Following a successful “proof of concept” study “ – completed recently in conjunction with the South African Revenue Service (Sars) – Transnet is “ready to engage” with industry on the use of blockchain technology in the supply chain.
Transnet spokesperson Molatwane Likhete told FTW that the logistics group – which includes Transnet Freight Rail (TFR), Transnet Port Terminals (TPT) and Transnet National Ports Authority (TNPA) – would soon roll out pilot projects to further test the waters around blockchain technology.
“Transnet is planning several industry engagements to showcase the proof of study work conducted. We are also engaging our leadership and operating divisions to identify potential areas where blockchain technology can be deployed,” he said, noting that further discussions and collaboration with Sars were also in the pipeline.
Likhete explained that the six-month long “proof of concept” study was launched so that Transnet could fully understand the technology required to “support the needs of customers and business in an Industry 4.0 ecosystem”.
“The technology was successfully tested and we were able to simulate a complete container import process using smart contacts in the blockchain.” He said that the benefits of the technology included reducing the cost of doing business by moving away from manual document handling. “The costs and delays associated with manual document handling and the approvals process are quite extensive. A digital platform would ensure much faster automation of the submission process and there would be a single version of the truth on the blockchain, thus ensuring integrity of information,” Likhete pointed out.
He conceded that there would be challenges around the adoption of such new technology – both within Transnet and the wider industry. He reiterated that the group would likely undertake pilot projects between a smaller grouping of customers and suppliers to prove that this technology could address current operational challenges and significantly reduce the cost of doing business.
“We have conceptually proven that the technology works but the acid test is now to operationalise solutions and for that we will need customers, suppliers and statutory bodies to embrace the new digital platform,” Likhete commented. NOTE: It’s worth watching the YouTube video (Transnet Digital Future: Blockchain and IOT) to gain further insights into the study as well as the benefits of this technology.
