Port of Veracruz will use blockchain in port operations

Tecnológico de Monterrey signed an agreement with Hutchison Ports Mexico and Grupo CICE for the implementation of blockchain technology in the Port of Veracruz.

Port of Veracruz will use blockchain in port operations
The purpose of implementing blockchain technology in the port is to increase transparency, connectivity, security, and efficiency in its various administrative, logistical and operational processes. Image: Flickr

The Business School and the EGADE Business School of Tecnológico de Monterrey signed an agreement with Hutchison Ports Mexico, an international port operator, and Grupo CICE, a logistics services company, for the implementation of blockchain technology in the Port of Veracruz Mexico, to increase transparency, connectivity, security and efficiency in its various administrative, logistical and operational processes.

The idea of the project is to implement the technology of the chain of blocks at the berth, to develop the appropriate conditions that allow the various containers in the port, to flow through the current terminals without any friction, thus improving the efficiency of this procedure, said the Tecnológico de Monterrey in a statement.

In this sense, through the use and application of solutions of "digital sustainability" in the various supply chains, users of the port of Veracruz, will have a better service in logistics with added value, thus achieving traceability, as well as timely monitoring in real-time.

This technology is already present in the Port of Rotterdam, in Europe, and the Port of Shanghai, in Asia, which are precursors in the application of blockchain technology in their operations.

Blockchain as a method of transformation

"Tecnológico de Monterrey has a national initiative of digital transformation, where it seeks to involve industry and academia in the design of solutions to the challenges of the new digital economy and, in this way, transmit value to society through its professors, students, and graduates," explained the director of the Master of Finance of EGADE Business School and project leader, Dr. Igor Rivera.

Genaro Méndez, Director of Technologies of Grupo CICE, considered that both the implementation and the use of blockchain technology in the port of Veracruz is a solid step towards its modernization, making easier and more accessible the procedures that are carried out every day for the movement and transfer of goods, but above all, it will offer the possibility of providing a better service to its customers by favoring the efficiency of the entire port ecosystem.

"This new era of digital transformation takes us to a much more collaborative environment; blockchain technology allows us to trace all the operation and cargo transfer activities since all events and transactions are recorded in one place and are visible to everyone. The punctual and real-time follow-up will translate into efficiency and mainly, into an increase in the level of service that the client will perceive", said the Director of Technologies of CICE Group.

The vision of the implementation of the chain of blocks of Grupo CICE and Tecnológico de Monterrey is shared by Jorge Lecona Murillo, Head of Innovation at Hutchison Ports Mexico, since from his perspective, in addition to improving procedures and service quality, all logistical processes that currently allow the port to operate normally will also benefit.

The use of this technology will also allow counting on the information of every one of the products that are mobilized by him in a clear and precise way, which will generate confidence and will make it easier to carry out any type of commerce in a global way.

"Blockchain technology promises to create a new era in logistics, where systems provide a single source of truth and where participants in logistics chains can have absolute certainty in shared information, promoting trust between parties and facilitating international trade," said Lecona.

Industry-academy alliance

The union of these private sector companies with a higher education institution responds to the need to promote efficiency and transparency of daily operations in the port, in addition to transforming it into an Intelligent Port, through the activation and implementation of digital sustainability solutions in national supply chains that provide port users with a better logistics service with added value.

The participation of Tecnológico de Monterrey is key since the institution will provide the experience of its professors and expert consultants to facilitate the execution of the modernization of the port, which makes operations more efficient and motivates the digital transparency of the port.

Tecnológico de Monterrey is the first university in the country, and one of the first ten universities in the world, to issue academic certificates using blockchain technology. In April 2019, the institution announced that starting with the generation that graduated in that semester, students will receive a digital, encrypted version that could be validated anywhere in the world, in addition to their degree on paper.

Thus, with the initiative to modernize the Port of Veracruz, Tecnológico de Monterrey seeks to rely on the largest port reference in Mexico to develop technology that allows to streamline and promote domestic foreign trade.