Blue Denmark and the Danish Maritime Industry

5/22/2018 Blue Denmark and the Danish Maritime Industry

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Blue Denmark and the Danish Maritime Industry.

Together with 14 other students from the pioneer batch of the new Maritime

Economics Concentration offered by the Singapore Management University School of

Economics in partnership with ITI@SMU, we had the opportunity to embark on an

exciting journey to explore the Danish maritime industry.

The Copenhagen study mission organized by the International Trading Institute at

Singapore Management University together with Copenhagen Business School

provided us with insights and first hand experiences into the Danish Maritime sector

and the various participants in the Blue Denmark Maritime Cluster.

The Danish maritime industry prides itself with its deep historical roots in shipping

activities and advanced technological innovations. It is home to some of the worlds

largest shipping companies such as A.P. Moller Maersk group, Torm, DFDS and

Norden. These Danish shipping companies collectively transport approximately 10

percent of all globally traded goods. Despite its high tax rate and being a highly

developed welfare state, Denmark offers a stable and favorable regulatory frameworkthat allows its shipping companies to sustain global competitiveness and maintain its

place as the global maritime industry leader.

Developing Talents In A Competitive IndustrySimilar to the Singapore Maritime Academy, Svendborg International Maritime

Academy (SIMAC) is Demarks largest maritime educational institution. SIMAC

provides a ship officers study program that combines the shipmaster and marine

engineer program into one that allows their students to operate a vessel. In addition to

a bachelors program, SIMAC offers Masters as well as PhD programs. Their

program ranges from simulation room training to technical expertise development.

Aside from the educational curriculum, SIMAC offers collaboration opportunities

with commercial participants. One example was the research and testing of a new

diesel engine that reduces sulphur emission. The use of SIMACs facilities helped the

shipowner reduce cost of research and testing while ensuring that the results remain

valid for international use.

We also had the opportunity to visit another educational institution, the Technological

University of Denmark (DTU). DTU recently launched the Maritime DTU in May

2014 where there are virtual centres across all DTU departments. It is a centre where

students and staff can make contact to the maritime sector. It also strengthens the

research cooperation between DTU departments with national and internationaluniversities including joint courses and exchange of candidates and teachers. DTU

provides public sector consultancy services as well as international and industrial

collaboration done by researchers and students. This presents an avenue for students

to apply theoretical frameworks to real life problems.

Institutions like SIMAC and DTU plays an important part of the maritime industry.

They are the source of arguably the most crucial player in the business: the people.

SIMAC supplies the versatile and highly competent, while DTU brings on the

technical aspects with specially trained maritime engineers; all of them strong

innovative and, creative giving them the ability to compete in a globalized world.

Success Factors For A Company In A Globalized World


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At A.P. Moller Maersks office, we were greeted by Mr. Henning Morgen, General

Manager in Group Relations, who shared with us his book, Creating Global

Opportunities. His access to company records and his knowledge and understanding

of the Maersk History allowed him to reveal factors leading to the success of Maersk.

The crucial success factor of Maersk is the ability of the company to stay relevant and

navigate through the ever-changing landscape in the shipping industry by takingadvantage of opportunities that arise. Moreover, an interesting characteristic, which

AP Moller Maersk Group shares with other Danish companies, is that they have an

established history and strong corporate values that forms a strong foundation for the

company to grow. These companies take a long-term view of the market and do not

simply execute plans as knee-jerk reactions to the current economic environment.

Instead, they focuses on cost leadership and sustainability.

Regulatory Effects On The Maritime ClusterOur team had the privilege to speak to the director of Danish Shipowners

Association, Mr. Jacob Clasen. He explained to us the pivotal role played by the

association in lobbying for shipowners business interests and the development ofregulations in the international arena. This is so as to secure the best possible

strategies for Denmark to execute, to defend its position as one of the largest shipping

nations in the world. One such example was the establishment of the Danish

International Shipping register (DIS). This register allowed crew of Danish registered

ships to be tax exempt which is taken into account when fixing the crews salary

thereby lowering the cost of employing a Danish seafarer.

The association had expanded its circle of members to include foreign firms

especially from Denmarks Nordic neighbors such as Sweden whose shipping unions

and framework has been inferior to Denmark. There has also been an increase in the

number of offshore wind energy, supply and stevedore, oil rigs and transport

companies in the association. This reveals a distinct trend of Danish shipping moving

towards a niche sector from the previously broad the traditional shipping industry.

Copenhagen Business SchoolOur company visits in Denmark were accompanied by lectures in Copenhagen

Business School.

Professor Martin Jes Ivernson, provided an overview of the History of Denmark as a

small shipping nation and also introduced us to economic orders and formative phases

in Danish Capitalism. In essence, he enlightened us on the way competition regulationshape corporate growth strategies and organizational structures through different

phases of the economy, namely the Bazaar economy, cartel economy, plan economy

and common market.

Professor Henrik Sornn-Friese introduced the term Blue Denmark Maritime Cluster

and revealed how increased globalization in the maritime sector affected the

traditional maritime nations in areas regarding productivity, growth, and

competitiveness from a policy makers perspective as well as from a companys

perspective.


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Documents

Blue Denmark and the Danish Maritime Industry