Norway - Your Maritime Partner

Your Majesty, Your Excellencies, Ladies and Gentlemen,

Let me first of all express my appreciation for the opportunity to address this distinguished audience here in Hong Kong. It is my hope that the presentations you are going to hear today will contribute to strengthening and developing the maritime co-operation between Hong Kong and Norway and thereby also the co-operation between China and Norway.

The maritime sector has played an important role in the bilateral relationship between Norway and Hong Kong. To begin with, this was based on shipping and trade. The points of contact have been expanded

to include other sectors over the years, but the maritime sector still plays

a major role.

A number of Norwegian maritime companies have been represented in Hong Kong (and in China) for a long time. Their main markets are China and other countries in the region. More than 30 shipping companies call regularly at Chinese ports, but Hong Kong is the most frequently used

port with more than twice as many calls as the rest of China.

The economic contact with China on the whole is expanding. Several Norwegian shipping companies are engaged in joint ventures with Chinese companies. Over the years, Norwegian maritime activities in China have grown and diversified immensely, not only encompassing maritime transport, but also introducing Norwegian ship’s gear and shipbuilding technology, insurance, classification, finance, shipbroking, and shipbuilding as part of the economic relationship.

Since 1984, Chinese shipyards have built 19 vessels for Norwegian shipowners, mainly oil tankers and bulk carriers. So far this year,

six vessels have been delivered. In addition, nine ships and four semi-submersible drilling units are under construction in Chinese shipyards.

Norway has been one of the major shipping nations in the world since

the latter part of the 19 th century. This prominent position has been maintained over the years through the ability to adapt promptly to changing market requirements and to offer high quality services.

Shipping is not only important on its own, but is also regarded as

the nucleus of our maritime sector and is the foundation for a number

of related activities. Our broad maritime sector gives us a unique possibility to develop new solutions within the maritime field.

We believe that research and development play and will play an ever

more important role in increasing the level of competence within the maritime industries. Modern shipping is dependent on a highly skilled work force and new logistical solutions to remain competitive. It is

essential to continue developing products and services that provide

cost-effective, safe, environmentally sound and high quality alternatives.

A main objective in Norway’s shipping policy is the improvement of

safety at sea. It is vital to increase the focus on safety and environmental protection. It is also sound economics. More active Port State Control, public demand, higher insurance premiums, and the age of the world fleet are a few of the factors which will bring about an increased focus on ship standards.

Safety at sea can only be obtained through a wide international commitment. Consequently, it is essential that initiatives to improve

safety are raised in international forums such as The International Maritime Organisation - the IMO. Norway is among the largest contributors to the IMO, and we play an important role in the work

of the organisation.

Norway, with a small and extremely trade oriented economy, has always been an ardent supporter of a strong, fair and open multilateral trade regime. Trade and trade policy are important parts of foreign policy,

and we consider economic integration as a tool for developing our economy and welfare system. Trade is also increasingly important for the further development of security, both at an international and at a national level.

We believe that the World Trade Organisation, the WTO, is the best vehicle to secure that our globalized economy will benefit all parties. Norway is therefore a strong supporter of China’s accession to the WTO, and will do its utmost to assure a speedy process. China’s accession to

the WTO will create a framework that will ease the path of business

and contribute positively to the development of our bilateral economic relations.

Norway is also a strong supporter of a WTO-agreement for the shipping sector. Since more than 90 % of our fleet never calls at a domestic port, Norway is dependant on free global market access and a level playing field. From our point of view, it is of vital importance that while we wait for a WTO-agreement for the shipping sector, new protectionism measurements are not established. Norway watches the development in this field closely, both in international and bilateral forums. The new freight rate filing system, which was introduced by China in November 1996 and administered by the new Shanghai Shipping Exchange, is an issue which

we follow closely. Concerns have been raised about elements in the system, which could be harmful to the development of international commerce.

Let me finally turn to the possibilities for strengthening and developing maritime co-operation between China and Norway, in the new context created by the transfer of sovereignty of Hong Kong to China.

Broadly speaking, Norway is pleased with the way the transfer of sovereignty of Hong Kong has been conducted. We trust that China

will follow through on its promises to preserve Hong Kong’s market system, democracy and human rights; issues which will be crucial for

the future development and position of Hong Kong as an eminent business centre for Asia. The rule of law, freedom of the press and free flow of information, a level playing field and last, but not least, strong local decision making will always be important.

Hong Kong is a city of opportunities for Norwegian companies with China or Southeast-Asia as their markets. Even though Hong Kong is no longer the one and only central basis for foreign maritime activities in China,

we believe Hong Kong will remain a major regional player in this field. The transition of sovereignty may bring an even closer integration of

Hong Kong and Chinese maritime industries, something which could provide further possibilities for co-operation.

East Asia is fast becoming the new centre of gravity in the world economy. The impressive growth in this region has resulted in massive expansion

of market opportunities, as well as increased competition from new and efficient producers in the region. This applies to the maritime sector as well, where we experience an increase in demand for maritime transport and other maritime services.

Many Norwegian maritime companies are therefore interested in

co-operation with Chinese counterparts through new business activities.

We can offer experience, quality and constant innovation of products

and concepts.

We believe that increased co-operation between companies will mutually benefit our common base of knowledge and competence, which is so important to our both our countries’ maritime competitive edge.

China has, for example, developed into one of the world's leading shipbuilding nations. Through co-operation with local shipowners we

hope to be a major supplier of maritime equipment to Chinese shipyards

in the years to come.

Norwegian shipowners have extensive experience in short sea shipping. This competence is available, either directly or in close co-operation

with local shipowners for developing transport along the Chinese coast. Norwegian access to Chinese short sea shipping should be in the interest

of both parties.

To sum up: Of the many ties that bind us together, I believe that shipping

is one of the most important. Increased co-operation in the maritime field will be of mutual benefit for both our nations. I hope that the maritime service we are able to offer encourages you all to view us as a partner - your maritime partner !

Your Majesty, Your Excellencies, Ladies and Gentlemen,

Thank you for your kind attention.