The Singapore Trade Data Exchange (SGTraDex) has been created after 70 participants agreed to share data to tackle supply chain inefficiencies. According to the press release, the three local banks, DBS, OCBC, and UOB along with PSA, Jurong Port, commodity trader Trafigura as well as energy companies ExxonMobil Asia Pacific and Chevron are among the participants.
“Digitalization has transformed many sectors, but, in the global supply chain and trade sector, its promise has yet to materialize. The physical exchange of paper remains the norm. We believe that the plug-and-play digital infrastructure we have created at SGTraDex will go a long way to make it easy for all participants to share data under an agreed set of rules. Our goal at SGTraDex is to enable global trade to happen more quickly, more reliably and with higher integrity,” Antoine Cadoux, the Chief Executive Officer at SGTraDex Services, commented.
SGTraDex is expected to unlock more than SGD 100 million in value for existing participants by 2026 from its three initial use cases. By improving efficiency and productivity, maximizing the use of assets and improving access to financing, the firm expects a result in cost savings.
Pilot Phase
As part of the pilot stage, three initial use cases were developed, including strengthening the integrity of trade financing, enhancing end-to-end visibility of container logistics flows and digitizing the bunkering industry. By enabling the exchange of data between shipping lines, hauliers, and port operators, SGTraDex will alleviate congestion in ports and various transport nodes through timely data access.
“By helping participants shift from a manual and paper system to sharing data through a neutral common data infrastructure, SGTraDex will raise their productivity and efficiency. Participants will also have complete autonomy in what data they wish to share with their ecosystem partners, and no one will be forced to share confidential information,” Liau Eng Soon, the Chief Executive Officer at SGTraDex Technologies, pointed out.
SGTraDex will be used by all bunker finance clients of UOB, the largest financier of local bunker suppliers, by June 2023.
