UAE forwarders could save up to AED 3.2 million per year with blockchain
Abu Dhabi Port Authority announced that they had built the first in-house Blockchain solution called Silsal in June 2018.
The solution is intended to provide access to transaction status updates between importers and exporters and according to Dr. Noura Al Dhaheri, CEO of Maqta Gateway at Abu Dhabi Ports, it can significantly benefit exporters and importers.
“The blockchain would act as a type of digital ledger allowing members of the trade community to record and extract details regarding transactions with greater security, transparency and efficiency,” she told Unlock.
“The supply chain process would be highly connected through a unified interface that would serve to connect all members of the industry locally and internationally. This would greatly improving how the trade community operates,” Al Dhaheri added.
“As for Silsal when it is provided to Importers/Exporters and Freight forwarders and based on our estimations, for example, one importer that does 50,000 shipments per year will save around AED 3.2 million,” she said.
Abu Dhabi Ports and Magta Gateway developed Silsal completely in-house at its Digital Innovation Lab using hyperledger as the technology platform. Silsal is currently in the POC (Proof of Concept) stage and has been field tested with strategic customers at Abu Dhabi Ports.
With any blockchain implementation, cost savings is one of the major benefits. The World Economic Forum predicts potential savings from blockchain implementation in shipping to range from 20% of the total physical transportation costs which would amount to US $1 trillion in savings for global trade.
“This figure corroborates the fact that digitalisation can truly shape the future and that is something we’ve considered when trying further benefit our trade partners and shipping lines,” says Al Dhaheri. “With Silsal fully implanted, transport and logistics operations would be significantly smoother.”
As for the future plans and its relation to the UAE Blockchain Strategy, Al Dhaheri says the goal for the UAE Blockchain Strategy 2021 is to become a world leader in adopting technology.
Their strategy aims to capitalise on blockchain technology to transform 50% of government transactions into the blockchain platform by 2021.
“Maqta Gateway’s blockchain solution opens a full world of cost savings and innovative solutions for the logistic trade here in Abu Dhabi and with the growing international connections, and in this way our strategies are integrated,” she says. “We are helping by using blockchain and other technologies to facilitate trade whenever possible through our innovative solutions.”