Born in the darkest days of the Covid-19 pandemic, the Singapore Trade Data Exchange (SGTraDex) — a public-private initiative featuring some of the biggest names in shipping, finance and commodities — aims to plug data gaps in the supply chain ecosystem with its new data highway.

In an exclusive interview before the platform went live on 1 June, Antoine Cadoux, chief executive of operating company SGTraDex Services, told TradeWinds the platform expects to unlock more than $100m of value for 70 or so existing participants from three initial use cases by 2026.

This will come through cost savings from improved efficiency and productivity, optimal use of assets, faster access to financing and other value-creating benefits.

The venture’s roots stretch back to mid-2020 when Alliance for Action, an industry-led, government-supported coalition, was formed to solve key problems Singapore would face post-pandemic, including supply chain digitalisation.

One of the underlying structural issues identified in the supply chain ecosystem was the inability to share data in a trusted, neutral way.

“Based on the findings, the view was that if we were to adopt common data infrastructure, build an infrastructure to enable all players to exchange data, we would alleviate a lot of those issues,” said Cadoux.

SGTraDex positions itself at the infrastructure level, which Cadoux said is different to platforms creating workflow applications.

“We are about data flow. We are not changing anyone’s internal processes. We are not replacing applications, including existing trade finance applications. We are here to connect them with the ecosystem.

“We work with participants, we work with third-party applications so that they can build this application layer and extract the value from the new data that’s being exchanged.”

The stakeholders run the gamut from shippers, importers, exporters and traders to port operators, shipping lines, financial institutions and government authorities.

“Connecting those enables them to exchange data. It needs to be trusted, it needs to be secure, but it also needs to respect commercial sensitivity,” he said.

SGTraDex’s vision is to build efficiency through better asset utilisation and less manual work, and resilience by mitigating the risk of fraud and, therefore, creating trust in the supply chain ecosystem.

Cadoux said SGTraDex is not just asking participants to share data randomly on the cloud-based platform.

“Privacy is a big concern. SGTraDex is about consent-based data sharing. When you are on board, you create a digital handshake and decide what sort of data you exchange, and with whom. Once this digital handshake is created, the data is going to flow, and you can revoke consent at any time.”

Access to the platform is via a plug-and-play application programming interface (API), although recognising that small players on different levels of maturity are not all ready to invest in an API integration layer, it also offers the ability to exchange data via a web portal.

Participants can, in theory, share general market data with everyone, while at the same time restricting data for a specific transaction to only the parties involved.

Data is verified through Trade Trust, a framework developed by the Singapore government that ensures that electronic documents have not been tampered with.

Bunkers, boxes and oil

Singapore, one of the world's biggest container, tanker and bunker ports, has served as an ideal test bed for SGTraDex's initial three use cases. Photo: Jonathan Boonzaier

Current services provided on the SGTraDex platform are a result of three use cases that were conducted before its launch.

The first looked at the import, storage, and export of oil; the second looked at how to optimise the flow of containers between the key nodes in the supply chain; and the third focused on bunkering.

The studies looked at everything from trade finance to physical delivery.

“The idea is that by digitalising the relationship between the participants in the supply chain, by exchanging operational data in real-time, we’re enabling visibility to better utilise their assets, to better plan, and reduce their cost base,” Cadoux explained.

“For use cases, we are very clear about coming up with an industry problem statement, then bringing participants together, mapping the flow, finding the pain points, and therefore understanding what sort of data should be exchanged, and what sort of application layer should be built, so that we can solve the original problem statement.

Singapore, as the world’s top bunkering port, was an ideal location to examine the operational issues and financing challenges in the market.

“With bunkers, we are looking at both the purchase flow and the delivery flow. We are trying to digitalise the entire flow and get rid of the paper and transmit the data to all participants in real-time, as well as create trust and confidence in the market,” said Cadoux, who added that it takes banks more than a week to finance a bunker purchase, but its use case showed that using the SGTraDex system reduced this to less than two hours.

“It’s not only about the efficiency, it’s about minimising the risk of fraud by getting rid of the paper. That is the second value driver and one that banks like,” said Cadoux.

“We are working with the Maritime and Port Authority of Singapore on this project,” he added, pointing out that bunker tankers operating in the Lion City are all equipped with mass flow meters.

“The next step is to equip them with digital logger tablets that are directly connected to the meters. We are working with early adopters on this technology to show the value to the rest of the ecosystem.”

Cadoux said the next step will be to focus more on bunker buyers, because “we see that there is more value for them that can be added”.

New use cases currently under development look at sustainable green financing and ship supplies.