DP World joins blockchain consortium

10 December 2018

Nine leading ocean carriers and terminal operators are working together to develop an open digital platform based on blockchain technology.

DP World has joined the consortium in signing a Memorandum of Understanding (MOU), to develop the Global Shipping Business Network (GSBN) which is to be based on distributed ledger (blockchain) technology.

The new platform aims to connect all stakeholders, from carriers, terminal operators, customs agencies, shippers, and logistics service providers to ensure collaborative innovation and digital transformation in the supply chain.

The consortium also believes that it has the potential to enable “faster, more accurate processing of cargo information and more transparency of terminal operations for cargo owners”.

A joint statement said: “The container shipping industry is often characterised by disparate processes that take place across both physical and digital domains. Companies are increasingly looking towards digital technologies to resolve siloed shipment management procedures and disruptive information gaps. The consortium will offer a forum to address these challenges, explore cross-industry opportunities, and empower future innovation and insights.”

Signing the MOU alongside DP World were CMA CGM, Cosco Shipping Lines, Evergreen Marine, OOCL, Yang Ming, Hutchison Ports, PSA International and Shanghai International Port and software solutions provider CargoSmart, with all members intending to work collaboratively to develop the platform and facilitate the sharing of documents and data from all stages of the shipping lifecycle.

Blockchain technology is also being implemented in the oil and gas industry, with the Abu Dhabi National Oil Company (ADNOC) partnering with IBM to pilot a blockchain supply chain system – a platform for tracking, validating and executing transactions at all stages, from production to the end customer.  

Abdul Nasser Al Mughairbi, ADNOC digital unit manager, said: “Blockchain is a game-changer. It will substantially reduce our operating costs by eliminating time-consuming and labor-intensive processes, strengthen the marketing and trading of our products, and create long-term sustainable value that will ensure that ADNOC delivers on its 2030 smart growth strategy.”

Zahid Habib, IBM's chemicals and petroleum solutions VP, said the work had the potential to “digitally reinvent ADNOC's hydrocarbon value chain”.

“With this pilot, ADNOC takes a massive leap forward in asset provenance and asset financials, which, in its simplest terms, enables the ability to track irrefutably, every molecule of oil, and its value, from well to customer,” he said.

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