2020-03-01 Business Insider

96 INSIDER March 2020 http://www.insider.co.uk

INSIDER INTERNATIONAL: SCANDINAVIA

By PERRY GOURLEY

Transport links between Scotland and

Scandinavia have been strengthened

recently with the launch of new routes.

Scottish airline Loganair will add a new

service from Edinburgh to Esbjerg in

Denmark to its schedules for summer 2020.

Flights from Aberdeen to Copenhagen

have been increased by Scandinavian

Airlines (SAS) with the launch of a new

Wednesday morning service.

SAS now flies between Aberdeen

International Airport and the Danish capital

on every day except Saturday.

Last year Loganair also signed a deal with

Norwegian carrier Wideroe to improve

connectivity for its passengers travelling to

the country.

A

LTHOUGH the plans are

still on the drawing board,

supporters of proposals

to build a £1.75bn subsea

power link between Peterhead and

Norway believe it will serve as an

important symbol of the strength

of one of Scotland’s closest trading

relationships.

The NorthConnect link – which

could get the green light this year

• would enable electricity to be
  transmitted between Scandinavia
  and Scotland.
  According to First Minister Nicola
  Sturgeon, who voiced her backing
  for the ambitious project on a visit
  to Oslo earlier this year, it would
  represent a major boost for Scotland’s
  renewable energy sector and help
  improve security of energy supply.
  Surplus electricity could be
  exported from Scottish windfarms
  to Scandinavia and when wind
  production is low, electricity from
  Norway’s hydroelectric schemes
  would help meet Scotland’s needs.
  The project, being developed by
  Norwegian and Swedish utilities Lyse,
  Agder Energi, Eco and Vattenfall,
  could be online by 2024 depending
  on a licensing decision by the
  Norwegian government later
  this year.
  A positive outcome would help
  bolster relationships between
  Scotland and Scandinavia which is
  already one of the most important
  export destinations for Scottish goods
  and services.
  Together, Norway, Sweden and
  Denmark offer a market of more than
  21 million people.
  Sweden is by some margin the
  largest by population (10 million)
  followed by Denmark (5.7 million)
  and Norway (5.5 million). Although

the smallest, Norway has significantly

higher GDP per head than its

Scandinavian neighbours and comes

in at third in the world table of

wealthiest countries.

With Denmark (ninth) and

Sweden (12th) also ranking highly,

the region represents a highly

attractive market for Scottish

businesses.

The fact that English is widely

spoken, transport links are extensive

and indicators for ease of doing

business are some of the best in the

world, means it is no surprise that

Scandinavia is already a key market

for Scotland.

A 17 per cent jump in exports to

Norway last year saw it cement its

position as Scotland’s seventh largest

export market with £1.16bn worth

of trade.

More than 100 Norwegian

companies are also established in

Scotland, employing 5,870 people.

Denmark – accounting for £700m

and Sweden (£680m) – are also in

the league table of Scotland’s biggest

overseas partners.

Given Scotland and Scandinavia

share the North Sea, the energy sector

inevitably accounts for a significant

slice of the trade total with oil and gas

taking the lion’s share.

For Aberdeen-based Petrasco

Energy Logistics, Norway has been

a key market since the business was

established 45 years ago and general

manager Chris Milne says the quality

of transport links between the two

countries is a major factor.

“We have the benefit of daily, direct

flights, daily trailer departures and a

vital sea freight service that sails from

Aberdeen to various ports on the

western coast of Norway which is a

popular route for oversized cargo and

equipment,” he explains.

Petrasco, which transports key

components to help energy firms

maintain production and operations,

has long-standing relationships with

a number of Norwegian partners but

Milne stresses they have taken time

to develop.

“Before considering market entry,

it’s important to do your homework

first and research what value you

can deliver to the local business

community. If we had set up a

Norwegian operation overnight, it

IN FOCUS: Transport linksI

POWERING UP

ENERGY LINK

COULD BOOST

KEY MARKETS

manager Chris

Above: Chris Milne,

general manager,

Petrasco

In Sweden people are very chatty and

could quite happily spend half an hour

talking to you. It’s an important part of

how they build relationships

Luke Westendarp, Cathcart Energy (below)