Singapore Makes Digital Leap With Virtual Watch Tower Initiative

 

In an era of shifting cargo flows and rising supply chain risks, Singapore is again at the cutting edge of supply chain developments.

The city-state's latest initiative, the Virtual Watch Tower (VWT) - launched in collaboration with research institutes in Europe's Nordic region - exemplifies Singapore's commitment to digital innovation in maritime logistics.

The VWT is a community of leading supply chain actors that has created a digital system called VWTnet that helps manage and track goods as they move through global supply chains. It creates a federated network of ‘Google Maps’ for logistics, gathering real-time primary data from various sources and securely sharing it with authorised parties to complete their maps.

VWT’s uniqueness is that the users shape and co-create the solution they need. VWT is a neutral orchestrator that builds the ecosystem of supply chain and technology actors and facilitates collaborative decision-making and the solution development.

"The success of the VWT lies in its community-driven approach, bringing together diverse stakeholders across the supply chain spectrum including shippers, terminal operators, carriers, and technology providers to co-create solutions that address complex supply chain challenges, ensuring that the benefits are shared across the entire ecosystem,” said Dr. Raymon Krishnan, president, The Logistics & Supply Chain Management Society.

The VWT initiative itself represents a unique partnership between Singapore and the Nordic countries. This alliance combines Singapore's strategic position and logistics expertise with Nordic technological know-how and innovation culture.

Within these two cultures, some 52 members collaborated in an initiative that began with Research Institutes of Sweden (RISE), Singapore Maritime Institute (SMI), PSA International, and A*STAR's Institute of High-Performance Computing (IHPC),

These two cultures dovetail neatly to leverage VWT as a key technological innovation. “Singapore and Sweden are forging the pathway by setting new standards for the maritime and supply chain industry, combining strategic partnerships and shipping expertise to drive growth, sustainability, and resilience. Leadership in such initiatives also helps Singapore maintain its position as a global maritime and logistics hub," said Krishnan.

VWT has an innovative approach to modernization, standing for a community and a groundbreaking digital solution that gathers real-time data from across international supply chains and ecosystems and routes the information to authorized actors. This sophisticated system complements existing approaches to monitoring the movements of goods. It helps companies gain access to a broader market and participate in influencing what happens when disruptions occur in import and export flows.

"As an early participant in this project, we were clear that we wanted to be involved in developing solutions that address real problems,” said Mårten Sondell, Logistics Innovation Manager at H&M. “A broad network of strong partners can increase the chances of this gaining traction and becoming a new industry practice."

The next step in the development is a solution for gathering primary transport-related data from smaller actors, which is one of the unresolved challenges in supply chain visibility. This MicroShare feature will involve state-of-the-art technology provided by Roambee, a Silicon Valley-based company and VWT partner.

Singapore's strategic participation

Singapore's involvement in the VWT development underscores its proactive stance in shaping the future of global trade. The benefits for Singapore are multifaceted:

• Positioning at the forefront of digital and sustainable logistics, facilitating real-time disruption management and carbon footprint analysis.
• Enhanced operational resilience through more reliable early warning capabilities and integrated analytics.
• Experimentation with novel innovative approaches, such as the shipper-driven, terminal-centric VWT model, which fosters a culture of continuous innovation in maritime logistics
• Valuable partnership with Nordic countries, particularly Sweden, combining Singapore's strategic position and logistics expertise with Nordic technological prowess.
• Closing solution gaps in the field of supply chain and transport visibility and proactive management, through tools like MicroShare

"By leveraging the VWT as a key technological innovation, Singapore and Sweden are setting new standards for the maritime and supply chain industry, combining strategic partnerships and shipping expertise to drive growth, sustainability, and resilience in a rapidly evolving global landscape,” says Emil Akander, trade commissioner of Sweden to Singapore and head of South and Southeast Asia for Business Sweden.

Singapore’s logistics vision

The VWT is not an isolated project but a cornerstone of Singapore's broader digital transformation strategy. It seamlessly integrates with the nation's advanced digital supply chain management suites, driving efficiency and innovation across sea, air, and land transportation networks.

This initiative builds upon Singapore's decades of strategic investments in maritime and aligns with Singapore's vision of becoming a global leader in smart, sustainable logistics.

As the principles of transparency, real-time data sharing, and collaborative governance embodied by the VWT become industry standards, Singapore is well-positioned to lead this digital revolution in global trade.

Singapore is an important transport hub for Swedish exports, as Matilda Gustafsson, change manager and sustainability advocate at the logistics company Bertling Sweden, explains: “For us as freight forwarders, sharing primary data is a complete game-changer. It allows us to receive faster and more accurate information for better decision-making and more precise and targeted actions in case of disruptions in the logistics flow. Efficient data sharing is a necessity for managing today’s challenges."

VWT's success hinges on the active participation of a diverse range of stakeholders. PSA, with its vast operational insights, ensures that the VWT aligns with the rigorous demands of modern maritime terminals. The company’s involvement in VWT’s initial phase, which ended December 2024, has been crucial in translating theoretical concepts into practical, on-the-ground solutions that can withstand the pressures of a bustling transhipment hub.

A*STAR's IHPC, on the other hand, brings cutting-edge research and development expertise to the table. Their role in integrating advanced analytics and sensor technologies into the platform is vital for transforming raw data into actionable insights.

This advanced technology provides the base on which VWT operates, Emil Akander, Sweden’s trade commissioner to Singapore explained: “The VWT provides a robust foundation for improved visibility, coordination, and resilience in the supply chain. By leveraging AI-driven tools, it enables business communities to optimise their operations, resulting in a more responsive and efficient supply chain.”

That firm foundation has allowed the VWT community to grow steadily, spanning shippers, transport operators, terminal operators, technology providers, research institutions, and government authorities. This broad-based participation enriches the platform's functionality and underscores its commitment to collaborative innovation.

A call to action

The VWT is more than just a technological solution; it is a paradigm shift in how we approach the digitalization in the context of supply chain and logistics management. To fully capitalize on the VWT opportunity, the parties should:

• Intensify collaboration between Singapore and Nordic countries, leveraging complementary strengths in technology, innovation, and maritime expertise.
• Foster a culture of innovation and data-driven decision-making across all levels of our logistics ecosystem.
• Encourage more Nordic-Asian partnerships in supply chain technology and sustainable logistics solutions.
• Build technical solutions that close critical gaps in supply chain and transport visibility and carbon dioxide emission calculations

Global trade challenges are complex and ever-evolving. But with initiatives like the VWT, Singapore is not just responding to these challenges – it is anticipating them, innovating solutions, and setting new standards for the industry.

Mikael Lind is the world’s first (adjunct) Professor of Maritime Informatics engaged at Chalmers and Research Institutes of Sweden (RISE). He is a well-known expert frequently published in international trade press, is co-editor of the first two books on Maritime Informatics, and is co-editor of the book Maritime Decarbonization.

Wolfgang Lehmacher is a global supply chain expert, partner at Anchor Group, and advisor at Topan AG. The former director at the World Economic Forum, and CEO Emeritus of GeoPost Intercontinental, is an advisory board member of The Logistics and Supply Chain Management Society, ambassador F&L, and advisor Global:SF and RISE. He contributes to the knowledge base of Maritime Informatics and co-editor of the book Maritime Decarbonization.