Danish shipping giant Norden is opening its first African office in the latest step in the expansion of its Dry Operator business.
Copenhagen-listed Norden has been active in Africa for many years and ships over two million tonnes of cargo into the continent every year, largely related to the cement trade. It also exports cargo such as bauxite and manganese ore from Africa.
Jan Rindbo, chief executive of Norden, tells Tradewinds the new office in Abidjan, Ivory Coast is part of the company’s continued global expansion and efforts to be closer to customers.
“By opening an office in Africa, we are present on all the relevant continents, excluding Antarctica. We expect to be able to contribute positively to the development of the region.”
Former Western Bulk man Henning Fotland has been hired to head the office.
He joins a division led by former Western Bulk colleague Christian Christensen, who has overseen the restructuring of Norden’s dry cargo business since joining in 2016.
Fotland and his new colleagues in Abidjan will be tasked with generating new business and focusing on contributing positively to the development of the region.
“Having a local presence will help increase inbound business from the Mediterranean and Far East, support growth on day-to-day outbound activities, and provide access to attractive industrial bulk projects,” Norden said.
Stable economic growth and long-term expectations Africa’s population will double by 2050 are contributing to the move.
“There is a huge population growth in Africa,” Rindbo said. “It gives a fantastic business opportunity and a responsibility, particularly for those involved in world trade, to ensure Africa is brought up to a level where this population growth is sustainable, people have jobs and a future that is bright.
“We think working actively locally is going to be very important to achieve that.”
The Abidjan office is the latest to be added as Norden builds out its Dry Operator business, which aims to double its market share from the present 2% to 3% level.
“We have set a target of $40m to $60m in profit from the Dry Operator business unit from 2021 onwards,” Rindbo added. “To achieve that we need to open new markets and grow our activity.”
Investments in infrastructure in Africa will also be part of the package, a decision which fits in with Norden’s strategy of supporting the United Nations sustainable development goal number nine around resilient infrastructure.
