One of Spain’s busiest ports in the city of Valencia will be undergoing some major changes in order to incorporate blockchain and big data technologies into its infrastructure, improving the port’s infrastructure and operational efficiency.

While speaking at the Smart Ports & Supply Chain Technologies Conference held in Rotterdam, the port’s head of new technologies, Jose Garcia De La Guia, explained why blockchain will increase the efficiency of the port and act as a natural next step for ports looking to modernize worldwide.

“Starting from Valencia, we offer to use blockchain as a strategic option to provide transparency of logistic chain, from end to end, going further than our port itself. That means we're planning to apply cloud technologies not only with our partners from Port Community Systems but also with all others,” he said.

He also explained that the use of blockchain and cloud data can increase operational efficiency by reducing operational costs, cutting unnecessary inefficiencies (like the use of paper), and would reduce the time committed to maintenance.

“We are going to [become] a port without papers, with a powerful technological component that can be used in any part of the world; what it takes [is for] us to have a new PCS platform without technical or growth limitations, to offer new services and improve existing ones to a port community in continuous growth with new criteria of optimization of infrastructure resources, reduction of development times and maintenance costs.”

Growing Smart Port Trend

Although the Port of Valencia is a notable example of a traditional port turning to nascent technologies, like the cloud and blockchain, they aren’t alone in attempting to modernize their infrastructure using blockchain technologies.

The trend first began to gain traction in May of 2017, when the World Economic Forum released a report titled “Why blockchain should be global trade’s next port of call,” that examined the use of blockchain and DLT technology in logistics, supply chains, and ports.

The report noted that the use of blockchain in ports can, in addition to increasing operational efficiency, lead to greater transparency for shipments, reducing illicit activities and increasing consumer confidence.

“Lack of transparency along the supply chain causes various concerns, including that the prices paid might be an inaccurate reflection of the true value…DLT and blockchain can help to reassure consumers, mitigating and eliminating risks around food security, conflict minerals, counterfeit goods, forced and child labor, corruption and so forth.”

The report also highlighted a key aspect of blockchain, the fact that with DLT, “everyone can watch what is happening, whether they are consumers, business partners, governments or watchdogs.”