Mitsui & Co., Ltd. ("Mitsui", Head Office: Chiyoda-ku, Tokyo, President and CEO: Kenichi Hori), together with nine partner companies, has agreed to the establishment of TradeGo Pte. Ltd. ("TradeGo"), which will operate an international electronic document platform. Mitsui will take a 5% stake in TradeGo.
For bulk cargo trading, paper documents are still being largely used for customs clearance and delivery. Meanwhile, due to the impact from an increase in the logistics volume along with global economic development, and restrictions on travel and movement and the stagnation of the postal networks during the COVID-19 crisis, delays in customs clearance and delivery have become serious social issues. As a result, the need for the digitization of documents is increasingly growing, and it is expected that customs clearance and delivery using electronic documents will be put into full scale practice.
TradeGo will operate an international electronic document platform firstly in China, which is a major marine trading power. In the country, TradeGo will provide electronic documentation services for bulk cargo trading and promote efficiency improvement through the realization of quick custom clearance and delivery, utilizing blockchain technologies. Going forward, the company will consider expanding its services by introducing a transaction matching function. Mitsui will improve the quality of TradeGo's services by utilizing its global network and trading expertise in relation to bulk cargoes, including iron ore, of which it boasts one of the world's largest equity production volumes.
Mitsui has identified "Market Asia" as one of the priority areas in its Medium-term Management Plan 2023 and is working toward the evolution of its business model through the promotion of DX. Through this business, Mitsui will contribute to establishment of more efficient logistics systems and sustainable and stable supply of resources that are essential for the development of society.
* Partner corporations: Sinochem Energy (Chinese energy company), PetroChina International (Chinese energy company), Macquarie CGM (Australian financial group), COSCO SHIPPING Energy (Chinese shipping company), Bank of China (Chinese bank), Saudi Aramco Energy Ventures (Saudi Arabian investment fund), China Merchants Energy Shipping (Chinese shipping company), China Construction Bank (Chinese bank), and Wanxiang Blockchain (Chinese Information technology company)
“Build brighter futures, everywhere” as our corporate mission, and to gain the trust and expectations of our stakeholders to realize a better tomorrow for earth and for people around the world, we have identified five material issues (“Materiality”) for Mitsui’s sustainable growth. We anticipate this particular project/ business to contribute especially to the realization of “Secure sustainable supply of essential products”
Secure sustainable supply of essential products
Enhance quality of life
Create an eco-friendly society
Develop talent leading to value creation
Build an organization with integrity