TradeXchange to serve 8,000 users by 2007
A new trade and logistics platform, TradeXchange, is expected to go live in October 2007 and will support an estimated 8,000 users from the Singapore trading community.
In a speech at a Singapore Customs event last month, Lim Hwee Hua, Minister of State for Finance and Transport, said TradeXchange will be a neutral and secure platform that will enable exchange of information between shippers, freight forwarders, carriers and government agencies, to facilitate the flow of goods within, through and out of Singapore. This trade infrastructure will be able to provide seamless inter-connectivity among commercial and regulatory systems for our trade and logistics businesses.
Other than linkage with TradeNet, the electronic trade declaration system that companies use today, TradeXchange will be linked to four critical systems, namely, Cargo Community Network, Jurong Port Online, MPA’s Marinet and PortNet, and other commercial systems.
According to Singapore Customs, the TradeNet system will also be further streamlined and simplified in the process, which will result in a significant reduction of trade declaration costs. It is estimated that there will be savings of $75 million for the entire industry over 10 years.
TradeXchange will be managed by an inter-agency team comprising Singapore Customs, Infocomm Development Authority of Singapore (IDA) and the Economic Development Board (EDB).
Owners of the four critical systems are also brought on board as partners. Once implemented, TradeXchange is expected to “serve as a major booster to the competitiveness of our trade and logistics industry and put Singapore another step ahead as the logistic hub for the region”, said Lim.
A 10-year contract to develop and operate TradeXchange has been awarded to CrimsonLogic. Valued at $6.5 million, the platform is expected to generate about $200 million for CrimsonLogic over the 10-year period through subscriptions.
According to CrimsonLogic, existing platforms require members of Singapore’s trading community to access a number of disparate systems individually and re-enter the same data in order to perform transactions such as submitting import/export permits, sea or air cargo manifests. The new platform, TradeXchange, will be designed to provide a single interface through which users can access these critical systems, enter the required data only once, and conveniently route it to the relevant parties.
Benefits of the system will include greater time savings, eliminate errors through data re-entry and smooth information flows, resulting in overall efficiency and productivity gains.
In November 2005, Singapore’s trade exceeded $599 billion for the first eleven months of the year.
We are confident that CrimsonLogic will be able to deliver a system that meets the ever-growing demands of Singapore’s trading community. We look forward to working with them to chart the next exciting phase of Singapore’s growth as a trading hub,” said Teo Eng Cheong, director-general of Singapore Customs, the owner of TradeXchange.
CrimsonLogic is no stranger to the challenges faced by the trade and logistics industry, having developed and operated TradeNet, the world’s first nationwide trade documentation system that was launched in 1989.
After TradeNet, TradeXchange marks the next leap in the development of Singapore’s trade facilitation framework,” said Leong Peng Kiong, acting chief executive officer of CrimsonLogic. As part of the agreement, CrimsonLogic will invest about $12 million in the first two years of the project’s development.
CrimsonLogic also has experience in managing and deploying trade declaration and commercial trade systems for countries such as Canada, Ghana, Mauritius, Saudi Arabia and the United States. As an added advantage, users of TradeXchange will be able to tap on Crimson Logic's linkages to these overseas customs authorities for cross-border trading.
TradeXchange will be developed on the Java platform and based on a service-oriented architecture. It will also be aligned with global best practices and technical standards including W3C (World Wide Web Consortium), UN/Cefact (United Nations Centre for Trade Facilitation and Electronic Business), Oasis (Organisation for the Advancement of Structured Information Standards), ebXML and RosettaNet.
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