Complete cross-border co-operation
Copenhagen and Malmo's pairing marks the ultimate alliance: full scale merger
Copenhagen and Malmo must represent the ultimate cooperation between ports – they made history ten years ago when they merged to form one company in two countries, Copenhagen Malmö Port.
The idea was put forward when the Danish and Swedish ports were bracing themselves for the construction of the Øresund Bridge, linking the two cities and wiping out ferry operations.
“When the decision was made to build a fixed link, both parties understood that in a short time probably we would lose the very profitable ferry operations between the Copenhagen and Malmö areas,” says CMP deputy chief executive Lennart Pettersson. “We were facing the loss of 20%-25% of our turnover and a high level of profits. But on the other hand, we could see that the bridge would create the Øresund region, where two countries were linked together.
“We realised there should be great opportunities to expand the business in this area, especially as we are at the entrance to the Baltic Sea, and trade and transport previously behind the Iron Curtain was opening up and this area could be of interest in the longer term.”
The decision was taken that instead of a ‘vague marketing cooperation’ and the prospect of, to some extent, fighting each other, a full merger would be a better step, says Mr Pettersson.
Different working systems, wages, pensions, coffee break habits, even national holidays had to be worked around, but the benefits of forming one company were considerable; avoiding double investment, and allowing better utilisation of quays, equipment and facilities, increased efficiencies, and a wider and better choice of services.
“To some extent, of course, employees were worried and suspicious of what would happen; and our customers were concerned that as we were taking full control of all the port enterprises, tariffs would rise. But we were very careful and explained our policy of better utilisation and efficiency and that there was no hidden agenda of rising prices,” says Mr Pettersson.
The merger was of mutual interest to CMP and its customers, who were consequently able to offer more services and facilities, he says.
Ten years later, having achieved profits more than three times those projected, some major investments are under way. September saw the official opening of Malmö’s new SEK1bn ($153m) northern harbour and terminals, and a similar amount is being invested in Copenhagen in container and other facilities.
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