Across Asia, businesses and entities involved in regional and global trade continue to join the TradeLens platform. And with each new company that joins, the platform becomes more valuable to each member.
That’s because the growth of TradeLens leads to more opportunities for collaboration between companies, which will lead to innovations for the supply chain.
Think of this as an ecosystem.
Gartner defines a digital ecosystem as an “interdependent group of actors sharing standardized digital platforms to achieve a mutually beneficial purpose.”
Ecosystems emerge as a result of digitization when businesses seize the opportunity to create and deliver new customer solutions. Unlike traditional product businesses, which focus on costs, revenues and profits, “platforms focus on interactions: exchanges of value between producers and consumers on the platform. The number of interactions and the associated network effects is the ultimate source of competitive advantage,” notes IT Pro Portal.
It’s one of the central ideas of TradeLens: digitization of the supply chain will enable growth in global trade in entirely new and perhaps even unexpected ways.
Shippers are the ultimate beneficiaries of this ecosystem of firms sharing data.
In Asia, TradeLens has had strong development over the last 6 months. The recent announcement of Ocean Network Express joining bolstered the existing Asian ecosystem comprising ocean carriers KTMC, Namsung, PIL, SPIL, and other Asian members.
Shippers are the ultimate beneficiaries of this ecosystem of firms sharing data.
Just think of upstream visibility (even outside of their controlled supply chain), better document management, and customs clearance processing, all with the goal of ensuring products get to consumers at the right place and the right time, with less friction and lower cost.
Hakhee Han, Executive Managing director of KL-Net Corp sees the benefits of the TradeLens ecosystem as “the ability to access a great deal of logistics information while engaging with a high number of leading ocean carriers.”
TradeLens offers new benefits like the ability to spot capacity issues earlier, and early identification of exceptions, which leads to optimized flows, improved inventory management and reduced costs.
“These data will be mined and re-organized to meet the diverse and different needs of our clients in the field of terminal, transportation, inspection agency, traders,” Han says. “In addition to that, we will be gathering ocean logistics statistics which will be very helpful for relevant government and academy.”
Within the Asia ecosystem, using TradeLens carriers like KTMC and Namsung can connect with ports and inland providers allowing them to plan assets. It benefits shippers and importers by ensuring visibility over both cargo and document flows to permissioned parties. And it offers new benefits like the ability to spot capacity issues earlier, and early identification of exceptions, which leads to optimized flows, improved inventory management and reduced costs.
“Sharing a platform with other companies across the Group’s operations, we will be able to create a trade environment with open, quick and low-cost transactions through digitization and automation,” Toyota Tsusho says.
Here is a quick review of some of the Asian companies that have joined the TradeLens ecosystem and who are benefiting from the platform business model.
International Container Terminal Services, Inc. (ICTSI) is a global port management company headquartered and established in Manila, Philippines. Incorporated on December 24, 1987, ICTSI has been cited by the Asian Development Bank as one of the top five major maritime terminal operators in the world.
ILCS (INDONESIA LOGISTICS COMMUNITY SERVICE) is a company that provides information services, document exchange, and electronic payment to the Indonesian Logistics Community.
Established by PT Telekomunikasi Indonesia (Persero) and PT. Pelabuhan Indonesia II (Persero), two leading State-Owned Company (SOE) Enterprise in Telecommunication and Port industries. ILCS dedicated to improving the competitiveness of Indonesia’s logistics industry to align with developing countries.
Imoto Lines, Ltd., founded in 1973, is the leading coastal container carrier in Japan linking major domestic ports with regional ports. It has a vast feeder network that serves major ocean-going carriers with Keihin Port and Hanshin Port as its hubs. Imoto Lines is always keen to take on new challenges and devise new approaches in order to fulfill the needs of its customers.
Kerry Logistics Network Limited and its group of companies (Kerry Logistics Network) is a diversified group based in Asia with a core business encompassing integrated logistics, international freight forwarding, express, supply chain solutions, seaport management, and operations as well as an insurance brokerage.
Kerry Logistics Network operates under two master brands: Kerry Logistics is Asia’s premier logistics service provider with extensive operations across the globe. Kerry Express is positioned in the world’s fastest-growing region, offering last-mile delivery to B2C, B2B2C and C2C customers. Kerry Logistics Network has more than 40,000 employees in 53 countries and territories worldwide.
KL-Net Corp is a Korea-based company mainly engaged in the logistic business. The company operates its business in three main divisions. Its value-added service division provides e-logistics services such as business-to-government (B2G) and business-to-business (B2B) electronic data interchange (EDI) services including port logistics integrated system for maritime business (PLISM) solutions, electronic tax invoice solutions, and others. Its system integration (SI) division provides advanced terminal operation and management systems (ATOMSs), general cargo terminal operation systems (GTOMSs), port management information systems (PORT-MISs) and extensible markup language (XML) solutions. Its system maintenance division provides outsourcing services. It is also involved in the leasing business.
Since its establishment in 1954, KMTC has been a leading Korean marine transportation company. With more than a half-century of full liner service logistics knowledge, KMTC is continuously providing top quality services and is steadily building its vessel fleets to enlarge its service boundaries to fully satisfy customer’s needs.
Mitsubishi Heavy Industries, Ltd. is a diversified manufacturer operating across three business segments: The Power segment offers boilers, turbines, gas turbines, diesel engines, water wheels, windmills, nuclear power equipment, nuclear power peripheral devices, among others. The Industry & Social Infrastructure segment offers steel making machines, environmental equipment, paper processing machines, mechatronics systems, logistics equipment, engines, turbochargers, cold-heat products, car air conditioners, machine tools, ships, transportation systems, and chemical plants, among others. The Aviation & Defense & Space segment is engaged in the design, manufacture, and sale of civil aircraft, defense aircraft, aircraft, ships, special vehicles, special machines (torpedoes) and space equipment. The company is also engaged in the construction business, real estate business, and information business.
Mitsui & Co., Ltd. (“Mitsui”) is one of the most diversified and comprehensive trading, investment and service enterprises in the world, with 139 offices in 66 countries/regions as of Apr.1, 2019. Utilizing their global operating locations, network and information resources, they are multilaterally pursuing business that ranges from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in the following fields: Iron & Steel Products, Mineral & Metal Resources, Infrastructure Projects, Mobility, Chemicals, Energy, Food, Food & Retail Management, Healthcare & Service, IT & Communication Business, Corporate Development Business. Mitsui is actively taking on challenges for global business innovation around the world.
For containerized shipments, Mitsubishi Logistics provides a full range of container terminal operations at all major container ports in Japan, namely Tokyo, Yokohama, Nagoya, Osaka, Kobe, and Hakata, including vessel loading/unloading, marshaling/storage in the yard, delivery/receipt at the terminal gates.
Modern Terminals Limited opened Hong Kong’s first purpose-built container terminal facility in 1972. Today, the Company owns and operates container terminals at Kwai Tsing Container Port, Hong Kong. In the Pearl River Delta it operates and holds a majority of shares in DaChan Bay Terminals and also holds equity stakes in both Shekou Container Terminals and Chiwan Container Terminal. Modern Terminals is a customer-focused service provider. The Company’s expertise in the industry, deployment of advanced equipment and the commitment of its people enable it to deliver unique customer experience at the terminals it operates. The Company’s mission is to be the preferred partner for world-class terminal and supply-chain services, building global connectivity for the sustainable development of local economies and the improvement of people’s well-being.
The Maritime and Port Bureau (MPB) is the bureau under the Ministry of Transportation and Communications of the Republic of China responsible for building a quality environment for the maritime industry, reinforce maritime capabilities for higher competitiveness, implement national maritime policies, maintain order and safety at sea and cultivate maritime human resources in Taiwan China. They cover the following ports: Keelung, Taichung, Kaohsiung, Hualien, Taipei, Suao and Anping.
Namsung Shipping Co. Ltd. was founded at 1953 as Korea’s first private international shipping company mainly operating ocean container transportation services specialized on Intra-Asia region. The company operates dozens of owned vessels and chartered vessels and a subsidiary ocean carrier company – DONGYOUNG shipping also operates intra-Asia’s services including Korea-Japan, Korea-China, Japan-China, and Korea-ASEAN countries. For over 60 years, the company has been contributing to Asia’s growth and development by creating value and providing high-quality logistics services through the innovation of an Asian logistics network. Namsung has also focused its value proposition to apply newly introduced technologies like IoT, blockchain, Digital platforms, among others, to its customers.
The Nishi-Nippon Railroad Co., Ltd., or NNR, is one of Japan’s “Big 16” private railroad companies. With headquarters in Fukuoka, it operates local and highway buses, supermarkets, real estate, and travel agencies, as well as railways in Fukuoka Prefecture. NNR Operates in Logistics, supply chain solutions, Warehousing and distribution globally with presence over many countries.
Ocean Network Express (ONE) was incepted on July 7, 2017, following the liner service integrations of Kawasaki Kisen Kaisha (“K” Line), Mitsui O.S.K. Lines (MOL) and Nippon Yusen Kaisha (NYK). The new entity functions from its global headquarters in Singapore, supported by regional headquarters in Hong Kong, Singapore, the United Kingdom, the United States, and Brazil. ONE is the world’s sixth-largest container carrier with a fleet size of approximately 1.55 million TEU. Operating more than 210 vessels, it offers an expeditious and a reliable international network of over 120 services to 120 countries and beyond. ONE is a member of THE Alliance (THEA), a global ocean carrier consortium.
Pacific International Lines (PIL) is a shipping company incorporated in Singapore in 1967. PIL has a fleet of around 150 vessels (container, dry bulk, multi-purpose vessels) with a capacity of more than 400,000 TEUs. PIL has also taken delivery of 12x 11,800 TEU vessels. The company employs over 18,000 staff globally, regularly serving about 500 ports in nearly 100 countries worldwide and ranks within the top 10 largest container shipping lines.
PSA is a leading global port group and a trusted partner to cargo stakeholders around the world. With flagship operations in Singapore and Antwerp, PSA’s portfolio comprises a network of over 50 coastal, rail and inland terminals in 18 countries. Drawing on the deep expertise and experience from a diverse global team, PSA actively collaborates with its customers and partners to deliver world-class port services alongside, develop innovative cargo solutions and co-create an Internet of Logistics.
Sahathai Terminal is one of the leading private terminals in Thailand that provides the services ranged from 1) Commercial Vessel Terminal for International Feeder and Coastal Barge including the CFS and Container Depot Services. 2) Container inland transport services in Bangkok and perimeter region including Laem Chabang. 3) Container and Cargo storage, which PORT provides warehouses for both general cargo and Free Zone Warehouse. The clients compose of various business industries including a luxury carmaker and world-leading e-commerce. 4) Other related services for instant the freight forwarding business. SahaThai Terminals provide extensive services for intra-Asia transport, with direct services to a variety of locations for transshipment, including Singapore, Malaysia, Cambodia, Myanmar and Japan, and barge services between Sahathai Terminal and Laem Chabang Deepsea Port.
Salam Pacific Indonesia Lines, a top 30 global carrier, began in 1970 with the establishment of PT. Samudera pacific, an inter-island freight forwarding company. In 1980, the first vessel was acquired to mark the beginning of a national shipping line, which was then named PT. Samudera Pacific Indah Raya (SPIR). In 1984, the company fully acquired the shares of PT Salam Sejahtera, relocated its headquarter from Samarinda to Surabaya, thus the emergence of PT Salam Pacific Indonesia Lines (SPIL).
Toyota Tsusho Corporation is engaged in the trading of various products, the manufacture, processing, sale, and investment of the related products, as well as the provision of services. The Company operates in seven business segments. The Metal segment is engaged in the manufacture of steel products, non-ferrous metal products, and others. Global Manufacturing Parts and Logistics segment provides automobile components, logistics, and others. Automobile segment provides automobiles, motorcycles, trucks, buses and automobile parts. Machinery, Energy and Plant Project segment provides machine tools, industrial machinery, testing measuring apparatus, electrical equipment, coal, and others. Chemical and Electronics segment provides semiconductors, electronic devices, software, and others. Food and Life Industry segment is engaged in the manufacture of feed materials, grain, and others. The Company also operates financial and human resource business.
The global acceptance of eBL is in motion, how can MLETR and other legislative initiatives help?
We sat down with senior global trade experts, Diana Jones, Director of Solution Architecture, and Juanjo Ruiz, Strategy and Business Development at TradeLens to discuss the proliferation of electronic bills of lading (eBL) and the disruption of blockchain as an emerging technology with a substantial opportunity to support banks with unlocking a $3.4 trillion trade gap in the trade finance market. The following is a Q&A on these topics.
Bangladesh/Hong Kong – Citi Treasury and Trade Solutions (TTS) Asia Pacific has completed its first pilot paperless trade finance transaction using the TradeLens platform. Leveraging blockchain technology supplied by TradeLens, the pilot illustrates the effectiveness of the technology to improve supply chain efficiency by significantly reducing document processing lead times.