CommChain Proof of Concept – Case Study
In 2019, CommChain set out to determine whether a blockchain-enabled, end-to-end digital platform for bulk commodity logistics and trade settlement was a viable option for industry. The project was a first for the sector which has relied on a manual processing framework that is inefficient, cumbersome, subject to error and in some cases exposed to fraudulent activity.
CommChain developed a distributed ledger platform using blockchain technology which was trialled as a digital twin on four coal cargoes from Queensland bound for Japan. The PoC was conducted through logistics firm TransCoal in collaboration with 12 counterparties in the supply chain, including 2 major Qld coal producers.
The objective was to learn if the technology could link the transfer of data in real-time without duplicating resources and information. CommChain tracked the collation of email, paper, models and spreadsheets through to the completion of the Bill of Lading and commercial invoicing. The steps included the vessel nomination, the washplant production report, train ordering and consignments notes, train lab report, confirmation of train receipt at port, the Bill of Lading, the commercial invoice (including supporting commercial documentation) and payment. The digital platform successfully tracked the process through each step. Privacy settings allowed only authorised participants to view and add data and the platform’s R3 Corda software ensured protection.
The Proof of Concept was a resounding success with counterparties reporting significant savings in time and costs. CommChain Founding Director Gary Zamel described the trial as a step change for industry, transforming the way bulk commodity trades are processed.
“This Proof of Concept has illustrated that blockchain-based processes are commercially viable and bringing enormous benefits to industry in the form of savings of both cost and time, security and provenance. Real time tracking of Immutable data provides opportunities for all stakeholders in the logistics chain to enhance value. Further, the CommChain platform offers a solution to the industry’s desire for greater transparency along the supply chain to support purchasing decisions and logistics practices.” Mr Zamel said.
“We have received significant interest from stakeholders, which includes our suppliers, transport logistics, traders and buyers. This platform was developed with leading Australian-based firm BCS Technology and offers a single source of truth that will bring savings to the industry.”