Norway's economy is very dependent on the offshore petroleum industry, centred around Stavanger and a vibrant freight services and shipping infrastructure has been built to support the continued growth of this industry. Norway has the third highest GDP per capita in the world, as well as being in the top position in the world in 2009 for its UNDP Human Development Index. So Norway is a successful mixed economy with an ideal combination of private sector business and also large state ownership in key strategic market sectors, including offshore petroleum technology through Statoil, in which the government has a sixty-two percent stake, and the fully state owned Petoro.In addition to this, the state has an interest in hydroelectric energy production, through Statkraft, aluminium manufacturing through Norsk Hydro and the biggest telecommunications provider, Telenor. Through direct oil license ownership in other non-listed companies, the government has an even higher share of ownership.So the state in Norway is a [major|key} player in the country's economy and has encouraged and supported the growth of the country as a leading shipping country, with a merchant fleet which is the6th largest in the world. It has therefore also invested across the international freight sector to ensure that freight forwarding is at maximum efficiency and can help drive the economy forward. Shipping companies are encouraged and aided to improve their operations through a government which is proactive and supportive to the international freight sector.Norway's large proportion of oil and gas exports and its extremely robust capital reserves, which are again amongst the highest in the world in per capita terms, make it probable that Norway will continue to be one of the wealthiest countries in the world for at least the short and medium term. This bodes well for continued investment in the freight services sector, which in turn is good news for every shipping company and logistics provider which operates in Norway.The cost of living is about 30% higher in Norway than in the USA and the standard of living is one of the best in the world. These are amongst the factors that led Foreign Policy Magazine in 2009 to judge Norway to be the best functioning and most stable country in the world - a quite remarkable achievement!Norway has achieved this enviable situation partly because Norway has been blessed with natural resources, including oil, natural gas, fish, forestry and minerals, which are especially high in relation to the small size of the population. In fact, fish have been exported from Lofoten for over 1000 years.The international freight industry has developed and strengthened over the years to become the model of efficiency it is nowadays. Meanwhile, export revenues from oil and gas contribute 45% of total exports and amount to 20% of GDP. So shipping companies and freight businesses have organised themselves to handle the specific needs of these industries in terms of storage conditions and handling, as well as the more general freight transport needs of some other sectors.This plethora of natural resources and the income they bring in for Norway has led to a situation where the hourly productivity levels in addition to average hourly wages in Norway are among the highest in the world.Norway has stayed outside the EU, following referenda in 1972 and 1994, but together with Liechtenstein and Iceland, it is involved through the European Economic Area agreement and other inter-governmental agreements between the EU member states. This means that Norway is integrated with the EU internal market in the main and the freight industry too has benefited from co-operation across borders with other EU countries.As a result of the winning combination of factors, some of which are outlined here, the Norwegian trade surplus for 2008 was around 80 billion dollars, so Norway is well protected from the effects of the world financial crisis and in fact it was the only Western nation to run a state budget surplus in 2009. Overall, it is one of the countries in the world to be least affected by the worldwide recession in 2008 and 2009 and unemployment in Norway is still running at under 4%.So the freight transport sector in Norway can face the future with confidence, as the economy is stable and there is likely to be future substantial government investment in the international freight infrastructure and the industries which it serves.
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Norway's economy is highly dependent on its offshore petroleum industry, centred around Stavanger and a vibrant freight services and shipping infrastructure has been built to support the continued growth of this sector.
Stephen Willis is Managing Director of RW Freight Services a UK based freight transport company, established in 1971 and operating worldwide freight forwarding services including specialist freight services to and from Norway
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