dexFreight, providers of a decentralized, blockchain-based logistics platform, has entered into a contract with the port community of Veracruz, Mexico to perform a proof of concept project for a blockchain-driven port community system.
The partnership, which will be led by dexFreight and the Texas A&M Transportation Institute (TTI), is a first-of-its-kind in the Americas and will help define blockchain applications for improving security and efficiency of freight transportation within the port system. It will also identify ways to streamline the processes involving container export from the port.
For the project, dexFreight will build a web-based application for stakeholders (the Mexican Customs Agency, Hutchinson Ports, the Customs Brokers Association, and the Port Authority of Veracruz) to share manifest information and other legal documents, and record events in the export process to smart contracts.
Stakeholders will then test the application for several months to quantify benefits in terms of reducing the number of hours required to complete the container export process, examining how blockchain can add accountability and transparency among the stakeholders involved. If successful, the initiative will lead to implementation of blockchain technology in the future development of a port community system.
“The Port of Veracruz is the third-largest port in Mexico, so we are thrilled to play a role in this important project,” said Rajat Rajbhandari, CEO and co-founder of dexFreight. “This an incredible opportunity to test the application of blockchain technology in a port environment and set a precedent for similar projects in ports around the world.”
In 2017, the Port of Veracruz moved 1.12 million TEUs, making it the third-busiest container port in Mexico and the most important in the Gulf of Mexico. Currently undergoing an increase of its capacity, the port expects the trend of growing container volumes to continue with up to five million TEUs by 2030.
Susana Diaz Virgen, general manager of Hutchinson Ports ICAVE, one of the two terminal operators at the port, said the project’s objective is to reduce time required between receiving appointment from customs brokers to actually loading containers and other cargo to a ship by streamlining the overall process and using blockchain to provide accountability among agencies.