Port of Brisbane adopts blockchain
June 5, 2018
The port of Brisbane is working with PwC Australia and the Australian Chamber of Commerce & Industry to use blockchain technology to remove supply chain complexity and improve international trade.
The Trade Community system can link supply chain information through blockchain technology.
“To drive new efficiency gains, industry leaders need to develop mechanisms which facilitate the integration and interoperability of commercial operators across the supply chain and logistics sector,” said Roy Cummin, CEO of the port of Brisbane.
The Trade Community system will address a number of points and recommendations from the recently released Inquiry into National Freight & Supply Chain Priorities report.
“The Trade Community system proof of concept is the first stage in building an innovative end-to-end supply chain that will digitise the flow of trading information, improve connectivity for supply chain participants, reduce friction for business and reduce supply chain costs, providing unprecedented productivity gains for Australia’s international businesses,” said PwC partner, Ben Lannan.
There are roughly nine million container movements at Australia’s five major ports annually. This figure is projected to rise to 15 million by 2025.
“The port – whether sea or air – is the first and last point of domestic contact in the international supply chain, and is the primary point at which all significant supply chain participants converge,” said Lannan. “To grow Australia’s trade competitiveness, we need to look beyond our ports.”
Australia has been experiencing growth in its volume of trade, which has increased pressure on supply chains, ports and border authorities to process, screen and clear goods as efficiently as possible in to the Australian economy.
“As a trading nation, Australia relies on efficient and effective international supply chains to drive its economic engine room,” said Australian chamber director of trade and international affairs, Bryan Clark. “At present the current inefficiency across Australian supply chains has added to the cost of doing business, creating up to $450 in excess costs per container. This doesn’t just represent in excess of $1bn in value lost, but goes to the heart of Australian commodity trade viability when it gets priced out of the competitive global market.”
Cummins added: “It is the right time for industry to initiate a reform and modernisation agenda which will shift the dial for Australia’s international business.”