Blockchain port clearance system to be launched at Shanghai and Guangdong

Nasdaq listed technology firm Ideanomics (NASDAQ:SSC) has formed a joint venture with APMEN Trade Tech Co Ltd., to streamline ports in the Asia Pacific by using blockchain and artificial intelligence for its Asia-Pacific Economic Cooperation’s (APEC) online port clearance system, including the Port of Shanghai, currently the world’s busiest port.

Last year, the Port of Shanghai handled 40 million twenty-foot equivalent (TEU) of cargo, while the total value of import and export conducted by the ports of Shanghai and Guangdong ports was estimated to be around $1.532 trillion.

‘We will integrate business data from various partners, establishing a risk control model in cooperation with a single window to provide risk control services for regulatory authorities and enterprises,’ said Bruno Wu, Chairman and Co-CEO of Ideanomics in statement to the exchange.

Ideanomics says that its Joint venture with APMEN will employ blockchain to extend connectivity to include the final buyers and sellers, rather than just from port to port, and custom to custom, bringing banks as financial institutions as lenders and customers under one roof as well as establishing and increasing asset-backed securitisation from the operation by securing high yield assets.

The new services are due to be launched for the ports of Shanghai and Guangdong intially, but could be rolled out into all 16 ports operated by APMEM including New South Wales (Australia), Vancouver (Canada), TradePort, OnePort, GLSHK (Hong Kong China), Port of Klang (Malaysia), Port of Manzanillo, Port of Lázaro Cárdenas (Mexico), Peru, Shanghai and Xiamen (China), Kaohsiung (Chinese Taipei), Hai Phong, Ho Chi Minh (Vietnam), Lirquen and Coronel (Chile) and Cebu (Philippines).

Speaking for the Joint Venture partner APEC Model E Port Network which was founded in 2014 to encourage the development of model e-port in APEC countries and improve connectivity among cargo hubs in the Asia-Pacific region, Chairman Dr Liu Yadong said: ‘The full implementation of connecting e-ports across the region using supply chain finance blockchain will save more than just trading costs and time. By leveraging intelligent supply chain services and super artificial intelligence technology, we are advancing trade facilitation and our supply chain connectivity.’