Sri Lanka’s SAGT Joins IBM and Maersk’s Blockchain Trade Platform TradeLens

SAGT Embraces Blockchain for Enhanced Trade

In a significant step toward digital transformation, South Asia Gateway Terminals (SAGT) has joined IBM and Maersk’s blockchain-powered trade platform, TradeLens. SAGT becomes the first container terminal in Sri Lanka to integrate blockchain technology, aiming to revolutionize trade logistics and transparency.

This move underscores SAGT’s critical role in global trade, handling over two million twenty-foot containers annually. By adopting TradeLens, SAGT seeks to streamline operations, enhance collaboration, and bring unparalleled transparency to its supply chain.

TradeLens: Transforming Global Trade Logistics

1. What is TradeLens?

TradeLens is a blockchain-based digital trade platform developed by IBM and Maersk. It facilitates secure and transparent data sharing among stakeholders in the global supply chain, including:

• Shippers
• Shipping lines
• Ports and terminals
• Customs authorities
• Financial institutions

2. Features and Benefits

• Enhanced Transparency: Provides real-time visibility into container movements.
• Data Security: Leverages blockchain’s immutable ledger for secure data sharing.
• Efficiency Gains: Reduces paperwork, streamlines documentation, and accelerates trade processes.

SAGT’s Strategic Move Toward Digitization

1. Importance of SAGT in Global Trade

Located in Sri Lanka, SAGT is a pivotal link in the Asia-Europe shipping route. Its strategic position enables it to handle massive container volumes annually, making it a key player in international logistics.

2. Goals of the Partnership

By joining TradeLens, SAGT aims to:

• Improve Operational Transparency: Facilitate better container flow tracking for stakeholders.
• Boost Stakeholder Collaboration: Create a unified platform for shippers, shipping lines, banks, and customs authorities.
• Support Digital Transformation: Align with global trends in supply chain digitization.

3. Statement from TradeLens Leadership

Bimal Kanal, Head of TradeLens, South Asia, highlighted the platform’s ambitions:

“Our ambition is to have all stakeholders—including shippers, shipping lines, ports, banks, customs authorities, and so on—involved in the global supply chain to be on a common platform that will benefit the entire industry.”

Global Expansion of TradeLens

TradeLens has experienced remarkable growth, signing agreements with major port operators and container terminals worldwide.

1. Recent Partnerships

• India: In May 2024, the largest multi-port operator, Adani Ports and Special Economic Zone Limited, joined TradeLens.
• Oman: In January 2024, Port of Salalah, Oman’s largest port, adopted the platform.

2. TradeLens’ Global Reach

TradeLens now collaborates with over 300 organizations, processing millions of shipping events and transactions annually.

Why Blockchain is Vital for Trade

1. Enhancing Transparency

Blockchain provides real-time visibility into every step of the supply chain, reducing information asymmetry and building trust among stakeholders.

2. Reducing Costs and Delays

TradeLens automates documentation processes, significantly cutting costs associated with manual paperwork and delays in approvals.

3. Strengthening Security

The immutable nature of blockchain ensures that shipping data cannot be tampered with, protecting against fraud and errors.

Implications for the Global Supply Chain

1. For Ports and Terminals

• Faster processing times.
• Better integration with shipping lines and customs authorities.

2. For Shippers

• Enhanced tracking and forecasting capabilities.
• Increased confidence in shipment security.

3. For Customs Authorities

• Streamlined compliance checks.
• Real-time access to shipment data for faster clearances.

The Role of TradeLens in Sri Lanka’s Economy

1. Strengthening Sri Lanka’s Trade Position

By adopting blockchain, SAGT positions Sri Lanka as a progressive hub for digital trade in South Asia, attracting more global trade partnerships.

2. Supporting Economic Growth

Efficient trade logistics can boost Sri Lanka’s export competitiveness, contributing to overall economic development.

Challenges and Future Outlook

1. Adoption Challenges

• Integration with Legacy Systems: Ports and stakeholders must update existing infrastructure to align with blockchain systems.
• Stakeholder Buy-In: Convincing all parties in the supply chain to adopt the technology may take time.

2. Bright Future for TradeLens

• As more terminals like SAGT join the platform, TradeLens is poised to become a global standard for trade logistics.
• Emerging technologies like AI and IoT could further enhance TradeLens’ capabilities, creating a fully digitized and autonomous supply chain ecosystem.

Conclusion: A Landmark Step for Sri Lanka and Global Trade

South Asia Gateway Terminals’ adoption of TradeLens marks a significant milestone in blockchain integration within global trade logistics. By leveraging the platform’s transparency, security, and efficiency, SAGT not only strengthens its role in international trade but also positions Sri Lanka as a leader in digital transformation.

As TradeLens continues to expand its network with major ports and terminals worldwide, its potential to revolutionize the global supply chain becomes increasingly evident. With blockchain at the helm, the future of trade is poised to be more connected, transparent, and efficient than ever before.

For more insights on how blockchain technology is transforming global industries, explore our article on latest news, where we cover the latest developments and trends shaping the future of commerce.