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Growth potential in the maritime industry

Growth potential in the maritime industry

19-04-2016 12:00:00


Despite the challenges of low growth in international trade and low oil prices, the Danish Maritime expects the maritime industry and the shipyards to experience progress. But it requires framework conditions to allow the businesses to compete more equally in the global market, says the trade organization.

"Unfortunately, global competition is not equal for everyone, because the Danish system lives in a glass dome," wrote CEO Jenny N. Braat and President Thomas S. Knudsen in the preface to the Danish Maritime's annual report, published at the annual meeting on April 20.

The maritime industry has a potential of growth in the future, even though 2015 was the year when low oil prices along with increased protectionism really took hold in the maritime market. The maritime industry and the shipyards have 43,000 employees and a production value of 91 billion kroner.

The growth will come in the form of increased requirements for shipping on the environment (sulfur, nitrogen, CO2, fuel and ballast water) and safety which the Danish maritime industry is specialized in while navigating a historic large fleet of 100,000 large ships must be maintained and upgraded to meet the new requirements.

But Danish Maritime calls for better framework conditions. Jenny N. Braat and Thomas S. Knudsen calls for financing conditions, management of public procurement and tax regimes in the countries whicc the Danish maritime companies compete with.

"New calculations show that the total tax revenue from the maritime industry companies and employees amounts to 6,9 billion kroner. But growth and employment in Denmark depends on the right framework conditions, and they are not present, growth and employment rather than rise in the world around us," says Jenny N. Braat.

Source: Danske Maritime / Maritime Denmark


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