The Norwegian government is thus able to help support the freight services sector as it faces the challenge of adapting to new conditions.

One of the private sector industries that is robust and growing in Norway in shipping. Shipping companies originally developed in Norway to serve the offshore petrolem industry and have now achieved a dominant market position. In fact, the shipping fleet in Norway is one of the most modern in the world.
Shipping and freight services has therefore been identified as an industry to be further developed and strengthened in future, as a key part of the Norwegian economy.

As shipping companies face the new challenges, the sector is showing innovation as shipping companies identify and seize new opportunities that are relevant for the post petroleum era.

For example, the Norwegian freight company sector is set to break new ground with the launch of the world’s first gas-powered ro-ro vessels. Norwegian shipping company Sea-Cargo AS is building the vessels and they are expected to be launched by 2010. With the focus on lower exhaust emissions from short sea and coastal vessels, Sea Cargo AS identified liquified natural gas as the fuel of the future. These vessels will reduce CO2 emissions by 25% compared with a vessel run on conventional fuel.

Another way in which the freight transport sector is facing the challenge of new opportunities is exploiting new markets, created by changing economic conditions. An especially important area of opportunity for shipping companies in Norway is the Baltic Sea Region.

Norway, like its neighbour Finland, has a significant role to play in serving the Baltic region. Although the global economic crisis is having a negative impact on freight forwarding in many countries worldwide, international freight to and from the Baltics remains a growth area. The majority of shipping companies and economic commentators are expecting growth in the Baltic region to continue to be strong in the next few years. This will strengthen the freight services sector in those countries like Norway and Finland on which freight transport to the Baltic region depends.

The Baltic Region is now a main trading area for the freight forwarding and shipping company industry based in Bergen. They offer a frequent service to the Baltic Region, mainly with its fleet of side door vessels.The main item requiring freight transport is frozen fish from Norway, Scotland and Iceland. This is transported to many destinations in the Baltic Region. This is an expanding market, with an increasing demand for fish products as the buying power of cuustomers increases in the countries that make up the Baltic Region.

In ways such as these, shipping companies in Norway are showing that they can identify and seize the new opportunities created by changing market conditions. This means that the freight forwarding and international freight industry in Norway face a bright future as they rise to the challenge of responding to change.

There are now a number of improvements being made to the freight transport infrastructure, notably to the railway network by the state owned operator, NSB, which has invested in improving rolling stock and line speeds. The 4000 kilometre railroad system connects Oslo with Bergen and Stavanger as well as other larger towns and Sweden and full use is made of these by the freight company. A high speed rail connection also connects the international airport at Gardemoen, north of Oslo. The railway is concentrated in the south of Norway, whilst most of the north is dependent on freight transport by road, air or boat. The mountainous terrain is one reason why air transport is very important to the freight company in Norway. The air transport infrastructure is highly developed with no less than 58 airports in the country, nearly half of which are state owned. The road network of some 57,000 miles is concentrated round the more populated areas, especially around Oslo.

But it is in the quality and breadth of its shipping and boat transport that Norway really stands out. Norway is heavily dependent on shipping and in fact it is one of the foremost shipping countries globally, with Norwegian merchant shipping companies owning 10 of the world’s total fleet. The fleet of offshore service ships is the second largest in the world, due to the size of Norway’s oil and gas industry. Norwegian shipping companies also control 25 of the passenger cruise boats in the world and 20 of chemical tankers and gas carriers worldwide. Shipping is the lynchpin of the freight forwarding system in Norway. There are many ice free harbours along the coast. The north and west coasts between the Russian border and Bergen make up a vital international freight route from the Atlantic into the Arctic Ocean.

It is a little known fact that Norway is the world’s biggest exporter of oil after Saudi Arabia and Russia. This position has helped consolidate the country’s expertise, with many a specialist shipping company. However, shipping is also vital on a smaller scale within Norway, with local ferry services a crucial means of transport throughout the country, even in the urban areas of Oslo and Bergen. Norway has developed its transport infrastructure and freight services in ways that not only overcome the challenges created by its interior geography, but has also embraced the opportunities presented by its natural harbours and waterways. Shipping and freight services has been identified as an industry to be further developed and strengthened in future, as a key part of the Norwegian economy. Norway is truly a blueprint for the successful development of shipping companies worldwide.