Transforming Hong Kong’s Ocean Container Transport Logistics Network (OCTLN) An Experience Sharing: Theme-Based Research Project Transforming Hong Kong’s Ocean Container Transport Logistics Network (OCTLN) June 20, 2014 Presented by Dr James Wang, HKU 1

Theme-Based Research Project: Transforming Hong Kong’s Ocean Container Transport Logistics Network (11/2011 – 10/2016) Project Coordinator: Prof. Chung-Yee Lee (HKUST) Co-PIs: Albert Ha, Jeff Hong, Qian Liu, Ho-Yin Mak, Xiangtong Qi, Hongtao Zhang, Jiheng Zhang, Rachel Zhang (IELM & ISOM at HKUST), James Wang (Geography at HKU) Houmin Yan (School of Business at City U) Collaborators: Jan Fransoo (Eindhoven U of Tech, Netherlands) Kap Hwan Kim (Pusan Univ. Korea) Zhou Xu (HK Poly-U) … NUS, UK,………….

Where did the theme come from? Before the theme-based project, Prof. Chung-Yee Lee had been working in Ocean Transport Logistics related research and projects for 10 years: mainly in Terminal Operation Efficiency Improvement. Before joined HKUST in 2001, he had extensive research experience collaborated with industry in US, especially in semiconductor manufacturing and business processing management. After join HKUST, he also had experience of conducting large research grants. He has conducted several keynote speeches in related area, especially in INFORMS Annual Meeting in 2010 in Austin, TX. INFORMS is the world's largest professional society in Operations Research/ Management Science and its annual conference is the most important conference in our area - it has attracted close to 5,000 participants in 2010 Conference. 3

Where did the theme come from? In preparing the keynote speech for INFORMS, he spent one year, interviewing industry executives - not only terminal operators, but also shipping liners, freight forwarders, …., and shippers. He also conducted extensive literature review in related areas – not only in terminal operation efficiency improvement but also the whole supply chain. In interviewing with industry executives and literature reviewing, he found that i) Logistics management, especially in ocean container transport, is still very important for HK. ii) Ocean container transport involves not only terminal operators, but also shipping liners, freight forwarders (third party logistics), shippers and also government policy makers. Namely, it involves whole supply chain issues. 4

Where did the theme come from? Furthermore, he found that OR/MS literature mainly focuses in terminal operation efficiency improvement, and seldom study the ocean container transport related supply chain issues. For example, contract theory, revenue management, information sharing, disruption management, scheduling reliability,…etc, are all very import issues in ocean transport logistics, yet understudied. 5

How to team up? Prof Lee found that there are four areas that should be addressed: Area 1. Tactical Issues on Ocean Container Logistics Supply Chain Networks Area 2: Strategic Issues on Ocean Container Logistics Supply Chain Networks Area 3: Policy Issues: Hong Kong's Strategic Future Direction Area 4: Integrated Decision Support System 6

How to team up? He then contacted potential investigators, especially i) Prof. Albert Ha, who is a world renown scholar in supply chain management. Clearly, it is a very important area for the ocean transport logistics. ii) Myself, for government policy related research. We had then met several times to generate potential research topics (He knew that I had done research in related areas, though we never met before that) iii) Prof. Houmin Yan who has extensive experience in information technology, especially in integration of decision support system. These three professors and Prof. Lee himself, then become the coordinators of four areas of sub-themes. 7

Drafting the proposal (a) Tactical planning: innovative research issues (i) container port operations improvement; (ii) vessel speed optimization; (iii) safety and disruption management; (iv) tactical liner service network design. (b) Strategic planning: challenges and opportunities (i) contracting; (ii) information sharing; (iii) firm to firm competition; (iv) revenue management; (v) shipping securitization;\ (c) Strategic future directions: HK’s multi-gateway-based network structure (d) Integrated decision support system

Preparation for reviewers’ interview  Balanced approach –  Language in the presentation: General in the words used, but specifically clear in focused areas of our expertize  Demonstrating both frontier knowledge in the specific areas of research and the in- depth understanding of the real world needs  Rehearsal  Time management  “Division of labor” for Q & A  Demonstration of our team work spirit

Project Management 10 Project Coordinator (Chung-Yee Lee) Industry Advisory Board Tactical Planning Area Coordinator (Chung-Yee Lee) Strategic Planning Area Coordinator (Albert Ha) Strategic Future Direction Area Coordinator (James Wang) Integrated Decision Support System Area Coordinator (Houmin Yan) Regular seminar every two months Management team meeting semi-annually

Thanks. 11