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March 2 2020

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March 2 2020 | The Journal of Commerce 57 www.joc.com Delivering a more efficient service to carriers while enhancing overall competitiveness has required an extraordinary level of collaboration. As new carrier alliances have formed and the industry has consolidated, all ports have had to change the way in which they do business. As part of the HKSPA initiative, best practices across the four operators were identified and rolled out under a new "terminal neutral" operating model. The new grouping methodically examined every aspect of operations and costs to find possible savings. By April 2019, the four- terminal team had finalized its berth and yard planning strategies. The HKSPA members' 23 berths are now divided into three terminal zones, significantly reducing inter-terminal trucking. Previously, as many as 75,000 trucks were moving between terminals every month. Benefits have been two-fold: customers have enjoyed substantial cost savings, and the cost to the environment in terms of emissions has also been reduced. HKSPA has added immense value to the industry in Hong Kong, HIT Managing Director Leonard Fung said. "The formation of the Seaport Alliance has enhanced efficiencies and improved the overall service offering to customers. The Alliance ensures that the Port of Hong Kong remains a valuable contributor to global trade." The barge services have been thriving since the formation of the HKSPA. In September 2019, the Alliance rolled out new barge initiatives, including: the standardization of operations policy across all facilities, single voyage arrangement, and a favorable dockage scheme. The HKSPA handled 6 million TEU of barge transshipment business in 2019, with approximately 100 daily barge calls covering a 700-kilometer radius to the cargo hinterland. Horace Lo was appointed Group Managing Director of Modern Terminals in February 2020. In his opinion, the changes introduced in September 2019 are helping to "reaffirm the city's status as a world- class gateway to and from South China." "The new barge initiatives support our overall strategies of enhancing efficiency and make us more competitive within the region," Lo said. Guangdong and Hong Kong Feeder Association Chairman Ellis Chung praised what he called the "proactive approach" taken by the HKSPA, explaining that it will shorten turnaround time, improve slot utilization, simplify administration, and provide more flexibility. "Improving the turnaround time of our barges is always the key to enhancing our efficiency and improving the product we offer to our shipping line customers," Chung said. SPECIAL ADVERTISING SECTION OF THE JOURNAL OF COMMERCE

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