Norwegian shipping tycoon mulls moving ships home

Thursday, 30 July 2009

Shipping tycoon John Fredriksen is considering moving several ships into the Norwegian international shipping (NIS) register after the Nordic country's taxation for the industry has turned more favourable, daily newspaper Dagens Naeringsliv reported on Wednesday. Fredriksen, the owner of dry bulk shipper Golden Ocean and the world's biggest independent oil tanker shipping group Frontline already has seven ships registered under the Norwegian flag. "We have 30-40 new vessels, bulk and tankers, for which we have not decided on any flag yet," Fredriksen, who controls a fleet of about 200 vessels, told the business daily. "We are considering moving some of these to Norway," he said, adding that it would start with one or two vessels and then evaluate how it is going. "We have so much business in Norway, so it is natural for us to have some ships there." Fredriksen described the new tax system, which has aligned to those of the European Union and is meant to keep the shipping industry competitive under the Norwegian flag, as "not bad". Under the new Norwegian scheme, the Labour-led government also imposed 14 billion crowns ($2.28 billion) in back taxes on undistributed profits retained by shippers over many years, but the industry is opposing the move. Three companies, BW Gas, Farstad Shipping) and Bergshav Tankers have taken the case to court, which is expected to go all the way to the supreme court and possibly further to the EU court system. Deputy minister Rikke Lind from the Ministry of Trade and Industry was quoted in Dagens Naeringsliv as saying that it was important to register ships in Norway because it would benefit the whole maritime industry through increased activity and jobs.
Fredriksen has holdings in many other companies, including oil driller Seadrill and the world's largest fish farmer Marine Harvest. On Tuesday, shipping group Siem Offshore said it would transfer 25 vessels into the Norwegian scheme and set up a base for its international operations in Kristiansand in Norway.

Source: Reuters