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United Nations Network of Experts for Paperless Trade and Transport in Asia and the Pacific
Working Paper
No. 1 I 2023
The United Nations Network of Experts for Paperless Trade and Transport in Asia
and the Pacific (UNNExT) is a community of knowledge and practice for experts from
developing countries and transition economies from Asia and the Pacific involved in
the implementation of electronic trade systems and trade facilitation. The network
aims to support national, sub-regional and transcontinental Single Window and
paperless trade initiatives, with an emphasis on training, knowledge sharing, and
application of international standards that are developed by the United Nations
Centre for Trade Facilitation and Electronic Business (UN/CEFACT), the World
Customs Organization, and other relevant organizations. The UNNExT Secretariat
is provided by ESCAP in cooperation with UNECE.
The UNNExT Working Paper Series disseminates the findings of work in progress
to encourage the exchange of ideas about trade facilitation issues. An objective of
the series is to publish the findings quickly, even if the presentations are less than
fully polished. UNNExT Working Papers are available online at
https://unnext.unescap.org. All material in the Working Papers may be freely quoted
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© UNNExT 2023
WORKING PAPER
WORKING PAPER
Implementation of TradeLens in Sri Lanka using Blockchain
Technology: A Case Study
WORKING PAPER
Janaka Wijayasiri1
WORKING PAPER
WORKING PAPER
WORKING PAPER
1
WORKING PAPER
Trade Expert/Consultant. Email: Janaka.wijayasiri@gmail.com. The author would like to thank: Soo Hyun Kim,
Economic Affairs Officer, Trade Policy, and Facilitation Section (TPFS), Trade, Investment, and Innovation Division,
ESCAP; reviewers for their feedback on an earlier draft; and key informants, who took part in the study. The views
and opinions expressed in this publication are those of the author.
iii
WORKING PAPER
Abstract
iv
Table of Contents
Abstract ......................................................................................................................... iv
Table of Contents .......................................................................................................... v
1. Introduction ............................................................................................................ 1
2. Background on TradeLens ................................................................................... 2
3. Methodology .......................................................................................................... 4
4. Findings .................................................................................................................. 5
4.1. Implementation of TradeLens in Sri Lanka ........................................................ 5
4.2. Benefits of TradeLens ......................................................................................... 7
4.3. Implementation Challenges ................................................................................ 8
5. Recommendations .............................................................................................. 10
References ................................................................................................................... 12
Annex 1: List of Key Informant Interviews (KIIs) .................................................... 14
Annex 2: Key Information Interview Guide.............................................................. 14
v
1. Introduction
2A legal document issued by the carrier to a shipper that details the type, quantity, and destination of the goods
being carried
1
2. Background on TradeLens
Global supply chains are complex, involving a large number of stakeholders and
numerous information and document transfers ("Shipping in the Age of Blockchain,"
2019). Many of the goods today are transported in containers by ships. Since
information is often locked up in organizational silos and trade processes are laborious
and manual, clearance is often prone to delays, and operations are challenging and
expensive. Thus, supply chains are inherently inefficient as they currently stand
("Shipping in the Age of Blockchain," 2019).
To address these challenges, IBM, a technology and blockchain leader, and A.P.
Moller-Maersk, an international container shipping and logistics company, came
together as equal partners to co-lead the development of an efficient and secure
method for conducting global trade using blockchain technology in 2017 ("Shipping in
the Age of Blockchain," 2019). In December 2018, the TradeLens platform was
launched (Jensen et al., 2019) and operated for five years until 2023. The overall
objective of TradeLens was to digitize the global supply chain ("About TradeLens |
TradeLens," n.d.) by connecting all parties in the global supply chain to a common
platform, sharing real-time information, fostering cross-organizational collaboration
and trust, and promoting innovation.
TradeLens was adopted by several major shipping companies and port operators
around the world (Jensen et al., 2019). To test the viability of a blockchain-based
platform for border management, TradeLens also teamed up with a number of customs
authorities around the world (WCO/WTO, 2022).
As of end-November 2022, TradeLens managed more than 3.5 billion events, 34
million documents, and 67 million containers annually, improving efficiency and
transparency in global supply chains (“TradeLens | Supply Chain Data and Docs,”
n.d.). It is claimed that TradeLens has reduced the time it takes to process a shipment
by 40 percent.
TradeLens leveraged the IBM Blockchain Platform, which is built on the open-source
permission blockchain known as ‘Hyperledger Fabric’3. This provided the benefits of
immutability, security, and traceability of shipping papers in the supply chain. Users of
TradeLens were known to the network based on cryptographic identities, in contrast,
to open, anonymous blockchains like cryptocurrency.
TradeLens consisted of three components:
• Ecosystem: A business network consisting of shippers, freight forwarders,
ports and terminals, ocean carriers, government authorities, customs brokers,
and more. Each party in the ecosystem shares information that can be
tracked, stored, and acted upon across the TradeLens platform.
3
Hyperledger Fabric is an open, enterprise-grade, distributed ledger platform. It features sophisticated privacy
safeguards that enable data sharing among the "permitted” or known network users (IBM, n.d.).
2
• Platform. The TradeLens Platform is accessible via an open Application
Programming Interface (API) and brings together parties in the ecosystem
through a set of open standards. Hyperledger Fabric blockchain technology
and IBM Cloud enable the parties in the ecosystem to share information and
collaborate securely.
• Marketplace. An open Applications and Services Marketplace allows both
TradeLens and third parties to develop value-added services and applications
on top of the TradeLens platform.
Two products were offered on the platform: TradeLens Core and TradeLens eBL.
• TradeLens Core provided end-to-end visibility of containerized freight and a
tool for document collaboration with other partners.
• TradeLens electronic Bill of Lading (eBL) was an end-to-end digital solution
that provided shippers and carriers with a streamlined and secure process for
issuing, transferring, and surrendering original bills of lading.
According to existing literature ("Protecting Fragile Cargo," n.d.; "Expediting the Coffee
Trade," n.d.), the benefits of TradeLens include end-to-end visibility in the supply chain
on a single platform, better communication, and coordination within the ecosystem to
plan and mitigate risks, increased security through the digitization of documents,
reduced paper waste and savings on courier fees, and reduced processing time and
steps for sending and receiving documents.
Although TradeLens provided value to partners in the ecosystem, adoption by shipping
lines and ports was "sluggish" due to two interrelated issues (Jensen et al., 2019). The
first issue was that the first users of a new technology have no use for it until others
adopt it. The second issue was the hesitancy to accept blockchain-based solutions for
sensitive documents. There were several reasons for the latter: stakeholders in the
global supply chain were reluctant to share information on a platform if they were
competitors; some stakeholders were not open to changes due to fear of losing jobs;
and regulations blocked the use of digitized documents (Jensen et al., 2019).
Additionally, an assessment by the Canada Border Services Agency found that the
platform lacked the number of participants and useful information required for border
management (WCO/WTO, 2022).
After five years in operation, it was announced that TradeLens was discontinued at the
end of the first quarter of 2023 as “full global industry collaboration has not been
achieved. As a result, Tradelens has not reached the level of commercial viability
necessary to continue work and meet the financial expectations as an independent
business’’ (Maersk, 2022). While the failure of the TradeLens is a stumbling block to
making trade more seamless, blockchain technology still holds promise to improving
collaboration and visibility in the global supply chains (Cecere, 2022).
3
3. Methodology
The paper adopted a qualitative approach, namely a case study, to examine the
implementation of blockchain technology, TradeLens in Sri Lanka 4. A qualitative
approach was used as the paper seeks to answer descriptive, exploratory, and
explanatory questions, outlined in the Introduction. It is an instrumental case study as
it provides insights into an event that the case represents – that is, the implementation
of cross-border electronic exchange of trade-related data via TradeLens, a blockchain
technology.
The case study was bounded by stakeholders who were using or in the process of
using TradeLens in Sri Lanka. Interviews in person or online were the main methods
of data collection, which were supplemented with documentation. Seven interviews
with 12 key informants lasting between 30 to 45 minutes were conducted in September
and October 2022 using a semi-structured guide developed for the study (See Annex
1 for the list of key informant interviewees and Annex 2 for the interview guide). Key
informants for the study included:
A. Terminal operators
South Asia Gateway Terminals (SAGT) became the first container terminal in Sri
Lanka to adopt TradeLens in 2020. According to Ted Muttiah, Chief Commercial
Officer of SAGT, "SAGT is firmly committed to embracing technology in our efforts
to constantly drive efficiencies towards an 'ease of doing business' customer
experience. The collaboration with TradeLens is a very important step forward in
strengthening our digital agenda and staying ahead of the curve when it comes to
digital transformation" ("South Asia Gateway Terminals Becomes First Sri Lankan
Terminal to Join TradeLens to Digitalise Supply Chains," n.d.).
TradeLens has allowed SAGT to bring together data from the entire global supply
chain ecosystem, including shippers, shipping lines, ports, and many more supply
chain players from around the world on one platform ("South Asia Gateway
Terminals Becomes First Sri Lankan Terminal to Join TradeLens to Digitalise
Supply Chains," n.d.). Benefits have included operational efficiency through better
visibility of container flows.
B. Carriers
A.P. Moller-Maersk which is not only a leading ocean carrier, but also developed
the digital platform, TradeLens jointly with IBM.
C. Exporters
Eswaran Brothers Exports, one of Sri Lanka’s premier tea suppliers, became the
first exporter to adopt TradeLens. TradeLens has allowed the exporter to digitalize
4The paper does not cover other recent efforts to digitalize trade in Sri Lanka (i.e., National Single Window, Trade
Portal)
4
the bill of lading and manual-based process of sharing the document. This has
helped the company to reduce errors, improve security and mitigate any additional
costs due to delays in relaying documents whilst offering superior customer service.
D. Banks
National Development Bank (NDB) was the first bank in Sri Lanka to sign up for
TradeLens to provide digital finance to its customers, and exporters (“NDB
Becomes First Bank in Sri Lanka to Pave the Path to Digitalisation With Blockchain
Technology ‘TradeLens’ | Daily FT,” 2021). TradeLens has provided NDB access
to critical trade data to help automate manual verification processes, drive
transparency, simplify compliance, and streamline financial processing and
settlement. It has allowed NDB to fulfil the credit needs of its customers without any
risks of security and privacy breach.
E. Regulatory agencies
Sri Lanka Customs (SLC) has worked with UNCTAD to link ASYCUDA via the
ASYHUB application to TradeLens for the exchange of shipping information.
F. Developer of the platform
TradeLens
Documentation including press releases and articles relating to TradeLens and its
implementation was sourced through the website and interviews.
An inductive, thematic analysis was conducted on the data collected whereby common
themes/patterns were identified across the data (Rev, 2022). Further to the data
collection and transcription of the interviews, the following steps were undertaken:
reading the transcript whilst identifying any bias; annotating the transcripts to help
organize the data; conceptualizing the data to align the data with critical themes;
segmenting the data and analyzing the data; and writing up of the findings. A draft of
the paper was circulated amongst the key informants interviewed for the study to
validate the findings.
4. Findings
5
• Terminal operators: SAGT and Colombo International Container Terminal
(CICT), the main port terminals in Colombo port were connected and in the
process of getting connected to the platform and sharing data provided by
carriers, respectively while the third terminal, Jaya Container Terminal (JCT) in
Colombo was in discussions with TradeLens.
• Banks: NDB was connected to the platform and there are ongoing discussions
between TradeLens and another private bank, Nations Trust Bank (NTB), in Sri
Lanka. NDB had been at the forefront of adopting digital technology in its
business, and as such, was open to the adoption of emerging technologies like
TradeLens when Maersk approached the bank with the product for the benefit
of its customers, namely exporters. By onboarding to the TradeLens platform,
NDB became one of the receivers of the export data of a specific client, Eswaran
Brothers.
6
tea and apparel export industries, which stand to benefit from the technology
given the complexities of their value chains. To use the platform, exporters pay
a flat fee of USD50 per container per journey.
• Less paper wastage. Paper bills of lading require unnecessary and expensive
printing and couriering. The time and money required to print and mail paper
bills of lading and other shipping documents were reduced or eliminated using
TradeLens. As stated by an exporter, TradeLens "reduced the cost and time of
7
printing and couriering documents from days to a couple of minutes." The
platform developer noted that "it takes out all of the manual work and the
documentation process." As a result, it was estimated that customers can save
between USD 150-250 (Interview with a bank).
• Fewer errors. Manually transferring bills of lading and other paperwork among
different carriers can cause confusion and errors. However, there was no data
duplication because TradeLens provides access to the same entered
information on a single, secure platform supported by blockchain. “Through
TradeLens, we bring the right information at the right at their fingertips. It’s a
single version of the truth – there is no ambiguity of the information” (Interview
with a shipping line).
8
change the way they operate. As stated by the stakeholder interviewed for the
study, the ‘IT Department within the bank had to convince and get on board
different departments in the company (i.e., legal, compliance, business, and
trade). Their understanding and acceptance of TradeLens were important for its
implementation. One of the main concerns of other departments were
converting paper to digital documents. It was a learning curve for the company.
It took about a year to implement but now much of the hard work has been
completed. It takes time to adapt the technology within a company, requiring
change management.
• The Economic crisis in Sri Lanka: While the ecosystem in the country
responded ‘positively’ to the platform, the economic crisis affected the
implementation of TradeLens in Sri Lanka. Because of the economic crisis,
there had been a delay in linking the whole ecosystem including the Customs
under the ASYHUB project, which was also affected by COVID-19. As stated
by a stakeholder interviewed for the study: “With the current economic crisis in
the country, the implementation of TradeLens has been affected as companies
are fighting to survive. They have bigger challenges at hand and in this climate,
it takes time to convince and get them to adopt this technology.”
9
the introduction of any new technology. We are not any different from that
perspective. People are cautious”. A similar sentiment was echoed by the
developer of the TradeLens platform: “There have been a lot of meetings and
discussions which were ‘positive’, but people are cautious of adopting new
technology. The process with Customs is slow but that’s how it is worldwide.
Any change takes time. There is more interest in Sri Lanka than in other
countries.” Interviews also revealed that not all organizations were “tech savvy”
and some were “cumbersome” in their understanding of the technology. To
address this problem, it was stated that Maersk reached out and worked with a
selected few partners in Sri Lanka. Maersk had a team on the ground in Sri
Lanka to work with local customers who are open to digital technologies and the
potential to adopt them. Maersk took them through the TradeLens platform and
showed the benefits to the companies and their end customers. Also, they met
government agencies to educate officials on blockchain technology and how it
can transform the manual process into a digital one whilst ensuring the security
of the data.
5. Recommendations
10
experimentation within the organization, supported by training and resources, and
recognized/rewarded through incentives while communicating the potential benefits of
embracing new ideas and new ways of working. Also, companies can be encouraged
to regularly assess and understand customer needs and preferences and to
continuously look for ways to improve customer experience.
Governments should clarify the acceptance of digital documents and signatures
to facilitate trade. There is often confusion or lack of information amongst parties in
the ecosystem about the legality of digital documents and signatures, and the
preference for paper documents. In Sri Lanka, the legality of digital documents is
governed by the Electronic Transactions Act, No. 19 of 2006. The Act provides a legal
framework for the use of electronic documents and signatures in commercial
transactions and other activities. It recognizes the legal validity and enforceability of
electronic records and digital signatures. In this regard, the implementation of
TradeLens in Sri Lanka could have been facilitated by informing parties in the
ecosystem in a clear and easy-to-understand manner about the relevant Act. Also, the
government could have issued notices/circulars through official websites, social media,
and emails; conducted workshops/seminars to better educate stakeholders on digital
documents and signatures in Sri Lanka.
The private sector needs to work with the Government towards the
implementation of digital technologies in the country. Given the advantages of the
digital platform and process changes required across the supply chain, key informants
who participated in the study asserted that the deployment of TradeLens should be a
national endeavour, as the private sector alone cannot drive it. Having the Government
support would be critical. This can be done through official statements and
implementation of the pilot project; for example, involving the SLC. Linking the
Customs authority to the platform would place pressure on others in the ecosystem to
follow through. Thus, the digital platform could have benefited from a closer public-
private collaboration by bringing both the private sector and the government together
to work jointly to facilitate trade.
Greater industry collaboration to build the ecosystem towards optimizing the
usefulness of blockchain technologies like TradeLens to all participants and
reaching commercial viability. The number of participants involved in the platform is
limited globally including Sri Lanka. The ecosystem was built in a phased, step-by-step
manner by adding gradually partners in light of challenges including the economic crisis
in Sri Lanka. In this regard, education, and awareness of the TradeLens platform were
important to improve the understanding of blockchain and the business value of the
platform in Sri Lanka.
11
References
12
from https://www.ft.lk/financial-services/NDB-becomes-first-bank-in-Sri-Lanka-to-
pave-the-path-to-digitalisation-with-blockchain-technology-TradeLens/42-726905
Protecting fragile cargo. (n.d.). Retrieved October 5, 2022, from
https://www.tradelens.com/case-studies/protecting-fragile-cargo
Rev. (2022, March 30). How to Analyze Interview Transcripts in Qualitative Research | Rev.
Retrieved October 7, 2022, from https://www.rev.com/blog/transcription-blog/analyze-
interview-transcripts-in-qualitative-research
Shipping in the Age of Blockchain. (2019, February 22). Retrieved October 6, 2022, from
https://www.youtube.com/watch?v=Xwqo_fwPEJo&t=1352s
South Asia Gateway Terminals (SAGT) becomes first Sri Lankan terminal to join TradeLens
to digitalise supply chains. (n.d.). Retrieved October 6, 2022, from
https://www.tradelens.com/press-releases/south-asia-gateway-terminals-sagt-
becomes-first-sri-lankan-terminal-to-join-tradelens-to-digitalise-supply-chains
TradeLens | Supply chain data and docs. (n.d.). Retrieved October 6, 2022, from
https://www.tradelens.com/
TradeLens eBL | The trusted digital Bill of Lading. (n.d.). Retrieved October 6, 2022, from
https://www.tradelens.com/products/tradelens-ebl
WCO/WTO (2022, June). Study Report on Disruptive Technologies. Retrieved November 29,
2022, from https://www.wto.org/english/res_e/publications_e/wco-wto22_e.htm
13
Annex 1: List of Key Informant Interviews (KIIs)
14