Andersen: Maersk focuses on emerging markets

Andersen: Maersk focuses on emerging markets    A.P. Moller – Maersk Group is well positioned to take advantage of opportunities in the emerging regions of Africa and Latin America, said Nils Andersen, the company's chief executive.
   Speaking in a Q&A in the company's internal magazine, Maersk Post, Andersen said the company is particularly well placed in Africa.
   'We are very well positioned in both areas, but maybe particularly in Africa,' he said. 'We have an organization that understands the markets very well and we have local managers coming up through the ranks who feel committed to our company. We are very strongly placed there to help and take advantage of business opportunities.
   'In Latin America, we don't have quite the same strong position, but we've been there for many years and have a strong customer base, and a strong and experienced organization. We will have opportunities to expand and are ready to invest in new vessels, port infrastructure and oil-related activities.'

Anderson

   Andersen said Maersk must take advantage of its first mover advantage in these emerging regions.
   'The window of opportunity is now, because we are already active in, for example, West African and Latin American countries, and we have more knowledge than most investors coming into the markets,' he said. 'Therefore we are able to go into projects faster and in a more qualified way compared to many of our competitors. In addition, we are also in the fortunate situation that we have recovered very quickly from the crisis. We are making very good cash flows and good profits, which means we have the strength to invest at the moment, probably also more strength than many of our competitors.'
   He said emerging markets will drive Maersk's business growth as the company shifts from old to new economies.
   'Emerging markets have much more interesting growth prospects than the more mature and wealthy countries in Europe and the U.S. — and not just because of the economic crisis,' Andersen said. 'In some cases, it is because they have natural resources like oil and in other cases it is because they have very competitive labor markets. If you look at the growth opportunities in the emerging markets, there is no question that effective infrastructure is key, not only for cost-competitive imports, but also for local businesses and local farmers to export their products. And for us being in global logistics, this means great opportunities.'
   Andersen also stressed Maersk's position as the market leader in container shipping and a major player in container terminals.
   'Our company is in a unique position, where we can put our mark on what will happen in global trade,' he said. 'We can influence decision makers, improve trade flows and put infrastructure in place, which will benefit us as well as the local population.'
   But Andersen said the key is choosing which projects to invest in.
   'At the moment, the biggest challenge is to identify the right projects in energy, trade or infrastructure, and then work hard to get them,' he said. 'The right projects have long-term potential and long-term interest for our customers and the countries, and if we win these projects, we place ourselves in attractive positions. But there is also a risk in these markets you don't see in the developed world.
   'First and foremost, we have to be spread out,' he said. 'If you put all your resources into one market, it is risky, but for a big company like A.P. Moller – Maersk, we are able to invest in a number of countries.'