Singapore Shipping Firms Partner with IBM on Blockchain Supply Chain Trial

Announcements, Blockchain, FinTech, Group, Innovation | August 17, 2017 By:

Technology giant IBM has announced a trial blockchain network in Singapore for supply chain management.

IBM, Singaporean port operator PSA International, and Pacific International Lines (PIL), the largest shipping firm in Asia, have signed a memorandum of understanding (MOU) and will jointly work on proof-of-concept blockchain solutions that are expected to enhance the efficiency of the supply chain network in Asia.

The objective is to achieve better security, efficiency, and transparency in regional supply chain business networks, as well as connect to trade finance solutions that can facilitate faster approval and fraud prevention.

Tan Chong Meng, group CEO of PSA, said that blockchain holds great potential and can transform a variety of sectors, such as pharmaceutical, food and trade finance.

“Across the global movement of goods and cargo, many activities continue to operate in silos,” said Meng. “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.”

“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,” said Randy Walker, 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.”

“The MOU seeks to develop solutions that translate into fraud and error reduction, as well as cost savings,” Teo Siong Seng, Managing Director of PIL. “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.”