Background information about HIT
Hong Kong International Terminals Limited is the first company which operates as a container port trust listed in Singapore. HIT was found in 1969 in Hong Kong at initially repaired ships as their main service. and its biggest boss is one of the most famous billionaires, Li Ka Shing. It contributes 8% of the total revenue generated of Hutchison Whampoa Limited. HIT has 12 berths operating at 4th, 6th, 7th, and 9th Terminal and consists of 2000 staff.
HIT logistic capabilitiesHIT runs "Load & Unload" as their business model. Their cranes can serve 30 containers in an hour. Most of the ships only stay at the port for around 1 day since this is an industry which focuses on mobility. The advantages of HIT is that the port here is a deep water harbor and lots of large scale ships with tons of cargo can stop by and drop off, also as a commercial free port, cargo does not have to go through the examination process. The port that HIT is currently sitting in is the 4th largest port in the world, right after Shanghai, Singapore, and Shen Zhen. In 2014, 23 million TEU were being served, which was about 28% of the total TEUs in the world that year. However, there is still some limitation for HIT, since all the terminals are already fully utilized and the Government is not going to build the 10th Terminal in a short period of time and this limits the improvement of HIT and gives time for other ports in the world to catch up with.
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Q & A part
Question 1: HIT owned a special management system called nGen, it is a system that control the while 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?
Answer:
There is a system called OMS which stimulates the actual situation of the harbor. nGen helps to simplify the procedures of loading and unloading containers. Guilder is also a system to help arrange the sequence of loading containers and it has high stability. The advantages of using these systems are higher efficiency, being able to work 24 hours a day. If the system really goes out of order, there are still 3 back-up sites to help functioning.
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Question 2: The terrorist like ISIS become more and more popular. What measures has HIT taken to ensure the safety of the cargo? How can you prevent the prohibit products inside the cargo?
Answer:
For HIT, most of the potential hazards that threatened them are high-risk operation, weather concerns, power failure and etc. HIT has a comprehensive safety management system, that allows them to beware of any potential risk. This system also applies to the handling or storage of dangerous goods. This will help HIT to prevent from prohibit products harming the terminal.
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Question 3: The cost like the wage of labor is increasing. What measures has HIT taken to deal with the increasing cost?
Answer:
nGen can provide HIT as a solution to the cost management, the automation process provided by nGen can reduce redundant labor or operation and try to be cost-effective .
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Question 4: There are always typhoons hoisted in Hong Kong during summer. How serious would the typhoon affect your operation?
Answer:
It really depends on the wind speed, if the typhoon is too strong that the black rain signal or No.8 Storm signal is issued, then HIT will shut down operations. However, if the signal were no longer issued, HIT will soon recover their operation to avoid delays.
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Question 5: What are the effects to your company after the labor strike?
Answer:
After the industrial strike in terminal, HIT paid more attention to the welfare and wage of labor. In the recent agreements reached by HIT and external contractors, there will be a wage rise of 5.5% according to the inflation.
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Question 6: How does HIT get involved in corporate social responsibility?
Answer: We have built libraries and promote environmental measures, like student graffiti on rubbish bins. HIT also involved in the community care such as "Caring Company" or "Community Care Group" to contribute to disadvantaged. Moreover, HIT provides some scholarship to some outstanding students.
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Question 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?
Answer: HIT is continuously fighting for more land from government for building back offices. Besides from that, HIT as a transshipment terminal still own some advantages as the Pearl River Delta is highly relying on Hong Kong terminal to export goods.
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