A rising number of international corporations are embracing blockchain technology and other cutting-edge technologies to enhance the efficiency of their operations, with players in the transportation and maritime industries at the forefront.
Railway companies in Japan, France, and Indonesia are investing in new ticketing technologies, focusing on facial recognition and blockchain. A diverse range of operators are establishing their presence in the realm of emerging technologies by incorporating QR codes, artificial intelligence (AI), and near-field communication (NFC) technology in the transportation sector.
SNCF, the national rail operator of France, has initiated a series of trials involving blockchain-based digital IDs for ticketing. Leveraging the France Identité mobile app, passengers are required to present a QR code containing identification data and seating arrangements to the ticketing officer.
Experiments with the mobile app have been ongoing since 2024, and SNCF is considering extending the trials to new routes and trains.
In the East, Keisei Electric Railway Company (K’SEI) in Japan has introduced a new facial recognition feature, Face Check in Go, to streamline the ticketing process at stations. This system aims to reduce long queues by half, prompting other railway operators in the country to follow suit.
In neighboring Indonesia, the state-owned railway service, Kereta Api Indonesia (KAI), has implemented facial verification technology. KAI President Didiek Hartentyo mentioned in an interview that over 10 million passengers have utilized the facial verification system since its launch in 2022, eliminating the need for paper tickets in Java and Sumatra due to its seamless user experience.
As operators advance with advanced technologies, experts are advocating for decentralization to safeguard passengers’ personal data. The escalation in data collection, coupled with the rise in ticket evasion schemes, has compelled railway operators to amass and secure large amounts of passenger data.
Several significant data breaches involving rail operators in the United States, India, and the Netherlands have prompted industry participants to explore new methods of protecting personal information.
Key State Capital, a venture capital firm, argues in favor of a blockchain solution to shield railway operators from devastating data breaches. The firm highlights Zero-Knowledge Proofs (ZKP) systems that enable passengers to share only necessary data with operators and the immutability of blockchain as reasons for a widespread transition in the industry.
A study by the University of Birmingham strongly recommends that rail service providers adopt on-chain ticketing systems, citing cost efficiency and transparency for all parties involved. India, for instance, is leveraging blockchain for its tamper-proof signaling capabilities following a tragic accident that claimed over 300 lives.
Blockchain Revolutionizing the Shipping Sector
While blockchain technology has made significant inroads in the supply chain industry, a new collaboration is exploring its application for handling paperwork related to hazardous cargo on ships.
The partnership between COSCO Shipping Lines (COSCO) and the Global Shipping Business Network (GSBN) aims to leverage blockchain as the foundational framework for hazardous cargo documentation.
The two entities recently launched a pilot program in late 2024, enlisting Chinese-based Longxing Chemical Stock Co., Ltd. to participate in the trials. The experiments focused on creating on-chain documentation in compliance with industry standards and safety protocols.
During the pilot, COSCO transported Longxing Chemical’s carbon black, a flammable material used in rubber production, to its destination port. COSCO utilized GSBN’s blockchain infrastructure for documentation, marking a departure from traditional paperwork bottlenecks.
Transporting hazardous materials necessitates strict adherence to safety certifications, yet the verification process often encounters delays and high costs.
Experts suggest that if cargo owners provide safety certifications, shipping companies can swiftly verify their authenticity using blockchain-based systems. In the pilot program, participants relied on GSBN’s China National Accreditation Service for Conformity Assessment (CNAS) to validate Longxing’s certifications.
Participants noted that the pilot simplified the documentation process and enhanced audit efficiency through on-chain solutions. It is believed that implementing this model industry-wide will help prevent unforeseen incidents on ships and curb the use of counterfeit documents.
This pilot marks the first exploration of a blockchain-based certification model by COSCO and GSBN, with both parties deliberating on the concept for the majority of the year.
The current landscape of the global shipping industry indicates a shift towards blockchain technology to keep pace with rapid digitization. In Hong Kong, shipping operators are transitioning from traditional paperwork to blockchain-based electronic bills of lading (eBL) powered by GSBN.
Since their introduction in 2023, the GSBN initiative has processed over 200,000 on-chain eBLs, leveraging a third party for valuation and tokenization.
India has also unveiled plans to revolutionize its maritime industry through blockchain, while the Philippines and Japan are intensifying their digitization efforts.
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