Sphere No.49 (Aug 2019)

Hutchison Ports celebrates its 50th anniversary in an enviable position as the world’s leading port network. That success arises from an expansive vision that sees more than docks, quays, cranes and containers. The future will see the ports group growing by leading a technological and human transformation in the logistics industry. The technologies in play and the people that develop them are at the core of this global powerhouse. Hutchison Ports has consistently displayed creativity in management. T hroughout its history, Hutchison Ports has consistently displayed creativity in management and has shared its best practices across its global operations. Space constraints in the home base of Hong Kong led to innovative, super-high container stacking methodologies that still influence modern practice. Rapid adaptation to the era of container shipping saw the Port of Felixstowe leapfrog past its competitors to become the biggest port in the UK. And Hutchison Ports developed its own Terminal Operating System, nGen (See Sphere 32). But there is more to come. Much, much more. THE NEW ERA: SMARTER, LEANER, FASTER Hutchison Ports’ focus on efficiency and exploring new potential sites for development was wildly successful in putting its operations across the planet. The future transformation of the ports group’s fortunes is focused on technology- led efficiencies that drive cost reductions and environmentally friendlier ways of working. Standardisation made possible through nGen will amplify the impact of successful innovations and best practices and make the most of economies of scale, in particular through shared services. New digital technologies will be integrated with nGen and other operations. Automation of vehicles and equipment will be a big part of the story. New ideas combined with experience will deliver a transformed future for Hutchison Ports – even a SMARTer future. STANDARDISATION IS SMART SMART isn’t just an adjective – it’s a formal programme of transformation. The SMART Network Strategy has four major components that complement one another: Standardisation, Automation, Digitisation and Organisation. Understanding these elements is crucial to understanding how Hutchison Ports is changing everywhere, from headquarters and the dockside to integrated logistics platforms and customer service centres. At the heart of Hutchison Ports terminal operations is the nGen system. First created in 2003 and deployed in Yantian, it has spread across the ports group’s network. It is the nervous system – the brain, spinal cord and network of nerves – of Hutchison Ports. Constantly upgraded, it is the key to standardising best practices and implementing new technologies across the entire network of ports. While the business may look simple – containers on, containers off, done – those in the ports game know that the truth is anything but that. High volumes, local rules and regulations, business culture and historical realities make each port unique in how it operates. However, a great deal more can be done to implement best practices. nGen enables the delivery of those best practices across the ports network. Trying to determine how to integrate best practices with a bewildering array of highly customised local systems in acquired businesses would present any normal company with a monumental and complex task. However, nGen provides a framework and connectivity that vastly simplifies that process – one that is being used across the Hutchison Ports network. Starting from only one port in 2003, nGen has grown and it handled 55% of all throughput in 2018. The plan is to achieve 70% by 2022. The benefits are real. Savings of up to 20% have been realised in the past five years alone, compared to using off-the- shelf software. More importantly, nGen is customised to enable it to play an integral role in establishing Hutchison Ports’ standard way of doing business, enabling the ports group’s rapid expansion and the roll-out of the other elements of the SMART plan as they come into play i.e. Automation, Digitisation, and Organisation. AUTOMATIC FOR THE PEOPLE Prior to the container age, working on the docks was arduous work, with weather- beaten men hurt by loose cargo falling out of hoisted nets. Containers made the work infinitely safer, but crane workers still need to ascend to great heights to work in a cabin. The new era of automated and remote- control technology is being implemented across Hutchison Ports’ operations. It is bringing safety, health and comfort benefits to workers, enabling diversity in the workforce, and dramatically increasing the efficiency of operations. The Rubber-Tyred Gantry Crane (RTGC) is the most commonplace equipment in the container yard storage areas of the world. They have become eco-friendlier in recent years as new RTGCs are now SPHERE #47 2019 09 >>