The Transformation of the Norwegian Maritime Industry to a Global Maritime Knowledge Hub
Professor Torger Reve BI Norwegian Business School Oslo, Norway
OECD Workshop on the Future of Shipbuilding Paris, November 29, 2012 Torger Reve A Global Race for Attractiveness
Nations and regions compete to be the most attractive locations for knowledge intensive industries
Torger Reve
The Norwegian Challenge
How can we do business at all in a country with the world’s highest cost level?
Torger Reve The Emerald Model
Environmental Cluster Attractiveness Attractiveness Knowledge Dynamics
Ownership Educational Attractiveness Knowledge Commons Attractiveness
R&D and Innovation Talent Attractiveness Attractiveness Industry
Competent Ownership
EducationEducation, R&D andR&D Innovation Global KnowledgeInnovation Hub Examples of global knowledge hubs
•Boston (Life sciences) •Silicon Valley (IT) •Houston (Oil & gas)
Torger Reve Torger Reve
Global Knowledge Hubs are
Centres of Gravity attracting talents, technology and competent ownership on a global scale
Torger Reve A Global Maritime Knowledge Hub shall propel the Singapore Maritime Cluster
PORT
VENTURE CAPITAL RESEARCH SHIPPING INNOVATION MARITIME EDUCATION SERVICES
INVESTORS
OFFSHORE & MARINE ENGINEERING Norway is one of the few European countries with a complete maritime cluster (including shipbuilding)
Torger Reve Maritime: From ship tonnage to maritime technology and finance
Offshore oil and gas Maritime industry policies
Ship design Maritime Maritime lawyers education Specialized Advanced ship yards fisheries
Advanced Maritime ship equip- R&D SHIPPING ment
Logistics Shipping Effective systems finance Maritime ports and IT terminals
Shipping Ship brokers management Marine insurance Environmental standards Ship classification services
Torger Reve Maritime: From ship tonnage to maritime technology and finance
SHIPPING
Torger Reve Maritime has a Strong Emerald
Knowledge Dynamics
Environmental Cluster Attractiveness Attractiveness
Ownership Educational Attractiveness Attractiveness
R&D and Innovation Talent Attractiveness Attractiveness Norway’s deepsea maritime cluster has transformed into a global maritime offshore cluster
Torger Reve Sunnmøre: A global maritime-offshore knowledge hub
Centers of industrial gravity in the Norwegian maritime industry
The map shows the number of maritime jobs in the Norwegian municipalities in 2008.
Maritime Møre: Trondheim: Maritime R&D Design, construction and operation of offshore vessels
Offshore West Coast: All maritime activities in Bergen & Oslo: Oslo: Maritime services the exploration, Deep sea shipping (Financial, legal and technological development and
operations of offshore oil Kongsberg: Electronics and subsea & gas equipment
Kristiansand: Oil drilling cluster What created the Norwegian Maritime Cluster?
• Maritime nation of seafarers since the Vikings
• Many risk taking ship owners and investors
• Many yards and ship equipment manufacturers with innovative technology
• Commercial strength in financial and maritime services
• Leading position in maritime R&D
Torger Reve
Strong growth in maritime value creation
Value creation within the maritime industry from 2000 to 2009. Thousand 160 millionNOK
140
120 NæringensIndustry's samlede overall 100 140% EBITDAEBITDA (driftsresultat før avskrivninger og growth nedskrivninger 80 Næringens Industry's samlede total labor lønnskostnader 60 costs
40
20
- 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Torger Reve Maritime industry: A growing share of GDP
Norwegian maritime industrial share of GDP. Source: Menon and SSB.no 6.0 %
5.5 %
5.0 % From 3,7% to 4.5 % 5,6%
4.0 %
3.5 %
3.0 % 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Torger Reve Strong growth in revenues and profitability for maritime equipment manufacturers
Norwegian maritime equipment manufacturers total revenue and operating margin from 2000 to 2009. Thousand million NOK 90 14.0 %
80 12.0 %
70 10.0 % 60
50 8.0 % DriftsmarginOperating margin (driftsresultat i % av omsetning)
40 6.0 % OmsetningTurnover i mrd NOK
30 4.0 %
20
2.0 % 10
- 0.0 % 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Torger Reve 2009 was best year ever for Norwegian yards
Norwegian ship yard's total revenue and operating margin from 2000 to 2009. Thousand million NOK 50 4.5 %
45 4.0 %
40 3.5 % 35 3.0 % 30 Operating margin 2.5 % Driftsmargin (driftsresultat i % av 25 omsetning)
2.0 % Turnover Omsetning i mrd NOK 20 1.5 % 15 1.0 % 10
5 0.5 %
- 0.0 % 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Torger Reve Norway has lost share of world fleet
Development in shares of the world fleet (DWT) from 1995 to 2010. Source: ISL Bremen/NSA 10.0 %
9.0 %
8.0 %
7.0 %
6.0 % Norway 5.0 % Denmark
4.0 % Germany
3.0 %
2.0 %
1.0 %
0.0 % 95 96 97 98 99 00 01 02 03 04 05 06 07 08 10
Torger Reve Norwegian deepsea shipping has stagnated, while Norwegian offshore shipping has more than tripled Percentage growth in Value added in two shipping groups from 2000 to 2009. Source: Menon 400 %
350 %
300 % 320
250 % % Deepsea 200 % shipping
150 % Offshore 100 % support
50 %
0 % 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 0 -50 % % Torger Reve Maritime offshore industry has grown more strongly in all sectors
Gorwht in value cretaion in % among 10 maritime groups in Norway from 2000 to2009. OFFSHORERALATED GROUPS IN ORANGE, THE REMINDER IN BLUE 500500 % % Maritime equipment
400400 % % Offshore Shipping
300300 % % Drilling and Ports and Yards production logistic services Technology Short sea 200200 % % services shipping Commerce Financial and legal services 100100 % % Deepsea shipping 00 % %
-100-100 % % The Norwegian Maritime Clusters 2012 • A Maritime-Offshore Global Knowledge Hub at Norwegian West Coast (70% of maritime industry value creation) • A Maritime-Offshore Financial Cluster in Oslo • A Shipping Cluster in Bergen • A Norwegian-controlled Global Maritime Network - ‘Singapore Little Norway’ - ‘Cyprus-London Big John Norway’
• Torger Reve
Oslo Maritime-Offshore Financial Cluster
GIEK
Torger Reve Global Maritime Knowledge Hub Initiative
Oslo Maritime Network/Maritime Forum Norwegian Shipowners Association
Torger Reve Norwegian Maritime Knowledge Hub Initiative • Initiative from Oslo Maritime Network and Norwegian Shipowner Association • Maritime companies should fund 20+ Martime Professorships and Research Centres at Norwegian universities • Norwegian universities should develop Centers of Excellence in Maritime Research (NTNU and Marintek) • Norwegian universities should develop Centers of Excellence in Maritime Education (BI Norwegian Business School) • Norwegian government should launch a large Maritime Research Program (Maritime 21) • Norwegian maritime industry and Norwegian government should develop World Ocean Space Centre to gain leadership in Ocean Space Technology
Torger Reve
Global Maritime Hub Professorships
No SPONSOR RECIPIENT SUBJECT 1 Kongsberg Maritime AS NTNU - Norwegian University of Science and Marine cybernetics Technology 2 Leif Höegh & Co AS NTNU - Norwegian University of Science and Green shipping Technology 3 Det Norske Veritas NTNU - Norwegian University of Science and Maritime logistics Technology 4 Det Norske Veritas NTNU - Norwegian University of Science and Marine hydrodynamics Technology 5 Det Norske Veritas NTNU - Norwegian University of Science and Ice mechanics Technology 6 Marintek NTNU - Norwegian University of Science and Construction technology Technology 7 Ministry of Trade and Industry NTNU - Norwegian University of Science and Marine transport in the Arctic Technology 8 Kr. Gerhard Jebsen NTNU - Norwegian University of Science and Production and quality Foundation Technology engineering 9 Wilh. Wilhelmsen BI – Norwegian Business School Maritime competitiveness
10 Knutsen O.A.S. Shipping, Stord/Haugesund University College Quality assurance and risk Østensjø Rederi, Eidesvik management Offshore, Solstad Offshore Global Maritime Hub Professorships
No SPONSOR RECIPIENT SUBJECT 11 Olympic Shipping and STX Ålesund University College Green shipping Offshore Norway 12 Ulstein Group AS Ålesund University College Ship design
13 NCE Maritime Ålesund University College Product and systems design
14 Farstad Shipping, Island Ålesund University College Maritime operations Offshore, Havila Shipping management and Det Norske Veritas 15 Sparebanken Møre Ålesund University College International marketing
16 NODE University of Agder Mechatronics
17 Bergen Rederiforening Norwegian School of Economics Maritime economics
18 Kongsberg Maritime Vestfold University College Maritime management
19 Tschudi Shipping and the Centre for High North Logistics, Kirkenes Business development and Ministry of Foreign Affairs maritime transport logistics in the High North 20 Rolls-Royce Marine NTNU - Norwegian University of Science and University Technology Center Technology (UTC) 21 Det Norske Veritas NTNU - Norwegian University of Science and Building technology Technology AMOS – Centre for Autonomous Marine Operations and Systems, NTNU Norwegian University of Technology and Natural Science, Trondheim
Torger Reve Torger Reve Maritime 21: Norwegian Maritime R&D program
Arctic transport and Efficient operations energy
Innovation and Maritime maritime knowledge hub business development and infrastructure LNG
Demanding maritime operations World Ocean Space Centre - Trondheim