DBS completes first live transaction on SGTraDex to drive digitalisation of bunker trade ecosystemDigitalisation of trade data to foster greater trust and transparency across supply chains and reinforce Singapore's position as a global trade hubSingapore, 01 Jun 2022 - DBS announced that it has completed its first live transaction on the Singapore Trade Data Exchange (SGTraDex) - a digital data exchange that facilitates trusted and secure sharing of data between supply chain ecosystem partners. The transaction was done by way of an electronic bunker delivery note (BDN).
The maiden transaction was completed with leading bunker player Kenoil Marine Services (Kenoil), in collaboration with mass flow meter data logger service provider Brightree. By digitalising the bunker delivery note, DBS, Kenoil and its counterparties are able to ascertain the trade data at source to validate the transaction details in a timely manner. This fosters greater trust and transparency across the trade ecosystem.
The objective is to provide bunker players faster access to working capital and enhance their cash flow management, while providing a trusted and secure environment for banks and participants operating in the ecosystem.
Sriram Muthukrishnan, Group Head of Product Management of Global Transaction Services, DBS, said, "Access to secure, trusted and real-time data will support the long-term growth of trade and trade finance. With the digitalisation of the bunker delivery note, financing and payment for the underlying trade can be completed efficiently and on a near immediate basis. Furthermore, the risk of fraudulent manipulation is mitigated as banks and fellow industry partners are now able to ascertain the trade data at source. This helps provide greater transparency and comfort regarding the genuineness of trade. With the successful completion of the first live transaction, we look forward to partnering SGTraDex to support more businesses to digitalise their workflows to enhance supply chain efficiency and transparency, and reinforce Singapore's position as a global trade hub."
Desmond Chong, Managing Director, Kenoil Marine Services, said, "We are glad to partner DBS in enhancing transparency in Singapore's bunker industry through digitalisation. We look forward to being an active participant on SGTraDex on future initiatives to further cement Singapore's position as a leading bunkering port globally."
Antoine Cadoux, Chief Executive Officer, SGTraDex, said, "We congratulate DBS and Kenoil on their first live transaction on SGTraDex. Both parties have been instrumental in helping us develop a use case for the bunkering sector and we hope the benefits they have achieved and continue to enjoy will encourage other ecosystem partners to come onboard. SGTraDex offers a range of value to all our participants and small and medium sized enterprises, in particular, will be able to digitalise their operations at a lower cost by leveraging our open, interoperable and secure infrastructure."
In addition to this first transaction, DBS has also completed a subsequent live transaction with TFG Marine.
In July 2021, DBS successfully completed Singapore's first live bunker delivery financing pilot transaction by way of an electronic bunker delivery note. This was done in partnership with TFG Marine, Ocean Network Express and Ascenz, with the support of the Maritime and Port Authority of Singapore[1].
DBS' role in SGTraDex
DBS played a crucial role in the conceptualisation of SGTraDex as the Technology Lead on the Alliance for Action on Supply Chain Digitalisation. DBS was the sole financial institution that laid the cornerstone for the use case aimed at digitalising and optimising bunker delivery.
The bank was also a key player in a second use case focused on enabling the digital-physical twinning of supply chains, leveraging digital data at source to detect trade fraud and reduce the risk of duplicate trade financing. This is where DBS' leading role in Singapore's Trade Finance Registry proof-of-concept[2]contributed valuable insights in the development journey of SGTraDex, to create a solution that enables trade flows be screened more efficiently and thoroughly to enhance the security of trade financing transactions.$DBS GROUP HOLDINGS LTD(D05.SI)$
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