THE 19th TOC Asia from April 21-22 is set to debate the impact of mega vessels on terminal performance and productivity, with the focus being on matching port terminal productivity with carrier expectations.
As larger vessels cascade into Asia's port networks, terminal productivity and port performance will come under closer scrutiny. Mega ships and related alliances have already been cited as potential causes of "berth wastage" and "cargo surges," a statement from organisers says.
However, larger ships could also be considered as much an opportunity as a problem for terminal service providers. According to partner at CTI Consultancy, Andy Lane, now more than ever, it is time for terminals to reach out to shipping lines to begin more open and constructive dialogue.
The former Maersk Line executive will moderate the session on the first day to examine port productivity, capacity and congestion.
Mr Lane points out that container carriers want faster vessel turnaround, yet they are unlikely to offer rate premiums for this. "Terminal compensation from increased efficiency is self-generating, getting more through the same high-cost fixed assets."
The focus for terminals needs to be on continuous process improvement, with greater forward planning.
"These are just simple steps, essentially free to implement, and they will take the industry to the next level," he said. "Terminals need to move faster forwards now, and be more agile to accommodate disruptions without skipping a heart-beat."
But there are obstacles to overcome to achieve these outcomes. The largest barrier, according to Mr Lane, is in their mind-set.
"Many terminals operate in captive markets, and therefore do not see the need to create additional competitive advantages.
"This, however, is a dangerous strategy to adopt, as disruptive changes are happening a lot faster in this new world, and the profitable monopoly of today can be usurped by the sudden introduction of a strong competitor."
Shipping lines often press too hard on procurement, forcing terminals into punitive compensatory models, which in turn encourages the terminal to become defensive.
"Shipping lines need to realise that the efficiency of their most expensive assets is driven to a large degree by the performance of their business partners. So they need to operate more in partnership to unlock value," he urges.
"They will achieve more doing that than by trying to gain compensation or shave a few dollars off some tariff items. I think that many lines do not really understand or consider the total cost of ownership or the long-term implications of their short-term thinking."
WORLD SHIPPING
17 March 2015 - 08:24
TOC Asia 2015 in Singapore to defend terminal tactics
THE 19th TOC Asia from April 21-22 is set to debate the impact of mega vessels on terminal performance and productivity, with the focus being on matching port terminal productivity with carrier expectations.
WORLD SHIPPING
17 March 2015 - 08:24
TOC Asia 2015 in Singapore to defend terminal tactics
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