Port Centric Logistics and its role in

collaborative supply chain strategies

Murray Gibson – 29 April 2010

Hutchison Ports (UK) Ltd.
Felixstowe
Harwich

London
Thamesport
Port centric logistics, the story so far……..

• Almost 10 years in the making

• Alternatives to the ‘golden triangle’ - why?
• Definition?
• Some end-user development

• Impact on Port Industry

• Niche Ports – focus on commodity trades
• Mega Ports – containers

• High demand for existing facilities

World by Containers Handled

Slide 4
UK Container Trade Growth* (2000 - 2035)

TEUs

25,000,000 Forecast Scenarios:

Recovery Case
Base Case
20,000,000
Prolonged Recession

15,000,000

10,000,000

5,000,000

0
2000 2005 2010 2015 2020 2025 2030 2035

(Source: Ocean Shipping Consultants)

Recession and the Supply Chain

2008 2009 2010

Inventory------- J.I.T. Inventory------- J.I.T. Inventory------- J.I.T.

Delivering Port centric Solutions

Cost & time

………..by Association

………..by Integration
Port centric ”A unique set of services……”

• Import decision point

• Multimodal downstream options
• Cross-docking
• Staging and buffering
• Overweight container handling
• Re-export opportunities
• Bond Management and scheduling
• Multi-supplier consolidation
• Quay rent and demurrage
management
• Laden container storage
• Deep/short sea convergence
• Product conditioning & Rework

Slide 8
Port, 3PL and Shipper

• Benefits Achieved - Samsung

• Assisted to turn White Goods portfolio into profit making business unit
• Most flexible manufacturing supply chain for the mobile phone market
– Closer to mobile market ‘utopia’ of supply within the UK so therefore
‘future proofing’
• Greater internal disciplines
– Stock allocation
– Streamlines logistics, not just sales subsidiary, EU, Global platforms
• Tighter control and supply of balance of SKUs within portfolio – ‘cost to serve’.
• Overall cycle time compression, Opens up end to end supply chain
• Green ‘action’, not just a message
– Couple reduced carbon footprint with void fill maximised to +90%
(Both selling unit and container loading)
• Returns ratio greatly reduced
What does the future hold……?

• Complimentary Solutions
The phased approach……

Shipper ‘A’
Shipper
Shipper‘B’ ‘C’ ‘D’
Shipper
Shipper ‘E’

Shared-user Specific Services

What does the future hold……?

• Complimentary Solutions
• “Co-opertition”
• Exclusivity comes at a price!!!
• Flexible Cross-docking Facilities
• Local Asset Integration
London Thamesport
Port and Logistics
Integrated Logistics Park
What does the future hold for PCL……?

• Complimentary Solutions
• “Co-opertition”
• Flexible Cross-docking Facilities
• Local Asset Integration
• Hot Boxing
• Green Lane Gating
• Pro-active use of available data
Pro-active use of available data
In Summary

• Port Centric is here and now!

• Requires investment
• Ports
• 3PL’s
• Property Investors
• Shippers & Cargo-owners

• Further collaboration and integration

• Better use of available data
• Origin Solutions
 Our Mission
To be the global market leader in
port development, operations and logistics services