On August 15, Pacific International Lines (Pte) Ltd (“PIL”), PSA International Pte Ltd (“PSA”) and IBM Singapore Pte Ltd (“IBM”) signed a Memorandum of Understanding (MOU) to explore and trial proof of concept (POC) blockchain-based supply chain business network innovations, says PSA.
The MOU was signed by Ms Lisa Teo, Executive Director (Corporate Development) of PIL; Mr Oh Bee Lock, Head of Group Technology, PSA; and Ms Janet Ang, VP Industry Solutions & Smarter Cities of IBM Asia Pacific.
Mr Lawrence Wong, Singapore’s Minister for National Development and Second Minister for Finance; Mr Teo Siong Seng, Managing Director of PIL; Mr Tan Chong Meng, Group CEO of PSA; and Mr Randy Walker, Chairman and CEO of IBM Asia Pacific were present to witness the signing ceremony, which took place during the Singapore Regional Business Forum (SRBF) held in Singapore.
The three parties will work together to explore POCs using technologies like blockchain 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.
Mr Tan Chong Meng, Group CEO of PSA, said, “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.
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. 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.”
Mr Randy Walker, Chairman and CEO – IBM Asia Pacific, said, “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. 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.”
Mr Teo Siong Seng, Managing Director of PIL, said, “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.”
Blockchain is a decentralised ledger technology used by a business network to securely exchange digital or physical assets. Each member of the network is granted access to an upto- date copy of this encrypted ledger so they can read, write and validate transactions. Once a transaction is validated using a consensus process, it is instantly committed to all ledgers in the network. The net result is faster, private, confidential and auditable business-to-business interactions among suppliers, distributors, financial institutions, regulators or anyone wishing to make a secure exchange. Blockchain creates a permanent, digitised chain of transactions that are grouped in blocks and cannot be altered.
SRBF is organised by the Singapore Business Federation to explore regional cooperation, connectivity and emerging business opportunities in the 21st century Maritime Silk Road. The event was attended by business leaders, academia, policy makers, diplomats and government officials from Singapore, China and over 40 regional countries.
About PIL
Pacific International Lines (PIL) is the world’s 12th top containership operator and one of the largest shipowners in Southeast Asia. PIL owns and operates with a fleet of more than 160 modern vessels offering services to Far East, Africa, Americas, Europe, Black Sea, Middle East, Indian sub-continent, Oceania and Southeast Asia. The group has several business units including container manufacturing, ship recycling, marine service, real estate, depots and logistics services. One of PIL’s subsidiaries, Singamas Container Holdings Ltd, listed on the Hong Kong Stock Exchange, is the world’s second largest container manufacturer with 10 container factories and operates 8 depots in China.
About PSA International
As one of the leading global port groups, PSA participates in around 40 terminals in 16 countries across Asia, Europe and the Americas with flagship operations in PSA Singapore Terminals and PSA Antwerp. PSA strives to continue growing its port network alongside its shipping line customers and become the preferred partner to port stakeholders across the world. Employing the finest talents in the industry, PSA delivers reliable and best-in-class service to its customers and develops win-win relationships with its partners. As the port operator of choice in the world's gateway hubs, PSA is “The World's Port of Call”.
About IBM
IBM is the leader in open-source blockchain solutions built for the enterprise. As an early member of Hyperledger, an open source collaborative effort created to advance cross-industry blockchain technologies, IBM is dedicated to supporting the development of openly-governed blockchains. IBM has worked with more than 400 clients across financial services, supply chains, IoT, risk management, digital rights management and healthcare to implement blockchain applications.