Two leading Singaporean maritime companies, shipping giant Pacific International Lines (PIL) and port operator PSA International (PSA), have inked a Memorandum of Understanding (MOU) with IBM Singapore to explore and trial blockchain technology.

Under the terms of the agreement, the three parties will work together on blockchain proof of concept (POC) for supply chain business network innovations. 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.

The signing ceremony took place during the Singapore Regional Business Forum (SRBF) held in Singapore. The MOU was signed by Lisa Teo, Executive Director (Corporate Development) of PIL; Oh Bee Lock, Head of Group Technology, PSA; and Janet Ang, VP Industry Solutions & Smarter Cities of IBM Asia Pacific.

“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,” Tan Chong Meng, Group CEO of PSA, said. “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.”

Randy Walker, Chairman and CEO – IBM Asia Pacific, said that 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.

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