“Logistics as a Team Sport” VMA’s International Trade Symposium Joseph P. Ruddy Executive Vice President & C.O.O. Virginia International Terminals May 3, 2012 “Logistics as a Team Sport”
• “A network of ports across the globe are sharing and implement best practices to improve services. The results of these initiatives have reduced turn times, expedited the movement from ship to rail and increased shippers' visibility to their cargo. Speakers will provide real world examples of how demonstrating a commitment to quality has improved the cargo handling processes and the shipper experience.”
Our Discussion
• How is it we view cargo today and how shall we and should we tomorrow • Innovative thought processes to review historical procedures and how can we create “best in class”. • Creating and maintaining a “Port Community” • Linking Ports together. “Logistics as a Team Sport”
Our Panel:
Mr. Kieran Ring – CEO, Global Logistics Institute
Mr. Manuel Guerra Vazquez – Head of the General Manager’s Office and Commercial Director for the Valencia Port Authority, Spain
Mr. Joachim Coens – Chairman and Managing Director, Port Authority Bruges-Zeebrugge, Belgium
Mr. William Yang-Lei – China Director, Global Logistics Institute US East Coast
Eastern ports scramble to prepare for new Panama Canal era
All along the Eastern Seaboard, hopes for a new maritime-based economic boom are high. Less than three years from now, the Panama Canal is scheduled to open up a new channel that will accommodate ships carrying double the cargo of those that can currently fit through the canal. Bigger ships, the thinking goes, means bigger business for the nation's Atlantic ports. TO PREPARE, • New York and New Jersey plan to elevate a bridge that, as it stands now, would block taller container ships. • Georgia's governor proposed selling nearly $47 million in bonds to deepen Savannah's harbor. • Baltimore is finishing work on a bigger berth and larger cranes to offload the next class of "post-Panamax" vessels. • South Carolina Gov. Nikki Haley told lawmakers last month she wanted to create an infrastructure fund to help pay for further deepening in their state. Federal engineers estimate that dredging a 50-foot channel in the Charleston harbor would cost $300 million. That is a hefty price, but Skipper says it is half the cost of digging out Savannah's shallower port.
TODAY, NORFOLK, VA., IS THE ONLY EAST COAST PORT THAT COULD HANDLE THE FULLY LADEN VESSELS THAT SOON MIGHT SAIL THROUGH PANAMA.
• New York, Baltimore and Miami are the next in line with improvements that will let them unload fully loaded vessels from the new class of megaships. But it could take years. The process of deepening a harbor depends on numerous approvals from the U.S. Army Corps of Engineers before dredging can even begin. And federal approval is no guarantee of quick action. For example, work on deepening the Port of Miami, which secured a federal blessing for dredging, is now on hold because of litigation over the project's potential environmental impact.
By DANIEL C. VOCK - Stateline.org By DANIEL C. VOCK Port of Virginia Yes, Mr. Will, there is a Virginia WILLIAM FRALIN | Richmond Times Dispatch January 31, 2012
It was with considerable interest that I read George Will's Jan. 15 column, "Running Competitiveness Aground," arguing that trade coming to the East Coast would be slowed if the shipping channels leading to and from the Port of Charleston aren't dredged to 50 feet deep. Will makes his case for Charleston based on increased trade coming to the U.S. East Coast through the Panama Canal, which will open a new, wider set of locks in 2014. This wider canal will accommodate a larger class of cargo vessels that can operate only in deep water ports — 50 feet being the magic number. The author's insinuation that this new development is a game changer for United States commerce is quite correct. Further, there can be but little argument that our public processes have become increasingly "sluggish," forcing America to play by different rules compared to much of the world. There is also more than a hint of truth to his statement that America has changed "from a nation that celebrated getting things done to a nation that celebrates people and groups who prevent things from being done." However, Will misses the point with his conclusion that the southeastern ports need to be dredged to 50 feet and that Charleston would be the cheapest to deepen. Yes, Mr. Will, there is a Virginia. It lies 309 nautical miles north of Charleston and the water here is 50 feet deep. In fact, the shipping channels at The Port of Virginia have been 50 feet deep since 2007 and this port has the federal authorization to dredge to 55 feet if necessary. The Port of Virginia was the only East Coast port that realized the need for deep water early on and took the necessary steps to prepare for a wider Panama Canal and a new class of vessels. In fact, Virginia's port is the sixth largest in the nation, third largest on the East Coast (ranking ahead of Charleston) and, last time I checked, located in the Southeast. Unlike many of its East Coast competitors, Virginia is not hamstrung by shallow water or overhead obstructions (bridges). Further, The Port of Virginia is home to the most technologically advanced container terminal in the Americas, has both of the East's Class I railroads on dock and is within a day's drive of two-thirds of the nation's population. The idea that the Port of Charleston may be out of the game without deeper water is a stretch. The Southeast continues to be the East's fastest growing region and forecasts show that trend continuing. Given those truths, container ships will continue to serve the Southeast. The most likely scenario is a change in port rotations. Virginia would become the logical first East Coast stop because huge ships could come here fully laden without concern for depth, and then move on to Charleston with a lighter load that doesn't require as much depth. I would have expected Will, as a fiscal conservative, to have addressed one final issue: How many deep-draft ports does the U.S. East Coast need and what should be the federal government's financial obligation? Presently, the ports of Miami, Savannah, Charleston and New York/New Jersey are all seeking a 50-foot channel. The collective price tag eclipses the $1 billion mark and there would be the prerequisite state/federal government cost share. Clearly, the bureaucracy needed to add five extra feet of depth to a shipping channel is numbing and a burden on the industry. But would the ports of Charleston and Savannah — separated by roughly 130 miles — both need 50 feet of water to serve much of what is largely a shared market? Should this money be spent with Virginia waiting just a little further up the road? “Beyond the Pier” VMA’s International Trade Symposium Logistics as a Team Sport
Kieran Ring
3rd/May/2012 Virginia, USA Introduction
The Global Institute of Logistics (GIL) was formed in 2003 as a Think Tank under the Chairmanship of the late Robert V. Delaney (1936-2004), the renowned US logistics commentator and author.. . Introduction
Since its foundation GIL has enjoyed a direct relationship with a diverse range of global port authorities and their communities - people and places that we have identified as First Movers, Thought Leaders and Early Adopters of the logistics model of port development.
Introduction
In essence, communities committed to the 'Relay' rather than the 'Delay' of cargo.
Researching the development of these port communities, identifying their best practices and, in some cases, building international standards of excellence around these experiences has been the work of the Institute for the last 9 years. Introduction
Our research proves that great port logistics is delivered as a result of a combined effort from a diverse group of port stakeholders working in harmony. Introduction Furthermore, we have identified that the Port Authority is the natural leader of the port community, and the only agency independent and powerful enough to marshal these resources. Introduction As a natural trade development agency, the Port Authority is also in the unique position to build bridges across the world with other like-minded Port Authorities and their communities. This combination of both acting locally and globally combines to provide the perfect maritime logistics support for the global supply chain. Introduction……. Such was the interest in our research into the renaissance taking place in world ports, and in gaining access to this network and this knowledge, the Global Institute of Logistics in 2011 set out a charter to migrate from its current Think Tank status to Membership Organization for global port communities. Our full integration as a Member Ship Organization will be complete in 2013 and mark the 10th anniversary of the founding of the Institute Introduction Continued
As a Membership Organization the Institute's expertise is the optimization of the flow of Knowledge, from port to port, inside the port and to the port end user. Out members contribute their knowledge of best practice and trade development to a global pool
Global Body of Knowledge
Flow of Knowledge Flow of Knowledge
Our members then Global Body of learn both from this Knowledge body of knowledge and from each other. Introduction Continued Our global Knowledge programs network global port communities in pursuit of a 'Chain' port model.
Our local Knowledge programs bring port stakeholders together to share this knowledge and to adopt global best practices. OUR RESEARCH SHOWED PORTS AS A ‘BLACK HOLE’ WITHN THE GLOBAL SUPPLY CHAIN
Freight Shipping Lines Forwarder No visibility within the port
Stakeholders Port operating in silos Authority Customers THIS NEEDS TO CHANGE
Port as a Black Hole Stakeholders operate as Shipping Freight Lines Forwarder Community Port No visibility Authority Shipping Lines within the port Finance Cargo CHANGE Data Stakeholders operating in silos Freight Customers Forwarder Port Customers Authority Terminal Operator Introduction Continued Our trade development Knowledge programs bring us face-to-face with the port end user where we work to inform this community on how to tap into the enormous potential of developing personal relationships with Port Authorities and their communities across the world.
Chain Port
Legend Cargo Flow Data Flow Finance Flow “From ‘Main’ Port to ‘Chain’ Port” VISION “We have been thought to compete but nobody has taught us to work together”
Professor Alan Waller Cranfield President of the British Institute of Transport and Logistics *Taken from “ The Relationship Driven Supply Chain” 20061 Cakes & Slices
Co-opetition is a business strategy based on a combination of cooperation and competition. It is derived from the understanding that business competitors can benefit more as a collective when they work together.
Traditional business philosophy translates to game theory's zero- sum game in which the winner takes all, and the loser is left empty- handed.
Co-opetition can lead to a plus-sum game, in which the sum of what is gained by all players is greater than the combined sum of what could be achieved solely through competition. We refer to this outcome as “Cakes & Slices”. Cakes & Slices
Industry HR Media Associations IT Port Authorities Terminal Operators Multimodal Shipping Government Academics Transports Lines
Other Interest Parties e.g. Consultancy, Insurance
Import Export Logistics Shippers Logistics
Port Authority Industrial Geography Shift: 1950-Present
5,000 – 8,000 Miles
China Late 90’s North America America
1950’s Industrial Center of Gravity 60’s – 70’s
80’s – 90’s 200 – 400 Miles
1,000 – 1,500 Miles
Source: MergeGlobal North America Port Congestion Impact Model “Most products in today’s marketplace are a result of global effort. Raw materials for a product may be produced in one country, assembled in another and finally marketed to consumers in dozens of different nations at once.” Transportation, Supply Chain and Logistics Companies Fuel Globalisation • The transportation, supply chain and logistics industry has gone global, along with just about every other industry sector. • Transportation and logistics companies hold a unique position because they are the very entities that make globalisation possible. • This industry is made up of companies that supply the systems and software, run the warehouses, provide the consulting and operate the airplanes, boats, trucks and trains that move raw materials, finished goods, packages, documents and people throughout the world. • They act as the arteries of commerce.
PEOPLE TAKE HOLIDAYS
CARGO TAKES LOGISTICS
THERE IS NO ONE ENTITY THAT PROVIDES A HOLIDAY.
TRAVEL AGENCY
AIRPORT TRAIN
AIRLINE PORT
BUS OPERATOR PILOT TAXI
HOTEL SIGHSEEING SHOPPING CENTRES RESTAURANT TOUR OPERATOR
Many different entities combine to provide a holiday. SO HOW IS THE QUALITY OF HOLIDAYS PROTECTED? THROUGH THE USE OF QUALITY STANDARDS. THROUGH THE USE OF QUALITY STANDARDS. THERE IS NO ONE ENTITY THAT PROVIDES LOGISTICS.
PORT AUTHORITY
PILOTS TOWAGE STATE MOORING STOWAGE SOCIETY
STEVEDORE SHIP AGENTS COMPANIES
OTHER SHIP COMPANYS OWNER FORWARDERS
CHARGER PORT CUSTOMS RECEIVER BROKERS CUSTOMS ROAD HAULIER GOODS
Logistics is the result of the combined effort of many different stakeholders. LOGISTICS IS A TEAM SPORT
Port final clients –shipping companies, importers/exporters‐…
PORT
.... usually perceives the quality in a port in a combined manner, with little differentiation among its specific services Through Reciprocal Accountability.
• Firm Foundation • Meritocracy • Open Communication • Innovative Processes
The Implementation of the above strategies demands the use of Quality Systems.
Quality is a strategy for Port Unity. Being able to prove quality is key to building strong relationships and building trust.
Our mission is to achieve Reciprocal Accountability through the use of Quality Systems. ....QI
42 Our research identified Quality and Trade Development as unifying strategies for Port Communities. THE INSTITUTE FORMS COMMITTEES IN ORDER TO BUILD QUALITY SYSTEMS AND TO DEVELOP TRADE
FORM COMMITEE
AGREE VISION TRADE‐MARK
HALL‐MARK BENCH‐MARK CONTAINER TERMINAL QUALITY INDICATOR GENESIS The Hamburg Committee Aims & Objectives:
• To continue development and improvement of the Container Terminal Quality System (CTQS).
• To make updates to the Container Terminal Quality Indicator (CTQI) standard by incorporating the experiences and knowledge from those who have worked to implement the standard. YANTIAN INTERNATIONAL CONTAINER TERMINAL Hamburg Committee
Administers Terminal Operators Industry Stakeholders
No. 48
STRUCTURE AND ELEMENTS OF CTQI
Internal Management Factors System Master Audit Tables
Master Tables KPIs + Master External Tables Factors Performance Evaluation ELEMENTS OF THE CTQI STANDARD • Management System - mandatory • Organisational culture, training, human resources • CTQI implemention, roles and responsibilities, record keeping, continuous improvement • Internal Factors – max 100 Points • Hardware and Organisation Evaluation • Setup of the terminal • External Factors – max 100 Points • Hinterland Connectivity • Performance evaluation (KPIs) – max 100 Points • Real Performance of the Terminal • Keeping the promise THE CONTAINER TERMINAL PERFORMANCE MEASURES CTPMS
• The CTQI Standard defines clearly 80 CTPMs – from “Number of Vessel Calls Total” to – “Barge Service Quality Index” – calculated for the reference period of 365 days – some of them are evaluated through Master Tables – all are stated in the Annex to the Certificate • the Annex to the Certificate is not published • Globally defined figures for the first time 2008: CTA Terminal 2 "Primarily by comparison with the previous year, specific indicators show what can still be improved at the terminal. Further progress is definitely still feasible!"
Oliver Dux, CTA : Managing Director, was delighted about the certificate and underlined its usefulness for a further 2009: CTA Terminal optimization of processes. Cartagena Certified with CTQI L- R: Gustavo Florez Dulcey CTQI Manager at Puerto De Cartagena, Mr. Eckhard Hinrichsen of Germanischer LLoyd, Kieran Ring Global Institute of Logistics and Giovanni Benedetti Commercial Director Puerto De Cartagena Muuga CT, Estonia Certified with CTQI CTQI Re-Certification, Hamburg, Nov 2011 Introducing ‘Total Quality Port’
The Total Quality Port concept combines the Institute’s Quality Systems with other internationally-recognised quality systems to produce an all-encompassing quality system for port communities.
ISO 14001 ISO 28000
ISO 9001
Total Quality OHSAS Port 1.Quality IT facilitates Quality Systems and Quality Culture Systems
Cruise Terminal Quality System Quality
3.Measure 2. Quality Cruise Terminals to Manage Culture & IT
Freight forwarders Railroad freight Wind Terminal operators Quality System Container Wind Terminals depots Port Community System
Stowage Customs Stowage Quality Model Health and Barge operators sanitary Barge Quality OHSA inspections System S Automotive Container terminals Terminals The Valencia Committee Aims & Objectives:
• To developed a transferable model of port community using the Port of Valencia’s Marca de Garantía system as a benchmark.
• To develop best practice for involving stakeholders within the decision- making process using a Quality Committee.
• To inculcate a culture of quality and continuous improvement through the use of voluntarily assumed quality standards. Valencia Innovation Map Thousands of TEU's 4,000
3,500
PORT PRIMER EXTENSION MARCA DE CONCURSO 3,000 WORKS GARANTÍA CSR POLICY TERMINAL PÚBLICA IPEC SECOND TRAINING 2,500 CITY/PORT CENTER MADRID‐ VALENCIAPORT AMERICA’S CHAIN AGREEMENT VALENCIA SIC FOUNDATION CUP PORT FREEWAY 2,000 FIRST CITY/PORT EDI ECOPORT AGREEMENT
1,500 1982 1986 1991 1994 1998 2001 2005 2007 2009 2011 1990 1997 2004 1978 1985 2000 2002 2006 2008 2010 1,000
MSC SAGUNTO NEW PUBLIC COSLADA DEDICATED PORT & GANDIA PORTAL 500 CONTAINER DRY PORT STRATEGIC TERMINAL AUTONOMY JOINT PAV VALENCIAPORT F1 TERMINAL PLAN 2015 PCS.NET
0 78 82 86 90 91 94 97 98 02 04 07 08 09 The Virginia Committee
Aims & Objectives:
• Using the Port of Virginia as a benchmark, identify the hallmarks of best practice in rail marine terminals.
• Use these hallmarks to develop an industry-recognised transferable system modelled on the Container Terminal Quality System, the ‘Rail Terminal Quality System’, for the implementation of on-dock rail terminal best practice. 2nd May 2012: Inaugural meeting of the Virginia Committee The Zeebrugge Committee Aims & Objectives:
• Using the Port of Zeebrugge as a benchmark, identify the hallmarks of best practice in automotive marine terminals.
• Use these hallmarks to develop a common set of definitions and terminology, Best Practices and Key Performance Indicators.
• To use this research to build an ‘Automotive Terminal Quality System’ modelled on the Container Terminal Quality System. CHAIN PORT Improving Global Logistics One Port at a Time The Port Network CHAIN PORT
Vision: To be the global port alliance for the frequent international shipper
Mission: Contributing to the long-term profitability of its members beyond their individual capabilities CHAIN PORT From “Main” to “Chain” Port October 2011, Shenzhen China China Gateway A “Home away from Home” for Chinese Companies Going Global
China Gateway Global Program Partner: Logistics as a Team Sport
THE CASE OF THE PORT OF VALENCIA
MANUEL GUERRA DEPUTY GENERAL MANAGER PORT AUTHORITY OF VALENCIA 1 QUALITY IN PORTS
WHY?
• CAPTIVE TRAFFIC IS DECREASING
• COMPETITION IS INCREASING
2 QUALITY IN PORTS
SOME QUESTIONS WHO IS THE PORT?
HOW ARE PORT SERVICES MADE UP?
WHO IS RESPONSIBLE TO THE CUSTOMER?
WHO DOES THE CUSTOMER BELONG TO?
HOW DOES THE CUSTOMER PERCEIVE PORT SERVICES?
3 QUALITY IN PORTS GROUPS WHICH MAKE UP THE PORT COMMUNITY
Pilots Customs Tugboats Plant Health & Foreign Trade Inspection Centre Moorers Foreign Health Department Port Authority Road and rail transport operators Harbourmaster’s Office State-owned Stevedoring Company Shipping agents Trade unions Customs agents Container depots Freight forwarders Surveyors Terminal operators Suppliers
4 QUALITY IN PORTS BREAKDOWN OF PORT COMMUNITY
• PRIVATE SECTOR COMPANIES – FREE COMPETITION (Shipping agents, land transport operators, customs agents, terminal operators...)
• PRIVATE SECTOR COMPANIES IN MONOPOLY OR QUASI MONOPOLY (Pilots, tugboats, stevedoring companies...)
• OFFICIAL BODIES WITH NO DIRECT INTEREST IN TRAFFIC (Inspection Service, Customs...)
• OFFICIAL BODIES WITH DIRECT INTEREST IN TRAFFIC (Port Authority...) 5 QUALITY IN PORTS
PORT COMMUNITY
PORT AUTHORITY PILOTS TUGBOATS STATE-OWNED MOORERS STEVEDORING COMPANY TERMINAL SHIPPING AGENTS OPERATORS
OTHER SHIPOWNER COMPANIES FREIGHT FORWARDERS
CARRIER GOODS RECIPIENT CUSTOMS CUSTOMS AGENT TRANSPORT OPERATORS
6 QUALITY IN PORTS
PORT AUTHORITY ROLE
- LEADERSHIP IN QUALITY STRATEGY • LEADING BY EXAMPLE THROUGH INTERNAL STRATEGIC PLAN • LAYING THE FOUNDATIONS FOR THE CREATION OF A QUALITY COMMUNITY PROJECT • BECOMING THE DRIVING FORCE BEHIND THIS PROJECT, EVEN THOUGH IT WILL END UP BEING A "PLAYER-COACH" • IT IS AN EQUAL BUT “IS NOT AN EQUAL” • USING PERSUASION AND VOLUNTARILY TAKING ON COMMITMENTS
7 QUALITY IN PORTS
DIFFERENT PORT GROUP ROLES
• AWARENESS THAT THEY ARE PART OF A COMMUNITY
• THEIR CUSTOMER IS ALSO THE NEXT LINK IN THE PORT LOGISTICS CHAIN
• INTERNAL PLAN
• COMMITMENT TO PORT COMMUNITY'S GLOBAL STRATEGIC PLAN
8 SUMMARY
• QUALITY IN PORTS
• QUALITY AT THE PORT OF VALENCIA
9 QUALITY AT THE PORT OF VALENCIA
END CUSTOMER DEMANDS
- SPEEDY OPERATIONS AND CUSTOMS PAPERWORK - HIGH GOODS SAFETY - PORT RELIABILITY - BUSINESS TRANSPARENCY - COSTS
THESE CANNOT BE RESOLVED BY PORT AUTHORITY ALONE 10 QUALITY AT THE PORT OF VALENCIA
PORT
PUERTOS DEL ESTADO
REGION PORT END COMMUNITY CUSTOMER CITY PA PUBLIC PRIVATE VESSEL SECTOR SECTOR CARGO
OTHERS EMPLOYEES Internal Quality
External Quality
11 QUALITY AT THE PORT OF VALENCIA
INTERNAL QUALITY TOTAL QUALITY
EXTERNAL QUALITY QUALITY MARK
12 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
13 QUALITY AT THE PORT OF VALENCIA
END PORT CUSTOMER COMMUNITY
Port Authority
Public sector
Private sector
14 QUALITY AT THE PORT OF VALENCIA
STARTING CONDITIONS KEY IDEAS
ESTRUCTURING PORT MANY GROUPS COMMUNITY
SOME INDIVIDUAL POSITIONS NEW CULTURE: GO AGAINST AWARENESS OF GLOBAL COORDINATED STRATEGY SERVICE TO A COMMON CLIENT
TO MAKE MARKET NON-TRANSPARENT MECHANISMS TRANSPARENT MARKET
15 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK BASIC PRINCIPLES
- PORT AUTHORITY CANNOT SATISFY ALL THE CLIENTS DEMANDS ALONE - CLIENTS JUDGE PORT GLOBALLY. THEY DON’T UNDERSTAND ABOUT THE DIFFERENT COMPONENTS OF THE SERVICE - GLOBAL QUALITY NEEDS ALL PARTICIPANTS TO PROVIDE QUALITY - QUALITY IS NOT ACHIEVED BY “MAINTAINING THE STATUS QUO”. IT REQUIRES EFFORT AND COMMITMENT - IT REQUIRES EXTERNAL SUPERVISION 16 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
DEFINITION SPANISH LAW 32/1988
QUALITY MARK: THE MARK OR METHOD WHICH CERTIFIES COMMON CHARACTERISTICS, ESPECIALLY QUALITY, THE CONSTITUENT PARTS AND THE ORIGIN OF THE PRODUCTS OR SERVICES PRODUCED OR DISTRIBUTED BY DULY AUTHORISED PROFESSIONALS AND SUPERVISED BY THE QUALITY MARK'S OWNER CONCEPT EXTERNAL DISPLAY OF COMMITMENT TO INDIVIDUAL QUALITY, VOLUNTARILY TAKEN ON BY THE MOST EFFICIENT PLAYERS IN THE PORT COMMUNITY 17 QUALITY AT THE PORT OF VALENCIA
PORT COMPULSORY COMPLIANCE WITH CURRENT LEGISLATION AND DEMANDS e2 MADE BY THE PORT AUTHORITY. e1 e3 e4 e5 e6 VOLUNTARILY COMPLIANCE WITH GENERAL COMMITMENTS AND PROCEDURES IMPOSED BY ……. e7 en THE QUALITY MARK. +
18 QUALITY AT THE PORT OF VALENCIA
QUALITY COMMITTEE
GUARANTEES
NOQUALITY YES COMMITMENT S
COMPANIES AND BODIES COMPANIES AND BODIES INSIDE OUTSIDE THE QUALITY MARK THE QUALITY MARK PORT
DOES NOT QUALITY MARK AUTHORISES AUTHORISE USE FOUNDATION USE
19 QUALITY AT THE PORT OF VALENCIA
PORT CUSTOMER
COMPANIES AND BODIES COMPANIES AND BODIES INSIDE AUDIT OUTSIDE THE QUALITY MARK PORT THE QUALITY MARK
NON-GUARANTEED QUALITY GUARANTEED QUALITY
NO YES YES NO QUALITY SERVICE? COMPLIANCE?
COMPLAINT DISSATISFIED SATISFIED CUSTOMER CUSTOMER
COMPENSATION
20 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
QUALITY COMMITTEE. MEMBERS
- PORT AUTHORITY - FREIGHT FORWARDERS - MARITIME AUTHORITY - CUSTOMS (TAX AGENCY) - STEVEDORING COMPANIES - HEALTH DEPARTMENT - SHIPPING AGENTS - AGRICULTURE AND FISHERIES - TUGBOATS DEPARTMENT - PORT PILOTS - FOREIGN TRADE (SOIVRE) - MOORERS - HAULAGE - STATE-OWNED STEVEDORING - RAIL TRANSPORT COMPANY - CONTAINER DEPOTS 21 - CUSTOMS AGENTS QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
QUALITY COMMITTEE. FUNCTIONS
- TO SET OUT THE INITIAL AND FUTURE GUARANTEES TO BE INCLUDED IN THE USER REGULATIONS - TO DESIGN OPERATIONAL PROCEDURES TO COMPLY WITH THE ESTABLISHED GUARANTEES - TO ESTABLISH COMPENSATION FOR BENEFICIARIES AND FINES FOR USERS. - TO PROPOSE TRAINING ACTIVITIES AND PROGRAMMES, QUALITY MARK PROMOTION AND SERVICE QUALITY IMPROVEMENTS TO MANAGEMENT. - TO PRODUCE REPORTS ON GRANTING OF USER AUTHORISATIONS, NEW ADMISSIONS, AND COMPLAINT AND FINE PROCEDURES
22 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK INTERNAL AND EXTERNAL SURVEY DEMANDS:
- IMPROVEMENTS IN BERTHING PROCEDURE
- STREAMLINING GOODS FLOW
- IMPROVEMENTS IN CONTAINER SAFETY
- ORGANISING ROAD AND RAIL TRANSPORT
- IMPROVEMENTS IN INFORMATION SYSTEMS AND INFORMATION GIVEN TO
CUSTOMERS
- IMPROVEMENTS TO SCHEDULES 23 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
BASIC PHILOSOPHY
WHAT KIND OF QUALITY SATISFIES CUSTOMERS? QUALITY THAT INVOLVES GUARANTEES
HOW CAN WE ASSURE THIS?
THROUGH PROCEDURES
WHO IS PREPARED TO COMPLY WITH THIS? COMMITMENT 24 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
ANSWERS TO DEMANDS:
GUARANTEED QUALITY LEVELS FORCE USERS TO:
- TAKE ON GENERAL COMMITMENTS
- IMPLEMENT MINIMUM PROCEDURES
25 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
GENERAL USER COMMITMENTS
- USE OF COMMON COMPUTER SYSTEMS - COMPLIANCE WITH REGULATIONS IN FORCE - TRAINING COMMITMENTS - QUALITY COVER AND SYSTEMS - INFORMATION - RECORDS - TURNOVER
26 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
CURRENT OPERATIONAL GUARANTEES FOR:
- TIMELY VESSEL BERTHING SO OPERATIONS CAN GET UNDERWAY AT THE SCHEDULED TIME. - SUPPLIES DELIVERED TO VESSEL WITHOUT DELAY. - CONTAINER DELIVERY AT THE TIME REQUESTED BY THE RECIPIENT (VALENCIA). - GOODS SAFETY. - CONTAINERS SHIPPED ON THE AGREED VESSEL (VALENCIA). - NOT RETURNING THE CONTAINER FROM THE BORDER INSPECTION POST TO THE STOCKPILES WITHOUT INSPECTION. - B/L PROCESSING WITHIN 12 HOURS OF VESSEL LEAVING PORT. - FRUIT QUALITY CHARTER (SAGUNTO) – 1,200 PALLETS A DAY. -- RESULT OF THE OFFLOADING/OUTTURN REPORT (SAGUNTO) – WITHIN 48 HOURS AFTER OPERATIONS HAVE BEEN COMPLETED. - GENERAL COMMITMENTS. 27 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
FAILURE TO COMPLY.- CUSTOMER - COMPLAINS TO CUSTOMER OMBUDSMAN - MUST ALWAYS RECEIVE AN ANSWER IN WRITING - GIVEN COMPENSATION IF APPROPRIATE
28 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
FAILURE TO COMPLY.- QUALITY MARK
- CUSTOMER OMBUDSMAN SENDS COMPLAINT TO MANAGEMENT SO IT CAN REPORT ON THE ISSUE - CUSTOMER OMBUDSMAN AND MANAGEMENT DECIDE WHETHER COMPENSATION IS APPROPRIATE AND REPORT ON THE ISSUE AT THE FOLLOWING MEETING. - FINE PROCEEDINGS ARE UNDERTAKEN IF APPROPRIATE.
29 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
COMPENSATION FOR FAILURE TO COMPLY
PERCENTAGE OF CHARGE BERTHING GUARANTEE BASED ON LENGTH OF DELAY PERCENTAGE OF CHARGE SUPPLIES GUARANTEE BASED ON LENGTH OF DELAY GOODS SAFETY GUARANTEE €120
CONTAINER FLOW GUARANTEE BETWEEN €15 AND €60
FAST PROCESSING €12 GUARANTEE FOR BILLS OF 30 LADING QUALITY AT THE PORT OF VALENCIA
QUALITY MARK COMPLAINTS VESSEL BERTHING GUARANTEE • 1999 15 VESSELS PAID €4,602.46 • 2000 20 VESSELS PAID €4,465.80 • 2001 55 VESSELS PAID €15,941.55 • 2002 141 VESSELS PAID €35,738.78 • 2003 168 VESSELS PAID €46,831.85 • 2004 128 VESSELS PAID €38,250.00 • 2005 115 VESSELS PAID €28,500.00 • 2006 242 VESSELS PAID €62,500.00 • 2007 122 VESSELS PAID €42,545.00 • 2008 280 VESSELS PAID €51,039.00
• 2009 191 VESSELS PAID €57,999.00 (provisional figure) 31 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
WHAT DOES IT OFFER CUSTOMERS? - CLEAR GUARANTEED QUALITY LEVELS
- OPPORTUNITY TO WORK WITH COMPANIES WHICH ARE PUBLICLY COMMITTED TO QUALITY AND ARE BACKED BY THE PRESTIGE OF THE QUALITY MARK FOUNDATION
- ESTABLISHED COMPLAINTS AND COMPENSATION PROCEDURE
(CUSTOMER OMBUDSMAN) 32 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
WHAT DOES IT OFFER USERS?
- MARKETING TOOL. PROVIDES COMPETITIVE ADVANTAGE
- FULL INTEGRATION IN PORT COMMUNITY
- INTERNAL PRESSURE TO IMPROVE
- QUALITY MARK BENEFITS: TRAINING, PROMOTION
33 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
WHAT ARE THE RESULTS IN THE PORT? - BUSINESS TOOL. UNIQUE PROJECT
- TOOL TO EXERT INTERNAL AND EXTERNAL PRESSURE
- ENCOURAGES LEAST EFFICIENT COMPANIES TO INCREASE QUALITY
- PROGRESSIVELY IMPROVES SERVICE QUALITY
THE PROJECT HAS BEEN THE TRIGGER FOR THE PORT COMMUNITY TO PULL TOGETHER 34 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK WORKING GROUPS - TRANSPORT - BORDER INSPECTION POST (PIF) - SHORT SEA SHIPPING - NEW VEHICLE TRAFFIC - FRUIT - STEVEDORING - IRON AND STEEL PRODUCTS - STRIKES - STANDING COMMITTEE - SEALS - GUARANTEE REVIEW - OFFICIAL INSPECTION SERVICES 35 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
MAIN RESULTS (AMONG OTHERS)
- MORE THAN 70% OF TRAFFIC GOES THROUGHT QUALITY MARK USERS - LESS THAN 2% OF FAILURES IN BERTHING WARRANTY - PORT OF SAGUNTO “BEST IN CLASS” IN NEW CARS TRAFFIC (Spanish Association of Automobile and Truck Manufacturers) - 30% INCREASE IN AVERAGE PERFORMANCE OF
CONTAINER CRANES 36 QUALITY AT THE PORT OF VALENCIA
QUALITY MARK
www.marcagarantia-ptovlc.com
37 Logistics as a Team Sport
THANK YOU FOR YOUR ATTENTION
MANUEL GUERRA DEPUTY GENERAL MANAGER PORT AUTHORITY OF VALENCIA 38 “Beyond the Pier” VMA’s International Trade Symposium Logistics as a Team Sport
William Yang-Lei
3rd/May/2012 Virginia, USA Did you know?
In 1996 a literal translation of the word “Logistics” (物流 – wù liú – cargo flow) did not exist in the Chinese Language YANTIAN INTERNATIONAL CONTAINER TERMINAL The Hamburg Committee Aims & Objectives:
• To continue development and improvement of the Container Terminal Quality System (CTQS).
• To make updates to the Container Terminal Quality Indicator (CTQI) standard by incorporating the experiences and knowledge from those who have worked to implement the standard. The Virginia Committee
Aims & Objectives:
• Using the Port of Virginia as a benchmark, identify the hallmarks of best practice in rail marine terminals.
• Use these hallmarks to develop an industry-recognised transferable system modelled on the Container Terminal Quality System, the ‘Rail Terminal Quality System’, for the implementation of on-dock rail terminal best practice. “Go-West” • Since the 11th FYP, China’s economy development has been focusing on the West Regions of China. Sea-Rail Development: a National Strategy • May 2011, Ministry of Transport and Ministry of Railways signed Cooperation Agreement to jointly promoting the Sea-Rail transport. • 9 Chinese Sea Ports have been tasked with exploring “Sea-Rail” challenges by the Ministries, including Tianjin, Shanghai, Xiamen, Shenzhen. “Go-West” & Sea-Rail intermodal • In 2010, 20% of export cargo were generated more than 600km inland from seaports in China. • Sea-Rail intermodal transport only account for less than 2% of total container throughput. • Sea-Rail development can • Reduce Logistics Costs • Support China’s “Go-West” strategy Chinese Company Going Global $2 trillion in direct Chinese investment will flow worldwide by 2020!
-DANIEL H. ROSEN AND THILO HANEMANN 2011 Chain Port
Legend Cargo Flow Data Flow Finance Flow “From ‘Main’ Port to ‘Chain’ Port” From “Main” to “Chain” Port October 2011, Shenzhen China State-owned Enterprises
• State-owned Enterprises (SOE)s holding approx. 84% of OFDI stock. • Strategic OFDI by SOEs also receives significant political backing. Chinese OFDI Flows 1982–2009 Billions of USD Sources: Lane and Milesi-Ferretti (1981–2007); People’s Bank of China, State Administration of Foreign Exchange (2007–2009). Conference Agenda: •Speed up “Go Global” strategy by focusing on enhance State-owner companies International Competitiveness •Review State-owned companies “Go Global” strategy during the 11th Five Year Plan (FYP) •Preview challenges and State Companies “Go Global” Conference opportunities for China State- April, 2011 BEIJING owned during the 12th FYP
Mr Wei Jianguo, Secretary-General of China Center for International Economic Exchanges, and Former Vice Minister of Commerce of China, met with Mr. Ring of GIL. (15.Mar.2011, Beijing) Key to Success Main Benefits
•Understanding Chinese Business Culture
•Optimal Logistics solutions due to being located in or near to a Port
•Supports from local Port Authorities
•Maximizing the Flow of Cargo, Flow of Data and the Flow of Finance
•100% China Centric Port of Zeebrugge – Belgium
•Location: Center location to serve the continent of Europe and UK and Ireland
•Port Logistics business Culture
•Automotive Cluster
•SIPG’s first oversea investment Port of Virginia – USA
•Nature Port: both water draft and air draft
•Fully Automated terminal
•Hinterland connectivity
•Best in Class Rail March 13th 2012, Hong Kong China: The Institute hosted the World Port Strategy Forum Asia Edition in Hong Kong on the 13th March 2012 March 15th 2012, Beijing China: The Port of Zeebrugge, the Port of Virginia and the Institute participated in the China Center for International Economic Exchange’s (CCIEE) 33rd Monthly Economic Talk. March 16th 2012, Tianjin China: Mr. Kieran Ring addressing the Tianjin Port Strategy Forum. The topic of his presentation was the Development of Global Ports, and GIL’s Chain Port and China Gateway Program China Gateway A “Home away from Home” for Chinese Companies Going Global
China Gateway Global Program Partner: Deliver China
European markets
ZEEBRUGGE Range Le Havre-Hamburg
Cuxhaven
Wilhelmshaven Hamburg Eemshaven Bremerhaven Emden Delfzijl
Amsterdam
Rotterdam Zeeland seaports Antwerp Ostend Dunkirk Ghent Calais
Rouen Le Havre Cargo traffic 2011 : 47 mio tonnes
3% 18% 28%
3% RORO CONTAINERS GENERAL CARGO LIQUID BULK 48% SOLID BULK Hinterland Zeebrugge
Rail: 11 shuttle trains/day Zeebrugge – Antwerp Daily service into Duisburg Daily service into Ludwigshafen Twice weekly service into Köln Three services/week into Lyon Three services/week into Dourges Fiftheen services/week into Milano/Verona
Barge: Daily barges to Antwerp, Willebroek, Meerhout, Neuss, Lille.
Trucking: One million truck combinations a year whitin a 400 to 500 km range.
Feeders: 20 daily services all over Europe Market coverage
10% 6%
4% 20% 3% 14% 18% 13% 5%
4% 3%
6 Shortsea services
RORO SERVICES CLdN roro Cobelfret ferries DFDS Seaways Finnlines Flota Suardiaz LSC Flota Suardiaz Atlantico KESS Mannlines Mitsui OSK Bulk Shipping Mitsui OSK Lines P&O Ferries Toyofuji Shipping Co. Transfennica UECC Baltic & Biscay Service UECC North-South Service
LOLO SERVICES CLdN (C2C lines) CMA CGM – FAS UK East Coast CMA CGM – Femex Service Daily roro-lolo departures to UK, CMA CGM – French Baltic St. Petersburg Scandinavia & Southern Europe DFDS Container Line DFDS Lys Line Norway Maersk Line / AE10 MSC Antwerpen Portconnect Container Portconnect Rhine WCT service Samskip Ireland-Continent Samskip UK service Unifeeder Baltic Service Unifeeder Finland Service Unifeeder Sweden Service The car Trade
MAKES HANDLED WITH PRIDE: ALFA ROMEO BMW CADILLAC CITROËN/PEUGEOT DAEWOO DAIMLER DAIHATSU FIAT FORD HONDA JAGUAR KIA LEXUS MAZDA MITSUBISHI NISSAN OPEL –GM RENAULT SUZUKI SAAB TOYOTA VOLVO Zeebrugge Hub for the European markets
Finland Sweden Denmark UK
Russia
Zeebrugge
Suzuki Ireland Ford Poland
Hungary Portugal France Germany Spain Turkey Austria Switzerland Hub for the intercontinental markets
US
Sweden Finland Denmark UK
Russia Zeebrugge Ireland Suzuki Ford Poland
Hungary Portugal Mexico France Germany Spain Far East Turkey Switzerland Austria
Australia NZ South Africa Creation of added value
Wallenius-Wilhemsen Logistics – Toyota – CdMZ – Car Center- ICO
PDI CPC VHC PPO DDD
•pre •car • vehicle •post •direct delivery processing holding production dealer and centres centres option delivery inspection Cardeck storage Container terminals capacity
CdMC
3,000,000 TEU CHZ: PSA- 2,500,000 TEU CMA-CGM 2,000,000 TEU 1,500,000 TEU
1 mio.TEU 1,000,000 TEU
500,000 TEU
0 TEU 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 PortConnect Zeebrugge - Duisburg Zeebrugge – Dourges – Zodiac Service
Three times a week
Deepsea & shortsea services
Accepted goods 20’ up to 45’ ISO DRY and TANK
Hazardous cargo
Class 1 et 7 not accepted Zeebrugge – Dourges - Zodiac Service
APM Terminals
P&O Ferries
PSA - CHZ Inland navigation Estuary shipping
Today 1.350 ton Toekomst 4.500 ton ?
Zeebrugge
Antwerpen Global network: follow the cargo
ZEEBRUGGE
Halifax Tomakomai Tacoma New York Newark Dalian Philadelphia Xingang-Tianjin Yokohama Hitachi Baltimore Port Hueneme Virginia-Norfolk Qingdao Nagoya Chiba Long Beach Charleston Beirut San Diego Umm Qasr Brunswick Shanghai Osaka Toyohashi
Galveston Doha Jacksonville Aqaba Bandar Abbas Ningbo Dar El Salaam Port Manatee Damman Khor Fakkan Xiamen Bahrain Shekou Keelung Jebel Ali Pipavev Altamira Jeddah Port Sultan Nansha Abu Dhabi Yantian Mundra Chiwan Hong Kong Mumbai Veracruz Salalah Nhave Sheva
Chennai Vung Tau Puerto Cabello Laem Chabang Cai Mep Manzanillo Santa Marta
Port Kelang Colombo Singapore Tanjung Pelepas
Papeete Guayaquil
Jakarta Callao Vitoria
Port Reunion Iquique Noumea Santos Maputo Paranagua
Brisbane Portocel Fremantle Durban Valparaiso Rio Grande East London Port Kembla San Antonio Adelaide Montevideo Port Elizabeth Zarate
Melbourne Breakbulk Containers Roro www.portofzeebrugge.be