Australia Launches Blockchain Pilot to Save Billions in Trading Costs

  • Urvashi Verma
    📰 News

    Australia is developing a Blockchain supply chain to increase efficiency and save billions in trading costs


Australia Launches Blockchain Pilot to Save Billions in Trading Costs

PwC Australia, in collaboration with the Australian Chamber of Commerce and Industry (ACCI) and the Port of Brisbane, is developing a comprehensive Blockchain supply chain platform poised to save the nation billions in trading costs.

The Blockchain pilot platform called Trade Community System links supply chain information and reduces the high costs incurred in the processing and screening shipments at ports.

PwC Partner Ben Lannan stated in a press release:

“The Trade Community System proof of concept is the first stage in building an innovative end-to-end supply chain that will digitize 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.”

Australia, which moves nearly nine mln containers annually through its five ports, is experiencing high growth in trade volume and is projected to increase container volumes by 66 percent in the next seven years, according to PwC.

Roy Cummins, CEO of the Port of Brisbane, said:

"It is the right time for the industry to initiate a reform and modernization agenda which will shift the dial for Australia's international business."

Cummins stated that efficiencies realized through the digitization of trading processes could result in unprecedented productivity gains.

The platform can reduce $450 in excess costs per container which based on the current volume of 9 mln containers can result in $4 bln and reach $7 bln annually by 2025, according to data reported by the Australian Chamber.

Bryan Clark, director of Trade and International Affairs at the Australian Chamber, added that these savings are not representative of the more than $1 bln lost each year due to competition in the global marketplace.

Australia will become one of the earlier nations to deploy a  Blockchain platform to solve trading supply chain inefficiencies, after South Korea launched a test Blockchain customs platform to track and process the entry and exit of goods earlier this month.

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Cover image via u.today
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