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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 digitalisation 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.
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chainPORT World’s First Global Alliance of Port Authorities

The evolution of CHAINPORT can be traced back to the GIL's establishment in 2003

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

THE AGENDA FROM SMARTPORT TO SMART chainPORT

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.

CLICK ON PICTURE FOR CAPTION & GALLERY

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

As host of the IAPH World Ports Conference in 2015, the HPA has implemented numerous innovative pilot projects as part of the SmartPORT concept. smartPORT is defined as "the exchange of information to increase the quality and the efficiency of the port as an important link in the supply chain" Based on these experiences, the idea of the future-oriented, intelligent port is further developed through an international network between ports called “chainPORT”. The global platform shall connect important information of the respective partner ports on the one hand and create a basis that allows the joint development of new, future-oriented and innovative solution.


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.

Read On

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

From the port authoritys 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 combined with the introduction of Ultra Large Container Vessels (ULCV's) and vessel sharing agreements presents new challenge for port authorities. In this context the port authorities that respond strategically will have the best opportunity for success.


KIERAN RING PRESENTATION
Kieran Ring High Res Long Beach

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 outlined his vision for chainPORT which he modelled on HPA’s experience in developing the SmartPort program at Hamburg. He emphasized how simply digitalization and the use of freely available communication tools could transform productivity. He used the ports experience in setting up a simple “whatsapp group” for rail logistics stakeholders in the port as an example of how enabling group communication in real time improved the “load factor” on container trains within the port


JENS MEIER PRESENTATION

JENS MEIER
CEO
Port of Hamburg __________________

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.

Read On

CREATING VALUE THROUGH INNOVATION

The Fraunhofer Center for Maritime Logistics and Services CML develops and optimizes processes and systems along the maritime supply chain. The center supports private and public-sector clients with the initiation and realization of innovations through practical research projects in the fields of shipping, ports and logistics. In accordance with the project and customer requirements, the center puts together interdisciplinary teams of engineers, economists, mathematicians, information scientists and marine engineers to create customer-specific solutions for ship and fleet management, marine transport and navigation, ports and transportation markets.


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.

Read On

SINGAPORE SMART PORT INITIATIVES

The Maritime and Port Authority of Singapore is formulating the master plan for the next container terminal at the Tuas area of Singapore, which is planned to commence operation in phases starting from 2021 onwards. The move of the container terminals from the city will consolidate all operations into one single Tuas Port. Conceptualising and testing new operating concepts and planning for the future is part of MPA’s strategy to stay ahead ahead of the game. MPA will focus on Improving Port Management with Drones, Data Analytics, and Mobile Apps.


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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PORT AUTHORITIES AS THE "TRUSTED AND HONEST BROKER“

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.

CLICK ON PICTURE FOR CAPTION & GALLERY

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

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

In the 1960s, the shipping industry revolutionized international commerce by agreeing to standardize the size of shipping containers. We argue that some similar simple agreements in the world of computing will cause a similar explosion in the ability of devices to communicate. In fact, we think that we won’t get very far at all up Trillions Mountain without one (that is…exactly one) universal standard for transporting information. This video explains what a “container for information” is, why there are no standards for them today, and why there will have to be in the future.



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

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