Maritime and Port Authority of Singapore awards bill of lading digitalisation project to VAKT
Thursday, July 14, 2022
VAKT is pleased to announce that the company has been selected by the Maritime and Port Authority of Singapore (MPA) to lead the development of a digital bill of lading for the waterborne oil market. VAKT will lead a consortium of participants including BP, Mercuria, Hafnia, Wilhelmsen Ships Service, VOPAK, SMBC, ING and Contour.
VAKT CEO, Etienne Amic, said of the selection:
“We are very pleased to have been selected by the MPA to build an eBL pilot for the liquid bulk markets. As they modernize, most markets typically evolve to a digital infrastructure comprising both a confirmation facility, allowing for the full digitisation of the contracting process, and a title transfer facility, allowing for the digitisation of the delivery process. This is as true for commodities as it is for securities. Title transfer remains a complex and paper-based process in physical oil trading, primarily because the services that are needed to secure the delivery are provided by different constituencies, with their own needs: surveyors, terminals, shipping companies and agents. With VAKT’s ‘vLogistics’ service, there now exists a set of APIs that allow these critical partners to contribute their data with a view to help traders effect the transfer of title. Through open protocols such as TradeTrust and well-designed commercial laws, Singapore is ahead of the curve when it comes to tokenising bills of lading. VAKT is very proud to have been selected as an official partner to the MPA to carry out that ambitious programme, which will have world-altering consequences over time.”
The paper bill of lading remains an impediment to the digitalisation of the waterborne oil trade. By digitalising this document, billions of dollars in annual efficiency savings can be unlocked, along with enhanced fraud prevention capabilities. VAKT look forward to embarking on this exciting project with our partners.