Ocean carrier Pacific International Lines, terminal operator PSA International and IBM plan to utilize blockchain for better security, efficiency and transparency in supply chain business networks and trade finance, the companies said in a statement.
PSA, PIL and IBM will utilize blockchain technology for greater transparency and security in business and financial transactions.
Ocean carrier Pacific International Lines (PIL), terminal operator PSA International (PSA) and IBM Singapore (IBM) have agreed to utilize blockchain technology for supply chain business network innovations.
The three parties have entered into a Memorandum of Understanding (MOU) and trial proof of concept (POC) and will work together “to develop solutions that translate into fraud and error reduction, as well as cost savings” for trade finance solutions, said Managing Director of PIL Teo Siong Seng.
According to PSA, blockchain technology is a “decentralized ledger technology” that results in “faster, private, confidential and auditable business-to-business interactions among suppliers, distributors, financial institutions, regulators or anyone wishing to make a secure exchange.” Once created, blockchain’s digitized chain of transactions cannot be altered.
“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. PSA looks forward to working alongside its partners in supporting this initiative and we will contribute our expertise and knowledge in managing ports and advancing supply chains,” said Tan Chong Meng, group CEO of PSA.
“Blockchain as the foundation of an immutable, security-rich, highly auditable and transparent shared business network, offers improved transparency, data security, and workflow productivity in complex business networks,” added Randy Walker, chairman and CEO of IBM Asia Pacific. “IBM will leverage the Hyperledger Fabric platform, its Supply Chain Business Network, and expertise from the IBM Center for Blockchain Innovation in Singapore to pioneer projects with the potential for widespread impact across industries in China and Southeast Asia.”
IBM recently entered into an additional blockchain agreement with Maersk. Both companies plan on working with a network of shippers, freight forwarders, ocean carriers, ports and customs authorities to build a blockchain solution for production by the end of the year.