Asia ports: battling pandemic and boosting supply chain links

Pandemic challenges 

Logjams and closures of other Chinese ports means a lot of sailings had to divert to south China, including to Nansha. 

Mr Nanninga comments, “This created a lot of new sailings and calls but on the other hand, created congestion. We had a big influx of ships that have not gone there before. Nansha has a lot of capacity so could handle it, but because of the Covid procedures in port and on the ship, everything took much more time.  

“We were lucky our port never had to close, as it had no cases, but there were a few times ships had infections among crew. This has created congestion and a problem to schedules on the Asian side, and we are seeing a lot of congestion on the European and US side.” 

He says congestion in Nansha has much improved compared with some months last year, with current idle times of 12-15 hours. “There were weeks last year when ships had idle times of two-seven days in China, although we never had more than three days.” 

The pandemic has impacted ports away from China and in other parts of Asia too. Despite the challenges, International Container Services Inc (ICTSI)’s Manila International Container Terminal (MICT) has been operating at normal levels since the pandemic. 

MICT executive director Phillip Marsham tells CST, “This was due to an indepth contingency plan introduced by ICTSI management at the onset of the pandemic, allowing operations to continue without interruption. Although we observed some disruptions in shipping lines’ regular services to Manila, the flexibility and additional capacity at MICT meant we could cover the challenges without affecting final deliveries to clients. MICT staff made a significant contribution to this success showing dedication, flexibility and customer focus to get through these difficult times.” 

He singles out that the terminal data systems and truck appointment booking system also supported the smooth running of operations, allowing greater control and an overview of day-to-day transactions. “The Philippine Ports Authority and Bureau of Customs together with all the other government bodies also played an important role in keeping the supply chains open,” he sums up. 

Looking back at last year, Mr Marsham reflects, “The main challenges have been ensuring operational excellence, customer experience and stakeholders’ welfare were maintained throughout the pandemic, and we are pleased to report that by keeping good communications with all stakeholders, MICT had its most successful year to date volume-wise.” 

Looking ahead, he says, “The pandemic is far from over so the focus will be to further improve our services in 2022, to ensure the supply chain remains robust to ensure MICT supports the economy as the country hopefully pulls out of the pandemic in the coming months.” 

Indeed, the main strategy and focus will be to “continually strive for improved sustainable operational efficiency, ensuring we exceed customer’s expectations and invest in the future to ensure we meet our clients’ forecast requirements to ensure a cost-effective and efficient supply chain”.  

Mr Marsham says this is done in conjunction with developing the professional team on the ground to meet the new challenges and requirements. 

He adds, “ICTSI will continue to focus on keeping our staff and stakeholders safe as the pandemic continues and will continue the mass vaccination programme ICTSI has arranged, which has been a key senior executive strategy, funded through the ICTSI Foundation.” 

Elsewhere, in Malaysia, Westports handled a container throughput of 7.9M TEU during the first nine months of 2021 – up 3% year-on-year. A statement explains this is despite “current and previous corresponding periods having movement restrictions domestically and in some regional countries”. But, it adds, when “lockdown eased, economic activities rebounded”. 

The terminal handled transhipment and gateway container throughput of about 5.1M and 2.8M, respectively. Westports says it “experienced active container yard utilisation as the global supply chain remained stretched with occasional port congestion at various terminals across the globe”. 

Westports has made investments in its container operating capabilities. It purchased additional terminal operating equipment and progressed towards completing a new 19-acre container yard to support higher container yard space requirements. 

There are also growth opportunities for Westports, such as ,“The logistics unit of China’s biggest container shipping company will build a new 31,000-m2 warehouse within the premises. The strategically located new warehouse would enhance the liner’s service offerings and capacity in Malaysia with a greater suite of logistics solutions.” 

Customer collaboration  

Meanwhile, PSA International is boosting its supply chain and logistics focus – an example is in December last year it signed an agreement to acquire 100% of the shares of privately held BDP International – a leading provider of global integrated supply chain, transportation and logistics solutions – from New York-based private equity firm Greenbriar Equity Group. 

Headquartered in Philadelphia, USA, BDP is a global logistics solutions provider managing end-to-end movement of shipments covering a range of industries and segments such as chemicals, industrial, healthcare, consumer and retail customers. With 133 offices worldwide, it specialises in the management of highly complex supply chains and is a proven industry leader in chemical and high care logistics and innovative visibility solutions. 

PSA says in a statement it has been “actively collaborating with its customers and partners to offer logistics and supply chain solutions beyond the port”.  

In another recent venture, allowing PSA to both boost supply chain initiatives and invest in green procedures, it has jointly launched a barge service with Ocean Network Express (ONE) sailing from PSA Singapore to PSA Jurong Island Terminal on 24 November 2021.  

This barge service will be used to transport empty containers to PSA Jurong Island Terminal for ONE’s customers located on Jurong Island.  

PSA International regional chief executive southeast Asia Ong Kim Pong said, “PSA is excited to embark on this greener mode of cargo transportation with ONE, bringing our long-standing partnership and shared vision to the next level. Our collaboration has not only optimised operational efficiency, but also created a greener ‘marine highway’ option for shippers and carriers as we stay committed to greening the industry. With this cleaner mode of transport, PSA has further built on our vision to orchestrate supply chains better and more sustainably.”