IBM has signed a memorandum of understanding with PSA International, a major port operator in Singapore, and regional shipping company Pacific International Lines. The partnership will be testing a new Blockchain-based supply chain network.
In a press release issued on Aug. 16, 2017, the three companies announced that they will collaborate in studying and testing proofs-of-concept through the use of technologies such as Blockchain. The main objectives of the project are to improve the security, efficiency, and transparency of regional supply chain business networks. Additionally, the group seeks to create trade finance solutions that can facilitate faster approval and prevent fraud.
Tan Chong Meng, CEO of PSA International Group, said that Blockchain technology has the capability to improve the supply chain network:
"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."
Other projects involving Blockchain
The partnership is just one of the latest initiatives in the shipping industry to integrate Blockchain technology to solve various issues in the sector. In early 2017, IBM collaborated with Danish shipping giant Maersk to conduct a live Blockchain. The trial aimed to automate the processing of shipping documentations through the use of smart contracts. Hyperledger's open-source Fabric Blockchain was utilized by IBM and Maersk to successfully complete a trans-Atlantic shipment of goods from French energy and automation company Schneider Electric.