PwC Australia, the Australian Chamber of Commerce and Industry, and the Port of Brisbane have collaborated to develop a ‘Trade Community System.’ The new system is intended to link supply chain information through blockchain technology to eliminate complexity in international trade.
At the launch of a proof of concept Trade Community System digital application in Brisbane, the port’s CEO, Roy Cummins, said:
To drive new efficiency gains, industry leaders need to develop mechanisms which facilitate the integration and interoperability of commercial operators across the supply chain and logistics sector.
As PwC Partner, Ben Lannan explained, the system proof of concept is “the first stage in building an innovative end-to-end supply chain that will digitise the flow of trading information, improve connectivity for supply chain participants, reduce friction for business and reduce supply chain costs, providing unprecedented productivity gains for Australia’s international businesses.”
The Trade Community System will address a number of points and recommendations from the recently released Inquiry into National Freight and Supply Chain Priorities Report.
Australia has been experiencing growth in its volume of trade, which has increased pressure on supply chains, ports and border authorities to process, screen and clear goods as efficiently as possible in to the Australian Economy.
According to the report, this trade growth is attributed to Australia’s growing population and from increasing demand for Australian resources, mostly in Asian markets.
There are roughly 9 million container movements at 5 major Australian ports annually. This figure is projected to rise to 15 million by 2025. Australian Chamber, Director of Trade and International Affairs, Bryan Clark, noted:
At present the current inefficiency across Australian supply chains has added to the cost of doing business, creating up to $450 in excess costs per container. This doesn’t just represent in excess of $1bn in value lost, but goes to the heart of Australian commodity trade viability when it gets priced out of the competitive global market.
