Open for Maritime Business

Maritime UK One voice for shipping, ports and maritime business MaritiMe uK Open fOr MaritiMe Business Open fOr MaritiMe Business MaritiMe uK

minisTerial foreworD mariTime uK Stephen Hammond, Parliamentary Under foreworD Secretary of State for Transport (DfT) Jim Stewart, Chairman, Maritime UK s an island nation the UK’s Meridian – quite literally – makes commerce with the rest of us the centre of the shipping world. any people across the world few other economies could ever athe world has cultivated our Our central time zone means you say the UK is the natural hope to replicate. expertise in maritime business. It is can do business with both sides of mhome of shipping and The City of London is the beating an expertise that we are proud to the world in the same working day. maritime services. They do so for heart of global shipping. Its world- offer on a global scale. To ensure this sector maximises good reason. renowned integrity underpins We have a maritime services its full potential, I have established The largest shipping companies, a commitment to provide the sector which is already worth up – and personally chair – a body of most innovative port operators leadership necessary to support a to £14bn per year despite global Ministers and leaders from across and most comprehensive range of global industry which moves more economic headwinds, and which is Government and industry with a business services – including legal, than 80% of world trade. attracting maritime businesses from clear focus on maximising growth fi nancial, shipbroking and insurance Industry and Government in the around the world. and opportunities, while maintaining fi rms – are all to be found here. UK are united in their ambition. Alongside this, our quality fl ag, a stable fi scal and regulatory They take advantage of some of We are working together more attractive tonnage tax regime, environment. This partnership the most effi cient tax regimes and closely than ever before to develop strong competitive ports, expert is already bearing fruit, fostering skilled workforces in the world, new ideas and fi nd new ways of maritime business services a closer and more co-ordinated knowing that the UK’s long and improving. So, if you are looking for and vibrant maritime training approach with both shipping and proud history as a maritime nation a new home for your company, or programmes, together with a stable the wider maritime industry – has provided an unrivalled wealth of are in search of world-class services, regulatory framework, make the continuing to propel forward the knowledge and expertise, passed read on – because the United UK a great place to do business. UK’s leading position in maritime on through the generations, that Kingdom is open for business. And let’s not forget, the Greenwich business.

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Doing business in the UK – an introduction he World Bank ranks the UK Tax credits are available for small, reduced the top rate of income as the easiest major European medium and large enterprises. tax from 50% to 45%, providing the UK’s successive Teconomy in which to set up Large companies can attract 130% international investors with an reductions in and run a business. The UK’s labour tax deductions and SMEs 225% affordable home-from-home. corporation tax have made market is highly flexible. This factor, tax deductions for qualifying R&D UK-resident non-domiciled persons the UK tax system globally combined with the strong skills base, expenditure. In addition, the UK may otherwise annually elect to pay competitive is reflected in our ability to attract has 24 Enterprise Zones offering a tax charge of up to £50,000, so that foreign investors. businesses simplified planning income and capital gains from non- open, market-led ports sector, with a Key attractions to investors are processes and discounts on business UK sources attract UK taxation only clear and favourable planning climate the open nature of the economy, a rates. when remitted to the UK for reasons for new development, has helped stable regulatory framework, political The UK’s successive reductions in other than business investment. sustain investment throughout stability, a respected judicial system, corporation tax have made the UK Shipping, ports and maritime difficult global economic conditions. world-class infrastructure and a pro- tax system globally competitive. The business services are global by UK Trade & Investment is the business culture. Recent survey standard rate of corporation tax is nature and have long extended a Government department which findings by Ernst and Young and the 23% and is due to reduce to 21% in welcome to overseas investors. helps overseas companies bring their Financial Times highlight investor April 2014 and to 20% in April 2015. Coming up, we shall see how high-quality investment to the UK’s confidence in the UK and recognition This will be the lowest in the G7 and mature incentives, such as tonnage dynamic economy – acknowledged that it continues to be a world- joint lowest in the G20. tax, attract shipping to the UK and as Europe’s best place from which to leading business destination. In 2013, the UK Government its flag. We shall also see how an succeed in global business.

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shipping employment, 2004-2011

the uK maritime 160 services sector is 140 120 worth up to £14bn per 100 year to the uK economy 80 60 Thousands 40 20 0 2004 2005 2006 2007 2008 2009 2010 2011

Cruise passengers, 2001-2011

1,800 1,600 1,400 1,200 1,000 800

Thousands 600 400 200 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 mariTime in The uK

he UK has a proud maritime a resilienT secTor Directly: with a £12m budget to support

history and our sector The UK maritime services sector is Up to £13.8bn maritime training. Tremains of key importance worth up to £14bn per year to the gross value The UK’s cruise market is also today, not only through shipping, UK economy and, most importantly, growing, with passenger numbers ports and marine industries, but it is a sector that is steadily growing, 260,000 people increasing threefold over the past also the maritime professional and despite the challenges facing 10 years. business services sector on which businesses at home and abroad. Investing in the UK maritime shipping, ports £2.7bn of tax the industry relies. The City of UK jobs have grown to 165,000, an and business services sector provides access to London is rightly recognised around increase of 6% since 2009. services some of the most skilled, highly- wider contribution: the world as a vital hub for these London remains the largest trained and committed workforces services. maritime centre in the world for Up to £31.7bn in the world – on ships, in port and

The contribution of the professional, business and fi nancial gross value in the City of London. maritime sector to the life and services. The UK is keen to hold Productivity is on average 10% 630,000 people economy of the UK is fully its leading position and recognises higher than the national average, appreciated at the highest levels the importance of investing in the proving that your investment will be of Government. maritime workforce of the future £8.5bn of tax in safe hands.

6 7 MARITIME UK OPEN FOR MARITIME BUSINESS OPEN FOR MARITIME BUSINESS MARITIME UK london ondon and the UK are home and most comprehensive base all disciplines, providing world-class to significant numbers of Greenwich Mean Time for world-leading maritime law, services to every corner of the Linternational shipowners, provides investors with arbitration, insurance, classification, globe. Businesses invest in London operators and managers as a result the perfect opportunity to shipbroking and financial services. because they respect its history of the range of shipping expertise manage their global business It also hosts the International and trust its knowledge, expertise available, a business-friendly tax Maritime Organization – the UN’s and thought-leadership. They invest regime and the advantage of regulator of the international here because they know, in doing doing business in an international industry. so, they will be working with the city which is at the heart of the business services. Greenwich The maritime services sector very best. global financial system – London Mean Time provides investors with has seen higher productivity than is Europe’s largest economic zone. the perfect opportunity to manage many other sectors. 9,500 extra London – One-Stop Shop However, other factors are at play their global business, and the UK’s jobs were created in the period London is often called a which make London attractive. geographic location, as a bridge 2009-2011 (an increase of 6% ‘one-stop shop’ for maritime These include transport links; the between European, American and – while the national average fell business services. The City is ease with which companies can Asian markets, makes it the perfect by 0.4%). In 2011, the combined home to dozens of companies find suitable office locations; the location to run complex worldwide maritime services sector was providing expertise in maritime ability to hire highly skilled and operations. almost 10% more productive law, arbitration, classification, expert staff, including experienced For centuries, the UK has led than the economy-wide average, shipbroking, insurance, ship ex-seafaring officers working in the way in developing commercial with ports and business services management and financial services. a range of shipping sectors; and law, and providing the framework especially high; the economic cycle Companies feed off one another, the ability to exploit London as a for global trade in goods and has had a particular impact here – striving to improve in a competitive cosmopolitan capital with world- services and for maritime activity. in 2009, the sector was 30% more market, creating a ‘race to the class schools, universities, hotels, That legacy continues today, and is productive. top’ culture that demands, and restaurants, theatres, conference stronger than ever. As a result, London sees more achieves, excellence. venues… the list goes on. Benefiting from a highly than 10,000 of the most highly No other country in the world London has become the natural competitive corporation tax trained, experienced experts in can boast the breadth and depth of home for shipping and maritime regime, London is the recognised maritime business working across business expertise.

8 9 MARITIME UK OPEN FOR MARITIME BUSINESS OPEN FOR MARITIME BUSINESS MARITIME UK shipping in the uk – an island nation

he UK is the quintessential return to shore to use their expertise island nation. With its for the benefit of maritime services Tseafaring tradition rooted companies in the shipping and ports in thousands of years of history, sector, as well as those based in the unrivalled knowledge and expertise City of London. has been passed down through The industry also benefits the generations to provide a highly- from excellent relationships with competitive environment for the Government, which provides world’s shipping community. significant support and encourages a home of the International As you will see in this section, holistic approach to providing some maritime organization (IMO) UK-based shipping companies enjoy of the most competitive, stable and one of the most efficient tonnage tax certain trading conditions to be seen London values IMO’s IMO’s work through its Assembly, regimes of anywhere in the world, anywhere in the world. PRESENCE Council, the Committees and their which is one of the primary reasons Shipping is embedded in the very The UK is proud and honoured subsidiary bodies. major companies – from containers heart of the nation – it moves 95% to host the IMO and takes this to cruise lines and every other sector of the UK’s international trade. The responsibility very seriously. Its Key Objective at the IMO – have flocked to the UK. country’s passion and respect for location in London means there The work of the IMO is essential Our workforce benefits from the sea is matched only by its skill is access to key decision-makers in establishing standards to some of the most rigorous training and ingenuity in making use of it. and experts through the strong ensure safety of seafarers and standards, providing the global Read on to find out why the UK is presence of maritime attachés passengers and cleaner seas. The fleet with highly skilled, dedicated the natural home for your shipping in London embassies and the IMO also contributes to economic seafarers, many of whom eventually business. headquarters of many international growth by promoting better non-Governmental organisations. regulation principles and reducing unnecessary administrative London engagement burdens on the shipping industry. The IMO provides a focus for It is the goal of the UK to international maritime regulatory ensure regulations approved by issues. The UK remains resolutely the IMO are both effective and committed to its full and positive proportionate. The UK seeks to support and promotion of the IMO strike the right balance between as a key place for the development protecting the safety of seafarers of international maritime regulation and passengers and freeing and direction. The UK maintains businesses from unnecessary an active role in key aspects of the burdens.

10 11 MARITIME UK XXXXXXXX XXXXX OPEN FOR MARITIME BUSINESS MARITIME UK Maritime skills UK excellence in training the maritime workforce of tomorrow

he UK is globally recognised Officer cadets in training, 1999-2011 as a world-class centre for 2,500 Tmaritime education and 2,000 training. With internationally- 1,500 recognised educational provision and professional skills development 1,000

in well-renowned universities and 500 colleges, it meets the varied needs of 0 the global shipping industry. 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Underpinned by a strong, Total Officer cadets in training New entrants innovative and highly-regarded research capability across a range of are well over 10,000 students. disciplines, the specialist maritime For school and college leavers, a departments in a number of full range of MCA-approved maritime universities offer first-class facilities training is offered. A number of career and teaching to UK students and paths are available, covering training t onnage tax those from overseas. for cadets and ratings, as well as Twenty-six UK universities and courses tailored for specific needs. generously preferential tax UK tonnage tax payable per ship, per day* colleges offer marine and maritime Other encouragement for treatment of shipping profits Each 100 tons, up to 1,000 £0.60 courses to varying levels, including employers includes the ‘Support for is a feature of any fiscal higher level education, as well as Maritime Training’ budget, Maritime A Each 100 tons, between 1,000 and 10,000 £0.45 regime that wants to attract maritime numerous private education centres Apprenticeships and the Tonnage Tax Each 100 tons, between 10,000 and 25,000 £0.35 business, and the UK’s offer is very and professional organisations. There Training Commitment. competitive. Each 100 tons thereafter £0.15 The UK’s tonnage tax regime has *On net tonnage, for ships under strategic management of a UK office been in operation since 2000 and is backed by a renewed commitment to minimum training obligation, which predictable and stable operation. requires each shipping company to The UK’s tonnage tax regime has recruit and train one officer trainee played an important role in doubling each year for every 15 officer posts officer cadets in training over the in its fleet, and to give consideration past decade to 2012 and continues to employment and training to ensure that talented individuals, opportunities for ratings. trained to the highest standards, Currently there are 80 companies in continue to enter the industry. A the UK’s regime, accounting for 900 key feature of the UK’s regime is a ships.

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UK and Crown Dependency-registered merchant vessels (over 100gt), 1999-2011

35,000 30,000 25,000 20,000 15,000 10,000 5,000

Gross Weight Tonnage 000s Tonnage Weight Gross 0 1999 2001 2003 2005 2007 2009 2011 United Kingdom Crown Dependencies uk ship register

he UK Ship Register is the ‘flag UK among the very top performers the Safety Management and Ship of choice’ for its customers for the Paris and Tokyo Port State Customers can Security requirements – at the same Tbecause of its commitment to Control regimes. They also meet contact experts time as carrying out our surveys. service and its reputation for quality. the demanding Qualship21 standard 24 hours a day, seven days One auditor for so many audits is Customers can contact experts in the USA. Ships can get support a week good news. 24 hours a day, seven days a week. from knowledgeable, expert In summary, the UK Ship Those experts know and understand marine surveyors if they encounter Register works with owners and the shipping industry and make sure difficulties with other Port State operators to meet their needs, ships can trade internationally with Authorities. while also providing expert advice the right certification. Customers like our one-stop shop on safety and meeting international Our registration and survey fees service, which means we can audit standards. That is why so many are among the lowest available, ships and companies against all companies choose to register their but deliver services that keep the the relevant ISO standards – plus ships with us.

14 15 MaritiMe uK Open fOr MaritiMe Business Open fOr MaritiMe Business MaritiMe uK proviDing a secure mariTime environmenT

he Royal Navy delivers the world to deter threats by the stability necessary for reassuring regional allies and the royal navy delivers the stability Teconomic prosperity by stabilising potential hotspots. It being forward deployed around promotes stable and co-operative necessary for economic the globe to protect trade routes relationships with friendly and prosperity and guard the world-wide fl ow neutral nations around the world of energy and resources. Men through training and working and women are at sea every day, together, and determining working with international partners common understanding. to provide global maritime security The Royal Navy works with where it is needed. international allies and coalitions The Royal Navy prevents to deter, detect and disrupt confl ict by operating across criminal activity at sea.

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Traffic through UK ports

ports he UK has the largest port renewables sector, creating the industry in Europe, handling infrastructure necessary to make Tmore than 500m tonnes the UK a world leader in green of cargo and over 22m-plus energy. Many core UK businesses international passengers every including oil and gas, fishing, year. With 110 commercially active leisure and tourism, all depend on ports and harbours, the movement the services provided by the UK’s of goods and people is embedded remarkable network of ports. in communities throughout the The investment is equipping the United Kingdom. country for the future. It is creating The UK ports industry is unique an environment where we are ready within Europe for its largely private to trade with the world’s largest sector market-led structure, which ships – including containers, carriers gives it the flexibility to respond to of liquid and dry bulk, ro-ro and the new trends at competitive prices, growing number of cruise services. and accommodate users from all sectors of global shipping. Imports Exports As a sign of the UK’s ambition, 254mt 137mt significant investment has been made in major ports such as Southampton, Felixstowe, £395bn £296bn Liverpool and the new London 8mt 8mt Gateway, and ports across the country are responding 1.2mt 1mt to innovations in the offshore

18 19 MaritiMe uK Open fOr MaritiMe Business Open fOr MaritiMe Business MaritiMe uK marine manufacTuring anD engineering

K marine manufacturers The UK has a strong breadth of marine capability delivered design and produce high- exports to non-eu uquality marine equipment countries have through a diverse range of channels products and services to increased fi vefold since There are currently more than The UK has defence, energy, shipbuilding and 2007 The UK has a well- 150,000 third level students in many centres boatbuilding customers in the UK established skills the UK studying engineering- of excellence, and across the world. The three and gas supply chain has a value base that supports related degrees. Many focusing on broad business segments, in of around £19bn, a third of which the marine sector universities have specialised various aspects of which UK marine companies sell comes from exports of UK oil across the supply R&D marine centres. the marine sector, their capability, are commercial and and gas. UK companies offer the chain, particularly in including the naval, leisure marine, and energy. experience and knowledge of advanced engineering world’s fi rst and UK marine exports totalled more than 40 years operating in composites and design. only centre of its £1.4bn in 2011 – exports to non- the North Sea. universities kind, the EMEC. EU countries have increased In relation to offshore wind, the fi vefold since 2007. UK is forecast to invest up to Commercial and naval £75bn in offshore wind farms skills base Centres of excellence sector strengths include: naval by 2020 and the growth of its architecture; ship maintenance; wave and tidal industry could uK marine capability repair and conversion; systems attract up to £4bn per annum of is delivered integration; navigation; electronics; investment by 2050. UK marine through… World propulsion; data management; energy capability encompasses leading water treatment systems; fi elds including: workboats supply chain marine energy marine science; and classifi cation and associated equipment; trade societies. oceanography services; oil spill bodies, The marine Leisure marine encompasses detection and environmental councils & energy market networks superyacht, powerboat and yacht services; marine surveying; and has, in recent years, grown manufacture, marine equipment, fi nancial, legal, and insurance In addition to some signifi cantly. small workboats and clothing. services. of the world’s leading Scotland is a Strengths include: design and The UK also possesses boat manufacturers The industry is well supported world-leading bespoke manufacture of leisure strong research institutions and and shipbuilders, the by various associations and region for boats and rigid infl atables; universities, including marine UK is home to many organisations representing the developing and composite processing; navigation R&D centres at the University of companies supplying views of the marine sector. commercialising equipment; electronics; deck gear; Southampton; the University of equipment and other this sector. and rigging equipment. Strathclyde; Portsmouth University; services to the sector. In terms of energy, the UK oil and Plymouth University.

20 21 MARITIME UK OPEN FOR MARITIME BUSINESS OPEN FOR MARITIME BUSINESS MARITIME UK where to go For more information

Government contacts inspection and the prevention of Baltic Exchange It exists to help ensure that the UK pollution. The MCA also processes The Baltic Exchange is a remains a world-beating location to Department for Transport (DfT) the registration and certification membership organisation at base a maritime-related business. The Department for Transport of ships and seafarers and is the heart of the global maritime www.maritimelondon.com (DfT) works with its agencies and responsible for the implementation marketplace. It provides partners to support the transport of maritime conventions and codes. independent daily shipping market Ports network that helps the UK’s Call: +44 (0)2380 329100 information; maintains professional The UK Major Ports Group and the businesses and gets people and Email: [email protected] shipbroking standards and resolves British Ports Association are the goods travelling around the country. www.dft.gov.uk/mca disputes. trade associations representing The DfT plans and invests in www.balticexchange.com UK ports. They provide in-depth transport infrastructure to keep the UK Ship Register: knowledge and expertise in support UK on the move. For further information or to join: CLIA UK & Ireland of the UK’s vibrant and diverse ports Call: + 44 (0)300 330 3000 Call: +44 (0)2380 329197 CLIA UK & Ireland is the leading sector. Email: Maritime (including tonnage Email: [email protected] cruise training body in Europe, www.britishports.org.uk tax): [email protected] delivering award-winning training, www.ukmajorports.org.uk Maritime Security: UK Trade & Investment (UKTI) seminars and events to the UK and [email protected] UK Trade & Investment (UKTI) Irish travel trade. UK Chamber of Shipping works with UK-based businesses www.cruiseexperts.org The UK Chamber of Shipping is Department of Business to ensure their success in the trade association and voice for Innovation and Skills international markets, and Institute of Chartered Shipbrokers the UK shipping industry. It works The Department of Business encourage the best overseas As a major provider of education with Government, Parliament, Innovation and Skills (BIS) is companies to look to the UK as and training, the Institute of international organisations, and responsible for economic growth. It their global partner of choice. Chartered Shipbrokers (ICS) others, to champion and protect the invests in science, technology and Call 0845 539 0419 or provides the shipping industry UK shipping industry on behalf of its skills, and promotes trade. +44 (0)20 7333 5442 with highly qualified professionals, members. Call: +44 (0)20 7215 1165 www.ukti.gov.uk/invest and represents shipbrokers, ship www.ukchamberofshipping.com managers and agents throughout Maritime and Coastguard Industry contacts the world. Marine Industries Alliance Agency (MCA) www.ics.org.uk The Marine Industries Alliance The Maritime and Coastguard Maritime UK brings together all aspects of the Agency (MCA) provides 24-hour Maritime UK is the coalition of Maritime London UK’s diverse marine sector with maritime search and rescue seven major shipping, ports and Maritime London is a promotional the goal of securing the maximum service, enforce ship safety, business services in the UK. For body for UK-based companies, opportunity for the industry to seafarer health, safety and more information on our work, visit: which provide professional services flourish. welfare standards by survey and www.maritimeuk.org to the international shipping industry. www.ukmarinealliance.co.uk

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