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Toshiba and BT Launch First UK Quantum Key Distribution Pilot for Logistics Security

December 19, 2017

Toshiba and BT Trial Quantum Key Distribution to Secure Freight Communications

On December 19, 2017, Toshiba Research Europe and BT launched a pioneering trial of quantum key distribution (QKD) in the UK aimed at securing logistics communications between distribution centers. This pilot, part of a wider push by UK authorities to prepare for the post-quantum era, represents the country’s first live QKD trial targeting freight and logistics.

The program links two key BT logistics hubs in Ipswich and Cambridge using fiber-optic cables embedded with Toshiba’s quantum cryptography modules. These modules distribute encryption keys using quantum particles—ensuring that any interception attempt disturbs the signal and is instantly detectable.


The Quantum Threat to Supply Chain Security

With advances in quantum computing projected to render RSA and ECC encryption obsolete within the next decade, global logistics firms are seeking alternatives to protect sensitive data—especially for military, pharmaceutical, and high-value shipments. The logistics sector, often reliant on cloud-based platforms, GPS tracking, and IoT telemetry, is uniquely vulnerable to cyber threats.

Post-quantum cryptography and QKD are two parallel paths being developed to address these vulnerabilities. While post-quantum algorithms work on classical systems, QKD provides a hardware-based solution rooted in the laws of quantum physics.

"We believe QKD will be essential in protecting tomorrow’s logistics networks from the moment a shipment is booked to the final mile," said Andrew Lord, BT’s Senior Manager of Optical Research.


Details of the Pilot

The QKD system transmits single photons through BT’s standard optical fiber network, allowing the secure distribution of encryption keys between nodes without risk of interception. Toshiba’s QKD units, developed at its Cambridge Research Lab, operate alongside conventional IP encryption systems, offering a hybrid security model.

The pilot covers several key logistics functions:

  1. Warehouse Synchronization – Ensuring secure, tamper-proof coordination of inventory movements.

  2. Freight Booking Systems – Securing online booking platforms from quantum-enabled eavesdropping.

  3. Vehicle Telemetry Security – Protecting real-time GPS and sensor data from manipulation or theft.

The technology operates over distances up to 100 kilometers and maintains key exchange rates that meet the requirements of real-time logistics applications.


Government and Industry Support

The QKD trial is part of the UK’s Quantum Communications Hub, led by the University of York and supported by the Engineering and Physical Sciences Research Council (EPSRC). The UK government has committed over £270 million through its National Quantum Technologies Programme to ensure British leadership in secure communications.

"Quantum-secured communications will be fundamental to maintaining trust in the UK’s data-intensive industries—including logistics," said Professor Tim Spiller, Director of the Quantum Communications Hub.


Competitive Edge in Europe

The UK trial comes as the EU Quantum Flagship begins allocating its initial €1 billion budget to research in areas such as quantum communications, sensing, and simulation. Countries like Germany, France, and the Netherlands are also preparing national QKD strategies, but the Toshiba-BT trial is among the first to focus directly on supply chain communications.

As Brexit negotiations loomed in late 2017, UK tech leaders positioned initiatives like this trial as a proof point for Britain’s independent innovation capability.


Toshiba’s Quantum Roadmap

Toshiba has been one of the early leaders in QKD innovation, with successful field trials in Japan and now Europe. The company aims to commercialize its QKD systems for enterprise and logistics clients by 2020.

The BT partnership also positions Toshiba well in the UK telecom ecosystem, allowing for future scaling of QKD across critical infrastructure like customs, defense logistics, and healthcare supply chains.


Real-World Impact and Industry Reactions

Freight operators and logistics tech vendors are already exploring integration possibilities. Companies like DHL and Kuehne+Nagel have signaled interest in future deployments of quantum-secure telemetry and freight visibility systems.

Cybersecurity experts caution that while QKD is promising, it is expensive and infrastructure-dependent. However, for high-value shipments such as pharmaceuticals, defense components, or luxury goods, the ROI is increasingly justifiable.


Toward Quantum-Resilient Logistics

QKD is one of many tools being explored to secure digital supply chains in the quantum age. Combined with advances in quantum-safe software encryption, quantum-secured logistics networks could become the gold standard for sensitive or high-volume trade corridors.


Conclusion

The December 2017 QKD pilot by Toshiba and BT is a pivotal move toward preparing global logistics systems for quantum-era threats. By anchoring encryption security in quantum physics, the initiative enhances trust, resilience, and competitiveness in one of the most data-sensitive sectors. As logistics becomes increasingly digitized, quantum communication technologies will likely move from pilot to infrastructure in the next five to ten years.

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