London, 04.2.2015 – Matching port terminal productivity with carrier expectations will be a principal theme at the 19th TOC Asia Conference and Exhibition, taking place 21-22 April 2015 at the Marina Bay Sands Hotel, Singapore.
As larger vessels cascade into Asia’s port networks, terminal productivity and port performance will be even closer scrutiny. Mega-ships and related alliances have already been cited as potential causes of ‘berth wastage’ and ‘cargo surges’.
However, larger ships could also be considered as much an opportunity as a problem for terminal service providers. According to Andy Lane, Partner at CTI Consultancy, now, more than ever, it is time for terminals to reach out to their shipping line customers and begin more open and constructive dialogue, which could include collaboration or even partnership.
Former Maersk Line executive Mr. Lane moderates the Day 1 session Port Productivity, Capacity & Congestion at TOC Asia 2015. He points out that container shipping lines want faster vessel turnround, 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," he says.
So 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 says. “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 in order to achieve these outcomes. The largest barrier, according to Mr. Lane, is in the mind-set. “Terminals are generally quite profitable compared with other parties in the supply chain, so the burning platform does not really exist,” he says. “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. We are starting to see this happening in several places around the world, monopolies do not usually have a long life expectancy; the barriers to entry are too low.”
There is also a huge lack of trust between lines and terminals, he adds. “Both parties are responsible for this situation, and both parties are failing to achieve maximum efficiency and mutual win-win solutions as a result.”
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 says. “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.”
At TOC Asia 2015, speakers from across the supply chain will analyse the myths and realities surrounding mega-ships and alliances, and their impact on port productivity, congestion, and shippers’ supply chains.
About TOC Asia
TOC Asia - the pan-Asia conference for people who own, move and handle containerised cargoes – will again be run as part of Singapore Maritime Week (SMW), running from 19-24 April 2015. Driven by the Maritime and Port Authority of Singapore (MPA), SMW attracts international participation for a celebration of all things maritime during a week of conferences, dialogues, exhibitions and social events. With a wide range of activities and events organised by MPA, the industry, research and educational institutions, SMW reflects the vibrancy and diversity of Singapore as a major international maritime centre.
TOC Asia showcases a macro-to-micro perspective on global and regional container supply chains and trade, bringing together a diverse group of stakeholders to explore current challenges and solutions.
Event format maximises networking opportunities
TOC Asia comprises two concurrent debating forums – the Container Supply Chain (CSC) Conference and the TECH TOC Conference – supported by a common networking zone where industry peers can swap notes and debate the high level discussion points presented in the conference sessions.
The Container Supply Chain (CSC) element is an executive-level discussion forum focused on international trade, container shipping, port development and logistics, bringing together shippers, shipping lines, 3PLs, port authorities, terminal operators, government and other key supply chain members.
This is complemented by TECH TOC, designed to engage operational executives in the practicalities of port and terminal performance, with in-depth debates on facility design, automation, operations, equipment and technology from berth to gate.
Major stakeholders already confirmed
Key supply chain stakeholders and analysts already confirmed to speak at the CSC forum include: Bjorn Vang Jensen, VP Global Logistics, Electrolux; Jaya Moorthi, Director of Supply Chain & Logistics, Hewlett Packard Asia Pacific; Stanley Smulders, SVP Asia - Europe & West Africa Trade Management, MOL Liner; Carl Zhong, Shipping and Intermodal Manager, Clevy China; Casper Ellerbaek, VP Trade Management, Kuehne + Nagel; Sundara Sundara, VP Ocean Product, Asia Pacific, Agility; Oscar Wang, Assistant General Manager, Shekou Container Terminals; John Arnup, Chief Technical Officer, Port of Tanjung Pelepas; David Alba, President & CEO, Grid Logistics; Richard Martin, Managing Director, IMA Asia; Alan Murphy, COO & Partner, SeaIntel Maritime Analysis; Andy Lane, Partner, CTI Consultancy; Jonathan Beard, Managing Director, ICF GHK; Dr. Stefan Wiech, Partner, HPC Hamburg Port Consulting; Dr. Thomas Vitsounis, Project Leader, Total Port Logistics, NICTA (National ICT Australia); Andrew Zerk, Director, New Dimensionz.
To view the full speaker list, visit:
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About TOC Worldwide
About the Singapore Maritime Week 2015 (19 – 24 April 2015)
Singapore Maritime Week (SMW) is the leading maritime event in Singapore. Driven by the Maritime and Port Authority of Singapore (MPA), SMW gathers the international maritime community in Singapore for a week of conferences, dialogues, exhibitions and social events in celebration of all things maritime. The range of activities and events organised by MPA, the industry, and research and educational institutions, as well as the cosmopolitan profile of participants, reflect the vibrancy and diversity of Singapore as a major international maritime centre.
SMW has grown in significance since the inaugural event in 2006, and is attracting more participants and event organisers from around the world. Participants can experience something new every year, as activities are added to the line-up, and as eminent speakers share their insights and participate in dialogues on topical maritime issues. This dynamism and the good range of issues discussed during SMW are major draws for maritime decision-makers, as are the many business networking platforms. This is why Singapore Maritime Week is all about PEOPLE, IDEAS and OPPORTUNITIES for the maritime community.