2020-03-01 Business Insider

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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)
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