Kwazulu-Natal Business News

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BUSINESS: Maersk Liner Business to Integrate with Safmarine


Recent Kwazulu-Natal Business News

Safmarine has announced their intention to integrate
its internal support and management functions into those of its sister
company Maersk Line.

While the Safmarine head quarter is intended to close, the brand will be
kept in the Maersk Liner Business portfolio. Maersk Liner Business CEO,
Eivind Kolding, explains that Safmarine is an important component in the
Liner Business strategy, but the need to ensure management efficiencies
and control cost has lead to the decision to propose merging Safmarine's
management into that of Maersk Line.

Merging such internal support functions and central management involves
the closure of Safmarine's Antwerp head office and regional offices in
Antwerp, Shanghai, Dubai, Cape Town, and Mumbai, along with centre
support functions currently carried out in Singapore and Cape Town. This
will potentially affect 240 people in those locations.

Shift in Responsibilities for Safmarine and its Management

The changing role of Safmarine's management also brings a shift in
responsibilities for the company's leadership. Current CEO, Tomas
Dyrbye, will be leaving his position. His successor will be announced in
the near future.

Eivind Kolding, CEO Maersk Liner Business says that the company regrets
the loss of trusted colleagues: "We are sad to have to consider losing
some very strong colleagues, who have made an important contribution to
the company and helped change the way we think about shipping. All
changes are subject to consultation and we are working with our
employees to find a fair outcome for everyone affected."

Kolding adds that Safmarine will continue to be an important part of the
business. "It has proven that a close focus on a particular approach can
deliver stronger customer service and lasting relationships - this is
core to our mission of redefining shipping."

The Safmarine brand is to be grown further as part of Maersk's liner
business strategy of providing differentiated customer offerings.

Safmarine Looks to Cut Costs

Safmarine currently operates alongside Maersk Line as a fully
independent shipowner and shipping line serving Africa, the Middle East
and India. This move will reduce core costs of running both two

Throughout 2011 Maersk Liner Business has pursued a strategy of
differentiating itself from its competitors and realises that customers
value different aspects in different trades. As well as Safmarine it
operates regional brands in Europe (SeaGoLine) and Asia (MCC).

The CEO is certain that the Safmarine brand has a strong future: "It is
our clear intention to strengthen the Safmarine brand. Over its long
history it has become a force to be reckoned with in its markets and
customers value its distinctive approach to deep and lasting

The Multi Purpose Vessel business of Safmarine will be unaffected by the
integration and continue to be developed from its base in Antwerp.

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