Thursday, February 16, 2017

World's Largest Container Shipping Line Due for Shake Up as Part of Port and Logistics Group Revamp

Maersk Boss Hints at Changes to Come After Troubled Year
Shipping News Feature
DENMARK – WORLDWIDE – Having this month reported a financially difficult 2016 and the departure of its longstanding Chairman, AP Moller Maersk has announced plans to secure the future of the 113 year old business which will see the McKinney-Moller family take a greater interest in the Danish conglomerate. There has been much activity within the group of late with the divesting of container specialist group Pentalver by Maersk’s APM Terminal subsidiary and the splitting of logistics and energy sectors last September.

Speaking last month at the Global Leadership Conference for the Transport and Logistics division Ane Uggla, Chairman of AP Møller Holding and the AP Møller Foundation, outlined her current thoughts about the company established by her grandfather AP Møller, and the role of the holdings company as the majority shareholder. She said:

“We as major owners aspire to own a viable group of companies for at least another 100 years, having a meaningful and positive impact here in Denmark as well as globally. [The founders] made it a priority to hire and develop great talent. People, not assets, make companies thrive. Equally important, they had the courage and wisdom to challenge their colleagues to start new endeavours and new businesses, and not to fall into the trap of optimising for the short-term, but rather to act in the long-term.

“We are redefining the Group with the establishment of AP Møller Holding as the ‘mother company’ of the Maersk activities. Going forward AP Møller Holding intends to own, partly or as a majority shareholder, several of the Maersk-related activities directly. This will not happen overnight but during the next few years, based on a process decided by the Board of AP Moller - Maersk.”

As the new strategy unfolds and some of the Maersk activities will become separate businesses owned directly by its shareholders, AP Møller Holding, established in 2013 to act as the investment arm of the family owned AP Møller Foundation, will play an important role in securing the long-term viability of the Maersk activities and of Danske Bank, in which Maersk holds a 20% share. Uggla continues:

“We will ensure that we hold a diversified and financially robust portfolio, to be able to sustain unexpected negative developments. And finally, we will continue building new businesses, in our portfolio companies as well as separately in AP Møller Holding.

“Even though we change our strategy and our structure, we do not change who we are. We are Maersk people tied together by our Values that are linked to the past. They are very much part of today and through your engagement and my engagement, will be part of tomorrow. That is my sincere wish.”