Trio set sights on streamlining shipping with blockchain

News | 16 August 2017

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Pacific International Lines, PSA International, and IBM have signed a memorandum of understanding (MoU) to run blockchain-based proof of concept trials.

The trio will explore the technology to develop a platform to improve supply chain and trade finance processes by targeting document certification, visible connectivity between stakeholders, and fraud prevention.

Pacific International Lines is the 12th largest containership operator in the world, while PSA International is a port operator at 40 terminals in 16 countries across Asia, Europe and the Americas.

“A more transparent, secure and robust certification system and document flow will benefit the whole supply chain as well as have enormous potential for application in sectors such as food, pharmaceutical and trade finance,” said Tan Chong Meng, group CEO of PSA International.

“Across the global movement of goods and cargo, many activities continue to operate in silos. Blockchain has the potential to reduce inefficiencies and gaps within the supply chain, promote more cost-efficient transactions and facilitate the continued growth in world trade.”

Teo Siong Seng, managing director of Pacific International Lines, added, “The MOU seeks to develop solutions that translate into fraud and error reduction, as well as cost savings. PIL is pleased to contribute towards our common objectives with intermodal and shipping business know-how and services.

“We hope that the fruits of collaboration may in the long term enhance our support to Chongqing Connectivity Initiative projects, the Southern Corridor connecting Western China to Southeast Asia via Guangxi, as well as Southeast Asia trade corridors.”

IBM is also working with Maersk on a separate blockchain-based initiative, which targets payment transactions within the global shipping supply chain. 

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