Abu Dhabi Ports Launches Blockchain to Tackle Logistics Problems in the Shipping Industry


One major sector that blockchain is poised to transform is the transportation and logistics industry. Implementation of a blockchain network can solve issues with supply chain transparency, poor accountability, fictitious pickups, tedious paperwork, among other things. Abu Dhabi ports‘ subsidiary, Maqta Gateway LLC, recently launched a domestic logistics blockchain solution to tackle these issues.

According to a recent report from Construction Business News, Maqta Gateway LLC is the first entity in Abu Dhabi to deploy its own blockchain solution. Dubbed “Silsal”, the logistics blockchain initiative is focused on reforming and advancing the supply chain processes in the trade industry.

While announcing the new platform, Captain Mohamed Juma Al Shamisi, CEO of Abu Dhabi Ports expressed confidence in Silsal’s development and capabilities. He had this to say concerning the project:

“We are delighted to announce the launch of the first home-grown blockchain technology in Abu Dhabi through Silsal service, which was developed using local resources and capabilities to provide advanced services to all users […] This achievement will help to further augment Abu Dhabi’s position as a center for innovation in logistics and trade.”

To improve proficiency and maintain a stable and secure link between stakeholders in the trade community, Silsal has incorporated blockchain technology with a digital user identity system. This system is aimed at filling the current void between importers and exporters by allowing easy public access to transaction status updates, mitigating the need for excessive paperwork and quickening the process of information exchange by reducing the need for calls or visits.

As with most traditional information systems, there are several security risks associated with usernames and passwords. Login details can be hacked or stolen; Maqta Gateway kept this in mind while developing the Silsal blockchain platform and integrated a security system into Silsal which utilizes a new form of digital identity management. With this security system in place, Maqta Gateway can encrypt vital transportation documents, preventing important data from being obtained by cyber criminals. According to the CEO of Maqta Gateway Dr. Noura Al, this encryption system “will eliminate the need for access through passwords which can often be a security risk.”

A lot of industries can benefit from logistics and security improvements by implementing blockchain technology, but the shipping and logistics industry is a prominent pacesetter in blockchain-based solutions. Giants of the industry like UPS and FedEx are working with Blockchain in Transport Alliance (BiTA) to leverage blockchain technology to create better security and customer service systems. Other blockchain systems for tackling issues in the international trade industry are being developed by Maersk, the world’s largest shipping company.

All these activities shouldn’t come as a surprise since the World Economic Forum has estimated that 20% of the total expenses of physical transportation worldwide could be saved by implementing blockchain technology.  In fact, FedEx CEO Mr. Frederick W. Smith has described the blockchain as the “next frontier” for global supply chains.

With the Silsal platform, Abu Dhabi hopes to bring the world closer to the future of digitized trade, by providing a secure and consistent network which will simplify the process of shipping and logistics in the trade industry. In the initial release stage, Silsal logistics blockchain solution will be made available to freight forwarders before being presented to the rest of the trade community.

David is a professional writer and blockchain enthusiast who caught the blockchain fever three years ago and has never looked back since then. His genuine interest in this emerging technology combined with his writing prowess allows him to create unique and engaging blockchain content.

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