CHAINPORT: WORLDS FIRST CONTAINER PORT ALLIANCE

CHAINPORT is the world’s first Global Alliance of Port Authorities established to develop collective competitive advantage and contribute to the long-term profitability of its members and their communities beyond their individual capabilities. The Alliance achieves collective competitive advantage by increasing Velocity,improving Visibility and adding Value to Global Supply Chains.

The Institute’s continuing research into the changing role of the Port Authorities from the traditional role of landlord to a facilitator and economic strategist which commenced in 2008 led to the development of CHAINPORT. One of our early research papers “Operation Port Unity” proved the potential to improve global logistics one port at a time provided Port Authorities actively encourage, foster and develop unity amongst port stakeholders based on a system of merit, reciprocal accountability, and a shared vision.
One of the recommendations of the report was to fully explore the potential of sister port agreements as a potential catalyst on how a “chain” relationship between ports could help to optimize the port-centric logistics aspect of global supply chain. This idea became the central pillar of our subsequent research program “Operation Inter-Port Unity: From Main to Chain port”
The report found that the traditional role of a Sister-Port Agreement has been seen as of little value other than a “photo opportunity”, however, the practice was identified as the perfect foundation to align global ports. This finding has led to the formal development of the “CHAINPORT” brand and the work has begun to build a formal alliance of global container seaports as members. CHAINPORT enables its members to explore and unlock the potential which can’t be delivered by the traditional “bilateral” sister port agreement.

CHAINPORT’, is the world’s first formal multilateral alliance between seaports and has been developed in direct response to the changing economic and ecological landscape facing Port Authorities; increased port completion, economic shocks impacting trade volumes and more stringent environmental standards.

CHAINPORT is being developed in the digital era and for the most part, ports have lagged behind on the cutting edge developments of the digital revolution with little-concerted effort to explore the value that can be realized from collaborating on a shared digital platform.
Hamburg Port Authority (HPA) is regarded as the “first mover” in the adoption of smartport initiatives and is adamant that ports who recognize and adapt quickly to the potential of the digital world will overcome and prosper in these challenging times. As host of the IAPH World Ports Conference in 2015, the HPA has implemented numerous innovative pilot projects as part of the SmartPORT concept. Its chainport vision based on these experiences is the thought of future-oriented intelligent port is further developed in an international network between ports. The global platform has the potential to connect important information of the respective partner ports on the one hand and create a basis that allows the joined development of new, future-oriented and innovative solutions on the other.
Jens Meier, Chairman of the Management Board HPA commented:
“The objective of chainport is to bring together port management and their stakeholders to share benchmarks and develop strategies together on how ports can and must work together in the future to reach common goals such as the globally necessary efficiency. The shared use of intelligent systems and data with other ports ensures sustainable growth”.
HPA sees ChainPORT going beyond “traditional bilateral port partnerships” and establishing a global chain of smartPORTS. SmartPORT is an HPA initiative to connect the Port of Hamburg with other partners in the supply chain to aid the flow of goods through the port.
Hamburg says there is a lot to gain from the chainPORT network, including the shared use of intelligent systems and data with other ports, to ensure sustainable growth. In addition to digitalization and networking, the network will handle the pressing issue of handling increasing container ship growth. Networking and data exchange should also help enable better planning of port calls. It will also allow for greater cooperation on environmental aspects, including the reduction of emissions and achieving greater sustainability.

chainPORT World’s First Global Alliance of Port Authorities

CHAINPORT has its genesis in the Institute’s strategic decision 10 years ago to focus on maritime logistics and more particularly the container supply chain as our core research area.This was followed by our decision in 2008 to champion the role of the Port Authority in the supply chain. It is our considered opinion and indeed that of a growing number of thought leaders, that the  Port under the direction of the Port Authority can add significant extra value to the global supply chain.

At first glance a port seems to be almost exclusively driven by the vessels which call and the terminal operators who discharge and load them and it’s easy to see why this is the case when most of our attention is constantly drawn to the brands which control these two aspects of port life, attention which is garnered through brand reinforcement through the media either through news or advertising, both of which feed off each other.
Port operation is far more complex and deserves to be better understood especially by cargo owners and port authorities, as much of the inefficiency’s in port is due to a myriad of other factors outside the control of both shipping line and terminal operator, much in the same way that the smooth running of an airport depends on much more than planes and ground handling.
To any impartial observer the port as a functional node in the chain presents the most complicated set of obstacles to be dealt with by import and export containers, the simple truth is that the junction box which is the port is made up of a diverse set of companies and organizations each with their own particular agendas, agendas not always necessarily driven by saving time or reducing cost.
Institutional Environment
Ports are quite literally a “law unto themselves” and indeed many Port Authorities come equipped with their own police force, a testament to the fact that a port is a border and represents an entrance or exit point to a sovereign territory. Against this backdrop, it’s understandable how national and indeed international and global security will always take priority over supply chains and their timeliness.
Indeed the much vaunted 100% screening of all containers destined for the USA is still the stated objective of the Department of Homeland Security, some 11 years after it was first recommended in the wake of 9/11. And of course Ports are excise collection points and are very much monitored and driven by members of the host government’s tax collection agencies, again a group who’s priority is not necessarily the supply chain, but rather that imported goods be properly licensed, coded and their excise paid before making their way to the open market.
And the list goes on, you can add everything from veterinary inspection to health and safety for good measure and these are just the bureaucratic hoops that a container has to jump through, the more obvious obstacles are concerned with the physical movement of the boxes, which even when efficiently discharged from a vessel (which has a 50% chance of being on schedule, to begin with) are a long way from their point of consumption when neatly stacked in the container yard. Whether it’s a smaller vessel, barge or feeder service, the railhead, on or off dock or simply to a chassis there is much more work to be done before the port can truly say that it has done its job.
Logistics is an experience that cargo has en route from the point of production to consumption much like a holiday is an experience that a tourist has from leaving to returning home.
Holidaymakers will admit that it only takes one bad experience over the course of the trip to ruin the whole experience, the same is true for cargo, it only takes one bad experience over the course of its journey to ruin the experience. Holidaymakers are comfortable navigating the ins and outs of transferring themselves to their local airport, they are a little less comfortable in the airport, generally speaking, the flight throws up very few challenges, the real hard work begins when the flight touches down in the host country.
Now their familiarity with airports only has a small influence on their experience, they are now at the mercy of the ecosystem into which they have entered, from here on in, it is the service and the efficiency of its delivery which will make or break the holiday experience.
The airport is not their final destination it’s merely a junction through which they must pass to get where they want to go, however, the way in which it operates and how it connects to the final destination is of paramount importance to the holiday experience. The same holds true for containers.
CHAINPORT has brought together a group of ports from around the world with shared vision and values to create a singular standardized port system fit for purpose in this era of globalization. .
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chainPORT World’s First Global Alliance of Port Authorities

Hamburg Port Authority hosted a “chainPORT” workshop on April 5th, 2016 in association with the Institute to lay the foundations for smart chainPORT, an initiative to connect a global network of hub ports digitally.

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The Institute has been researching the potential of multilateral relationships between port authorities for over 4 years as part of its chainport research program. The event was attended by the ports of, LA, Busan, Singapore, Shenzhen, Antwerp and Felixstowe.

The meeting explored the benefits of the alliance and the value it will bring to its members and add to the global container supply chain. Participants were invited to participate in the meeting and subsequently explore exercising their option to be a founding member of the group.

Meeting Format: A Workshop not a Conference

The format for the meeting is designed to create a flow of conversation around the central theme of FROM SMARTPORT TO SMART chainPORT.

CLICK IMAGE TO VIEW CONFERENCE AGENDA

Unlike the traditional conference format, the workshop was held in forum style, where all participants engaged with the subject throughout the entire day. The narrative was informed by a series of keynote address followed by a series of short presentations at strategic intervals throughout the forum. The presentations given by recognized industry experts act as segues to the next area to be debated. On completion, the subject is discussed and debated in the forum, before delegates are invited to engage. Each subject is supported by a series of talking points which are agreed in advance through local and global research and in particular in coordination with delegates and experts. The talking points provided a roadmap, at the end of which we had exhausted the subject from all angles and points of view.

PRESENTATIONS
FROM MAINPORTS VIA smartPORT to chainPORTS

JENS MEIER CHAINPORT PRESENTATION

JENS MEIER
CEO
Port of Hamburg __________________

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BIOGRAPHY 
After completing his studies in computer science and the supplementary subject of economics at the University of Hamburg, Jens Meier (48) started his professional career at Software Design & Management AG (Ernst & Young group). As a member of the management board, he was in charge of the Hamburg and Hanover branch offices from 1997 onwards. His customers included HHLA, the VW group, Hypovereinsbank, Münchener Rück, Start Amadeus and the Otto group.
In 2000, he was appointed divisional manager of Systematics AG (later EDS). His responsibilities included consulting and software development. From July 2002 onwards, Jens Meier was CEO of tts Holding GmbH & Co. KG where he was in charge of IT, finances and international logistics. Upon the sale of the tts group to Fiege in 2006, he was appointed to the board of directors of Fiege Holding Stiftung & Co. KG, Greven.
Since April 1st, 2008 Jens Meier has been serving as CEO of the Hamburg Port Authority (HPA).
Mr Meier is a founding member of the Hamburger Informatik Forums e.V. board of directors. The association promotes the co-operation between the University of Hamburg and business. He is a member of the alumni of the Young Business People at the Hamburg Chamber of Commerce and senator of the Federal Association for Economic Development and Foreign Trade where he represents the logistics industry. Furthermore in 2006 the senate of the Free and Hanseatic City of Hamburg appointed him to the board of trustees of the Logistics Initiative Hamburg. Jens Meier was born in Hamburg. He is married with 3 children.

WHAT ARE THE EXTERNAL DRIVERS FOR CHANGE IN PORT AUTHORITY STRATEGY?

KIERAN RING PRESENTATION

KIERAN RING
CEO
Global Institute
of Logistics __________________

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Kieran Ring is the CEO of the GIL which he co-founded in 2003 with members of the Global Logistics Forum under the Chairmanship of the late Robert V. Delaney (Bob), the renowned US author and logistician. Kieran began his career in the early 1980s working as an industrial engineer in the European multinational manufacturing sector. By the late 1980s he was working as a publisher in the trade, technical and scientific media where he was directly responsible for journals and magazines, which documented the rise of FDI. In 1989 he was appointed Deputy Publisher to the Paris-based Eurexpansion Group with responsibility for Ireland’s ‘Sunday Business Post’. In 1995 he was appointed Executive Director of the European Institute of Transport.

OPTIMIZING ONE OF THE MOST MODERN RAILWAYS IN THE WORLD

JENS MEIER PRESENTATION

JENS MEIER
CEO
Port of Hamburg __________________

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CLICK IMAGE TO VIEW PRESENTATION

BIOGRAPHY 
After completing his studies in computer science and the supplementary subject of economics at the University of Hamburg, Jens Meier (48) started his professional career at Software Design & Management AG (Ernst & Young group). As a member of the management board, he was in charge of the Hamburg and Hanover branch offices from 1997 onwards. His customers included HHLA, the VW group, Hypovereinsbank, Münchener Rück, Start Amadeus and the Otto group.
In 2000, he was appointed divisional manager of Systematics AG (later EDS). His responsibilities included consulting and software development. From July 2002 onwards, Jens Meier was CEO of tts Holding GmbH & Co. KG where he was in charge of IT, finances and international logistics. Upon the sale of the tts group to Fiege in 2006, he was appointed to the board of directors of Fiege Holding Stiftung & Co. KG, Greven.
Since April 1st, 2008 Jens Meier has been serving as CEO of the Hamburg Port Authority (HPA).
Mr Meier is a founding member of the Hamburger Informatik Forums e.V. board of directors. The association promotes the co-operation between the University of Hamburg and business. He is a member of the alumni of the Young Business People at the Hamburg Chamber of Commerce and senator of the Federal Association for Economic Development and Foreign Trade where he represents the logistics industry. Furthermore in 2006 the senate of the Free and Hanseatic City of Hamburg appointed him to the board of trustees of the Logistics Initiative Hamburg. Jens Meier was born in Hamburg. He is married with 3 children.

CREATING VALUE THROUGH INNOVATION

PROF. DR.-ING. CARLOS JAHN PRESENTATION

PROF. CARLOS JAHN
DIRECTOR
Fraunhofer Center
Maritime Logistics __________________

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BIOGRAPHY 
Prof. Dr.-Ing. Carlos Jahn, born in 1966, is head of the Institute of Maritime Logistics at Hamburg University of Technology as well as of the Fraunhofer Center for Maritime Logistics and Services in Hamburg. At the beginning of his professional career Carlos Jahn served as a sailor and later on as an officer in the German Navy. He studied mechanical engineering at the Helmut Schmidt University in Hamburg and economics at the University of Hagen.

As a research assistant at the Fraunhofer IFF Carlos Jahn obtained a doctorate at the Otto von Guericke University of Magdeburg. Carlos Jahn held various management and staff functions in science and industry. In 2009, he accepted the offer of a full professorship at Hamburg University of Technology and was appointed head of the Institute of Maritime Logistics. The Fraunhofer Center for Maritime Logistics and Services was founded in 2010. In 2000, he was appointed divisional manager of Systematics AG (later EDS). His responsibilities included consulting and software development. From July 2002 onwards, Jens Meier was CEO of tts Holding GmbH & Co. KG where he was in charge of IT, finances and international logistics. Upon the sale of the tts group to Fiege in 2006, he was appointed to the board of directors of Fiege Holding Stiftung & Co. KG, Greven.

SINGAPORE SMART PORT INITIATIVES

GOH KWONG HENG, CIO MPA PRESENTATION

GOH KWONG HENG
CIO
Maritime & Port Authority
of Singapore __________________

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GOH KWONG HENG IN QUOTES

• “We want to use technology to enhance navigation and safety of the port waters, in addition to improving land utilization and productivity of the port. We host one of the busiest ports in the world, with over 1,000 vessels in our port waters at one time,”
• “We are looking to increase our detection capabilities so that we are able to spot anomalies,” “For example if two ships of certain types come closer to each other, which is not expected to happen at certain locations or time, our port operations will automatically be alerted for further investigation.”

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Modern port authorities, as custodians of the maritime nodes in the global supply chain, are being increasingly relied upon by port end-users and modal operators to perform the function of coordinators and communicators in their respective port communities.

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This development is speeding-up as a result of the rapid digitalization of the port ecosystems. The evidence of the digitalization is seen by the emergence of port community systems and, most recently, by the integration of the IoT. In light of this rapidly evolving environment, participating chainPORTs agreed in Busan on the necessity to collaborate with each other to build up the necessary knowledge to deal with the practical outworking of the digital revolution, up to and including innovating solutions with the potential to change the participants’ existing business models and approaches.

This proactive strategy keeps chainPORTs ahead of private sector actors who may work to disrupt the traditional port system. Data around cargo flows is the currency of the digital revolution and therefore, whoever is first to capture, sanitize and disseminate it will gain the upper hand. In this regard, port authorities are in the best position for now. Port authorities unlike the other actors in the maritime chain are generally government institutions and are subject to the highest level of transparency and accountability both internally and externally. As a result, port authorities are in the position of “trusted and honest brokers“.

Meeting Format: A Workshop not a Conference

The format for the meeting is designed to create a flow of conversation around the central theme of FROM SMARTPORT TO SMART chainPORT.

CLICK IMAGE TO VIEW CONFERENCE AGENDA

Unlike the traditional conference format, the workshop was held in forum style, where all participants engaged with the subject throughout the entire day. The narrative was informed by a series of keynote address followed by a series of short presentations at strategic intervals throughout the forum. The presentations given by recognized industry experts act as segues to the next area to be debated. On completion, the subject is discussed and debated in the forum, before delegates are invited to engage. Each subject is supported by a series of talking points which are agreed in advance through local and global research and in particular in coordination with delegates and experts. The talking points provided a roadmap, at the end of which we had exhausted the subject from all angles and points of view.

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chainPORT World’s First Global Alliance of Port Authorities

LOS ANGELES NOVEMBER 2017

SUPPLY CHAIN DIGITIZATION OF OCEAN CARGO GATEWAYS EXAMINED BY CHAINPORT AT THIRD AGM

The partnership is driven by several key working groups reporting to a steering committee comprising the CEO’s and Presidents from the member ports. The working groups focus on a range of subjects including smart IT solutions, shaping digital change in port authorities (people & processes).
The chainPORT initiative is led by the Ports of Los Angeles and Hamburg Port Authority in Germany, in collaboration with the Global Institute of Logistics. Other ports participating in the third annual meeting are Shanghai, Antwerp, Barcelona, Montreal, Felixstowe, Indonesia, and Shenzhen.
“Working together to explore best practices and innovation, as well as leading-edge technology to improve port operations is more important than ever in a global environment,” said Port of Los Angeles Executive Director Gene Seroka. “As a port, we need to continue to evolve and adapt to remain both competitive and relevant.”
Seroka kicked off the two-day meeting with a presentation about Port of Los Angeles’ supply chain optimization pilot project in partnership with GE Transportation.  Together they are developing a digital portal that provides real-time shipping information for cargo owners and supply chain providers to more effectively track and plan for movement of their cargo from ocean transit to final destination. Based on the initial pilot results, the port anticipates efficiency gains of between eight and 12 percent as the enhanced solution is rolled out.
“Port operations are becoming more and more complex, and we strongly believe port authorities working together around the globe can add significant extra value to the global supply chain,” said Jens Meier, CEO of the Hamburg Port Authority. “Collaboration in a global network of ports and digitization is the way of the future.”
Meier focused his presentation on a vision of the digitalized port of the future and what needs to be done to get there. Presentations were then given by leads of each of chainPORT’s five working groups: Smart IT solutions; Implications & Solutions for Ultra Large Container Vessels; Digital Change within Port Authorities; Project chainLOG; and the Port Academy.
“Historically ports were measured on their ability to accommodate ships and other modes of transport effectively and efficiently,” said Kieran Ring, CEO of the Global Institute of Logistics, which was instrumental in getting the chainPORT alliance off the ground. “However, increased international trade and the global economic environment have given rise to a new breed of customers who demand optimum flexibility, efficiency, and transparency in their dealings with ports.”
One keynote address was given by Nick Vyas, director of the Center for Global Supply Chain Management at the University of Southern California’s Marshall School of Business.
“My focus was on supply chain optimization and digitization,” he says. “These are issues we will revisit when USC hosts our 6th Annual Global Supply Chain Excellence Summit next August.”
Jay Samit, Independent Vice Chairman of Deloitte Digital, was the other keynote speaker. He addressed the challenges ports face, driving their needs for creative solutions.
Visiting port representatives also toured the Port of Los Angeles, and paid a visit to Virgin Hyperloop One, the commercialized land-transportation concept for goods and passenger movement currently being developed in Los Angeles.

OUTSIDE THE BOX
“Despite challenges that have emerged due to the economic downturn over the last few years there are plenty of new developments when it comes to the port industry. Perhaps times like these bring out the true masterminds, it takes companies to think outside the box to inspire and motivate. Viewing the situation from a new perspective encourages creativity, innovation and imaginative thinking. ChainPORT which includes the Port of Hamburg, Busan, Singapore, Shenzhen, Los Angeles, Felixstowe and Antwerp Working as a global platform shall connect information of the respective partner ports on the one hand and create a basis that allows the joined development of new future-oriented and innovative solutions on the other. These kinds of programs make me excited for the years to come, to see what the innovative future brings.”

Rob van Akkeren Port Industry Magazine (Page 64)

TALKING POINT

MEDIA COVERAGE
Hamburg’s ChainPORT connects future-focused ports: PORT STRATEGY
Hamburg launches ChainPORT: WORLD CARGO NEWS
Hamburgs Hafen geht eine neue Allianz ein: ndr.de (GERMAN)
ChainPORT: A New Port Phenomenon?: PORT TECHNOLOGY
Foundation of the global port network “ChainPORT”: AMERICAN JOURNAL OF TRANSPORTATION

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chainPORT World’s First Global Alliance of Port Authorities