen encounter any technical or unexpected problems, HIT still has reserved three systems for backing up the nGen system for 24 hours running. Therefore, it should not be a great affect even nGen has encountered any problem as there will be sufficient time and support for nGen to run probably again by temperately using the three supporting reserve systems.

2. The Terrorist like ISIS become more and more popular. What measures has HIT taken to ensure the safety of the cargos? How can you prevent the prohibit products inside the cargo?

In fact, HIT controls only the port and logistics operations, HIT does not have information about what’s inside the cargo by themselves, unless HIT was told to handle some specific dangerous goods. In that case, HIT’s Safety Management System’s explicit safety rules and regulations cover the handling, transporting and storage of those goods. So basically HIT does not hold the responsibility to check every cargo’s safety but the Government of the Hong Kong Special Administrative Region and customers themselves.

3.  The cost like the wage of labor is increasing. What measures has HIT taken to deal with the increasing cost?

With the operation cost increase, the HIT has capitalize the operation process from labor incentive to machine. They increase the usage of machine and lower the daily operation cost. Moreover, the usage of machine make the operation efficient and smooth. This factors may lead to economic of scale.

4. There are always typhoons hoisted in Hong Kong during summer. How serious would the typhoon affect your operation?

As explained to us by our guide, typhoons and rough weather conditions rarely, if ever affect HIT operations. They operate 24/7 and only terminate operations if the said weather conditions are extreme. Hence, I think for that to happen, in a figure it would be typhoon no.9/ 10, Increasing gale or storm, and Hurricane, respectively. If HIT does not take the correct precautions to counter the above mentioned weather conditions they may be putting their large workforce at heavy risk, in addition to risking the safety of the carriers and goods present on the site. Therefore, while HIT may not need to worry about the regular rainstorm or two, they do however need to be extra precautious about more serious weather conditions.

5. What are the effects to your company after the labor strike?

2013 Hong Kong dock strike caused huge losses on profits for HIT. And it ended with 9.8% salary raises to labor. It was no doubt that the longest labor strike in HK history triggered big losses to dock business, however, it revealed the weaknesses of HIT, such as shabby work conditions and long work hours. Therefore, it was an opportunity for HIT to change the situations and keep the leader position. Nowadays, these problems get relative good answers.

6. How does HIT get involved in corporate social responsibility?

As one of the most famous transportation companies, HIT involved in lots of public social activities. According to the staff, HIT holds some activities to help old who live alone. Also, HIT cooperate with university students who study arts to make some trash cans to promote the concept of environment protection. Besides, they hold different activities to get involved in corporate social responsibility. 

7. With the advancement of terminal business in Singapore and Mainland China such as Shanghai, Guangzhou and Shenzhen, what HIT is doing these years to keep its competitive edges and compete with other competitors?

With the advancement of terminal business in other Asian region, HIT can take limit actions to enhance its competitiveness. Since the geographical limitation of Hong Kong, there is no land near Kwai Tsing Container Terminals available to extend HIT business volume and capacity. There is a trend of shipping business that the ships are built in bigger size. The HIT infrastructures face difficulties in handling the huge size ship. However, HIT improved its information technology in handling cargo and forecasting shipment. The forecast is accurate and effective. HIT enhances its arms’ efficiency and quantity in order to fasten the operation procedure. Furthermore, Hong Kong is free trade port. The cargo would not be checked and scan by the government. It makes HIT a convenient choice for the companies. 

Summary

HIT played a very important role in the history of Hong Kong. However, with the change of economic model from a trading port to a financial-services international center, it's not the flourishing time of HIT anymore. On the other hand, with the rapid development of near countries' ports such as Shanghai, Singapore and Shenzhen, HIT has to find way to increase its capacity and productivity so as to maintain its competitive advantages in this economic condition. 

Although the capacity of HIT has almost saturated, it keeps modifying its technology systems and value-added services in order to face new challenges such as serving larger and lager container ship and environmental issue.

Reflection 

The visit to HIT was very eye opening. It was the first time many of us got to experience a shipping yard, with containers, cranes and other related machinery in person. And needless to say we were all in awe. 

We were also astonished to find out that Hong Kong is the fourth biggest terminal in the world, right after Shanghai, Singapore and Shenzhen. Not to mention, Hong Kong’s capacity is at its fullest already, with its competitive advantage of a free port and its deep sea water levels, this did not come as a surprise 

In terms of management styles, we were told that there are 5 companies sharing the Kwai Tsing port. Despite sharing the port they had separate management, and were in competition with each other. The politics of this arrangement is very interesting; these 5 companies not only shared the port, they also share stock shares, however they only cooperate because they share the same terminal and there’s still competition between them. 

On a side note, we were told that out of 450 arm controllers, the only female was a 24 year old controller that was in training. Which goes to show that in a male dominated area of employment, women can certainly make it if they have the will.

REFERENCES
www.hit.com.hk

http://www.hkite.com/system_terminal_hit.html