Samsung SDS, the IT subsidiary of Korean giant Samsung, is partnering with Dutch ‘big three’ bank ABN AMRO for a logistics blockchain pilot monitoring the shipment of a container from Korea to the Netherlands.
Samsung SDS made this announcement on last Monday, revealing details of a recent collaboration with the Netherlands bank for a joint blockchain pilot to monitor the multi-modal transport of a container from a factory in Korea to the Netherlands via the Port of Rotterdam, Europe’s largest shipping port by freight volume.
Precisely, the pilot will include the connecting of Nexledger, Samsung’s enterprise blockchain, and ABN AMRO’s Corda platform, created by New York-based industry firm R3.
According to ABN AMRO, the ‘special’ project involves two different blockchains coming together ‘for the first time in the rather short history of this technology’, stating that ‘this takes place via an overarching ‘notary’ that connects entirely separate blockchains in Korea and the Netherlands.’
Usually, an international trade finance transaction involving shipments sees payments, administration and the physical transportation of containers happen in different flows with a paper-intensive manual process.
“We will be integrating all these flows in our pilot: from workflow management combined with track & trace to the digitization of paper documentation such as waybills and the financing of handled freight or services,” ABN AMRO’s commercial banking chief Daphne de Kluis explained.
The banking executive sees “millions of euros” of savings in the future as a result of improved efficiency and transparency from blockchain driven logistics chains.
The blockchain pilot will completely be paperless and will electronically confirm receipt and payment of the trade together with real-time sharing of documents that are viewable by the shipper, receiver and port operator.