A new blockchain system has been installed in the China-Europe rail trade route to raise money directly from the bank to speed up cash flows.
It has been reported that the Chengdu International Railway Port in Sichuan province was installed with the blockchain-powered Sino-Europe Trade Link 2.0 platform by the Industrial and Commercial Bank of China.
However, trades, where the cargo was delivered from China by rail, used to take over a month to reach their destinations in Europe. Documentation and waybills would have to be checked at every border crossing, the logistics of which was made harder by translation difficulties and bureaucratic hold-ups.
The report said that in the first three years and three months of its existence, the China–Europe cargo service managed to carry out 200 trips. Since blockchain technology was introduced, the same number of trips was carried out in just two months.
Likewise, a staff member at ICBC said that the benefits of the blockchain-enabled system made it a reliable platform for hosting and tracking trade data.
“We take advantage of blockchain’s merits, such as its tamper-proof nature and timestamps, to form reliable trade data. That can greatly improve the financing capabilities of small and medium-sized foreign trade enterprises.”
Thus, Chen Ran of the Chengdu International Inland Port Operation, said:
“Compared with 2007, we now have the support of blockchain, the Internet of Things and big data, which can help track logistics and significantly lower the risk of cargo damage. So there’s better protection for both the banks and the customers.”