Global Maritime Hubs: Unpacking The DNV - Menon Rankings

In the latest episode of Navigating the World's Maritime Ecosystems, hosted by Capital Link and Mr. Punit Oza, FICS, AFNI, LLB, M.Sc. , Mr. Oza engaged in a thought-provoking discussion with industry experts, Dr. Shahrin Osman , Global Business Development Director for Maritime Advisory at DNV, and Dr. Erik W Jakobsen , Partner and Chairman of the Board at Menon Economics. The conversation revolved around the Leading Maritime Cities (LMC) report, a collaborative effort between DNV and Menon Economics, which evaluates and ranks maritime cities based on five key pillars: Shipping Centers, Maritime Finance and Law, Maritime Technology, Ports and Logistics, and Attractiveness and Competitiveness.

To watch the full discussion, please visit the following link:

The Genesis of the LMC Report

The LMC report, now in its 2024 edition, serves as an extensive guide to understanding the dynamics of maritime ecosystems. It evaluates a plethora of cities and highlights the ones that excel in implementing effective policies, fostering robust infrastructure, both physical and institutional, and nurturing a skilled talent pool. These elements collectively create an environment where maritime businesses and professionals can thrive.

The origins of the LMC report trace back over two decades. Dr. Jakobsen talked about how the foundational research began in 2003 with a project benchmarking maritime industries across five European countries, the UK, Germany, the Netherlands, Denmark, and Norway. This research laid the groundwork for a modular conceptual framework that later evolved into the LMC report. In 2004, Dr. Jakobsen was invited to benchmark Singapore against these European cities, leading to the publication of the book “Attracting the Winners: The Competitiveness of Five European Maritime Industries.”

The first report was published in 2015, initially focusing on 15 leading maritime cities. Over the years, the report has expanded significantly, now encompassing 15,000 cities and incorporating insights from experts all over the world. Dr. Osman joined the collaboration in 2017, bringing DNV's expertise to the table. Together, DNV and Menon Economics have refined the report, ensuring it remains relevant by updating indicators to reflect emerging trends such as regulatory changes, technological advancements, and shifting client expectations.

The Five Pillars of Maritime Excellence

The LMC report evaluates cities based on five critical pillars. First are the shipping centres, cities that serve as hubs for shipping companies and related services. Secondly, maritime finance and law are checked, looking for centres offering strong financial and legal frameworks to support maritime activities. It is also important to consider maritime technology in this evaluation, meaning hubs that excel in innovation and technological advancements in the maritime sector. Then ports and logistics are considered, and finally, attractiveness and competitiveness are evaluated, considering factors that make a city appealing to maritime businesses and professionals, including quality of life, talent availability, and business-friendly policies.

The Role of Technology in Shaping Maritime Ecosystems

Technology was a recurring theme during the discussion, as it has become a crucial aspect of the industry. Dr. Osman noted how digital transformation is reshaping the maritime industry, enabling remote arbitration, virtual hearings, and other innovations that reduce the reliance on physical infrastructure. However, he commented that maritime remains a relationship driven industry, where face-to-face interactions and concentrated ecosystems, like Singapore's, continue to play a leading role.

Dr. Jakobsen added to that by supporting that while technology has always been central to the maritime sector, its role and the locations of technological hubs have evolved. Cities such as Oslo, which lack traditional port infrastructure, have emerged as leaders in maritime technology, demonstrating that innovation can thrive independently of historical trade routes.

Attractiveness and Competitiveness: A Subjective yet Insightful Metric

The attractiveness and competitiveness pillar is particularly intriguing, according to Dr. Osman, as it relies on subjective assessments from global experts. Dr. Jakobsen further explained that while there is some inherent bias, the experts' extensive experience and familiarity with multiple cities help mitigate this effect. The report also includes self-assessments by experts about their own cities, providing interesting information regarding local perceptions and dynamics.

Furthermore, Dr. Osman mentioned that while historical factors influence rankings, future focused indicators are the ones that can reveal emerging trends. For instance, cities like Dubai are increasingly seen as up and coming maritime leaders, reflecting their strategic investments and growing appeal as alternative hubs. This appears to be supported by many senior executives, according to Mr. Oza, who view Dubai as a viable Plan B location for maritime businesses.

Collaboration Between Ecosystems

Regarding the potential for collaboration between maritime ecosystems, both Dr. Jakobsen and Dr. Osman appeared optimistic, citing Singapore's strategic partnerships, particularly with Norway in maritime technology, as a successful example of such a collaboration. Similarly, the green shipping corridor between Singapore and Rotterdam further showcases how cities can leverage their strengths to achieve common goals.

Nevertheless, Dr. Osman pointed out that successful collaboration requires a clear objective and mutual benefits in order to be achieved. Whether in R&D, technology, or sustainability initiatives, aligning goals is crucial for fostering meaningful partnerships between ecosystems.

“I think clarity of purpose is one of the biggest challenges people face, but then it also needs to be micro in some ways, because you need to know what companies need in order to end up building that macro perspective as to where you want to tap into that collaborative. At the end of the day, you can build the best ecosystem, but if nobody is there to benefit from it, the collaboration will not generate any value” Mr. Oza concluded, showcasing that while having a big picture vision is important, it must be grounded in the real, practical needs of the stakeholders that will ultimately use and benefit from said ecosystem.

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