FOCUS DENMARK 02/2008

Colophon

Title:
FOCUS DENMARK 02/2008

Publisher:
The Trade Council, Ministry of Foreign Affairs of Denmark

Author:
The Trade Council, Ministry of Foreign Affairs of Denmark

Language:
English

URL:
http://www.netpublikationer.dk/um/8976/index.htm

ISSN:
1601-9776

Version:
1

Version/edition:
04-07-2008

Data formats:
html,htm,jpg,gif,pdf,css,js

Publisher category:
statslig

Table Of Contents

Editorial

In brief

• High praise for Copenhagen's Metro
• Denmark - a peaceful spot on the planet
• The world’s most networked economy
• Denmark is No.1 in further training
• Wind turbine sales beat all records
• Chinese companies establish research presence in Denmark
• 40 years with VOLA
• Copenhagen takes top prize in Monocle’s 2008 ranking

• Northern Europe’s powerhouse

Editorial

EDITOR IN CHIEF
Under-Secretary for Foreign Trade & Investment
Ambassador Jarl Frijs-Madsen

Denmark is red and white – the colours of our flag – but to an increasing extent green and blue. Green as one of the world leaders in clean technologies and blue because of our long and strong maritime tradition. The theme of this issue of Focus Denmark is ’Maritime Denmark’. Shipping is today Denmark’s second largest export industry, and Denmark’s growth in shipping is increasing by more than the international average. Danish shipping companies transport 10% of world trade. Seen in relation to Denmark’s size, with a population that represents less than a thousandth of the world’s population, Danish shipping takes on major significance.

The know-how and expertise accumulated in Maritime Denmark is already attracting international maritime companies. Today, Copenhagen is a European centre for shipping, whereas five years ago the city was only a regional centre. The Danish Shipowners’ Association anticipates that in another five years Copenhagen will be among the three most important shipping cities in the world.

This issue of Focus Denmark is accompanied by a special supplement highlighting Danish competences in energy, climate and environment, published to coincide with Expo 2008 ’Water and Sustainable Development’ in Zaragoza in Spain, where the Danish pavilion will showcase sustainable exploitation of water, wind, biofuel and lighting. Denmark is working steadily towards a successor to the Kyoto Protocol at the UN Climate Change conference (COP15) in Copenhagen in 2009, with the involvement of the Danish government, Danish research institutions and Danish companies in the green technology sector. Denmark wil do the utmost to make the world greener.

Enjoy the read.

In brief

High praise for Copenhagen's Metro

At the Metro Rail conference held in Copenhagen, which was attended by industry experts from around the world, Copenhagen’s Metro was voted the world’s best subway, ahead of the much more wellestablished systems in London, Madrid and Singapore.

Key criteria for Copenhagen Metro gaining the accolade included its operatrional reliability, the speed with which the new line to Copenhagen Airport was built, the glowing passenger ratings and the system’s safety level.

”It’s a great honour that experts from other metro systems like London, New York and Tokyo think that Copenhagen’s Metro is the best in the world,” says chairman of Metroselskabet I/S Henning Christophersen. ”Their systems have been refined over many years, while we are still one of the youngest”

The latest customer satisfaction survey shows that 98% of people using Copenhagen’s Metro are either satisfied or very satisfied with the service. The system carried around 40 million passengers in 2007.

Denmark - a peaceful spot on the planet Denmark is the second most peaceful of all countries in the world. So shows a survey prepared by analysts from the British weekly magazine The Economist. Iceland takes the top slot. Denmark has advanced two places on the global peace index, which was compiled for the first time last year. The peace index is based on a broad range of indicators, which measure a country’s level of peacefulness both domestically and abroad. Among the indicators are the countries’ participation in UN operations and violent crime. Iceland and Denmark are followed in the ranking by Norway, New Zealand and Japan. The Economist notes in the analysis that “the world seems to be a marginally more peaceful place this year”. The analysts from the British weekly magazine recommend that large companies should take due note of the peace index when they take decisions on where to invest.

The world’s most networked economy

For the second consecutive year, Denmark has been ranked the most networked economy by the World Economic Forum. But competition for the leading position is sharpening.

The international think tank World Economic Forum, which organises the annual meeting for the world’s leaders in Davos, Switzerland, has ranked Denmark ahead of 127 other countries as the world’s most networked economy, defined in terms of the overall ICT environment, readiness to benefit from ICT, and actual use.

The Global Information Technology Report 2007-2008, produced in collaboration with INSEAD, gives a measure of a country’s ability to convert investments in IT and telecommunication into improved competitiveness and development.

For the second consecutive year Denmark tops the league table, with Sweden, Switzerland, USA and Singapore completing the leading quartet.

According to the World Economic Forum, the rapid spread of wireless technologies will especially boost interconnectivity. Wireless technologies are advancing steadily, and radio technologies such as WiMAX are being increasingly adopted. WiMAX is a sort of supernet that supplies wireless connections across large areas at reasonable speeds, so that whole regions can quickly be offered net access. Developing countries are showing particular interest in the technology.

Network giant Cisco is the report’s long-term sponsor.

“It is a pat on the back for authorities, educational institutions and private sector companies that for the second consecutive year Denmark has been ranked the world’s most networked society. This helps explain why the Danish economy is one of the world’s best,” says Cisco Denmark’s acting managing director, Niels Münster-Hansen.

Denmark is No.1 in further training No other country matches Denmark when it comes to further training of the workforce. Weld safely. Learn about rightturn risks for trucks. Trim the production process. Courses that finetune skills in areas such as welding, road transport and manufacturing are more familiar to Danes than to most other people. That’s because no other country gives its workforce more additional training than Denmark - a fact supported by the latest figures from Eurostat, which have been published by the Confederation of Danish Industries. “Companies are exposed to tough competition. So further training is an important way to ensure capable staff and thus maintain a firm foundation for growth,” says Flemming Larsen, head of business training at the Confederation of Danish Industries. In the Eurostat survey, nearly 30% of the Danish population between 25 and 64 years said that they have participated in education or training in the previous four weeks. That is a couple of percentage points higher than in Great Britain and Finland, which ranked second and third in the survey.

 

Wind turbine sales beat all records

The wind energy market is seeing tremendous growth, and the trend looks set to continue for the next five years.

If the Danish manufacturers Vestas and Siemens Wind Power, together with subsuppliers like LM Glasfiber, maintain their current collective market share of around 30%, they can look forward to raking in EUR 70 billion in the period up to 2012. So shows the latest forecast for the global wind energy market from the internationally respected Danish firm BTM Consult.

In 2007, a record 19,791 MW of wind power was installed worldwide, a 32% increase on the previous year. By the end of 2007, the world’s total wind turbine capacity reached 94,000 MW, equivalent to 1% of global electricity consumption.

The five year forecast up to 2012 estimates an average annual growth of 20.7%, anticipating that annual demand for wind power will increase to around 50,000 MW in 2012, which will bring total capacity to around 290,000 MW.

The total market over five years will be worth EUR 270 billion, if prices remain at the same level as last year. But this is an unlikely scenario, since strong demand has pushed up prices.

The theme for BTM Consult’s annual analysis was China, whose wind power market has grown by 93% in the last three years to become the world’s second largest wind power market after the USA.

China is well on its way to building its own wind turbine industry to compete with subsidiaries of European companies, which will put pressure on the Danish wind turbine manufacturers and subsuppliers. Two Chinese companies, Goldwind and Sinovel, plus India’s Suzlon - which has a division in Denmark - accounted for 18% of the global market in 2007.

Chinese companies establish research presence in Denmark Invest in Denmark, a part of the Danish Trade Council in the Ministry of Foreign Affairs of Denmark, has been instrumental in attracting two Chinese companies to establish research in Denmark in preference to Germany, and more will follow. The Chinese wind turbine manufacturer Envision will establish a research centre in Silkeborg, Jutland, and employ around ten engineers this year, while the strong focus on knowledge in general has attracted the high technology Chinese company New Jialian Electronics to place a research department in Denmark. Henrik Brandt Jensen, Invest in Denmark’s director for China and India expects that a further five Chinese high technology companies will establish in Denmark this year. In addition, he expects that 15-20% of foreign companies setting up in Denmark will come from China in the coming years. Currently China accounts for 5%.

40 years with VOLA

VOLA is a classic product of the Golden Age of Danish design. The first VOLA fixtures were created in 1968 by Arne Jacobsen, a designer known for his famous chairs ’The Egg’ and ’The Swan’.

The story began with the construction of the Danish national bank. A collaboration with VOLA was created when the Jutland-based fixtures manufacturer, Verner Overgaard, contacted Arne Jacobsen with an idea for a fitting where all the pipes were hidden in the wall, something quite revolutionary at the time. The meeting heralded the creation of a whole range of kitchen and bathroom fittings and accessories.

By 1974, VOLA had gained a place in the design collection at the Museum of Modern Art in New York. Over the years, VOLA has received many Danish and international design prizes and can be seen in places as auspicious as the German Parliament in Berlin, the Scottish Parliament in Edinburgh, the Concertgebouw in Amsterdam, and many art galleries and luxury hotels throughout the world.

In recent years the company has developed rapidly and has just received the distinguished American design prize, the 2007 GOOD DESIGN award, for its latest fitting for freestanding bath tubs.

On 16 May VOLA A/S inaugurated a new academy, where not only plumbers and staff from the factory in Horsens can update their knowledge, but also staff from the international sales companies. The academy also functions as a meeting place for international architects to discuss new trends in architecture and design.

Copenhagen takes top prize in Monocle’s 2008 ranking

Monocle’s unique ranking goes beyond the usual metrics that only look at housing costs and schools to include the possibility of getting a good glass of wine at one in the morning, the quality of new architecture, the ease of setting up a business and even the number of cinema screens.

Established last year as the arbiter of what’s great (and what’s not) about a city, Monocle’s survey is sure to trigger debate. In addition, this year the magazine names the world’s best (and most interesting) cities for business, culture, design and retail, as well as the best global hubs for politics, urbanism, and international connections.

Monocle editor in chief Tyler Brûlé explains that ’as the planet becomes an increasingly urban place, delivering these lifeimproving essentials to cities big and small is proving more than a challenge. Radical environmental initiatives that pull cars off streets can do wonders, but can also kill off passing trade. New developments, designed to attract investment, can not only boost local fortunes but also drive out all those people that made the city interesting in the first place.’

In addition to being the magazine’s number one city, the Danish capital also takes the prize for Best Design City. The Nordic capitals Stockholm and Helsinki are also in the top 10. Munich, which took the top prize last year, will have to be content with second place. Paris, which squeaked in at 19 last year, is now at number 10 and has been rated as Monocle’s Best Global City. This year, three US cities join the rankings (up from one last year).

KEY FINDINGS:
Copenhagen is highly rated for its good looks, perfect proportions and sunny disposition, Copenhagen can claim the title of city with the Best Quality of Life; it also wins Best Design City. A firm grasp of environmental issues and a great food culture helped pull the city up from second place in 2007.

The Øresund Region

Northern Europe’s powerhouse

By Jesper Løvenbalk Hansen

With the Øresund bridge, the Øresund region now has one of the world’s highest concentrations of knowledge and research institutions. Photo: Torben Åndahl, Scanpix Denmark

A high concentration of universities and research institutions combined with worldclass infrastructure has made the Øresund Region one of Europe’s most dynamic and innovative business regions

When the world map was spread out and the management of the world’s largest biotech company, Biogen Idec, pondered the right location for their European headquarters, the choice fell on Denmark.

For Biogen Idec the opportunities in Copenhagen and Medicon Valley, which is region with a worldclass position in the biotechnological and pharmaceutical field, were the major deciding factors when Denmark was chosen among a group of other nations. The company considered Denmark to have a number of competitive advantages including a highly educated workforce and a strong research climate in Medicon Valley.

Linda Nielsen, former rector of Copenhagen University, was one of the mainstays in designing Øresund University, a collaboration between the region’s 12 universities. Photo: Per Gudmann

Inspired by Silicon Valley, where the IT industry dominates an entire region of San Francisco Bay, the Øresund Region has become known as Medicon Valley among research scientists and companies in the medico-healthcare industry.

With the move to the Copenhagen area, Biogen Idec also chose to become neighbour to a number of other global players in the medico-healthcare industry such as Denmark’s Lundbeck Pharma and Novo Nordisk.

“The more companies, the stronger the region. The concentration of companies in the same field is an advantage for us. It creates a pull effect on highly skilled labour in our field,” says Biogen Idec’s vice president and general manager in Denmark, Alasdair Shepherd.

SIZE MATTERS
In so saying, the management of Biogen Idec points out one of the two pillars in the Øresund Region’s construction: to reach the “critical mass” necessary to become an internationally attractive region, explains Professor Lise Lyck of Copenhagen Business School. She conducts research in regional development and has followed the Øresund Region’s evolution from the start.

“The first and most crucial thing was to get the region physically integrated with a bridge between Denmark and Sweden.  

In this respect the Øresund Region is unusual because it is a fusion of Denmark’s largest city and capital and Sweden’s third largest city, Malmö. It has thus become a model region for the whole of Europe,” says Lise Lyck.

The regional fusion became a reality in June 2000 when the Øresund Bridge, with 16 kilometres of combined motorway and railway, was completed. As an interconnected area, the Øresund region today has one of the world’s highest concentrations of knowledge and research institutions. There are six science parks, 12 universities and more than 12,000 esearchers and 6,500 PhDs in the region. It has brought Copenhagen up among the leading European cities in terms of ability to attract companies, and is surpassed only by London, Paris and Berlin in attracting direct foreign investment.

THE ØRESUND REGION The Øresund region is built up around six local clusters where the region is especially strong. The common objective is to promote innovation and growth through collaboration in each cluster. Read more about Øresund Science Region at: http://www.oresundscienceregion.org A shared feature of these clusters is that they are supported by organisations that promote crossborder collaboration between industry, universities and authorities. MEDICO/BIOTECH The Øresund Region is Scandinavia’s largest pharmaceutical and biotech centre. In medical and biotech research, the region ranks third in Europe, surpassed only by London and Paris. Network organisation: Medicon Valley Academy: http://www.mva.org IT/TELECOMMUNICATIONS The Øresund Region’s IT and telecommunications industry employs about 104,000 people, and the region has the largest concentration of IT competences in Scandinavia. Network organisation: Øresund IT Academy http://www.oresundit.org FOOD Most of the main companies in the food industry are present in the Øresund Region. The food industry is strongly exportoriented and encompasses everything from international giants to niche companies in the development of functional foods. Network organisation: Øresund Food Network http://www.oresundfood.org ENVIRONMENT In the environmental area, the Øresund Region excels in waste management, water and marine environment, energy, policy planning and consultancy. Network organisation: Øresund Environment Academy http://www.oresund-environment.org LOGISTICS The Øresund Region’s geographical location as a gateway to the Baltic Sea and a North European hub has made the Øresund Region a logistics centre. The Øresund Region is the biggest in Scandinavia in terms of goods handling. Network organisation: Øresund Logistics: http://www.orelog.org DESIGN Innovative design has a proud tradition in the Øresund Region. Several design classics have originated here as well as several latterday export successes – from furniture and porcelain to computer games. Network organisation: Øresund Design http://www.oresunddesign.org The Øresund Region is easily accessible from anywhere in the world. Copenhagen Airport has direct flights to more than 130 different destinations and is one of Northern Europe’s largest airports. 65 of the world’s largest companies have established headquarters in the Nordic region, of which 26 are in the Øresund Region. The number of head offices has doubled in the last seven years. According to a statement from Ernst & Young, Copenhagen attracted 50% of all new Nordic head offices in 2004. And according to The Economist, Denmark offers the world’s best business environment.

ØRESUND SCIENCE REGION
If only size was the crucial factor, the Øresund region with its 3.5 million inhabitants would probably not have become the global player it is.

The challenge from the start has been to get the region’s players to talk to each other and act according to the same objectives. That is the other pillar in the construction of an internationally competitive region. So explains Linda Nielsen, former rector of the region’s largest university, Copenhagen University.

“The special ingredient is our model for collaboration, involving the region’s private sector companies, public sector authorities and the knowledge and research institutions,” says Linda Nielsen, who refers to the three-part integration model as the “triple helix”.

One consequence is that the Swedish and Danish authorities collaborate on creating optimal framework conditions for growth and development in the region. The challenge is to create a shared labour market, a common tax policy and define joint objectives regarding investments in infrastructure and research.

Some of the most specific results are the creation of a number of platforms where private sector companies, researchers and public sector authorities exchange ideas, objectives and needs.

“In terms of research, the Øresund Science Region is constructed as a number of science platforms, where the region is especially strong. We have become one of the most interesting regions in IT, medico-healthcare, logistics, food and environment,” says Linda Nielsen.

As the former rector of Copenhagen University, Linda Nielsen was one of the mainstays in designing the Øresund University, one of the initiatives that binds the region from the bottom up:

“The Øresund University is a collaboration between the region’s 12 universities. All the region’s 150,000 students have access to all courses offered at all universities. It has created an enormous exchange between the various subjects, and gives the region a strong foundation for new thinking and innovation,” says Linda Nielsen, who points out that the Øresund Region is thus setting new standards for collaboration and regional development in the EU.

Biogen Idec’s vice president and general manager in Denmark, Alasdair Shepherd, finds that the concentration of companies in the same field in the region is an advantage to Biogen.

EUROPEAN MODEL REGION
OECD shares this opinion. In a study, it calls the Øresund Region “a worldclass centre ... a flagship and a model for Europe’s regions.”

And when the EU Commission awarded the first RegioStars prizes in February this year, the Øresund region was honoured with the prize as the EU’s best region in the category “supporting clusters and business networks”.

What both OECD and the EU take special note of is the Øresund Region’s ability to bring the collaboration between public and private sector players across the border between two EU countries.

Biogen Idec is currently expanding with new facilities that will be inaugurated in November this year, enabling Biogen Idec to take on an additional 150 staff.

“I think the Danish government is doing the right thing in attracting specific clusters to the region. I think it makes absolute sense to have one or more local clusters that profile the region,” says Biogen Idec’s director in Denmark, Alasdair Shepherd.

Danish shipping steams ahead

BY JACOB BENTHIEN

More than 10% of total world trade is today transported on ships either owned or controlled by Danish shipping companies, and the percentage is constantly increasing. Shipping has become Denmark’s second largest export industry.

Danish shipping companies are increasing market share like never before. They now control 8% of total world tonnage and transport more than 10% of total world trade by volume. And the growth continues. While world trade is growing by approx. 8% annually, Denmark’s share is growing by more than 10%.

“The Danish shipping industry is increasing its market share all over the world,” says executive vice president Jan Fritz Hansen of the Danish Shipowners’ Association. “We are already Europe’s largest shipping nation, and among the five biggest flag nations in the world.”

Danish shipping, which includes both national and international offshore activities, has been the country’s highest foreign currency earner for a long time, and is forecast to reach the magic figure of DKK 200 billion (approx. EUR 27 billion) in 2008. That represents an eightfold increase since 1990 in actual numbers and a doubling of the percentage of Denmark’s total exports. The industry now accounts for around 18% of Danish exports and – despite the low dollar rate – contributes about DKK 30 billion (approx. EUR 4 billion) to the balance of payments.

“The reason why Danish shipping is doing so well is because we have highly competitive framework conditions, and also because Danish shipping companies took an early lead in focusing on what we call ’quality shipping’. This comprises a range of parameters such as reliability, speed, efficiency and environmental friendliness, and a consistency of supply based mainly on the pool system that was essentially ’invented’ by Danish shipping companies,” says Jan Fritz Hansen.

The pool system consists of a network of shipping companies and ships which can supply transportation at a few days’ notice. So although Danish shipping companies own only 3% of total world tonnage, they control an additional 5% through chartering and contracting.

FACT BOX Danish shipping companies own 3% of the world’s total merchant fleet tonnage Danish shipping companies account for 5% of the world’s newbuild orders 7% of total world tonnage is controlled from Denmark Danish shipping companies transport 10% of total world trade Denmark’s population represents less than a thousandth of the world’s population

FINANCIAL MUSCLE
Danish shipowners currently own around 520 ships with a total of approx. 12 million tons deadweight under the Danish flag. They also own 12 million tons under foreign flags and control 35 million tons in other ways. And a record newbuild programme of more than 350 ships for delivery within the next three years will add a further 15 million tons to the total. Several Danish shipping companies have also clearly expressed plans to acquire foreign shipping companies as well as buying ships that are currently chartered.

“It says something about the financial muscle of Danish shipping,” says Torben Janholt. “Shipping is a very capitalheavy industry, and the international financial crisis has made many investors cautious. That benefits Danish shipping companies, which have built up their finances over many years and are now ready to put them to use.”

The newbuild programme, valued at EUR 10 billion, will further cement Denmark’s leading position regarding the average age of the merchant fleet. Danishowned and Danishcontrolled ships have an average age of less than seven years, while the world fleet has an average age of more than 13 years.

“Danish shipping operates and controls 10% of total world trade” – executive vice president Jan Fritz Hansen, Danish Shipowners’ Association. (Photo: Sisse Jarner)

“2007 was another record year for Danish shipping” – Torben Janholt, CEO, J.Lauritzen A/S, chairman of Danish Shipowners’ Association. (Photo: Sisse Jarner)

ACQUISITIONS AND NEWBUILD ENSURE THE FUTURE OF SHIPPING The chairman of the Danish Shipowners’ Association, director Torben Janholt of shipping firm J.L. Lauritzen A/S, sees a very positive future for the Danish shipping industry. Danish shipping companies are close to doubling their tonnage through an intensive newbuild programme. World trade is increasing, which accordingly increases the need for ship transportation. And although the cheap dollar and sharply rising prices of bunker oil have an impact on earnings, several Danish shipping companies have managed to deliver record results in 2007. “2007 was another record year for Danish shipping,” says Torben Janholt. “And it looks as if 2008 will follow suit. The bulk market is still at a very high level, and the tanker market has maintained high rates. The container market is more moderate, but is generally following the growth in world trade. The future also looks bright for speciality transportation,” says Janholt.

D/S NORDEN A/S – in for the long haul

BY CHARLES FERRO

BACK IN 1871 THE SHIPPING COMPANY DAMPSKIBSSELSKABET “NOR-DEN” A/S GOT A LISTING ON THE COPENHAGEN STOCK EXCHANGE AND SUBSEQUENTLY HAD A VESSEL BUILT. PAGE ONE IN THE HISTORY OF ONE OF DENMARK’S OLDEST MARITIME COMPANIES WAS WRITTEN. FOLLOWING THE MAIDEN VOYAGE, THE SHIPOWNER HAS EXPERIENCED EVERYTHING FROM TURBULENT WATERS TO THE DOLDRUMS, BUT IN THE PAST SEVERAL YEARS IT HAS SEEN A LOT OF SMOOTH SAILING. TO BE SURE, HARD WORK AND STAYING ON COURSE WITH A STRICT STRATEGIC PLAN PUT THE WIND IN D/S NORDEN’S SAILS.

D/S Norden is one of the world’s largest dry cargo operators of Handymax and Panamax bulk carriers

The central idea behind the company’s success is to utilize its active capacity while having additional capacity available when needed. Utilizing assets to turn a profit is no business secret, but Norden maintains flexibility in its operating assets to be able to quickly adjust to changes in global or regional economic tides. In total, the company operates 212 vessels in a mix of owned and chartered tonnage.

Looking into the future, Norden has an extensive portfolio with a total of 90 vessels scheduled for delivery.

“Our approach to the industry is that we are in it for the long haul and we do it by focusing on strong partnerships with customers and suppliers in order to generate long-term quality cash flows and manage risks,” explains executive assistant Peter Sand. “We’re here today, and we will be here tomorrow.”

FULL SPEED AHEAD
When Norden sent its 2007 annual report to the stock exchange, it showed a net profit of USD 703 million from total revenues of USD 2.9 billion, as compared with a USD 176 million profit from USD 1.2 million in revenues a year earlier. The boost in profit was largely due to increased incomes from Norden’s dry cargo operations and the sale of ships.

Five years ago, revenues reached just USD 477 million. Projections for 2008 anticipate a net profit that could be double the total revenues figure from 2003, a staggering increase.

“Norden has experienced some tremendously exciting years, where we have built up a large commercial fleet and where profitability has gone from good to very good,” says Sand.

Norden sold 16 ships in 2007, of which eight had been delivered, but the company managed to maintain an almost unchanged fleet of owned vessels throughout the year. This was achieved on the basis of the extensive portfolio of long-term chartered vessels with attached purchase options. The options were called and vessels subsequently sold. A mainsail in corporate strategy, where these ships provide the flexibility of the fleet needed to ensure profitability when tides are high and in times of the doldrums. The diversity of specializing in two shipping areas, dry cargo and product tanker, also provides a natural resilience when there are shifts in demand.

“What we do differently in terms of tonnage procurement is to use all the tools in the toolbox. We acquire capacity through various opportunities, and utilize the capacity in multiple ways though our global network of chartering and operations offices” Sand notes.

In this way, Norden is close to its customers and partners in local time zones and is able to operate business transactions, transports and port calls day and night all year round. At the same time, the company obtains close insight into how the markets operate locally.

CHANGING COURSE AND GAINING STRENGTH
A major turning point in Norden’s history occurred just over a decade ago. New faces entered managerial positions and brought new ideas with them. Throughout the years, the shipping company had established strong relationships with Japanese businesses and when the Asian Crisis struck in the late ’90s, the company was able to step into mutually beneficial agreements.

“We’ve been doing business with Japanese partners for more than 100 years, and I believe that this ongoing presence and a reputation for being a credible partner gave us the opportunity to sign some good contracts in which we took their ships on charter for a five-to-seven-year period. Attached to many of these charters was an option to buy the ship,” Sand says. “Our Japanese partners got some relief in a difficult situation and a good foundation for building up business. And so did we, in the sense that we were able to scale up capacity without making really major investments.”

The fleet, and general operations, have grown steadily in the past ten years. Now Norden has some 150 employees in its Copenhagen HQ, and six centres at strategic global locations in North and South America as well as the Asia Pacific region. Including crews on owned ships, the company employs more than 500 people globally.

KEEPING THE BLUE SEAS “GREEN”
Successful business means responsibility and Norden has been bolstering its responsible practices in “green” terms.

“Although Norden has traditionally been considered a green and efficient operator, we have put increased focus on the environmental and climate issues related to our business,” Sand states.

The company is taking a more systematic approach to social and environmental sustainability, including related climate issues in accordance with the United Nations Global Compact. Results of these efforts aim at more than just the environment. They encompass safety at sea and at work, occupational health, employee conditions and opportunities and other issues directly related to Corporate Social Responsibility (CSR).

Propulsion resistance and combustion optimization are the two main areas that affect the efficiency of a ship. To help attain climate- and environmentimproving objectives, Norden has introduced a range of activities supported through the funding of external research and more.

The company has signed an agreement to test the GreenSteam system on a ship due for delivery in September from a Chinese shipyard. Developed at the Technical University of Denmark and other institutions, GreenSteam is a smart system for adapting to conditions at sea, to make operations more efficient. Onboard servers collect data on sailing conditions. Data is then relayed to an onshore server for nearinstant analysis and the results are transmitted back to the vessel. The onboard server digests the new information and sends recommendations to the bridge for adjusting engine settings and vessel trimming to optimize vessel efficiency.

In the future, Norden will be operating vessels on the foamy waves from a headquarters located in a spot where they used to make foamy beer. In June, the company moved into “Bryghuset”, a former brew house of the Tuborg brewery.

“Maritime Denmark” increases its influence

BY JACOB BENTHIEN

“Maritime Denmark” is more than a collection of shipping companies. It is a cluster with a wealth of maritime know-how. From research and training to production of worldleading engine technology, and everything in between.

Danish shipping company J. Lauritzen A/S scooped the prestigious Lloyds List Ship of the Year 2008 Award this spring. The accolade was given to the gas tanker Isabella Kosan, the first in a series of 12 ships supplied from the Sekwang shipyard in South Korea, in recognition of a large number of innovative initiatives in safety, environmental protection and operational efficiency.

Although construction was carried out in South Korea, the design and the most of the ship’s contents are produced in Denmark. While the primary link in Danish shipping, the shipping companies, employ around 30,000 people on land and at sea, the cluster known as Maritime Denmark employs more than 100,000 people. There is a rich network of suppliers for the majority of components for the international shipyard industry – from advanced navigation equipment and ship paint to diesel engines and pumps for safety and lifesaving equipment.

“When we developed Isabella Kosan, we gave ourselves the task of evaluating every single working procedure and every single part of the ship to see whether they could be improved,” says director Jan Kastrup-Nielsen of J. Lauritzen Kosan. “During that development process, a vast number of improvements were made, which originate directly from the know-how and network which we are a part of in Maritime Denmark. There is a wealth of knowledge and expertise in Denmark in nearly all areas of ship building and design, which very few other countries can match.”

OFFSHORE ACTIVITY GLOBALLY
A significant part of the maritime industry in Denmark is the offshore sector, which is active not only in the Danish part of the North Sea, but also on the global market. The world’s seventh largest operator of drilling rigs, Maersk Contractors, with 30 mobile platforms and a constant newbuild programme, is influential in setting the agenda for development of the international oil and gas industry.

The energy industry’s offshore wind farms also form part of the Maritime Denmark cluster. Denmark has the world’s three largest offshore wind farms, and two new offshore projects are under way. The construction and operation of the wind farms, which in terms of output are in the 250 MW class, are based on leading Danish technology. Offshore and landbased wind turbines collectively cover 30% of Danish electricity consumption.

INTERNATIONAL SHIPPING COMPANIES ON THE WAY
The know-how and expertise accumulated in Maritime Denmark has already attracted a number of international maritime companies to Copenhagen. Although the Danish capital still lacks the international environment that characterises cities like London and Singapore, Danish influence on international shipping is slowly changing this picture. A couple of large Japanese shipping companies have plans to establish offices in Copenhagen, according to the Danish Shipowners’ Association.

“Growth across an entire industry has a self-perpetuating effect,” says Jan Fritz Hansen of the Danish Shipowners’ Association. “Especially when Denmark has a higher growth rate in shipping than the international average. Just five years ago, Copenhagen was a regional centre for shipping. Today it has become a European centre. I am convinced that in five years, Copenhagen will be a metropolis on a world scale and among the three most important shipping cities in the world.”

 
J. Lauritzen’s new gas tanker, Isabella Kosan, received the prestigious Lloyds List Ship of the Year 2008 Award this spring.

Danish ships become greener

BY JACOB BENTHIEN

One of the research projects at DCMT concerns exploiting the surplus air from the ship’s turbochargers. The air is fed under the hull to create an air cushion which makes propulsion 10% cheaper. The model has been tested in DCMT’s test tank and will be tested at full scale during autumn 2008. Photo: Sisse Jarner

In collaboration with the Danish Maritime Authority, five leading Danish maritime companies have launched an ambitious research and development programme entitled ’Green Ship of the Future’. The aim of the project is to make shipping more environmentally friendly by developing technology and logistics solutions that reduce CO2, sulphur (SOx) and nitrogen (NOx) emissions. The project, which is open to anyone who would like to participate, has initially been launched by five technologically advanced Danish companies together with the Danish Centre for Maritime Technology (DCMT), a researchbased collaboration between the Technical University of Denmark and Force Technology.

The five companies are MAN Diesel, Aalborg Industries, Odense Steel Shipyard, A.P.Møller-Mærsk and FORCE Technology.

“Green Ship of the Future is yet another example of Denmark taking up the challenge in the climate and environment area,” says Danish Minister for Economic and Business Affairs Bendt Bendtsen. “The vision of being Europe’s leading shipping nation also means taking the lead in ensuring that Danish shipping becomes even more environmentally and climate friendly.”

Project manager Thomas Eefsen of the Danish Centre for Maritime Technology (DCMT) with some of the model ships which are used for hull modelling. DCMT coordinates the research in the Green Ship of the Future project. Photo: Sisse Jarn

MORE ENVIRONMENTALLY FRIENDLY
On a global scale, national and international shipping emits around 1,120 million tons of CO2 annually. But despite the gigantic figure, shipping is still a more environmentally friendly form of transportation than by road, rail or air.

“One ton of goods transported by a truck with a 20 ton capacity accounts for about 50 grams of CO2 per kilometre,” says Thomas Eefsen, project manager and research coordinator of DCMT. “By contrast, only 10 grams of CO2 are emitted per ton of transported goods on a container ship, and only about five grams on a bulk carrier or tanker. For aircraft, the figure is ten times higher than for a container ship.”

Jan Fritz Hansen, executive vice president of the Danish Shipowners’ Association, points out that the reason why shipping emits as much CO2 as it does, is because it accounts for 90% of world trade and the transportation of goods.

“With the growth in trade we are witnessing today, I can only see CO2 emissions growing. The point of the Green Ship of the Future project is to do something about it, so that CO2 emissions and pollution do not increase at anything like the same rate as growth in trade,” says Jan Fritz Hansen.

ELECTRICITY FROM EXHAUST GASES
Initially the project will concentrate on making ships’ energy plants more efficient, including further development of existing technologies for reducing emissions. There are also plans to look at efficiency improvements in the propulsion of ships such as optimisation of hull shapes, the motive power system and hull paint. The project will comprise both the operation of ships and the optimisation of transport chains.

GREEN IS GOOD FOR FUEL ECONOMY The cost of bunkering has rocketed in recent years. From 2004 to 2008, bunker prices tripled and today a ton of fuel costs ship owners almost USD 500. The bunker price has become a cost which can really be felt in daily operations. “A project like Green Ship of the Future also offers a financial incentive to shipowners – in addition to the environmental aspect,” says Jan Fritz Hansen of the Danish Shipowners’ Association. “An energy saving of just 1% per year for a 4,000 TEU container ship can save around USD 100,000 at today’s oil prices.”

SILICONE PAINT SAVES FUEL In 2007, the Danish ship paint manufacturer Hempel developed a revolutionary marine paint based on silicone. The paint, which allows ships to glide more easily through the water, while at the same time reducing alga formation, was tested by FORCE Technology. The paint was applied to shipping company Euronav’s supertanker TI ASIA. The 380 metre long vessel, with a deadweight of more than 440,000 tons, recorded fuel savings of around 8% compared to TI ASIA’s sister ship TI EUROPE, which had been painted with a tinbased marine paint four years earlier.

 “There is significant potential in this area,” says Thomas Eefsen. “Maersk Line, which is among the first companies in the project, has already installed exhaust gas heat recovery plants in its latest series of megacontainer ships. These plants convert waste heat from exhaust gases into electricity. The power produced by this electricity corresponds to almost 10% of the main engine’s thrust.”

MAN Diesel, one the world’s leading diesel engine manufacturers, is participating in several subprojects including research into reducing NOx emissions, as well as systems that can optimise fuel consumption according to how a ship is operated.

“We already know that CO2 emissions from a ship are reduced by more than 25% if the speed is reduced from 24 knots to 20 knots,” says Thomas Eefsen. “It also reduces fuel consumption significantly. There are disadvantages in longer transportation times, increased crew costs, stock costs and various other financial negatives. But it is clearly an area in which more research and analysis is needed.”

The overall aim of Project Green Ship of the Future is to reduce CO2 emissions by 30%, and NOx and SOx emissions by 90%.

DENMARK BEHIND IMO AGREEMENT ON CLIMATE REGULATION
It was as a result of major Danish efforts that the international shipping organisation IMO earlier this year adopted a number of fundamental principles for global climate regulation of international shipping. The objective is to gain an agreement that binds all flag states and thus prevents distortion of competition. The agreement will help secure an effective reduction in harmful emissions.

“From a climate perspective, reducing emissions in all areas is a necessity,” says the chairman of the Danish Shipowners’ Association Torben Janholt of shipping company J. Lauritzen A/S. “But it is equally necessary for shipping that the agreement becomes global and thus fair and beneficial for equal competition. So we are very happy with the preliminary agreement in IMO.”

In Denmark, the shipowners’ organisation is concerned that the industry will be subject to binding rules for CO2 emissions based on the Kyoto Protocol.

“Those countries, including Denmark, which are bound by the Kyoto Protocol only account for 25% of international shipping,” says Janholt. “It can result in substantial flagging out of ships to countries that are not bound by Kyoto. Nothing is thus gained from a climate perspective, and competition will be completely distorted. An agreement must include everyone, and only IMO can guarantee that.”

The Danish Shipowners’ Association reckons that a final agreement, which will be binding for the entire international shipping industry, will be ready in its essentials during 2008, and negotiations will hopefully be completed by the end of 2009.

Ice, shrimps and oil worth billions

BY JESPER LØVENBALK HANSEN

The hunt for oil has started on the world’s largest and perhaps richest island. A self-governing Greenland will manage its own oil resources.

The price of a barrel of oil has just passed USD 130 and leading economists forecast that before too long it will top USD 200. It is the natural reaction to global uncertainty, increasing demand and decreasing oil production.

It is also the reason why oil companies like Exxon and Chevron are now turning their gaze north of the Polar circle. An ongoing appraisal from USGS indicates that a very significant part of the planet’s undiscovered oil deposits can be found here, and a good deal of the oil and gas may be sitting around Greenland.

“With steadily high oil prices, the relatively short distance to the markets in Europe and North America, and political instability and insecurity in many areas such as the Middle East, Africa, Venezuela, Bolivia and the Caucasus, where there are large oil reserves, the oil industry is currently focusing on exploration in the Arctic and not least Greenland, where there is political stability,” says Vice director Flemming Getreuer Christiansen of the Geological Survey of Denmark and Greenland.

Although there is still great uncertainty regarding the amount of oil in Greenland, fairly high figures are being mentioned. Based on reasonably safe data, the area of Northeast Greenland alone is estimated to have undiscovered oil and gas resources of 31 billion barrels of oil equivalent, which roughly corresponds to the world’s total consumption in a year.

In addition there are the West Greenland basins where six international oil companies already have concessions, together with the Greenland Home Rule Government’s oil company, NUNAOIL.

THE ROAD TO SELF-GOVERNMENT
Danish-Norwegian missionary Hans Egede arrived in Greenland in 1721. His aim was to find descendants of the Norse population that had settled around 1000 B.C., but had not been heard from for the past 200 years. Finding no trace of the Norse – the disappearance of that culture remains a conundrum to historians – Egede instead devoted himself to mission among the Inuit. This was the beginning of the colonial era in Greenland that lasted until 1953, when the island became an integrated part of Denmark, partially in response to UN decolonisation measures. An elected advisory body, the Landsråd, had been in place since 1911 and had, for all practical purposes, governed Greenland without outside influence during WW II, when connections between Greenland and Denmark were disrupted by the war .

Greenland is a geographically wellplaced bastion for national fishery of especially shrimps and halibut, which is still the island’s chief industry. Greenland’s location was of great geostrategic interest during WW II and the Cold War, and Greenland still hosts the USAF base at Thule.

In 1979, Greenland voted for home rule, and in May this year another important milestone was reached. A Danish-Greenlandic parliamentarian commission concluded more than four years of negotiations concerning Greenland’s future and status. The commission tabled a report which proposes extended self-government within the framework of the Danish constitution. The proposal includes provisions for the economic development of Greenland and states that future dividends from the exploitation of natural resources shall belong to Greenland Former Danish Minister for Justice, Frank Jensen, explains why Denmark has chosen to forgo potentially enormous oil revenues. For four years he has chaired the subcommittee on business and economic affairs of the Danish-Greenlandic committee, which has focused on Greenland’s oil.

The Greenlandic flag is called Erfalasorput, which means our flag. It symbolises the sun rising over the ice and the return of warmth by midsummer. Photo: Paul Sourders, Corbis

“In order to comprehend the Danish position, you have to understand the community which Denmark and Greenland have constituted for almost 300 years. Since decolonisation in 1953, Denmark has encouraged an administrative and financially selfsupporting Greenland,” explains the former Minister for Justice, who emphasises that Greenland may also detach itself entirely from the Kingdom of Denmark, should it so wish..

“The Greenlanders themselves decide over their resources. So our message is that even if the oil suddenly spouts up in a great gush, the Greenlanders do not have to detach themselves. It should not be because of a disagreement concerning oil that we end our kinship with Greenland. And this is what the new agreement between Denmark and Greenland guarantees” says Frank Jensen.

Juliane Henningsen, Greenlandic member of the Danish Parliament, belongs to the generation which will bring Greenland towards economic independence and possibly a final secession from Denmark. Photo: Per Gudmann

GREENLAND The name of Greenland in Greenlandic is ’Kalaallit Nunaat’ – land of the Greenlanders. Greenland has a mountainous terrain and is the largest island in the world with an area of 2,166,086 km2, of which 410,449 km2 is icefree. Greenland has a population of 56,854 (January 2004), its inhabitants either living in towns or in settlements in icefree coastal areas. The majority of the population lives in western Greenland. The capital of Greenland is Nuuk with a population of 14,272. Greenland’s only traffic signals and roundabouts are here. None of Greenland’s towns are interconnected with roads. There are two ways to travel long distances: by air or by ship. Geographically, Greenland is part of the North American continent. Geopolitically, the country is part of Europe and nationally, a part of the kingdom of Denmark. North America is Greenland’s closest neighbour – separated by a strait only 26 kilometres wide. From Greenland’s most northerly point there are about 700 kilometres to the North Pole. Greenland has been inhabited by small groups of people who migrated at various periods over the sea ice from northern Canada, the first time around 2,500 BC. The majority of the Greenlandic population are descended from the Inuit and are closely connected with the Inuit in Canada, Alaska and Siberia. The Greenlandic language is closely related to the Inuit language in Canada and Alaska. Greenlandic is the official language of the country. 85% of the country is covered by inland ice, which rises up to 3,000 metres above sea level. The inland ice was crossed for the first time in 1888 – on skis. The most active glacier in the northern hemisphere is at Ilulissat. It produces 20-25 billion tons of ice annually. Some of the largest icebergs are seen in Ilulissat, and these can tower 100 meters above the sea (and only 10-15% of icebergs are visible above the water line). The icebergs are taken north by the current, and then south. Many of them do not melt until they reach the same latitude as New York. Greenland’s national dish is boiled seal meat with rice and onions (’suaasat’ in Greenlandic). A special delicacy is raw whale skin with a thin layer of blubber (’mattak’ in Greenlandic). Experience Greenland. Read more at: http://www.greenland.com/content/english/tourist Follow the hunt for the Greenlandic oil: http://www.nunaoil.gl

ECONOMIC SAFETY
Frank Jensen opines that the self-government forms an excellent basis for Greenland’s future development, since it gives Greenland the opportunity to take much greater responsibility for its own policies, while the Danish state maintains a safety net under the Greenlandic economy. Greenland Home Rule receives DKK 3.2 billion annually in financial support from Denmark.

“The agreement gives Greenland continued safety in the transition to self-government, because we are continuing to provide financial support to Greenland at the current level,” says Frank Jensen.

And he is not alone in this view. The agreement is supported by a broad majority in the Danish Parliament, who think the most important objective is that Greenland becomes economically self-sufficient, with as little pain as possible.

Juliane Henningsen is a Greenlandic politician, who at the tender age of 23 is one of the youngest members of the Danish Parliament.

She belongs to a generation that is eager to bring Greenland towards economic independence as a basis for extended self-government.

She is also satisfied with the home rule agreement, which she calls “a good compromise.”

“Naturally the Greenlandic people have always been aware that they have their own culture and language. And I think that the development in the relationship between Denmark and Greenland shows that the Danish people and Danish politicians have also realised that we are not just a county of Denmark, but a distinct nation. I think it is very important to bear in mind that since the home rule agreement in 1979 we have seen good progress in the relationship between Greenland and Denmark as equal partners,” says Juliane Henningsen of the leftwing Greenlandic party, Inuit Ataqatigiit.

SECESSION?
Although Juliane Henningsen declines to give an opinion on the timeframe, she is certain that Greenland will one day gain independence.

In November, Greenlanders will vote on the selfgoverment agreement. And Juliane Henningsen is certain they will vote in favour.

“Two of Greenland’s political parties, representing two thirds of the population, recommend a yes vote,” she says.

With that, Greenland is taking yet another important step into the future. And a future that will perhaps see Greenland becoming the emirates of the Arctic. If the current projections hold true, oil worth a minimum USD 5 trillion awaits a Greenlandic population of little more than 57,000 people. -

“I think it’s natural that a people should want self-government. And in line with our economic capability we want to take more responsibility for our own development. But I cannot predict the time for a secession, since how Greenland will develop over time cannot be known with certainty. It is a question involving our fishing industry, oil and political developments in Greenland,” says Juliane Henningsen.

High level logistics solutions

BY JACOB BENTHIEN

The first clad-rack construction in Denmark, which Langebæk is planning for Jysk. The internal framework is composed of the shelves and racks of the warehouse itself. The external cladding is fixed directly to the framework. Photo: Langebæk Logistik A/S

LOGISTICS: Danish fire protection rules have so far prevented construction of high bay warehouses according to the clad-rack principle. This has forced logistics consultants to conceive advanced solutions for conventional constructions. With a combination of clad-rack and Danish-developed systems, highly efficient logistics is achieved

The United Nations Children’s Fund, UNICEF, is one of the world’s largest aid organisations, which offers wideranging emergency assistance from schoolbooks and string and medicines and motor cars. A giant goods store whose warehouse and distribution centre has been located in the Copenhagen Free Port since the late 1950s.

The complex nature of the organisation has made the task of handling logistics in the most costeffective way a labour of love for logistics nerd Torsten Langebæk. It was his grandfather who planned and established the first UNICEF setup in Copenhagen. Torsten’s father continued the expansion, and today Torsten Langebæk himself, as director and partner of the consultancy company Langebæk Logistik A/S, is a central player in new plans which will make the UNICEF Supply Division in Copenhagen the largest UN distribution centre in Europe.

WORLD LEADER
“Something as basic as a midwife’s kit contains about 25 different small objects, from pins and scissors to stethoscope, sanitary towels and various medicaments. And all of them are procured from different places around the world,” says Torsten Langebæk. “To purchase, receive, repack and store in the warehouse, ready to be sent at a few hours’ notice, is a process that requires insight. Not just in technologies and control systems, but also in the company’s operation and production. Optimal logistics requires that it is thought into the company right from the start.”

Langebæk Logistik A/S is Denmark’s leading consultancy company in logistics, stock management and transport systematics. And to be leading in Denmark is – almost – to be worldleading.

“That’s because Danish working environment and safety legislation is the strictest in the world,” says Langebæk. “It forces us to think in terms of full automation, whereas in other countries you can get away with using – and misusing – human labour. In our solutions we eliminate all heavy lifting, and awkward working positions and difficult handling tasks are ruled out.”

Langebæk Logistik focuses on creating logistics solutions that involve as few people as possible, and to give the slimlined workforce the best possible working conditions. A far cry from the conditions elsewhere in the world, where even in countries with which we otherwise compare ourselves, working environment and working safety are often disregarded, says the director.

REAKTHROUGH FOR CLAD-RACK
But in one area Denmark has lagged behind other countries, Torsten Langebæk believes. Very strict fire protection rules have so far made it impossible for Danish companies to construct what are known as clad-rack warehouses. These are warehouses where the internal racking system for storing pallets itself forms the framework of the building, which then just needs external cladding.

“But now we have convinced the fire authorities that we can guarantee safety in clad-rack buildings. It means that we can construct very high buildings with technologically advanced automatic systems, which are up to 30% cheaper to operate.”

Langebæk has planned the first clad-rack warehouse in Denmark for the retail trade chain Jysk, which is seeing tremendous growth with new stores opening every week in countries like the Netherlands and Great Britain. Until last year, Jysk concentrated on the Northern and Eastern European countries, but the growth strategy in Western Europe necessitates new and efficient logistics solutions.

Torsten Langebæk with just one of thousands of drawings that contain the solutions to the logistics challenge Carlsberg faces at Europe’s largest and most modern brewery in Fredericia, Denmark. Photo: Sisse Jarner

FLOW OF GOODS IS VITAL
Jysk has two very different product ranges. One is customeroriented to markets in the former Eastern bloc, the other is for markets in Northern and Western Europe. In addition, there is a large difference between the product ranges in the spring and autumn periods.

“Availability of goods is the most important success criterion at Jysk,” says logistics director Henrik Bøgelund of Jysk. “On average, customers visit us twice a year. And if we do not have the goods that customers want in store, then we lose a sale. It means we must have capacity to store, handle and distribute large quantities of goods. So logistics and flow of goods are of vital importance to our business.”

Jysk’s new clad-rack central warehouse, which will serve Denmark, Norway, the Netherlands and Great Britain, will have a capacity of 1.5 million m3 and space for 145,000 pallets. 150 trucks will distribute up to 100,000 parcels on a daily basis.

LOGISTICS CONTROLS EUROPE’S MOST MODERN BREWERY One of Langebæk Logistik’s largest projects in 2008 is as a logistics consultant for Carlsberg, which has closed down all its production in Copenhagen. The brewery giant has now consolidated all beer and soft drink production for the Danish market at one of the world’s largest and most modern breweries in Fredericia, Jutland. The centralisation of Carlsberg’s production of more than 500 million litres of beer and soft drinks annually was a major logistics challenge, which required a logistics concept that unified multiple flows of goods and production processes into a single system. From beer production, bottling of soft drinks and sorting and washing of returnable bottles to storage, retrieval and palleting. The solution has created ’probably the most automated brewery in the world’, not just regarding production, but also the subsequent handling and distribution. The Danish depositand-return bottle system poses a special problem. Ten years ago there was only a handful of different bottle types. Today there are more than 3,500 in the returnable system. Logistics has to take account of not only all the different types of bottles and crates, but also the transportation of finished products one way and empty packaging going the other. For the move out of Copenhagen, Carlsberg reckoned on needing 136 large trucks to transport goods across Denmark on a daily basis. This traffic Langebæk has now replaced with one goods train, operating directly from site to site.

Tomorrow’s technology for people on the move

BY NIGEL MANDER

Svend Tøfting, who also chairs the steering committee of CITS, is firmly convinced that the mobile phone is a key factor in realising the true potential of ITS.Photo: Lars Horn

INTELLIGENT TRANSPORT SYSTEMS: North Denmark region is bidding to become one of the leading ITS regions in Europe by establishing itself as a testbed where all kinds of ITS applications can be evaluated

“Turn right at the junction 50 metres ahead” flashes the message on the movingmap display screen in the car. These days, navigational devices are an increasingly common gadget in automobiles, while along the highways, dynamic signs keep drivers informed with upto-the-minute traffic information. Both are examples of ITS, or intelligent transport systems, which aim to harness the power of information technology to improve utilisation of the transport infrastructure.

But they are only small beginnings in a much more ambitious future for ITS envisioned by Svend Tøfting, chairman of the networking organisation ITSDanmark:

“Today’s navigator devices are standalone systems using the supplier’s own equipment and data. But to deliver the full potential of ITS to the travelling public will require far greater amounts of information than systems like these can handle, and involve extensive cooperation and organisation between legislators, public authorities, infrastructure owners, companies and end users.”

NECESSARY NETWORKING
Cooperation and organisation is exactly what ITSDanmark is about. Based close to the university in Aalborg, northern Jutland, it forms a networking hub in the ITS area for nearly 50 members in Denmark representing businesses, research units and public institutions, and has strong links with both the national government and ERTICO, a European body which represents the interests of national ITS networking agencies. In a European context, ITSDanmark has gained in visibility and profile having succeeded in bringing the 6th European ITS Congress to Aalborg in 2007.

Svend Tøfting is in no doubt about the need for bodies like ITSDanmark in seeking to achieve Denmark’s ITS aspirations:

“A national organisation is necessary because ITS is extremely complex in nature and requires a lot of networked coordination. ITS involves not only complex technology and advanced data management, but also a knowledge of psychology to understand driver mindsets and how things like intelligent speed control in cars may be perceived differently by different driver groups.”

AALBORG’S ADVANTAGE
In January this year, the Danish government was presented with a report from the Infrastructure Commission, which made a key recommendation that ’intelligent technological solutions must ensure optimal utilisation of the infrastructure’. Svend Tøfting is optimistic that this will strengthen the political will for action, and sees that action being coordinated from the recently established Centre for Intelligent Transport Systems (CITS) on the Aalborg University campus.

Aalborg University is a wellsuited location, since it is not only home to the Center for Teleinfrastructure, a worldclass centre of excellence in mobile telephony research, but also houses a traffic research institute and a department of computer science which is currently developing sophisticated data models for mobile services applications.

With these powerful competencies close at hand, CITS is working on the task of establishing the North Denmark region around Aalborg as a dedicated ITS testbed for research, development and demonstration projects focused especially on mobile services.

MOBILE PHONE IS KEY
Svend Tøfting, who also chairs the steering committee of CITS, is firmly convinced that the mobile phone is a key factor in realising the true potential of ITS, because it follows the user and can supply different kinds of information depending on whether the user is driving a car, using public transport or moving around on foot.

“If ITS systems are put on the mobile phone, it’s a simple matter to connect it through a holder in the car so that it can use the fixed screen and make good use of the car’s larger computing capacity to provide dataintensive traffic information services. Outside of the car the user will have a different spectrum of information needs, which the mobile phone’s processor can comfortably handle.”

Tøfting points to another salient reason why the mobile phone, rather than fixed equipment built into cars, is more suitable as a carrier for ITS systems:

“It takes at least five years for a car to progress from drawing board to roll-out, but the turnaround time for new mobile technologies is much shorter, one to two years. Automotive manufacturers simply cannot accommodate this difference in timescales into their production cycles, so the rapidlyevolving mobile services potential of ITS can only be made quickly available in cars using an aftermarket business approach based on mobile phones.”

A number of ITS test projects are already underway in north Denmark, including a mobile information platform for Norwegian and Swedish tourists visiting the region, a locationbased subscriber service called Streamspin where users receive information tailored to their own specified profile, and an intelligent speed control project where young car drivers are offered insurance discounts in return for having GPS technology in the car which monitors compliance with speed limits.

At CITS, Svend Tøfting is busy talking to numerous parties, in both the public and private sector, to gain further funding for tests in north Denmark, and is optimistic that it will become one of the leading ITS regions in Europe focused on mobile services.

“International surveys consistently show that Denmark is the world leader in IT readiness, and when you combine that with Denmark’s acknowledged talent for creating effective cooperation between the public and private sector, you have a formula for success,” concludes Tøfting.

Ørestad – a partial success

Helped along by a red hot housing market and almost insatiable investor interest, Copenhagen’s new city area Ørestad has been the main driver of the latter day building boom in the Danish capital. In this sense, Ørestad has been a success – although only a partial one. The Copenhagen market for owner-occupied flats has now been hit by a sharp downturn in prices and falling turnover. This has left many investors and developers with a large number of new flats on their hands – and with the challenge of phasing in the new flats in a slowing market, while securing an acceptable profit. This could prove difficult.

BIG PRICE INCREASES BOOSTED BUILDING ACTIVITY – ESPECIALLY IN ØRESTAD
Construction starts of owner-occupied flats normally increase when the price of existing flats increases relative to the cost of building new homes. Therefore, the sharp rise in prices in recent years has helped boost construction starts in the market for owner-occupied flats. For instance, in 2007 alone, the construction of 4,000-5,000 new flats began in Copenhagen City, of which an estimated 60% is in the new city area Ørestad. This is one of the reasons why newbuilt flats account for an increasing share of flats for sale. Hence, one flat in four for sale at the moment was built in 2004 or later, although flats built in 2004 or later account for only 3-4% of the total stock of owner-occupied flats in Copenhagen City. So, roughly 1,000 relatively new flats are for sale now, most of which are in Ørestad.

THE MARKET HAS BEEN HIT BY FALLING PRICES AND SALES…
The Copenhagen market for owner-occupied flats has had a rollercoaster ride, with initial price increases of 20-30% a year being followed by an average drop in prices of 21% since prices peaked in Q3 06. Not surprisingly, the fall in prices has hit Ørestad, where a large number of flats are for sale already and many flats are still under construction. This has left many investors and developers with the huge challenge of having to mark down their expected sales prices, while, at the same time, trying to secure the profitability of their building projects. This could prove difficult. After all, a drop in expected sales prices of 20-30% is quite significant.

…AND RENTING IS COMING INTO FASHION
This situation calls for new thinking, and we are now seeing signs of sellers treading water and renting out their flats rather than having to cut the price to a level that would tempt buyers.

During the period from Q3 06 to Q1 08 alone, almost 9,000 sellers of flats in Copenhagen City chose to either leave the market or change to a new estate agent because they could not sell their home at the desired price. With more sellers now giving up selling or choosing another estate agent – while the influx of new flats for sale is slowing down in spite of a large number of new flats still being finished – many sellers of relatively new flats now seem to prefer letting to selling.

This might be an attractive solution in a market where renting seems to be coming into fashion. Many – not least firsttime buyers – have taken stock of the uncertain price outlook and have rented a flat instead of buying one while waiting for the market to stabilise.

However, we are confident about the housing outlook in the slightsly longer term. With the large expansion of Ørestad, Copenhagen can now put the significant shortage of homes seen earlier behind it. Short term, the market will have to absorb a large number of new homes, though, and this will take time – not least when the housing market is slowing. 

Company profiles

T.K.B. SHIPPING A/S
http://www.tkb.dk
tkb@tkb.dk

T.K.B. Shipping has carved its niche in the MiniBulk segment. For more than 30 years, this Danish shipping company in Hellerup, near Copenhagen, has operated a fleet of owned and chartered vessels in the dry bulk market.

T.K.B. presently operates a fleet of about 25 bulk carriers of which 6 vessels are fully owned.

Services in demand in TKB’s niche market include the transportation of sugar, grain, steel products, metals for recycling, minerals, commercial fertilizer and wood products, as well as cotton and cocoa.

T.K.B. Shipping also operates in the Handysize segment and in order to capitalize on the expertise gained over the years, TKB has established joint ventures with foreign interests.

PORT OF AARHUS
http://www.aarhushavn.dk
port@aarhus.dk

The Port of Aarhus has strengthened its position as Denmark’s largest container port, with a current market share of 65 per cent of the containers handled in Danish ports.

To an increasing extent the containers handled are goods sailed to and from a number of ports in the Baltic Sea area. With weekly calls by the world’s largest container ships from Maersk Line and daily connections to most of the Baltic Sea region through fourteen shipping companies, the Port of Aarhus has a finemeshed route network. The Port of Aarhus is also Denmark’s largest public bulk port, with grain, feedstuff and oil as the types of goods most frequently passing over the quays in bulk and multi terminals.

Externally, the Port of Aarhus benefits from the daily competition with the ports in countries such as Germany and the Netherlands. This competition strengthens the efforts to maintain our position as the most efficient container port in Europe and the thirdmost efficient in the world, as measured by number of container lifts per crane hour. The measurement was made by Maersk Nordic & Baltic which is one of the Port of Aarhus’ most valued collaboration partners.

DANSKE FRAGTMÆND A.M.B.A.
http://www.fragt.dk
info@fragt.dk

DOMESTIC DISTRIBUTOR – BOTH LARGE AND LOCAL
Danske Fragtmænd is Denmark’s largest domestic distribution and logistics company.

The company operates 23 cargo terminals and 20 warehousing facilities across Denmark from which over 40,000 consignments are despatched daily. Danske Fragtmænd A/S employs more than 4,000 people all over the country.

Danske Fragtmænd’s size provides the capacity to handle large amounts of cargo every day. The company has national coverage and with 23 cargo terminals located all around the country Danske Fragtmænd has the advantage of always being local. The company also covers many of Denmark’s islands. The aim is to turn Denmark into a worldleading hub through consistently rationalizing domestic distribution. Danske Fragtmænd is the last and defining link from production to endusers.

PORT OF GRENAA A/S
http://www.Port-of-grenaa.com
info@grenaahavn.dk

The Port of Grenaa is situated in the heart of Scandinavia, close to the deep sea route “the blue motorway”. The port has a depth of up to 11 metres (34 feet) and a quay length of 2,110 metres.

The port and industrial area covers over 1,250,000 m2 offering companies a wide range of facilities for cargo handling, distribution and industry. Many auxiliary services are also on hand.

The Port of Grenaa’s services include hiring out quayside areas, machinery- and warehouses, as well as tank and cold store storage. Our Gottwald crane has a capacity of 120 tonnes at 23 metres.

The port is ISO 9000 certified to optimize handling of especially our bulk customer, and has liner and ferry traffic to various ports in Scandinavia, making the port of Grenaa an efficient hub.

ICT LOGISTICS A/S
www.ict-as.dk
ict@ict-as.dk

ICT Logistics is a transport and logistics company offering its services and competences to CIS, Russia, the Baltic region and Eastern Europe.

ICT’s experience is based on knowledge of working in these regions for nearly 20 years. The company’s goal is to deliver a high level of quality and reliable service to all its customers. Our competences and expertise include:

• documentation
• dangerous cargo
• customs procedures and border crossing issues
• oversize and heavy cargo
• tailormade solutions
• rail transportation within CIS
• skilled staff stationed in 9 offices

In the next issue of Focus Denmark

LIFE SCIENCE
Over time Danish research competences developed from beer to microbiology, from dairy products to enzymes, from pigs to insulin and so on. Today, the biotechnology cluster of Denmark is a story about development through an instilled culture of collaboration, and how Denmark has turned into a major world player in areas such as industrial enzymes, food ingredients, diabetes care and cancer research.

Read more in the October issue of Focus Denmark.

A NATION OF BIKERS
International Cycling Union (UCI) has announced Copenhagen Bike City 2008 – 2011 – the first time ever to get the nomination. UCI wished to place a string of biking competitions in the same city – events like the World Cup in banecykling and BMX.

Read more about that and the Danish version of ’1,000,000 Bicycles in Beijing’ in the October issue of Focus Denmark.

FOOD TECHNOLOGY
Convenience food, special packaging or processing, high tech machinery? Through innovation and networks in the food industry Danish companies and the Danish government are seeking new ways of complying with customers’ needs and wishes.

Read more in the October issue of Focus Denmark