MSc. Thesis Defence: Presentation / BCT @ LOGISTICS SYSTEMS

Sajjad Khaksari
Engineering & Management
24 July 2018

AGENDA
 BRIEF REVIEW
 PART I: STRATEGIC ANALYSIS
 PART II: USE CASES
 COMPARISON & ANALYSIS OF THE CASES
 CONCLUSION & PROPOSALS
 APPENDIXES
 PRINCIPAL REFERENCES
 QUESTIONS & FEEDBACKS
2© 2018 Sajjad Khaksari - Blockchain Technology @ Logistics and Transportation

BRIEF REVIEW
 ICELAB or the laboratory of the ICT (Information and
communication technology) for City Logistics and Enterprises,
founded and directed by Professor Guido Perboli since 2016
 Thesis includes Four (4) PARTs:
 PART I: INTO THE INFINITE WORLD OF LOGISTICS;
 6 Chapters (A comprehensive Strategic Analysis of the current
market including its failures and its potentialities.)
 PART II: USE CASES
 7 major case studies + study and investigation of over 27
blockchain-based applications and platforms
 PART III: RESOURCES (7 APPENDIXES)
 PART IV: BIBLIOGRAPHY (250 books and articles)

 Distribution of
the practical
(logistics and
transportation)
case studies:
 North (majority)
 Center

BRIEF REVIEW & CHAPTER 1
 PART I is an important assignment to capture
some critical points of views regarding the
ground conditions of the Italian inland
transportation.
 Furthermore, it tries to discern the Blockchain as
an individual but valuable piece of a big puzzle.
 Since 2008, after the famous paper of Satoshi
Nakamoto, the number of literature concerning
the Blockchain Technology and specifically
about SC and Logistics are increased
 (specially in 2017).
1% 2% 3%
5%
18%
71
%
2008 2012 2013
2014 2016 2017
Multidisciplinary.
Environment
Industrial.
Network

© 2008 Satoshi Nakamoto – Bitcoin Organization
BRIEF REVIEW & CHAPTER 1
7
 Blockchain is a P2P ledger, firstly used in the Bitcoin cryptocurrency for
economic transactions. (Conoscenti et al., 2016)
 “The network timestamps transactions hashing them into an ongoing chain
of hash-based proof-of-work”; an immutable truth for all parties of SC
© 2018 Sajjad Khaksari - Blockchain Technology @ Logistics and Transportation

BRIEF REVIEW & CHAPTER 1 – INDUSTRY 4.0
1800 200019701900
LogisticsFlexibility
andVersatility
LogisticsProductivity
andComplexity
1st
2nd
3rd 4th
0
1
0
1
0
0
0
1
Physical Internet
Blockchain
AutonomousVehicles,
Trucks, Train, and Vessels
Transportationand
Virtual Reality
Big Data
Synchromodality
Mechanization Electriﬁcation Modeling and
Automation
Automation, Analysis, and
Optimization
Executionof Working Steps
throughMechanics
Partial Automationthroughthe
UseofE
lectronics
Automa
tion
ofCom
plete
Logistics
and
Transportation
Processes
through
Com
puterScience
AutomationandOptimiz
ationofEntire
LogisticsOperations,Transport
Processes,andSupplyChains
ManagementthroughNetworking
Logistics
Industry 4.0
© Sajjad Khaksari, 2018

2. COSTS OF CONVENTIONAL TRANSPORTATION
 Family-run Companies within Italian
Transportation;
 Social Costs of Conventional
Transportation;
 Economic Costs of Conventional
Transportation (APPENDIX II);
 Retail & Transportation industries are suffering from the Lack/shortage of
Traceability of Goods and Records, the separate Source of Truth, lack of
Digitalization, and the massive amount of Paperworks.
T h e fa m ily is e x tr a o r d in a r y
m o tiv a t e d in t o lo g is tic s
T h e y n e v e r s te a l fr o m
th e ir o w n c o m p a n y
E n th u s ia s m to in c r e a s e
a n d e x p a n d o f fa m ily
U n ite d a g a in s t la b o r s
a n d th e ir r e q u e s ts
w o r k e r s r e c o g n ize
th e m s e lv e s a s p o r te r s o r c o o lie s
W o r k e r s a r e n o t m o tiv a te d
In h e r ite d M a n a g e m e n t
a n d H e r e d ita r y L e a d e r s h ip
C e n tr a lize d C a p ita l

© Sajjad Khaksari
Headquarter ground and Warehouse of the international logistics service provider
Semitrailer of the Carrier
Semi-Truck of the Carrier
Truck Driver
Open-top Container of FLPs
Warehouse of FLP
Non-container
semitrailer
Client Goods
 The conventional Problem of Stevedores among Italian
Intermodal Freight Transportation

3. ROBOTIC, RC, AND FUTURE OF LONG-HAUL
TRANSPORTATION
 Long-haul Transportation;
 RC Transportation And Sustainability;
 Robotic Logistics;
 Autonomous Driving Systems & Light
And Heavy Vehicles;
 Drone Door-To-Door Logistics;
 UPS: deliver blood by drone in Rwanda
 Automated Container Terminals;
 AGVs & SMART-PORT
 Future Of Robotic Logistics;
 ROBOT TRUCK DRIVERS

4. VIRTUAL REALITY & LOGISTICS
 Reality (VR) & SCM;
 DHL & Intel smart glass
 Augmented Reality (AR) & Logistics;
 Voice Recognition & Transport
Efficiency;
 QR Codes For Transportation
Documents;

5. ADR
 The ADR Treaty;
 ADR treaty or “European Agreement concerning the
International Carriage of Dangerous Goods by Road”

5. ADR
 Transport of Explosive and Radioactive Materials;
 The RID and ADN Treatments;
 Intermodal Freight Transportation & ADR and RID;
 Black Box called: The Container;
 Corruption during the Transport of Hazardous
Substances;
 Try to Design a High-Reliability Network for
Transportation of Hazardous Goods;
©SajjadKhaksari,2018
Owner Code (3 letters):MXM
Product Group Code (1 letter):U
Registration Number (6 digits):145123
Check Digit (1 digit):8
OPERATIONAL CHARACTERISTICS:
Maximum weight (MAXGROSS):
36.000 Kg or 79.336 Lb
Container weight (TARE):
4.900 Kg or 10.802 Lb
Payload weight (PAYLOAD):
31.100 Kg or 68.534 Lb
ADR PLACARDS:
Class 3,Class 5.1,Class 6,Class 8,
Class 9,and the General Warning Plate
ofADR goods for the environment.

5. ADR

6. SAFETY FOR PEOPLE AND GOODS
 OHSAS versus Italian Logistics;
 The Italian Decree 81/2008;
 Vehicle, Trains, and Cargo Safety;
 People Health & Fossil Fuels;
 Electric Vehicles And
Future Of Logistics;
 Blockchain, Food Safety,
And Public Health;
PRACTICE
ACADEMICS
LOGISTICSMANAGERS
LOGISTICSLABOURS
THEORY
VISIBILITY
∞
0
© Sajjad Khaksari, 2018

6. SAFETY FOR PEOPLE AND GOODS
 Traffic/logistics accident
 2,447 brutal accidents 2005 - 2011
Confetra (2012); 236 people died

Marine Transport International (MTI)
 The Marine Transport International (MTI) is
an international Maritime Transportation
in NEW JERSEY
 Jody Cleworth (CEO) considers that
Blockchain empowers the logistics
industry, and announced the First Shipping
Use of Public Blockchain Technology
 Pilot Objectives: the use of Blockchain
within MTI SolasVGM
 Link various supply chain actors and real-
time synchronization
 Sustainable alternative of cumbersome
logs, data intermediaries, spreadsheets, and
privet or separated database (transparency)

CARGOCHAIN
 CargoChain is a proof-of-concept that was performed at a
hackathon to illustrates how to diminish paperwork, such as
purchase orders, customs documentation, bills of lading, and
certificates. http://cargochain.com
 CargoChain is a settlement platform that provides a secure, trustless
and efficient Chain of Custody.
 CargoChain is a proof-of-concept that was performed at a hackathon
to illustrates how to diminish paperwork, such as purchase orders,
customs documentation, bills of lading, and certificates.
 CargoChain aims to reduce or eliminate the currently large amount of
duplicate paperwork during International Trade Practices.
 http://cargochain.com
(the application is under development)

REPLY
 Tatiana Rizzante is the CEO of Reply S.p.A. since 2006, and she
works in the area of experimental and research activities on the
Internet in collaboration with the Polytechnics of Turin and CSELT.
 REPLY’s market focus concerning includes in:
 BANKING
 INSURANCE
 HEALTHCARE
 ENERGY
 TELCO
 RETAIL
 REAL ESTATE

PORT OF ROTTERDAM
23
 In 2016, the Port of Rotterdam
moved total 305,820 (Gross weight x
1,000 metric tonnes) of bulk and
155,356 of general cargo.
(The Annual Report 2016; Page 10)
 Ronald Paul (COO of the
Port of Rotterdam
Authority), stated that
Digitalization is a
worldwide trend that the
Port of Rotterdam also
needs to embrace.

PORT OF ROTTERDAM
24
 Port of Rotterdam is emerging to applicate the usage of Blockchain
technology in its effective business applications: ENERGY Transition,
Cargo Flows (LOGISTICS), Stock Financing.
 The automated Port of Rotterdam is developing its Blockchain-base
logistics system as the largest port in Europe.
APPLICATION BUSINESS DIVISION NOTES
Port of Rotterdam Maritime Logistics Includes inland waterways etc.
 The project is supported and emphasized by
more than fifteen public and private sector
companies based in the Netherlands.
(Saunders, 2016)

Walmart
 Frank Yiannas (Walmart's vice president for food safety)
works with IBM to track foods from farm to the shelves.

IBM IoT
 IBM divisions regarding the
Blockchain technology are
involved in the following parts:
 IBM Blockchain
 Blockchain industry
solutions
 Blockchain platform
 Blockchain workshop
 Also, on page of Get Started
With The IBM Blockchain,
some open source products
and tutorials are available for
students and IT leaners.
IBM is an early member of the Hyperledger initiative
together with some well-known technology platform
and financial companies such as Fujitsu, Intel, Cisco,
NEC, Red Hat, NTT DATA, VMware, Hitachi, SAP,
ABN AMRO, ANZ Bank, BNY Mellon, CLS Group,
CME Group, the Depository Trust & Clearing
Corporation (DTCC), Deutsche Börse Group, J.P.
Morgan, State Street, SWIFT, and Wells Fargo.

MAERSK LINE
 The first commercial application projects are already gaining
traction while IBM is teaming with Maersk Line as one of the
largest logistics service providers in the world.

OTHER CASE STUDIES
Some blockchain-based applications/platforms/initiatives are including Skuchain,
BlockfreightTM (global freight and bill of lading), Penske Truck Leasing Co.,
Wave™, Block Verify (item verification and product traceability), SONM,
TallySticks (Import/Export Solutions), Kubernetes,, JD (京东), Waves Platform,
Chain of Things, Chroma Way, CONSENTIO, Fluent (international trade),
Gatechain, Mendix (an IoT Application), Docker, Open Trade Docs (OTdocs),
Acorn (Open-Access), Battaglio, CARAVAGGIO, COGNIZANT, KOUVOLA
INNOVATION, SYNECHRON, ZERADO, INTTR, EVERLEDGER (A
Digital Global Ledger), FILAMENT, CHAIN CORE, and PROVENANCE.
 HYPERLEDGER
 Foodchain®
 T-Mining
 TechRacers
 Chronicled
 FedEx
 Modum
 Tilkal
 USPS
 VeChain
 SHIPCHAIN

COMPARISON & ANALYSIS OF THE CASES
ANALYSISOF CASES
BLOCKCHAIN
App.
Objectives Actors Usage
Rewarding
Mechanism
Position in
SC
Private,
Public, or
Consortium
Smart
Contracts
MTI
(SolasVGM)
Fully
transparent
shipping
procedures
Various
actors
Shipping
industry
-
Between
vessels and
terminals
(ports etc.)
Public Yes
CargoChain
Promote
international
trade
Dominik
Schiener,
Wanxiang
Blockchain
Labs and
Shanghai
Blockchain
Hackathon
Assist the
Financial
part of the
SC
Presumably
Ether
tokens
Financial
transactions
Public Yes
REPLY
Mapping
business
scenarios,
process
automation,
Authenticity
certification,
and
dematerialization
of transactions
Supply
chain
ecosystem
, REPLY
pilot
studies,
and Red
Reply
Vehicle
registration,
Change in
ownership,
Verification
of the actual
ownership of
the vehicle,
and Car
scrapping
Depend on
application
In various
areas
Private,
Public,
and
Consortium
Yes
Rotterdam
(BlockLab)
Monitoring
the
attainable
containers
or bulks’
data
Several
actors
SC and
Intermodal
Freight
Transportation
Not
specified
explicitly
Sea and
fluvial port
Public,
and
Consortium
Yes
Walmart
Food supply
chain
transparency,
and Disrupt
the Last Mile
Problem
IBM and
Tsinghua
University
Track the
pork
supply
chain in
China
Not
declared
but seems
OriginTrail
is based on
a token
economy
Logistics
and supply
chain of
Walmart
food stores
Private
and
consortium
(e.g.
Hyperledger
Fabric and
OriginTrail)
Yes
IBM
Promote
regional,
national, and
international
supply chain
Various
business
companies
and
administrat
ors (e.g.
government
of Dubai)
support
point-to-
point
network and
add selected
IoT data in
various
businesses
Relevant
Over the
entire
supply
chain
Private,
Public,
and
Consortium
Yes
Maersk
Secure the
information
sharing and
shipping
data via
blockchain
All
logistics
parties
and
business
entities
International
trade and
international
freight
shipping
Not
specified
explicitly
Sea
shipping
and
Intermodal
freight
transportation
Private
and
consortium
Yes
Table 7.9.1: The Summary of Blockchain-based Use Cases
 Criteria: objectives, involved
actors (carriers, logistics
providers, 3LPs, shippers, and
port authorities), use of BCT
(why and how?), Smart Contracts?
 Smart Contracts are holding some
remarkable advantages and
they’ve been used in all cases.
 The E-CMR convention (iru.org)

CONCLUSION: RESULTS & PROPOSALS
 Strategic capabilities of BCT through logistics systems
 To establish and perform a proper Blockchain Laboratory
for investigating and developing different kind of Blockchain-
based applications/platforms for some proper use.
 The Blockchain Lab of the TU Delft [established in 2007]
would be an example of this proposal.
 Students, professors, and researchers of PoliTO need an
adequate space to work on Blockchain Technology.
 Supporting, offering, organizing, and proposing more Thesis
& Research Proposals concerning the implementation of
Distributed Ledger Technologies is extremely required.

APPENDIXES: OIL DIPENDENCY OF EU LOGISTICS
CRUDEOIL PRICE& EUROPEAN LOGISTICS
APPENDIX II: CRUDE OIL PRICE & EUROPEAN LOGISTICS AND TRANSPORTATION;
INFORMATION RESOURCE STATISTICAL POCKETBOOK (2017): SECTION 2.2.1: EU-28
PERFORMANCE FOR FREIGHT TRANSPORT 1995–2015 – BY MODE, PAGE 35; AND
SECTION 3.1.5: FINAL ENERGY CONSUMPTION 2015 - BY SECTOR (MTOE); PAGE 120.
!175 CRUDEOIL PRICE& EUROPEAN LOG ISTICS
1%9.97% 14% 2% 1%
CONSUMPTION IN
PIPELINETRANSPORTROAD AIR RAILWAYS DOMESTIC
NAVIGATION
TOP 5 OILCONSUMPTION MODES
IN EUROPEAN LOGISTICS
Besides, base on EIAreport, in 2016, the United Statesconsumed
a total of 7.21 billion barrelsof petroleum products, an average
of about 19.69 million barr elsper day.
8.2/10Regarding ECreport, in 2015, about 82%of
European Transportation Energy
Consumptionshasconsumed on Roads;
STATISTICALPOCKETBOOK, 2017: PAGE120
82%
1,095,500
IRAN
And 505,030 b/d of
Crude oil and
Petroleum product form
SAUDI ARABIA
Base on OPECreport, in 2016 EU has
imported 1,095,500 barrelsper day of
Crude oil and Petroleum product form
NIGERIA
616,490 b/d
of Crude oil form
EU-︎28 Performance for Freight Transport ROAD -
billion tonne-kilometr es(tkm) / Consider that the
European freight transportation FAILUREin 2008/9
had caused by the rise of Crude Oil PRICE.
20051999 20081995 20072002 2009
1650
TKM
1810
TKM
1300
TKM
1620
TKM
1450
TKM
358.6
Transportation
274.7
Industrial
MTOE
EU-2016 Million
Tonnesof Oil
Equivalent
275.2
Residential
OILEUROPEAN
LOGISTICS
Regrettably, the conventional
European freight / passenger
transportation is
fundamentally based on
Crude Oil and Petroleum
Products(such asfossil fuels,
gasoline, benzine, avgas, all
plasticcomponentsin all
kind of vehicles, tires,
lubricant greases, and
bitumen for asphalt of road
pavements). Thoughtfully,
(STATISTICALPOCKETBOOK,
2017: PAGE35) illustratesan
increase of about 600 billion
tonne-kilometres(tkm)
transported viaroad from
1995 to2007 .
505,030
616,490
1870
TKM
1950
TKM
©SajjadKhaksari,2018
294.0
MTOE
51.3
MTOE
6.2
MTOE
4.5
MTOE
2.6
MTOE
OIL PRICES& EUROPEAN TRANSPORTATION
APPENDIX VII: EU-28 PERFORMANCE FOR FREIGHT TRANSPORT 1995–2015 BY MODE
- BILLION TONNE-KILOMETRES (TKM) - (Originally from EUROSTAT, 2017)
!180 OIL PRICES & EUROPEAN TRANSPORTATION
35
billion tonne-kilometres (tkm)
1800
1600
1400
1200
1000
800
400
300
200
100
0
1995
1999
2003
1996
2000
2004
2007
1997
2001
2005
2008
1998
2002
2006
2009
2011
2015
2014
2013
2012
2010
2.2
RAIL
INLAND WATERWAYS
OIL PIPELINE
AIR
SEA
ROAD
TRANSPORT PERFORMANCE OF FREIGHT TRANSPORT
EXPRESSED IN TONNE KILOMETRES
EU 28 Performance for Freight
Transport 1995–2015 – BY MODE
2.2.1
STRICTLYADDICTEDTOCRUDEOIL&FOSSILFUELS
MOSTLY ELECTRIC
In addition, please consider that the European Transportation Failure
between 2008 - 2009 caused by the rise of Crude Oil PRICE.This
phenomenon once again demonstrates the severe OIL Dependency
of EU,European governments,and European citizens.
EVOLUTION OF CONTAINER FLEET
APPENDIX V: EVOLUTION OF CONTAINER FLEET
Note that the table is prepared and released by (Confetra, 2017).The source of information and the
international examinations are based on BRS-Alphaliner reports. The table precisely illustrates the1
evolution and aggregate increase of container ﬂeet from 1.718.367TEU in 1990 to 19.914.293 in 2016.2
BRS-Alphaliner: https://www.alphaliner.com / “Alphaliner is tailor-made for use by liner shipping1
executives, shipbrokers and other shipping professionals. The vast majority of liner operators and
container ship owners as well as leading shipbrokers use it daily.”
Confetra (2017), Evoluzione Flotta Porta Container, Confetra - Confederazione Generale Italiana Dei2
Trasporti EDella Logistica - Via Panama 62, Roma. [Online] Available: https://goo.gl/LgQBua
!178 EVOLUTION OF CONTAINER FLEET
Anno Numero
Var %
anno su anno
Teu
Var %
anno su anno
1990 1.240 - 1.718.367 -
1991 1.312 5,8% 1.857.503 8,1%
1992 1.399 6,6% 2.016.710 8,6%
1993 1.490 6,5% 2.213.008 9,7%
1994 1.593 6,9% 2.396.537 8,3%
1995 1.739 9,2% 2.662.761 11,1%
1996 1.912 9,9% 2.990.979 12,3%
1997 2.107 10,2% 3.369.265 12,6%
1998 2.336 10,9% 3.877.262 15,1%
1999 2.516 7,7% 4.298.643 10,9%
2000 2.615 3,9% 4.528.051 5,3%
2001 2.730 4,4% 4.957.928 9,5%
2002 2.894 6,0% 5.569.104 12,3%
2003 3.031 4,7% 6.137.345 10,2%
2004 3.179 4,9% 6.683.146 8,9%
2005 3.344 5,2% 7.326.204 9,6%
2006 3.599 7,6% 8.267.501 12,8%
2007 3.938 9,4% 9.593.904 16,0%
2008 4.306 9,3% 10.925.419 13,9%
2009 4.657 8,2% 12.367.723 13,2%
2010 4.719 1,3% 13.057.788 5,6%
2011 4.895 3,7% 14.331.573 9,8%
2012 4.960 1,3% 16.334.345 14,0%
2013* 4.985 0,5% 17.375.220 6,4%
2014 5.088 2,1% 18.687.429 7,6%
2015 5.156 1,3% 19.909.366 6,5%
2016 5.116 -0,8% 19.914.293 0,0%
* i dati 2013-2016 derivano dagli ordinativi in corso
Fonte: BRS-Alphaliner
EVOLUZIONE FLOTTA PORTA CONTAINER

 Prof. G. Perboli
 Prof. S. Musso
Heartfelt and grateful
thanks to:

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