Yantian International Container Terminal Best in Class Container Terminal

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SHENZHEN MARCH 2005

YANTIAN INTERNATIONAL CONTAINER TERMINALS "BEST IN CLASS"

Following an ongoing and detailed research study into how container terminal operators can influence logistics provision the Institute is recognizing the work of Yantian International Container Terminals (YICT), a division of Hutchison Port Holdings as the Global leader in container terminal operation.

The announcement comes as a result of the Institute's ongoing analysis of the efficiency with which container terminals are operated. The research has been targeted at revealing which container terminal most readily integrates themselves into a seamless supply chain and continually search for efficiencies in the logistics process. The research sought to identify the container terminals, which set the standards of excellence in the way terminals are operated.

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Ken Tse General Manager at Yantian International Container Terminals
is Presented with Best in Class Accreditation by Kieran Ring CEO GIL

In recognising YICT, the Institute is underlying the importance of the continuing and expanding co-operation between port end users and container terminal operators to make the process more efficient. Time consuming bureaucracy and inefficiency can have no part in the global supply chain.

The philosophy behind YICT and its attitude towards its operations is that it is part of the logistics process, where there must be due regard for both the inbound and outbound mechanisms that surround port movement. The Institute believes that this innovative approach, the container terminal is paying due respect to the smooth operation of the supply chain, should be mirrored across the globe.

Speaking at the announcement of the award, Mr. Kenneth Tse, Director and General Manager of YICT said:
“I’m very honoured to accept this award on behalf of Yantian International Container Terminals. It shows that YICT’s past efforts have been well recognised by industry’s leaders – carriers, end users and logistics experts. In today’s global economy, international businesses are seeking further opportunities in sourcing globally.  To survive, YICT has to be an integral part of the supply chain.  We must support the logistics community to stay competitive”

The ‘Spirit of YICT’ is such that both its management and operations staff have a commitment to finding further efficiencies on a daily basis.

YICT is a joint venture established by Hutchison Port Holdings and the Shenzhen Yantian Port Group. The JV commenced operations in mid-1994. The Company is responsible for operating and managing the first 3 Phases of Yantian Port, where it has nine container berths. Total investment now reaches HK$ 13.8 billion. The past eleven years have seen exponential growth at the port in large part due to the rapid expansion of the Chinese economy.

The natural deepwater Port at Yantian has led to it attracting the major international shipping line. There are currently 74 weekly shipping services calling at Yantian, which include 41 US bound and 22 bound for Europe, making it one of the busiest ports in Southern China.

The port is surrounded by a sophisticated road network, which ensures the smooth flow of cargo between the container terminal and the manufacturing bases. It also enables Yantian to have frequent and accessible contact with southern China. As a result of the rapid development of Yantian Port and Eastern Shenzhen, YICT has co-operated with the municipal and district governments, traffic management and planning departments on several initiatives which have included both financial support and material resources to upgrade the local road network. As part of continuing infrastructure development in the area 7 major road improvement projects are due for completion in 2007.

Pingyan Railway, which starts at Yantian in the south, is a dedicated railway with a total length of 23 kilometres. It provides YICT with distribution, consolidation and multi-modal transportation services.

The port company is continually striving to minimise bureaucracy and recently signed a memorandum of understanding with Shenzhen Entry-Exit Inspection and Quarantine Bureau to increase inspection and quarantine efficiency. These improvements to business procedures and increased speed with cargo declarations have enabled customers to save time and money.

The continued strive to innovate and respond to customers’ requirements in both managements and operations are all contributing to the standard that has Yantian in a ‘class of its own’. As a demonstration of its own efficiency Yantian holds the world record for Container Movements.

Commenting on the award Kieran Ring, CEO of the Global Institute of Logistics said:

“Velocity is the hallmark of effective logistics. The global supply chain is as strong as its weakest link and as fast as its slowest one. Much like a relay race the effectiveness of the process is all about the handover or interchange between the athletes in the team or in the case of logistics the modes of transport employed. If executed correctly and diligently no speed is lost in the hand over, however if the receiving team member is not alive to the imminent transaction and constantly in a state of expectancy the process breaks down and worse, continues through to the next relay in the race.

Logisticians have traditionally seen the port piece in the global supply chain equation as the weakest link or if you like the team member cast as the poor receiver/ deliverer.  Ports have long enjoyed the enviable position of being indispensable in the creation of and execution of international and global supply chains and as such tended to set the transport agenda in their space as opposed to accommodating it. If the global logistics revolution was to succeed then a new modern type of port had to emerge, our objective was to identify and accredit it.

In bestowing the Institutes inaugural ‘Best Global Container Port of the Year 2005-06” accreditation on YICT, we are confident that we have identified the benchmark port in global containerization. Since its inception in 1994, YICT has set itself apart by approaching its task differently. YICT, as a result of its enormous responsibility to provide a quality service that supports China’s emergence as the world’s leading trading nation and also because of competition from other port operators in the region, adopted a very open flexible approach.

Right from the outset YICT made efforts to understand and reach out to those businesses that would use their port, working with what it clearly views as its partners, to provide a competitive, efficient solution for its clients. In an effort to communicate this enthusiasm YICT has invested in next generation technology and materials handling in anticipation rather than in reaction to market changes.  As we all know putting your money where your mouth is, is still the greatest talking that any organization can do.

YICT’s management and executives have become available to the global logistics community in a way that we haven’t witnessed before and have done much to herald in a new dawn in the history of port operator/shipper relations, We are delighted to honor them in this way and encourage port operators worldwide to look no further than Yantian when choosing the operation to emulate.

I would like, on behalf of the Institute’s council and members, to congratulate all at the port on this wonderful achievement and to encourage them to continue to innovate, they have the global third party logistics industry’s support.”

To Read an in-depth report on YICT's Achievement Click Here

NOTES TO EDITORS

ABOUT GLOBAL INSTITUTE OF LOGISTICS

The Global Institute of Logistics (GIL) was established in 2003 under the Chairmanship of renowned US logistician and author Robert V. Delaney in response to the logistics industry’s call for “joined up thinking” amongst stakeholders in the global supply chain. GIL looks to resolve the challenges facing the global logistics chain of managing single transport modes, modal systems and targets which are set on stand-alone operations to create a seamless global logistics system.
A Think Tank, GIL brings together thought-leaders and thought-followers as part of a global knowledge network committed to building up the information base, best practices and standards. This, in turn, creates a platform through which knowledge is shared, best practice is adopted and trade developed. Today the Institute is a community of organizations and professionals from across the world that share a commitment to collaborating on global logistics solutions.
The Institute’s mission is to ‘Network the Global Logistics Community’

For further information, visit www.globeinst.org

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