PSA Group CEO Mr. Tan Chong Meng opened the TOC Asia Container Supply Chain conference by announcing a new “global trade facilitation and supply chain platform” called CALISTA
PSA International Pte Ltd (PSA) is partnering with Global eTrade Services (GeTS) Asia Pte Ltd, a fully-owned subsidiary of CrimsonLogic Pte Ltd, in the development of “CALISTA” – an acronym for CArgo Logistics, Inventory Streamlining & Trade Aggregation – a platform to facilitate trade and help shippers to better manage the physical movement of goods, trade financing and compliance.
PSA Group CEO Mr. Tan Chong Meng described CALISTA as “a global supply chain platform that brings together the key physical and nonphysical – such as regulatory and financial – activities of logistics on a digital eco-system that serves the community of logistics players and stakeholders.”
Although much of the complexity in shipping today is due to regulatory documentation requirements, many of the companies now working on blockchains and other initiatives that purport to revolutionise the shipping documentation process have no plan for how to work with regulatory agencies, and are instead looking to disrupt existing practices.
PSA is a state entity, and so is CrimsonLogic (owned 45% by PSA and 55% by International Enterprise Singapore, a statutory board under the Ministry of Trade and Industry of the Singapore Government). Together they are working to make digitalisation a competitive advantage in shipping from within existing regulatory frameworks.
CrimsonLogic developed the world’s first Single Window “TradeNet” for Singapore in 1989 and since then has implemented close to 20 large scale projects and eGovernment portals globally. Subsidiary GeTS was launched in 2017 to offer services to help traders meet regulatory and compliance requirements from Government agencies and trade associations around the world. It is currently connected to 23 “Customs nodes” around the world.
CALISTA will build on GeTS’s existing suite of global trade connectivity services, and will “work closely with various national trade, regulatory and other supply chain platforms to facilitate cross-border trade and help global shippers meet regulatory and compliance requirements from government agencies and trade associations around the world,” PSA noted.
PSA said CALISTA will improve the supply chain by” interacting with systems and applications (existing and new) of various stakeholders. CALISTA will streamline processes, documents and data in the flow of goods within and across countries and regions. Stakeholders will benefit from the reduction of data duplication, automated handshakes across nodes, improved authenticity of data flow and access to accurate and up-to-date status visibility”.
CALISTA is envisioned as a global common platform, enabling manufacturers to have direct visibility into their cargo, and for “Logistics Service Providers” (LSPs) to “collaborate to develop value-adding global supply chain solutions for their customers. For example, with the greater visibility provided by CALISTA, manufacturers and their LSPs could partner port operators like PSA to access new port related asset-based and service-based solutions for greater productivity, and to explore new intermodal transport corridors to achieve shorter transit times, better cost efficiencies and more optimised inventory management”.
The first CALISTA product is being opened now for trial usage with selected users, and the first major phase of development for CALISTA is estimated to cost SGD $20M million. Development work will leverage Singapore agencies including the Ministry of Trade and Industry, the Economic Development Board, and the National Trade Platform.
DBS Bank will provide financial and banking technology services in this partnership. “This means that DBS will work with PSA and GeTS to create seamless trade financing solutions and the necessary risk management frameworks for the community of users,” PSA stated.
“I am excited by the possibilities that CALISTA™ can open up across the global supply chain – greater cargo flow visibility and improved coordination benefits everyone, from manufacturer to consumer,” said Tan Chong Meng. “PSA believes that a global platform like CALISTA will be the catalyst for breakthroughs in realising the full benefits of global supply chain digitalisation. Developed as an open platform, it will be instrumental in fostering closer collaboration amongst manufacturers, LSPs and other stakeholders.”
Mr. Eugene Wong, Chairman of CrimsonLogic and GeTS added that CALISTA “will benefit from the strong synergies between PSA’s domain knowledge and physical assets which handle a large volume of cross border trade, and GeTS’s capabilities in digital trade connectivity services.”