DANISH SHIPPING BOOSTS INDIA’S GROWTH

SHIPPING: India’s increasing importance in the global economy and Danish shipping’s major influence on world trade, makes it natural for the two parties to extend dialogue

“India has enormous potential, and the country’s growth means a large and growing need for western services, especially in shipping,” says Torben Janholt, chairman of the Danish Shipowners’ Association. In addition to his influential position in the Shipowners’ Association, he is also director of J. Lauritzen, one of Denmark’s major shipping companies.

“Today, Danish shipping has traffic to India in all the significant market segments, especially with containers and bulk transport. In 2005, the value of Danish shipping in relation to India totalled USD 1 bn – a figure which is rapidly rising.”

Major activity

Denmark has traded with India for centuries. 400 years ago it was as part of exploring the world. And by the 1800s as an indispensable part of world trade. Today all major Danish shipping companies have trade with India to a greater or lesser extent. And the world’s largest container shipping company A.P. Møller- Maersk, Norden and Clipper have extensive activities in India.

“India’s increasing importance in the global economy makes our interest in expanding the collaboration with India particularly timely,” says Torben Janholt. “In 2003, we held a seminar in Copenhagen in collaboration with the Indian National Shipowners’ Association. To continue the good dialogue with the Indian shipping industry, we will be holding a seminar in India on topical shipping policy issues, as part of the official visit by the Danish Prime Minister, Anders Fogh Rasmussen.”

Against protectionism

Among the seminar topics are protectionist attitudes, which according to Torben Janholt characterise certain part of Indian shipping these days.

“The major importance of shipping to Denmark – and by virtue of our size on the international scene, where Denmark accounts for around 10% of the world’s shipping trade – makes us one of the most liberal countries regarding free trade and free sailing, and also regarding free access to ports and facilities. Although as a member of the EU, Denmark is subject to the negotiations concerning a shipping industry agreement between the EU and India, we want to nurture bilateral relations in the shipping area. That is also because the multilateral negotiations, both with the EU and WTO, seem to happen very slowly,” says Torben Janholt.

Security at sea and in ports is among the other seminar topics, as well as harbour policy in general with issues such as efficiency, foreign ownerships, investments and infrastructure.

Ship-breaking

“Ship-breaking is not a major problem for Danish shipping companies, because our fleet is so new that ships are sold before they age,” says Torben Janholt. “But since there is both an environmental and security problem, we want to raise it with the Indian authorities. We will also debate a number of issues regarding Danish shipping companies taking on Indian sailors. Both concerning ships under the Danish flag, and ships which are controlled by Danish shipping companies. We are very open to employing Indian sailors, because the quality of many Indian sailors is very high.”

To emphasize the training aspect the Danish Shipowners Association supports the Indian Academy of Maritime Education in Chennai, which is training officers for Danish shipping companies, including A.P. Møller Maersk ships which sail under the Singapore flag.

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