Hongkong International Terminals Gains Elastic Capacity Using a Data-Intensive Decision-Support System

As the flagship of Hutchison Port Holdings (HPH), Hongkong International Terminals (HIT) is the busiest container terminal on the planet. HIT receives over 10,000 trucks and 15 vessels a day, about six million twenty-foot equivalent units (TEUs) a year. HIT makes hundreds of operational decisions a minute. HIT’s terminal management system, the productivity plus program (3P), optimizes resources throughout the container yard using operations research/management science (OR/MS) techniques and algorithms. It manages such interrelated decisions as how to route container trucks in the yard, where to store arriving containers, how many quay cranes to use for each vessel, how many trucks to assign to each crane, how many yard cranes to assign to each container storage block, and when to schedule incoming trucks for container pickup. As the number of container terminals in Asia grows, competition has become price driven and service driven. HIT realized its future rests not only with moving boxes but with mastering the associated information. This meant developing a decision-support system (DSS) to provide superior and differentiated services by generating optimal decisions, one that is very robust under uncertain arrival times of trucks and vessels. In its 10 years of operation, the implementation of the DSS through 3P has helped HIT to become the world’s most efficient and flexible terminal operator. HIT alone saves US$100 million per year. By optimizing internal truck use at its sister terminals, the HPH group saves an additional US$54 million per year.