Digital Assets: Russian Railways Advisor In Favour Of Blockchain Technology

August 11, 2020 | Digital Assets, News

The blockchain may have a place in the Russian Railways network.

Sergey Vinogradov, the general director of the Scientific Research Institute of Railway Transport, has come out in support of blockchain technology and the possibility of its use in the running of the Russian Railways. (CryptoNews)

Russian news website cited Vinogradov’s concerns on how to attract high yielding cargo to the Russian railroad and to meet the challenge of rising levels of goods containerization.

The promise of the blockchain

According to Vinogradov, the blockchain could play an important role in the Russian national transport system. He cited several advantages of using the technology in the administration of the massive Russian rail network.

Block chain-based smart contracts, used together with an intelligent and predictive system, could help in managing the maintenance of containerized trains.

The blockchain could also help in streamlining the system of booking and allotting cargo spaces in the Russian rail network. That would help logistic firms, buyers, and sellers in their operations.

He added that the technology could be used to cut out operations such as transshipment and storage of goods.

It would also obviate the need to use specialized trucks which were many times more expensive compared to multipurpose trucks.

Moreover, the technology could dramatically reduce the quantum of shunting and sorting of rolling stock, thereby reducing costs of wagon and truck management.

It would also cut down the turnover of platforms and containers, with a salutary effect on costs.

Long-term benefits of blockchain

These technological advances would enable the Russian rail network to move to a system of dynamic pricing. “This will make it possible to effectively respond to a decrease or increase in demand from the transport and logistics market, taking into account factors like seasonal irregularities in transportation and market fluctuations,” he said.

Ultimately, rail freight customers would enjoy lower costs and safer transit, allowing for more effective bulk transportation by rail.

It could lead to a migration of freight load from road transportation to rail. The former is usually more expensive and damaging to the environment.

Related Story:  Russian Blockchain-based Trade Finance Platform Factorin Clocks $500M Turnover

Image Credit: Trans Container                                                  

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