Development in the Norwegian maritime cluster 1st European Maritime Cluster Organisation Roundtable Wassenaar, Netherlands 26-27 April 04 By clicking the graphs the data-sheets will appear erik.lahnstein@rederi.no, +47 22 40 15 00 The Norwegian Shipowners' Association
Themes to be elaborated The cluster organisation Maritim Forum The sectors making up the cluster Trends in development of cluster International position Some of the unique mechanism in the cluster The lack of cluster policy Erik Jakobsen: Cluster research - definition of cluster, size, development
Maritimt Forum Open to all Norwegian companies and organisations involved in the maritime industry Its members comprise both employers and employees of maritime companies and organisations Established 1990
Maritimt Forum - members Organisations Norwegian Shipowners' Association Federation of Norwegian Engineering Industries Metal workers association Norwegian Maritime Officers' Assocation etc. Companies Shipowners Ship Yards, Ship Equipment Industries, Brokers, finance, insurance, class, consultants etc. In total more than 600 members, included members in 8 regional organisations. At the local level, local government is typically represented.
Maritimt Forum - main objectives To positively influence the conditions of Norways industrial policies on behalf of its members To strenghten cooperation and activity between the different sectors and players within the maritime industry To forward, on an international basis, the best interests of Norway's maritime industry
Maritime sectors Employs 75.000 Education and Training Institutions Research Institutions Consultants Brokers Ports Coastal Directorate Class Maritime Directorate Norwegian Shipowners Association Newbuilding and Repair Yards Financing KNOW HOW Underwriters Agents Seafarers Unions Equipment Manufacturers Offshoreand Petroleum Industry Not included: Navy Leisure
Shipping at the centre Classification Klassifisering 4,0 Insurance Sjøassuranse 4,0 Brokers Skipsmeglere 3,8 Bank/finance og finans Shipping Rederier 4,0 comp 4,0 Konsulenter Consultants Skipsmotorer Engines 3,3 3,1 Skipsutstyr Equipment 3,1 Skipsverft Yards Source: Gabriel Benito 1999
Norwegian foreign going fleet mill. dwt. 6 5 4 3 2 1 0 9 8 7 6 5 New maritime policy 4 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Number of ships in the Norwegian foreign going fleet 800 700 600 500 400 300 200 New maritime policies 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Norwegians on foreign going ships 6000 5500 5000 4500 4000 Cut in the refund scheme for seafarers 3500 3000 2500 New maritime policy 2000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Number of young people in maritime education and training 000 500 Cut in the refund scheme for seafarers 000 500 1996/7 1997/8 1998/9 1999/00 2000/01 2001/02 2002/03
From growth... From the introduction of the new maritime polices in 1996 until 2001 the number of ships in the Norwegian foreign going fleet grew by 24 percent. From 1996 to 2000 there where a 19 percent increase in the number of Norwegians on board foreign going ships. The number of young people in maritime education and training rose 32 percent from 1996/1997 till 1999/2000.... to decline From 2001 till 2003 the Norwegian foreign going fleet is reduced by 6 percent measured by number of ships, and by 16 percent in tonnage. From 2000 till 2003 the number of Norwegian seafarers on foreign going ships have declined by 11 percent. The number of young people in maritime education and training declined 21 percent from 1999/2000 till 2002/2003.
Policy matters! Tonnage and people employed ill. dwt. 60 Tax-reform 92 Norwegians 50 50 000 40 30 Tonnage-tax '96 40 000 30 000 20 10 NIS 20 000 10 000 0 62 65 70 75 80 85 90 95 00 04 Norwegians (NOR and NIS) Total fleet
NIS register 7 6 5 4 3 2 1 NIS - part of world fleet 1991 6,0 percent 2003 3,3 percent 0 91 92 93 94 95 96 97 98 99 00 01 02 03
2003 at a glance Norwegian controlled fleet down by 47 vessels Internationally contracting of vessels grew by 83 percent compared to 2002 Reduction in contracting by Norwegian companies Large companies sold out of Norway Several companies de-listed Owners of large Norwegian shipping companies based abroad Bonanza in international shipping, Norwegian shipping is decreasing in size - critical times
Norway as a maritime nation Controls 3rd largest merchant fleet in the world (ISL Bremen) 2nd largest maritime offshore industry, after the USA Employs 65.000 seafarers, of which 1/4 are Norwegians 20% of ship insurance market Classifies 17% of the world fleet Several leading ship-broker firms and leading shipping banks Leading manufacturers of ship equipment
Shipping services: Key figures 11 per cent of total exports, 20 percent excluding oil and gas) (1997, part is falling as oil grows) 50 per cent of service exports In addition: all export from yards, equipment makers, brokers, banks etc. The maritime sector accounts for 6-9 per cent of total turnover of Norwegian companies. 2002: more than 50 bn NOK in value creation 70 per cent is made up of the shipping companies (1998)
Paradox... Norway - the country where shipping is of vital importance to the economy we have the least competitive taxation system for shipping companies and seafarers, and the lowest degree of political predictability
White paper 2. April 2004 Improvement of tonnage tax system - but still not in line with EU standard Net wage scheme focused on competence
Key facts Important source of employment i coastal areas One of the few sectors in which Norway plays a global role
Many small co-operating companies Outsourcing Specialisation Flexibility Competition Many linkages
Important challenges Keep and develop the almost complete existing cluster diamond Strengthen the connections between the different parts of the cluster Strengthen recruitment Increase the research and innovation effort Attract foreign capital and competence
The most important measures in the maritime policy Tonnage tax system Tax-refund for seamen Contract subsidies to the yards There is no true cluster policy!
The role of the government General terms for industrial activity Industry specific measures Basic physical and human infrastructure R&D Standards, regulatory measures Demanding customer Information and norms
New possibilities - examples Electronic charts Distant learning Tele medicine Early introduction of measures facilitating the development of new techniques for seaways transport.
New policies From neo-classical inspired economic theories and factor price subsidising To broad based policy stimulating innovation, knowledge creation and upgrading
EU policy has given results Source: Sjøfartens Analys Institut Holland (1996-2001) 40 % growth in number of ships, 37 % growth in tonnage 69 % more seafarers, 34 % more national seafarers GB (2000-2002) 13 % growth in number of ships, 57 % growth in tonnage 35 % more trainee positions onboard Denmark (1988-2003) more than doubled the tonnage the world's youngest fleet Sweden (2001-2003) largest increase in the fleet in 7 years 20 % growth in number of seafarers