Blockchain to be used for port logistics

Trial service begins soon to transport containers swiftly

Blockchain technology will be applied to the movement of containers between piers, making it possible to transport goods conveniently and swiftly without data errors or omissions.

The Ministry of Science and ICT and the Ministry of Oceans and Fisheries said Tuesday that it had established a blockchain-based integrated service to issue certificates for containers entering and exiting ports to use blockchain, the core technology of the Fourth Industrial Revolution, in port logistics.

The Port of Busan ranks second in the world in terms of transshipment after Singapore and Busan’s amount of Internal Terminal Transportation (ITT), which means sailing a ship out through the shipment of transshipment cargoes to another port, accounts for 16% of total transshipment freight. So it’s important to share information smoothly between logistics players such as shippers, transporters and terminal operators.

ITT refers to a process in which cargoes are unloaded at a pier before being transported after being shipped to another boat. ITT proceeds like this: if a shipper draws up a list and relays it to a transport company, then shipment schedules are mapped out and notified to the terminal operator and the driver.

But job performance has been inefficient as modifications were frequent in this process owing to data omissions or communication errors in transmitting information via wireless communication, email or fax. Also, the waiting time often lasts too long because of transport vehicles stranded at terminal gates while entry and exit certificates instructing container loading and unloading locations inside the terminal are being issued to drivers in paper documents.

The blockchain-based integrated issuance service involving container transport enables information needed for ITT to be stored and shared on the blockchain network, thereby improving inconveniences in container transshipment and raising efficiency.

Experts say the duration of 1 day or 2 needed to confirm cargo quantities and the duration of 1 hour needed to verify the transportation process will be shortened significantly, probably in real time. Drivers also can be aware of shipment schedules and grasp container locations through the issuance of entry and exit certificates via an app.

A trial service for the project will be implemented for one year beginning this month for some logistics companies in the Busan New Port. /edshin@decenter.kr

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