Processes under the microscope
An analysis of the existing work processes performed by the various parties in the port of Rotterdam shows that an average of 16 to 20 companies are involved in the loading and unloading of a ship. However, no single party has a view of the entire chain. If one company is half an hour late, no more than two or three other companies in the supply chain are informed by telephone or email; other players in the chain are not informed or are informed much later. This causes unexpected delays and waiting times – not only for the ship by the quay, but also for the following ship that is expected. In 2010, this resulted in approximately 310,000 waiting hours in Rotterdam, equivalent to more than 35 man- years.
Similar problems occur worldwide in all ports. Rotterdam, together with partners and other market players, is seeking optimisation and cooperation with the aim of being the most efficient, safe and sustainable port in the world, so that it can effectively respond to changes in the port schedules.
Sharing information
In order for the processes to run smoothly, it is crucial to have access to the right information. The parties involved have therefore launched the initiative to improve the sharing of static information (about terminals or depth in the port) and dynamic information (about arrival and departure times). The aim is for chain partners to be promptly informed of changes so they are able to adjust their own schedules.
Many terminals now operate with the ‘first in, first served’ principle. With more reliable port planning, terminals can work with virtual arrival times. A ship’s captain is then certain that he can immediately moor in Rotterdam at the scheduled arrival time. The effect of this is that vessels travel more slowly and arrive exactly on time. This leads to a significant reduction in (fuel) costs – eighty percent of shipping costs consists of fuel costs – and much lower CO2 emissions. A second positive effect is that the time in port of vessels can be reduced. Both measures contribute to an improvement in the port’s competitiveness.
A new perspective
This initiative is all about a change in focus: from ‘in the port’ to ‘outside the port’ and not so much about the use of new technology. New thinking, the sharing of information and a different perspective on business models are paramount. All project partners are willing to look beyond their own organisation, to put aside short-term interests and to work together for the longer term benefit for all. This has increased the awareness that the port and all the parties involved form part of a much larger, global chain. And that has led to the adoption of global transport and logistics standards within the port infrastructure.
Transport by road, rail, water and air are now still separate transport streams (modalities), each with their own ecosystem, chains and handling processes. In the future, these individual transport flows will be combined and deployed in one integrated transport system, focused on the efficient and reliable transport of goods from A to B. The focus of transport is thus increasingly shifted to traffic management directed towards optimal goods throughput (see case above).
Success factors
It appears from the port ecosystem that a common purpose and a shared ambition is a good starting point to get all parties round the table: in this example, the parties that come to the port and parties working in the port. Successful participation requires commitment and support from the management and involvement from workers. Clarifying the added value for participating organisations of the project within the ecosystem takes time, but is important to find solutions for conflicting interests.
The coordination and progress run more smoothly if the supervision of the project is performed by a body that is trusted by all parties, such as an independent association. Information represents value – it is important to consider the question what it means to share data and information with one another. It raises a lot of discussion about ownership, access rights and competitive position among the partners involved. Actually showing what the positive impact of information sharing is, results in involvement and all kinds of new ideas. The development of the associated, necessary technological solutions goes in small steps.
The port ecosystem is growing and can no longer be seen separately from the entire transport chain. Because transport does not stop at national borders, new trans-sector collaboration will ultimately be required between existing and new chain partners at a global level. International cooperation and adhering to global standards are prerequisites for achieving this.
The parties involved have therefore launched the Port Call Taskforce initiative to improve the sharing of static information and dynamic information
Mariël van der Linden wrote this article in a personal capacity.
This article was published in: Giarte Outsourcing Performance 2015, Transform. October 2014.
