China Shipbuilding turns to blockchain for supply chain financing platform
CHINA Shipbuilding Industry Company Limited (CSICL), a subsidiary of Chinese shipping conglomerate China Shipbuilding Industry Corporation (CSIC), is looking into ways to leverage blockchain to finance CSIC's upstream suppliers, according to Chinese newspaper People's Daily
CHINA Shipbuilding Industry Company Limited (CSICL), a subsidiary of Chinese shipping conglomerate China Shipbuilding Industry Corporation (CSIC), is looking into ways to leverage blockchain to finance CSIC's upstream suppliers, according to Chinese newspaper People's Daily.
As a result, CSICL has signed a strategic cooperation agreement on supply chain services with Shanghai Bank. Under the terms of the agreement, CSICL and Shanghai Bank will develop a blockchain-based online supply chain finance platform for upstream suppliers of CSIC, cointelegraph reported.
The platform would provide financing for supply chains servicing the firm's ten major product sections: marine engineering, storage batteries, shipbuilding, turbochargers, tobacco machinery, diesel engines, large steel structure fabrications, port machinery, gas meters and automation distribution systems.
According to the People's Daily, the agreement is part of Shanghai Bank's plan to improve business processes using new technologies. Last October, Shanghai Bank reportedly launched its Uplink e-Chain - an online supply chain financial service platform for small and medium enterprises.
Blockchain technology has been widely applied across the shipping industry and in various supply chains. In January, Israeli shipping company Zim opened a blockchain platform for electronic bills of lading to all clients in selected trades.
Russian shipping logistics company Infotech Baltika unveiled plans in February to develop a blockchain-based port operation system dubbed Edge.Port in partnership with Moscow-based blockchain start-up Iconic.
Earlier in March, the Singapore government announced it would go ahead with a pilot of its blockchain-based maritime trade platform TradeTrust. The pilot follows a January memorandum of understanding signed by Singapore's Infocomm Media Development Authority, Maritime Port Authority, Singapore Customs and the Singapore Shipping Association.