Mr. Claus V. Hemmingsen and reporter from Newsgd.com

The International Consultative Conference on the Future Economic Development of Guangdong Province 2015 (ICCFED 2015) Closed on Nov. 19. Advisor Claus V. Hemmingsen, member of the Executive Board of Maersk Group, accepted an exclusive interview from Newsgd.com.

Newsgd.com: How Guangdong can realize “Smart Logistics”?

Hemmingsen: The existence of highly efficient logistics and transportation services are essential for Guangzhou to become an international shipping, logistics and trade center. As a region with rapid growth in size and density, Guangdong is facing new transportation and logistics challenges such as high transportation cost resulted from high fragmentation in logistics. We believe that the challenges of Guangdong can be tackled by leveraging the potential of big data, and therefore we’ve come up with six recommendations on smart logistics for Guangdong:

1. Getting a view of freight flows by different transportation models to decide on infrastructure investments required.

2. Establishing a forum or board with participation from key stakeholders representing public and private sector to facilitate coordination and promote ideas that individual players cannot lift on their own.

3. Creating a logistic data system where stakeholders can get better transparency and ability to coordinate without compromising own data.

4. Facilitating discussion between the stakeholders on further standardization of data formats and key transportation components to ease handover between different transportation models.

5. Reviewing incentives for optimizing logistic flows and reduce congestions e.g. peak time charges like in Los Angeles.

6. Reducing logistics cost through government-led initiative to support consolidation and standardization of services.

Newsgd.com: How Maersk to help Guangdong in the Belt and Road Initiatives?

Hemmingsen: Guangdong province has been leading China’s economic development since the beginning of China’s reform period and is today the home of some of the world’s biggest and best connected ports offering world-leading port facilities and services. In this regard, Guangdong is already well positioned to take on a leading role in the Belt and Road initiative.

Guangdong Province could achieve a quick but significant win by permitting transshipment of international cargoes from China in the ports of Guangzhou. Presently foreign carriers have to do so outside Mainland China. Foreign carriers could greatly contribute towards making the ports in Guangzhou true hub ports and also enhance the connectivity of Guangdong Province if they were allowed to transship here.

Maersk will strengthen cooperation with Guangzhou, helping the upgrade of Nansha port, extending Guangdong’s connection with the world, and offering better logistic service to the province. Yesterday they just sighed a memo with a local company.

Newsgd.com: How Guangdong can develop from a big manufacturing province into a strong one?

Hemmingsen: The supportive business environment in Guangdong has bred a number of manufacturing champions in Guangdong including Midea, Galanz and Huawei. Those manufacturing companies have not only built up well-known brands in China but are also seeking to expand their business globally. The “going global” strategy for those manufacturing champions is essential for Guangdong to become a strong manufacturing province in China.

As a conglomerate with a focus on shipping and logistics business, the Maersk Group has developed a long-term and strategic partnership with many of these leading Chinese companies. We are very much looking forward to continuing this cooperation.

Newsgd.com: What is your comments on Guangdong’s innovation environment?

Hemmingsen: As China is moving up the value chain and upgrading its industries, innovation is becoming a decisive factor for success. The Maersk Group has been committed to innovation since its foundation and we are glad to see that more and more local companies in China have also made innovation a priority. We believe that these innovative companies will become a driving force for Guangdong’s economic development, and we firmly believe that innovation must be a consistent focus if companies are to stay competitive in the present day competitive business climate.

Newsgd.com: What are the major cooperation between Maersk and Guangdong?

Hemmingsen: Guangdong Province occupies a place of special importance to Maersk Group. In Guangdong Province, our Group is active within liner shipping, logistics, container terminal management and operation, intermodal transportation, as well as industrial manufacturing and marine equipment maintenance. We have ordered a great many ships from yards in Guangdong over the years. The economy of Guangdong Province is very dynamic and highly integrated with global markets. As such, we are continuously looking for opportunities to expand upon our activities and partnerships here.