WPSF 2012 Global Edition_new – Global Institute of Logistics

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SHENZHEN PORT
AGENDA
PRESENTATIONS

DEPLOYING A CHAINPORT MODEL BETWEEN SISTER PORTS

The 2011 forum gave the Institute a mandate to research the case for formal cooperation between port authorities and the potential to develop a “Chain Port” model. The 2012 forum will present our preliminary findings which point to a real opportunity for a formal alliance of seaports to emerge.

Kieran Ring
CEO
Global Institute
of Logistics __________________
FORUM MODERATOR

Last year’s World Port Strategy Forum (WPSF) discussed the Institute’s “Operation Port Unity – Improving Global Logistics One Port at a Time” research into global ports, and examined how port communities are meeting the demands of full integration into the global supply chain. The event was also an opportunity for participating port authorities to share their work illustrating their emergence as port logistics strategists facilitating the development of an integrated port community.
The 2011 forum established that port authority “Thought Leaders” no longer see their role as been of just that of a landlord, now viewing themselves as “Economic Strategists” on behalf of the port community and the wider economic region. Port Authority CEO’s now focus on the quality of service the shipping line’s customer, the beneficial cargo owners and non vessel operating companies receive from the port and its stakeholders as a whole. They believe that by focussing on overall service level quality by the port community as a whole increase throughput.
The 2011 forum gave the Institute a mandate to research the case for formal cooperation between port authorities and the potential to develop a “Chain Port” model. The ports of Shenzhen, Zeebrugge and Virginia, who are already sister ports agreed to participate formally in the research program.
The Sister Port agreements between Institute members acted as the perfect foundation for our research, which examined how to develop “chain” relationships between ports and its possible impact on global supply chains. The Ports industry will not be the first sector to ally for competitive advantage, indeed our industry is only too aware of how consortia and alliances between container shipping lines have changed the landscape in that arena. Alas most of the efficiencies and economies of scale achieved by this group accrue to themselves and very rarely to their customer base.
The airline industry driven by a more customer facing model proved to be a more comparable benchmark for our research. Star Alliance very quickly followed by One World, Skyteam and x have proven that short of merger and acquisition (legally forbidden in that arena and for the most part in ours) allying for advantage can have long and lasting positive outcomes.
The 2012 forum will present our preliminary findings which point to a real opportunity for a formal alliance of seaports to emerge.

Sister Port agreements are the ideal foundation to develop “chain” relationships between ports helping to optimize the port-centric logistics aspect of global supply chain.

The Institute traces the origin of Port Centric Logistics back here to South China and the Port of Shenzhen and pinpoints the local port community as the Pioneers in shaping both the business model and best practices that have come to shape port centric logistics globally.
Shenzhen is now embracing a new vision which it is driving through a sister port program which has seen it create formal relationships with 16 of the worlds leading port communities through their respective authorities. Assisted by the Institute, the intention is over time to strengthen these alliances, firstly bilaterally and in the future multilaterally.
The World Port Strategy Forum has been established as a result of these efforts and will provide the platform through which like minded ports from across the world can “Share With, Learn From & Benchmark With Each Other” in pursuit of greater innovation in and better delivery of port related services to the container supply chain.

HOST PORT FOR WPSF 2012 SHENZHEN PORT AUTHORITY

The Port of Shenzhen has long recognised the value of Sister Port relationships, and our support of the World Port Strategy Forum is testament to our desire to go beyond such Sister Port relationships and achieve even deeper collaboration.Forums such as this one are key milestones on this journey. While we may think a myriad of issues divide us as Port Authorities and Port Communities, we believe that our shared values unite us. Key values that we believe are indicative of the Port Authority of the future, and what a “Chain Port” model could be developed upon.

HUANG MIN
Chairman
Shenzhen Transport
Commission
____________
CONFERENCE CHAIRMAN

The 2012 World Port Strategy Forum will bring you the very latest thinking and sharing of knowledge from port communities around the world.In recent years we have witnessed the impact of globalization on Shipping Lines and Terminal Operators. We are interested in the next part of this trend – namely the globalization of Port Authorities. This is all the more important when you consider the following salient realisation made by the Organisation for Economic Co-operation and Development (OECD) in their ‘Port competition and hinterland connections’ report:

“From the ports point of view, the main consequence of developments in supply chains is that their market power has declined.Ports operate in an increasingly competitive environment within their range as well as in their function as nodes in supply chains increasingly prone to switch routings (route competition).”

This realisation has catalysed new thinking within global ports, as they migrate from hardware-based and infrastructure-based thinking to a more knowledge-based approach while re-evaluating their role within the wider supply chain. This understanding of the importance of supply chain integration may even lead to the emergence of a group of ports who approach these challenges as a collective, in essence what we call “Chain Ports”.
The Port of Shenzhen has long recognised the value of Sister Port relationships, and our support of the World Port Strategy Forum is testament to our desire to go beyond such Sister Port relationships and achieve even deeper collaboration.Forums such as this one are key milestones on this journey. While we may think a myriad of issues divide us as Port Authorities and Port Communities, we believe that our shared values unite us. Key values that we believe are indicative of the Port Authority of the future, and what a “Chain Port” model could be developed upon.
For today let us focus on our shared values, as we discuss and resolve issues that stand in the way of a truly integrated global maritime supply chain – with ports occupying their rightful place at its heart.
Mr. Huang Min
Director General Transport Commission of Shenzhen Municipality
(Ports Administration)

THE AGENDA FOR THE 2011 WORLD PORT STRATEGY FORUM

Meeting Format: A Forum not a Conference
The format for the meeting is designed to create a flow of conversation around the central theme of DEPLOYING A CHAINPORT MODEL BETWEEN SISTER PORTS. Unlike the traditional conference format, the meeting will be held in forum style, where all 25 guest experts will engage with the subject throughout the entire day. The narrative is informed by a 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 provide a roadmap, at end of which we hope to have exhausted the subject from all angles and points of view.

YANG LEI
China Director
Global Institute of Logistics
China
_____________________
WORLD PORT STRATEGY FORUM
PRODUCER
______________________
Born and now based in Beijing, Mr. Yang Lei (William) was appointed the Institute’s China Director in September 2010.

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OVERVIEW & INTRODUCTION TO THE FORUM

The 2012 World Port Strategy Forum explores the Institute’s “Operation Inter-Port Unity: From main to chain port” research. Sister Port agreement are the foundation for the research and examines how such agreements can be leveraged to develop “chain” relationships between ports. The theme for the 2012 WPSF is “Issues Divide – Values Unite”, discussion will focus on the potential for “Chain Port”.

KIERAN RING CEO GLOBAL INSTITUTE OF LOGISTICS

KIERAN RING
CEO
Global Institute
of Logistics __________________
FORUM MODERATOR

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BIOGRAPHY:

Kieran Ring is the Chief Executive Officer of the Global Institute of Logistics which he 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 foreign direct investment (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.

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LOGISTICS DEVELOPMENT IN SHENZHEN PORT

To begin the forum we will first hear from our hosts, the Port of Shenzhen, on the challenges they are facing, as well as learning what solutions the Port of Shenzhen are pursuing. Government policies against low value polluting goods, rising labour costs, rising rent costs and generous incentives to Go West are all contributing to the migration inland. Absolutely key to the Shenzhen strategy is the realisation that the port is only one link in the supply chain, and if the cargo is moving further away the port must improve its hinterland connectivity and Port Supply Chain development to help fetch it. Two areas the port is focusing on to achieve this are Sea-Rail connectivity and the development Inland Dry Ports. Another strategy being pursued to support the continued growth of the port is to focus on Import Cargo.

MA YONGZHI PORT OF SHENZHEN

MA YONGZHI
Deputy Director General
Shenzhen Port Authority
China
_____________________
GLOBAL INSTITUTE OF LOGISTICS
CHINA CHAPTER
In 1987 Ma Yongzhi joined the Chinese Communist Party, and has gone on to become a dedicated and loyal servant to the Chinese people. Throughout his distinguished career in public service he has held a variety of diverse roles, which have given him a wealth of experience that he now brings to his current position of Deputy Director General of Shenzhen Port Authority.He has served as the City Bus Company Engineer, Director and Secretary Municipal Transportation Bureau of Safety Director City Department of Transportation Safety Director, Committee Member, and Deputy Director.

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YANTIAN INTERNATIONAL CONTAINER TERMINALS GLOBAL “BEST IN CLASS”

The YICT approach to collaboration has led to logistics innovation in the areas of “Port Centric Logistics” and “End User Marketing” Port Centric Logistics is now a vital part of global supply chain strategy. YICT holds the accreditation Worlds “Best in Class” Container Terminal conferred on it by the Institute, underlying the importance of the continuing and expanding co-operation between end users and container terminal operators to make the port centric logistics process more efficient. The philosophy behind YICT is that it is part of the logistics process. Careful examination of the ﬁrst three years of YICT’s existence shows how the business model was developed. The pillars were End User Marketing and Port Centric Logistics

PROFESSOR KEN TSE FOUNDING GENERAL MANAGER

PROFESSOR KEN TSE
Retired
__________________
Global Institute of Logistics
FOUNDER

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BIOGRAPHY:

Starting from a green field in 1993, Kenneth led YICT to achieve preeminent status in the port industry, with throughput exceeding 10 million twenty foot equivalent units in 2007 (the largest single terminal in the world in 2007), and gaining worldwide recognition for its productivity improvements and service to customers.In 2005, the company was awarded the “Best Terminal of the Year” by the Global Institute of Logistics. In the same year, it received the “Best Terminal Award” from China’s National Port Industry Bureau of the Ministry of Communications. Such success also meant significant financial contributions of the business unit to Hutchison and Yantian Port Group.

JOE RUDDY PRESIDENT VIRGINIA INTERNATIONAL TERMINALS

Joe Ruddy was born to John (Jack) Ruddy, and Kathryn (Lynch) Ruddy on March 11, 1961 in Jersey City, NJ. He holds a Bachelor’s Degree from Virginia Wesleyan College, and a Master’s Degree from the College of New Jersey University. As Executive Vice President & Chief Operating Officer of the Virginia International Terminals, Joe Ruddy is responsible for Terminal Operations, Engineering & Maintenance, and Information Technology. Preceding his role as Executive Vice President, he served as the Director of Operations & Labor at VIT. In addition, he held managerial positions at Virginia Intermodal Management, as well as for several ship lines such as CMA-CGM and NSCSA. He currently serves as Chairman of the Board of Directors for the Hampton Roads Shipping Association.

MY VISION FOR THE INDUSTRY

JOE RUDDY
President
Virginia International Terminaks
U.S.A
_____________________
MEMBER
GLOBAL INSTITUTE OF LOGISTICS
NORTH AMERICA CHAPTER

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BIOGRAPHY:

The importance of ‘Port Unity’, and the various strategies of building a community culture founded on quality to achieve a higher level of coordination, communication and control, was the key takeaway strategy that was agreed last year.We showed a selection of whitepapers from port communities around the world to demonstrate this concept. For example we looked at how the Port of Walvis Bay, through their logistics corridor development, helped to foster port unity. We also looked at how Hamburg Port Marketing, by providing a unified voice for the whole port community, helped to foster port unity. Last year one of the participants who attended took what he learned from the forum and wrote a program called ‘Port Plus’. Today we will hear from the Port of Virginia’s Mr. Joe Ruddy on how the port ran with the ideas and values expressed during last year’s forum

THE VALUE OF SISTER PORT AGREEMENTS IN INTERNATIONAL PORT RELATIONS – A HAMBURG PERSPECTIVE

Virginia’s ‘Port Plus’ program implemented across a chain of ports across the world would give shipping lines and beneficial cargo owners a reliable, accountable, transparent and continuously improving port network across their supply chain. Our research proves that in exchange comes loyalty and more cargo. The Port of Hamburg will give their perspective on the value of CHAINPORT built around their experience of Sister Port agreements and how the port has leveraged these agreements to optimise port to port relationships.

WOLFGANG HURTIENNE MANAGING DIRECTOR HAMBURG PORT AUTHORITY

WOLFGANG HURTIENNE
Managing Director Hamburg Port Authority
Germany
_________________
MEMBER
GLOBAL INSTITUTE OF LOGISTICS
EUROPEAN CHAPTER

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BIOGRAPHY:

Wolfgang graduated in engineering studies at the Technical University of Braunschweig (civil engineering). Since 1984, he has held various positions on the port of Hamburg’s management team. For many years he was in charge of Port Planning & Development. During that time projects such as the Altenwerder port expansion, restructuring and traffic management projects, planning of the current expansion measures to intensify land use and the conceptual orientation of the port of Hamburg as a logistics centre fell under his responsibility. Since the restructuring of the Hamburg Port Authority in 2008, Mr Hurtienne has been a member of the Management Board. At present he is in charge of the Strategy Division. In 2009 he was appointed Managing Director of the HPA. He is Chairman of the Port Planning and Development Committee ofthe International Association of Ports and Harbours (IAPH), Tokyo, and a member of the German Academy for Urban and Regional Spatial Planning. He also teaches at the Technical University of Braunschweig.

THE ROLE OF PORTS IN CHAIN LOGISTICS

The Port Authority is in a unique position to build bridges across the world with other like-minded Port Authorities and their communities. This combination of both acting locally and globally combines to provide the perfect maritime logistics support for the global supply chain. However, the Port Authority is also a natural trade development agency, capable of facilitating bridges not just to other port communities but also to Beneficial Cargo Owners. Institute research and anecdotal evidence suggests that there is enormous potential for Beneficial Cargo Owners in developing direct relationships with Port Authorities and their communities.

VINCENT DE SAEDELEER VICE PRESIDENT ZEEBRUGGE PORT AUTHORITY

VINCENT DE SAEDELEER
Vice President
Zeebrugge Port Authority
Belgium
_____________________
MEMBER
GLOBAL INSTITUTE OF LOGISTICS
EUROPE CHAPTER

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BIOGRAPHY:

Born in Bruges (Belgium) in 1951, Vincent holds a Master’s degree in applied economics from the University of Antwerp. Prior to joining the Port Authority of Bruges-Zeebrugge he served as managing director for Care Centre N.V., managing director for Sea-To Terminal N.V and managing director for Sea-Park N.V. . He also served as Director for Sea-Tech N.V. and for the APZI (Association Port of Zeebrugge Interests). Presently he holds the position of Vice President for the Port of Zeebrugge, serves as an advisor to the port’s short-sea shipping company PortConnect N.V., is an Honorary Consul of the Kingdom of Norway, and is Director of the WC Hanze International Club.

INFORMATION SHARING BETWEEN CHAINPORTS

The Institute commissioned Copenhagen-based research agency, SeaIntel Maritime Analysis to explore how data sharing benefits CHAINPORT members. Their key findings are that information known to the origin port can be oF benefit to destination ports. Simple data such as the number and type of containers en-route can have real benefits if shared with destination ports. Advance notice of incoming containers would allow a port to more fully optimise its use of resources, aiding operational performance. Data sharing would greatly assist in trade development strategy. Today’s Port Community Systems mean data sharing is not difficult to achieve.

ALAN MURPHY PARTNER SEAINTEL MARITIME ANALYSIS

MR. ALAN MURPHY
PARTNER
Seaintel Maritime Analysis
Denmark
_____________________
KNOWLEDGE PARTNER
GLOBAL INSTITUTE OF LOGISTICS

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BIOGRAPHY:

Alan Murphy has 8 years of experience in Container Shipping research and analysis, providing insight and intelligence to a broad range of stakeholders in the logistics community, through quantitative research techniques, econometric modelling, and database architecture development. Alan has a degree in business economics, and joined the global Market Intelligence department of Maersk Line in 2004, coming from a position as Finance Research Analyst at Copenhagen Business School. At Maersk Line Alan was initially responsible for developing, implementing, and managing central systems for measuring and analyzing customer satisfaction, vessel utilization, market developments, and internal performance. Later, as Senior Analyst of Maersk Line’s Intelligence and Analysis section, Alan was responsible for global Supply/Demand modelling, long term forecasting, market and competitor analysis, and Senior Management reporting. After leaving Maersk Line in 2010, Alan continued to support the Logistics community through ARM Consulting, helping companies automate manual processes, reduce costs and increase market reach based on actionable information.In January 2011, Alan partnered with former Maersk Line and TCC Intelligence Director, Lars Jensen, founding SeaIntel Maritime Analysis, an industry leading analysis and consulting firm providing actionable intelligence to the global Container Shipping industry.

NETWORKING CHAINPORTS USING THE PORT COMMUNITY SYSTEM

A PORT COMMUNITY SYSTEM is an electronic platform that connects the multiple systems operated by a variety of organisations that make up a seaport. It is shared in the sense that it is set up, organised and used by firms in the same sector – in this case, a port community. Key drivers for the establishment of Port Community Systems were, on the one hand, the need for a standardised communication platform in order to improve the systems in terms of punctuality, reliability or costs and, on the other hand, the need to increase competitive position among ports. Here we examine how competitive advantage can be achieved on a global scale.

SRIKANTH PALEM REDDY FOUNDER 4SOFT

SRIKANTH REDDY
Founder
4Soft Solutions
India
_____________________
ADVISOR
GLOBAL INSTITUTE OF LOGISTICS

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BIOGRAPHY:

Srikanth is the Chairman & Managing Director of Four Soft Limited. Through his leadership and vision, he has applied his supply chain execution experience to the innovative development of the prime products of 4S, which has become the first ever enterprise operating platforms for the logistics and supply chain management industries on the Internet. His career profile began as an executive in various supply chain execution operations such as: JV Partner & Emery Worldwide (Managing Director, India) and Asia Pacific Logistics/Distribution operations at Hewlett Packard, Singapore. Srikanth is an Industrial Engineering Graduate from REC, Trichy, India and a Post Graduate in Industrial Engineering from Stanford University, USA.

E-TECHNOLOGY TO ENABLE VISIBILITY OF CONTAINERS IN THE PORT COMMUNITY

Bao Qifan State-rank Expert, Engineer, Economist SIPG has invented an Etag system which is ratified under ISO18186 to track the movement of containers seamlessly using RFID technology. It will help better fight terrorism, stowaways and food contamination in containers. Initially, 10,000 containers will be sealed with a special e-tag, which can be re-used on the shipping line between Shanghai and Savannah. The e-tag that uses radio frequency identification technology will show a container’s status in the logistics chain, and send warnings if it is opened without authorization. China is the first to mobilize resources such as ports, shipping companies, cargo owners and the Customs and put the technology into use on a commercial shipping line.

BAO QIFAN STATE-RANK EXPERT, ENGINEER, ECONOMIST SIPG

Mr. BAO QUIFAN
Engineer & Economist
Shanghai Int. Port Group
China
_____________________
MEMBER
GLOBAL INSTITUTE OF LOGISTICS
CHINA CHAPTER

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Bao Qifan has invented some 140 technologies, winning several awards in international invention exhibitions. Today, Bao’s inventions are used in more than 1,000 Chinese enterprises and more than 20 countries and regions in the world, yielding a total return of some 400 million yuan (US$61 million). In 1996, Bao became the manager of Longwu Port in Shanghai. The port’s business was slow because of its location six hours away from the East China Sea. To attract more business, Bao began to study the feasibility of domestic container transportation. In December 1996, Longwu Port opened China’s first domestic container route. By 2005, the port’s cargo traffic increased from 2.5 million tons to 21.77 million tons.
In 2003, Bao started to study automated port operation. He conducted investigations and studied advanced technologies in world-class ports such as Rotterdam, Netherlands, and Hamburg, Germany. Bao’s innovations in port automation have now been applied to Shanghai’s Waigaoqiao Port. If you have a chance to visit the port, you will find no human cargo handlers there. All handling is done by machines and operation orders are issued from a control center two kilometers away.
For his efforts in automation Bao won a golden award at the Paris International Concours Lépine. After that, he won three more golden awards at the fair, setting a record in its 105-year history.

COMMUNITY OWNED PORTS : PORT OF DOVER CASE STUDY

The Dover People’s Port Trust objective is that the port users, community and the Port establish a new partnership and work in harmony for the improvement of port operations, investment in infrastructure, seafront and town rejuvenation. In this way, the port will be run in the community and national interest and deliver more jobs and money for a community that has been beset by deprivation for too long. The stakeholders are empowered through representation on the Boards of both the Trust and Port Co, which will be reinforced through binding agreements

NEIL WIGGINS CEO INDEPENDENT VESSEL OPERATING PARTNERS

CEO
IVOPS
United Kingdom
_____________________
MEMBER
GLOBAL INSTITUTE OF LOGISTICS
EUROPEAN CHAPTER

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Neil Wiggins has ore than 30 years experience in the maritime sector, from deck cadet, through deck officer to container terminal operations, management, design, construction and development, then on to central operations management within a global ship owning and operating company and now owning and running a company supplying operational expertise to owners and operators of container vessels and operations development consultancy and training to container terminal operators. Since 2009 a member of the Hamburg Committee of the Global Institute of Logistics developing and delivering the CTQI (Container Terminal Quality Indicator) to port authorities and terminal operators. July 2011 appointed as Global Director Container Terminal Quality Systems for the Global Institute. Since September 2010, Chairman of Dover People’s Port Trust Ltd. An Industrial Providential Society constituted for mass membership and formed for the purpose of purchasing the Port of Dover for and on behalf of the town and communities of Dover.