Dansk sfart Sfartsstyrelsens rolle

1

• The state and
• the virtual shipping company

Andreas Nordseth, Director, Danish Maritime
Authority Tradewind, Copenhagen, NOV 2007
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The traditional shipping company
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Characteristics of shipping industry

• Genuine global industry
• The backbone of globalisation
• Mobile production facilities
• International regulations
• Mobile labour force on a global market

4
Outsourcing
Yard
Owner
Who is the shipping company?
Depends on the case virtual shipping company
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Outsourcing

• Provides new opportunities and challenges for the
  industry
• Choose core business and competencies outsource
  the rest
• Provides new challenges
• For the international regulation
• For interaction/cooperation between state and
  industry

Yard
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States interest

• Safety and security
• Law and order
• Economy

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Safety and security, Law and order

• Accidents and Acts of god no longer exists
• There are only incidents/casualties that someone
  should have foreseen and avoided
• Find the responsible someone

How will outsourcing affect the issue of
responsibility?
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Safety and security, Law and order

• Common perspective
• Protect people and environment
• A new perspective (?)
• Who protects the shipping company?
• What if national state is neither flagstate,
  coastal state or port state

Key question for the national state What are the
incentives and preconditions for being involved
in shipping?
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States incentive

• Economy
• Companies generating employment and economic
  activities that leads to income

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Direct and indirect impact of the Blue Denmark
(number of employed)
Source Statistic Denmark
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Maritime cluster The Blue Denmark
Shipping is the driving force Shipowners are the
key decision makers
Source Navigating Blue Denmark Download from
www.dma.dk
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3 key factors for maintaining a maritime cluster
in growth

• TAX
• TECHNOLOGY
• TALENT

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Preconditions for the state being involved

• Developing new regulation and ensuring balanced
  solutions
• Requires knowledge and expertise
• Partnership state / industry crucial
• What if expertise is oursourced?
• Changed role for NGO-s?
• Size of controlled fleet and employment
• Everything else being equal Size does matter

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Challenges in a world of virtual shipping
companies

• Maintaining industrys partnership with flag
  states
• The role of the flag state can not be taken for
  granted
• Lack of incitement and preconditions leads to
  weak flag states and strong coastal and port
  states
• Unbalanced regulation based on regional law and
  order

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Challenges in a world of virtual shipping
companies

• When considering outsourcing
• Not just a matter of possible short-term benefits
• Long-term consequences for relations with flag
  state is also important

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Thank you for your attention
www.dma.dk