The Japan Times WORLD EYE REPORTS NORWAY
©THE JAPAN TIMES	Thursday, November 15, 2001

Creating a niche in a global market Entering into or maintaing a shipping business is a substantial investment. Unlike buildings which can withstand bombings and monsoons, a ships lifespan has a distinct beginning and end, regardless of the abuse it withstands. The scrap yard is the inevitable last stop for all ships - a financial loss that ship owners cannot avoid.

Alf Olsen has turned to charters as a profitable niche market.

Fortunately for shipping companies in Norway and the rest of the world, Actinor Shipping has the answer to the high cost of owning a shipping vessel.

A Simple Solution

For the past 15 years, Actinor Shipping has created a niche for itself in the already unique Norwegian shipping industry. Unlike most shipping companies, which buys, operates and maintains the vessel, Actinor charters it fleet of vessels, freeing up owners of the initial capital required to purchase a ship.

The advantage to the ship's leasees is obvious. It frees up their balance sheet and allows them to utilize their capital in other ways. Alf Olsen, the CEO of Actinor, points out the benefits of eliminating the financial burden and the risks involved in purchasing a vessel.

"Most ship owners find it advantageous to charter a vessel. They have total control of the asset during the contract period, which includes maintenance, scheduling and general operation costs. However, at the end of the day, the company is not left burdened with any assets. We provide a way for them to untie their links to these assets, thus freeing up their dollars to be invested elsewhere."

With shipping vessels costing at least $100 million, Actinor Shipping is offering a very attractive alternative. However, this financial freedom is not the only advantage to entering into a relationship according to Mr. Olsen. Actinor's customers also receive better service,

"We work on a one-on-one basis with our clients. We provide a small but very simple communication link with our customers: one owner and one leasee. Whatever has to be discussed can be done so effectively."

Meeting Customers Needs

To some Norwegians, the shipping industry is the lifeblood of the country. It is a well-developed industry and companies are offering well-developed services; but yet it remains a fragmented business.

Whether that need is for added value, increased financial freedom or better service, Actinor has found that carving out a niche in particular segment in the shipping industry would better suit not only their own needs but the needs of their customers as well.