IDEAS home Printed from https://ideas.repec.org/a/inm/orinte/v35y2005i1p61-75.html
   My bibliography  Save this article

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

Author

Listed:
  • Katta G. Murty

    (Department of Industrial and Operations Engineering, University of Michigan, Ann Arbor, Michigan 48109-2117)

  • Yat-wah Wan

    (Institute of Global Operations Strategy and Logistics Management, National Dong Hwa University, Hualien, Taiwan)

  • Jiyin Liu

    (Business School, Loughborough University, Loughborough, Leicestershire LE11 3TU, United Kingdom)

  • Mitchell M. Tseng

    (Department of Industrial Engineering and Engineering Management, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong, China)

  • Edmond Leung

    (Hongkong International Terminals, Terminal 4, Container Port Road South, Kwai Chung, Hong Kong, China)

  • Kam-Keung Lai

    (Hongkong International Terminals, Terminal 4, Container Port Road South, Kwai Chung, Hong Kong, China)

  • Herman W. C. Chiu

    (Hong Kong Productivity Council, HKPC Building, 78 Tat Chee Avenue, Kowloon, Hong Kong, China)

Abstract

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.

Suggested Citation

  • Katta G. Murty & Yat-wah Wan & Jiyin Liu & Mitchell M. Tseng & Edmond Leung & Kam-Keung Lai & Herman W. C. Chiu, 2005. "Hongkong International Terminals Gains Elastic Capacity Using a Data-Intensive Decision-Support System," Interfaces, INFORMS, vol. 35(1), pages 61-75, February.
  • Handle: RePEc:inm:orinte:v:35:y:2005:i:1:p:61-75
    DOI: 10.1287/inte.1040.0120
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/inte.1040.0120
    Download Restriction: no

    File URL: https://libkey.io/10.1287/inte.1040.0120?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ebru K. Bish & Thin‐Yin Leong & Chung‐Lun Li & Jonathan W. C. Ng & David Simchi‐Levi, 2001. "Analysis of a new vehicle scheduling and location problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(5), pages 363-385, August.
    2. Vis, Iris F. A. & de Koster, Rene, 2003. "Transshipment of containers at a container terminal: An overview," European Journal of Operational Research, Elsevier, vol. 147(1), pages 1-16, May.
    3. Zhang, Chuqian & Wan, Yat-wah & Liu, Jiyin & Linn, Richard J., 2002. "Dynamic crane deployment in container storage yards," Transportation Research Part B: Methodological, Elsevier, vol. 36(6), pages 537-555, July.
    4. Zhang, Chuqian & Liu, Jiyin & Wan, Yat-wah & Murty, Katta G. & Linn, Richard J., 2003. "Storage space allocation in container terminals," Transportation Research Part B: Methodological, Elsevier, vol. 37(10), pages 883-903, December.
    5. Meersmans, P.J.M. & Dekker, R., 2001. "Operations research supports container handling," Econometric Institute Research Papers EI 2001-22, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ku, Dusan & Arthanari, Tiru S., 2016. "Container relocation problem with time windows for container departure," European Journal of Operational Research, Elsevier, vol. 252(3), pages 1031-1039.
    2. Amit Upadhyay, 2021. "Pricing Anomalies and Arbitrage in Container Transport in India," Interfaces, INFORMS, vol. 51(6), pages 422-434, November.
    3. Iris F. A. Vis & Hector J. Carlo, 2010. "Sequencing Two Cooperating Automated Stacking Cranes in a Container Terminal," Transportation Science, INFORMS, vol. 44(2), pages 169-182, May.
    4. V. Galle & V. H. Manshadi & S. Borjian Boroujeni & C. Barnhart & P. Jaillet, 2018. "The Stochastic Container Relocation Problem," Transportation Science, INFORMS, vol. 52(5), pages 1035-1058, October.
    5. Leonard Heilig & Stefan Voß, 2017. "Information systems in seaports: a categorization and overview," Information Technology and Management, Springer, vol. 18(3), pages 179-201, September.
    6. Nabil Nehme & Bacel Maddah & Isam A. Kaysi, 2021. "An integrated multi-ship crane allocation in Beirut Port container terminal," Operational Research, Springer, vol. 21(3), pages 1743-1761, September.
    7. Michael F. Gorman & John-Paul Clarke & Amir Hossein Gharehgozli & Michael Hewitt & René de Koster & Debjit Roy, 2014. "State of the Practice: A Review of the Application of OR/MS in Freight Transportation," Interfaces, INFORMS, vol. 44(6), pages 535-554, December.
    8. Xie, Ying & Song, Dong-Ping, 2018. "Optimal planning for container prestaging, discharging, and loading processes at seaport rail terminals with uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 119(C), pages 88-109.
    9. Zehendner, Elisabeth & Feillet, Dominique, 2014. "Benefits of a truck appointment system on the service quality of inland transport modes at a multimodal container terminal," European Journal of Operational Research, Elsevier, vol. 235(2), pages 461-469.
    10. Maguire, A. & Ivey, S. & Golias, M.M & Lipinski, M.E, 2010. "Relieving Congestion at Intermodal Marine Container Terminals: Review of Tactical/Operational Strategies," 51st Annual Transportation Research Forum, Arlington, Virginia, March 11-13, 2010 207280, Transportation Research Forum.
    11. Zehendner, Elisabeth & Feillet, Dominique & Jaillet, Patrick, 2017. "An algorithm with performance guarantee for the Online Container Relocation Problem," European Journal of Operational Research, Elsevier, vol. 259(1), pages 48-62.
    12. Amit Upadhyay, 2020. "Improving Intermodal Train Operations in Indian Railways," Interfaces, INFORMS, vol. 50(4), pages 213-224, July.
    13. Chen, Xiaojing & Li, Feng & Jia, Bin & Wu, Jianjun & Gao, Ziyou & Liu, Ronghui, 2021. "Optimizing storage location assignment in an automotive Ro-Ro terminal," Transportation Research Part B: Methodological, Elsevier, vol. 143(C), pages 249-281.
    14. Ahmed M. Abdelmagid & Mohamed Gheith & Amr Eltawil, 2022. "Scheduling External Trucks Appointments in Container Terminals to Minimize Cost and Truck Turnaround Times," Logistics, MDPI, vol. 6(3), pages 1-22, July.
    15. Schulte, Frederik & Lalla-Ruiz, Eduardo & González-Ramírez, Rosa G. & Voß, Stefan, 2017. "Reducing port-related empty truck emissions: A mathematical approach for truck appointments with collaboration," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 105(C), pages 195-212.
    16. Leonard Heilig & Stefan Voß, 0. "Information systems in seaports: a categorization and overview," Information Technology and Management, Springer, vol. 0, pages 1-23.
    17. Ting, Ching-Jung & Wu, Kun-Chih, 2017. "Optimizing container relocation operations at container yards with beam search," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 103(C), pages 17-31.
    18. Phan, Mai-Ha & Kim, Kap Hwan, 2015. "Negotiating truck arrival times among trucking companies and a container terminal," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 75(C), pages 132-144.
    19. Jovanovic, Raka & Tuba, Milan & Voß, Stefan, 2019. "An efficient ant colony optimization algorithm for the blocks relocation problem," European Journal of Operational Research, Elsevier, vol. 274(1), pages 78-90.
    20. Raka Jovanovic & Milan Tuba & Stefan Voß, 2017. "A multi-heuristic approach for solving the pre-marshalling problem," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 25(1), pages 1-28, March.
    21. Li, Dongjun & Dong, Jing-Xin & Song, Dong-Ping & Hicks, Christian & Singh, Surya Prakash, 2020. "Optimal contract design for the exchange of tradable truck permits at multiterminal ports," International Journal of Production Economics, Elsevier, vol. 230(C).
    22. Raka Jovanovic & Shunji Tanaka & Tatsushi Nishi & Stefan Voß, 2019. "A GRASP approach for solving the Blocks Relocation Problem with Stowage Plan," Flexible Services and Manufacturing Journal, Springer, vol. 31(3), pages 702-729, September.
    23. Sanghyuk Yi & Bernd Scholz-Reiter & Taehoon Kim & Kap Hwan Kim, 2019. "Scheduling appointments for container truck arrivals considering their effects on congestion," Flexible Services and Manufacturing Journal, Springer, vol. 31(3), pages 730-762, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lehnfeld, Jana & Knust, Sigrid, 2014. "Loading, unloading and premarshalling of stacks in storage areas: Survey and classification," European Journal of Operational Research, Elsevier, vol. 239(2), pages 297-312.
    2. Wang, Shuaian & Meng, Qiang, 2012. "Liner ship route schedule design with sea contingency time and port time uncertainty," Transportation Research Part B: Methodological, Elsevier, vol. 46(5), pages 615-633.
    3. Briskorn, Dirk & Drexl, Andreas & Hartmann, Sönke, 2005. "Inventory based dispatching of automated guided vehicles on container terminals," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 596, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    4. Andrew Lim & Brian Rodrigues & Zhou Xu, 2007. "A m‐parallel crane scheduling problem with a non‐crossing constraint," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(2), pages 115-127, March.
    5. Yingyi Huang & Yuliya Mamatok & Chun Jin, 2021. "Decision-making instruments for container seaport sustainable development: management platform and system dynamics model," Environment Systems and Decisions, Springer, vol. 41(2), pages 212-226, June.
    6. Lu Zhen & Ek Peng Chew & Loo Hay Lee, 2011. "An Integrated Model for Berth Template and Yard Template Planning in Transshipment Hubs," Transportation Science, INFORMS, vol. 45(4), pages 483-504, November.
    7. Raeesi, Ramin & Sahebjamnia, Navid & Mansouri, S. Afshin, 2023. "The synergistic effect of operational research and big data analytics in greening container terminal operations: A review and future directions," European Journal of Operational Research, Elsevier, vol. 310(3), pages 943-973.
    8. Gharehgozli, A.H. & Roy, D. & de Koster, M.B.M., 2014. "Sea Container Terminals," ERIM Report Series Research in Management ERS-2014-009-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    9. Hartmann, Sönke, 2013. "Scheduling reefer mechanics at container terminals," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 51(C), pages 17-27.
    10. Zhongbin Zhao & Xifu Wang & Suxin Cheng & Wei Liu & Lijun Jiang, 2022. "A New Synchronous Handling Technology of Double Stack Container Trains in Sea-Rail Intermodal Terminals," Sustainability, MDPI, vol. 14(18), pages 1, September.
    11. Tao, Yi & Lee, Chung-Yee, 2015. "Joint planning of berth and yard allocation in transshipment terminals using multi-cluster stacking strategy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 83(C), pages 34-50.
    12. Yong Wu & Wenkai Li & Matthew E. H. Petering & Mark Goh & Robert de Souza, 2015. "Scheduling Multiple Yard Cranes with Crane Interference and Safety Distance Requirement," Transportation Science, INFORMS, vol. 49(4), pages 990-1005, November.
    13. Chen, Lu & Bostel, Nathalie & Dejax, Pierre & Cai, Jianguo & Xi, Lifeng, 2007. "A tabu search algorithm for the integrated scheduling problem of container handling systems in a maritime terminal," European Journal of Operational Research, Elsevier, vol. 181(1), pages 40-58, August.
    14. Wu, Yue & Luo, Jiabin & Zhang, Dali & Dong, Ming, 2013. "An integrated programming model for storage management and vehicle scheduling at container terminals," Research in Transportation Economics, Elsevier, vol. 42(1), pages 13-27.
    15. Amir Hossein Gharehgozli & Gilbert Laporte & Yugang Yu & René de Koster, 2015. "Scheduling Twin Yard Cranes in a Container Block," Transportation Science, INFORMS, vol. 49(3), pages 686-705, August.
    16. Zhen, Lu & Xu, Zhou & Wang, Kai & Ding, Yi, 2016. "Multi-period yard template planning in container terminals," Transportation Research Part B: Methodological, Elsevier, vol. 93(PB), pages 700-719.
    17. Zhang, Canrong & Guan, Hao & Yuan, Yifei & Chen, Weiwei & Wu, Tao, 2020. "Machine learning-driven algorithms for the container relocation problem," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 102-131.
    18. Anne Ehleiter & Florian Jaehn, 2018. "Scheduling crossover cranes at container terminals during seaside peak times," Journal of Heuristics, Springer, vol. 24(6), pages 899-932, December.
    19. Hartmann, Sönke, 2002. "Generating scenarios for simulation and optimization of container terminal logistics," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 564, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    20. Zhang, An & Zhang, Wenshuai & Chen, Yong & Chen, Guangting & Chen, Xufeng, 2017. "Approximate the scheduling of quay cranes with non-crossing constraints," European Journal of Operational Research, Elsevier, vol. 258(3), pages 820-828.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:orinte:v:35:y:2005:i:1:p:61-75. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.