US-BASED GateTrade Inc is optimistic that its electronic online real-time trading for commodities will be accepted as its revenue is expected to exceed US$60 million (US$1 = RM3.80) for the fifth year.

President and chief executive officer Susan Tan Luo told Business Times that the online trading system allows palm oil buyers and sellers to save about 30 per cent in transaction costs.

She said the company’s online system is targeted to capture about 20 per cent of all palm oil trades in the next five years.

"The timing of our system coincides with the high-speed broadband infrastructure already in place which provides players in the industry with a transparent and efficient trading avenue. The feedback has been encouraging," said Tan.

Actual trade on the online portal, located at www.gatetrade.com, is expected to commence within the next few weeks with trial runs and training currently underway.

The company has managed to contract with a number of Malaysian plantation and palm oil-related companies to use its online trading facility as well as other companies located in nine countries dealing with palm oil.

The Malaysian companies include Golden Hope Plantations Bhd, Kumpulan Guthrie Bhd, P.T. Musim Mas, Kulim Bhd, Felda Vegetable Oil, Pan Century Oleochemicals Sdn Bhd, Paos Industries Sdn Bhd, Irmal Sdn Bhd and Kesedar Perkilangan.

The overseas companies include The State Trading Corp of India Ltd, Frito-Lay (US), Ciif Oil Mills (Philippines), Grand Trade (Russia), Agmas Trading Pte Ltd (Latvia), Agritrade International Pte Ltd (Singapore), Ajanta Soya Ltd (India), Gulf Vegetable Oil Co (Saudi Arabia), Josovina Commodities Pte Ltd (Singapore), Olivia Impex Pvt Ltd (India), Qiaojian (China), P.T DutaPalma Nusantara (Indonesia), P.T. Hamparan Pancaran Chemindo (Indonesia) and Sri Krishna Oil Refinery & Veg Ghee Ind P. Ltd (Nepal).

Tan added, GateTrade is in preliminary discussion with two local futures brokerages to use its online system as another trading avenue for customers dealing with physical trade.

According to Tan, GateTrade is looking at the possibility of setting up a local subsidiary in Malaysia in the near future. Currently, it has a representative office and its backroom operations here.

She said the company is also looking at venture capital as one avenue for capital funding.

Other trades will include coconut oil followed by soyabean oil and meal as well as rapeseed oil in the next six months. Other edible oils may include corn and wheat.

Acting as an electronic intermediary, GateTrade provides an informative trading environment for buyers and sellers of agricultural products.

The advantages GateTrade provides to its customers are rapid real-time negotiation, transparent marketplace, online cost-effective trading, real time trade reporting, secure and anonymous trading, flexible order entry and reduced transaction fees.