US-based technology firm Ideanomics formed a joint venture with APMEN Trade Tech Co Ltd. to deploy an intelligent digital supply chain management platform driven by blockchain and super artificial intelligence (AI) technology for APEC Model E-port Network (APMEN), APEC’s online port clearance system.
Asia-Pacific Economic Cooperation (APEC) is a regional economic forum established in 1989 to leverage the growing interdependence of the Asia-Pacific to promote free trade throughout the region.
The phase one of the project will be launched in two of the biggest ports in the APEC region – Shanghai and Guangdong, including seven container terminals. These two ports account for nearly half of China’s import and export. It will then be expanded into other APEC countries’ ports.
The project envisages enhancing the e-ports system using AI and blockchain solutions to streamline the e-port and e-custom operations and to extend its existing service from port to port, and warehouse to warehouse.
The move is expected to help improve the efficiency of customs clearance and allow consumers to track the cross-border goods origins via e-port system connection and data exchange.
APEC’s online port clearance system was established in 2014 to promote the development of model e-port in APEC countries’ economies and enhance connectivity among cargo hubs in the Asia-Pacific. APMEN has onboard 16 ports and e-ports from 11 APEC member economies, including New South Wales in Australia and Vancouver in Canada.
The full implementation of Ideanomics supply chain finance blockchain to connect e-ports across the APEC region is expected to save up to half of supply financing cost which is currently 16 to 25 percent in China.
The joint venture is also planning a Chinese stock exchange listing before the end of 2018. Ideanomics owns a 60 percent majority stake in the joint venture.