SAUDI CUSTOMS Blockchain digitizing Saudi shipping industry
Saudi Customs, in partnership with the Ministry of Communications and Information Technology (MCIT), the General Authority of Ports, and integrated logistics company Maersk, held a press conference to highlight the importance of blockchain technology in the shipping industry. General Manager of Marketing and Customer Service at Saudi Customs Adel Baraja said the role of Saudi Customs is in line with Vision 2030. “Saudi Customs is considered to be one of the most crossfunctional organizations across both the government and private sectors, placing Saudi Customs at the heart of government entities essential to achieving the goals of the Kingdom’s Vision 2030,” he said.
Dr. Hisham bin Abbas, adviser for modern technologies and blockchain at the MCIT, said the ministry’s aim is to develop new technologies to ultimately enhance the Kingdom’s position and make it one of the most important centers of the world. “Within the ICT sector, the ministry focuses on enabling and disseminating blockchain technology as one of the most prominent modern technologies through an implementation plan to build an integrated ecosystem,” he said. Mohammed Al-Otaibi, general manager of information technology at the General Customs Authority, reviewed the use of blockchain technology in customs and the steps taken by the authority toward digital transformation.
He said the first shipment that was launched using blockchain technology was from the King Abdul Aziz Port in Dammam to the port of Rotterdam on May 12 last year.
Al-Otaibi pointed out that the adoption of blockchain technology by Saudi Customs is the first in the region. “This step reflects the strategy of Saudi Customs to facilitate cross-border trade, especially through sea ports, which account for roughly 80 percent of trade in the Kingdom,” he said.
Al-Otaibi explained that blockchain technology supports the business development of major importers and traders by reducing time and cost and enhancing the security of supply chains. At the global level, he said the technology offers a digital reference documenting all the phases of the shipping procedures and allowing the relevant parties to access them simultaneously, without the intervention of any external party, thereby promoting international cooperation to ensure safety of trade and the reliability of global supply chains. Regional Director of Maersk Mohamad Chehab said the company aims to become a global logistics company for container shipping and to achieve this goal, Maersk developed various products and services to facilitate shipments including trade finance, remote container management (RCM), and Maersk Spot, which allows the customer to book the shipment directly through the Maersk website.
“As a result, the company’s investment in the development of digital solutions has become a pillar for its transformation,” Chehab said. Maersk and IBM have built the TradeLens platform, a common platform for users from airlines, ports, terminals, customs authorities and customers, to automatically and reliably deliver their shipment data via blockchain technology.