Employment and turnover in the transport and logistics sector in the STRING region. Göran Serin and Markus Holzweber Roskilde University

Transcription

1 Employment and turnover in the transport and logistics sector in the STRING region Göran Serin and Markus Holzweber Roskilde University

2 Employment and turnover in the transport and logistics sector in the STRING region Author: Göran Serin, Roskilde University (CBIT) Markus Holzweber, Roskilde University (CBIT) Print: Region Zealand ISBN: st edition 2013 Roskilde University, Department of Communication, Business and Information Technologies (CBIT) 2

3 PREFACE This report is part of the project Green STRING Transport corridor. It is the second of two reports from Roskilde University department of Communication, Business administration and Information Technologies (CBIT). Povl A. Hansen wrote the first report: The Green STRING Corridor and transport development. The purpose of the first report was to analyse the conditions for European transport and logistics in the STRING region. The purpose of this second report is to analyse the strength and competencies within the freight transport and logistics sector in the STRING region. This means basic conditions when analysing the possibilities of establishing a Green Transport Corridor. The analysis will take its point of departure in analysis of employment, turnover, firm structure and location within the freight transport and logistics sector in the STRING region. The analysis starts with a broad overview of the development of the freight transport and logistics sector as a whole in the STRING region, with the core interest in the development of employment. How has the development of employment in freight transport and logistics been in the STRING region as a whole, but also within the different regions that constitute the STRING region, that is the Capital Region and Region Zealand in Denmark, Region Scania in Sweden and Hamburg and Schleswig Holstein in Germany. How is the freight transport and logistics structure in different parts of the STRING region? Can we find specific strengths and competencies in the different parts? After the analysis of the freight transport and logistics sector as a whole in the STRING region the focus in the following chapters will be on the specific modes of transport and services within the freight transport and logistics sector, like freight transport on road, freight rail transport, maritime freight and air freight, but also post and different support service activities in relation to freight transport and logistics are analysed. There is an analysis included of the development of employment and turnover in the specific sector in five regions that are constituting the STRING region. The localization of the firms in the specific sector will also be analysed for each region, which implies an analysis of the number of employed and number of firms in the different subregions. In each chapter the structure of the firms that constitute the sector in each region will be analysed. The most important firms within the sector in each region will also be identified with focus on their core competencies. In this way a detailed analysis of the freight transport structure in the STRING region will be accomplished and hereby also a basis for discussing if any conditions and possibilities for establishing a Green Transport Corridor in the STRING region exists. In the report we use a variety of data sources, however, primarily statistics from the national statistical authorities in the three STRING countries and different business 3

4 registers. The problem is that these statistics are not always harmonized and coherent, not even for the national statistical authorities, where the content of the statistical codes therefore can vary, especially when it comes to more specific and narrow subsectors. Different business registers have been used primarily on firm level and to analyse the firm structure in each region. The reason for this is that statistics from the national statistical authorities are not specific enough to conduct such an investigation. The statistics from the national statistical authorities and business registers are however not always comparable. This implies that the statistics must be used with caution concerning what can be compared. This will be discussed in the text and the reader will be informed when and why different statistical sources are used. Special thanks should be given to Christian Skjald for his valuable support and data work. The report is produced by the Department of Communication, Business and Information Technology at RUC. The results and conclusions are entirely on the authors account. Roskilde, June

5 SUMMARY The purpose of this report is to analyse the strength and competencies of the freight transport and logistics sector in the STRING region by structural analysis of the sector in the five sub regions. The report is statistically based, with statistics collected from the national statistical authorities and different business registers. Our focus is on the development of employment, turnover, firm location and important firms in different sub industries of the freight transport and logistics sector in the STRING region. Our emphasis is put on the development of the whole freight transport and logistics sector in the STRING region as well as on the analysis of the industry. The analysis is conducted on the STRING level as well as on the level of the different regions constituting the STRING region. The study shows that there are approximately 180,000 employed within freight transport and logistics in the String region. During the period there was a decrease in employment by a total of 6.3%, which is natural taking into consideration the sectors cyclical character. Studies of the Øresund Region in the period , however, also shows a long-term decrease in employment, which indicates that the decrease in employment is not only cyclical but also structural. The largest employment within freight transport and logistics is found in Hamburg, which accounts for 40.4% of the freight transport by road and logistics employment in the STRING region. This is no surprise taking into account Hamburg s role as an important international maritime hub. We can also see that the structure of the sector differs between the regions of the STRING. Hamburg is of course especially strong in the maritime sector but also in freight forwarding and organization of group consignment by sea. The same sectors are also strong in the Capital Region on the Island of Zealand. In Regional Zealand and Region Scania on the other hand, freight transport by road stands strong while postal and courier activities are especially important in Schleswig-Holstein. Another trend is the upgrading of the freight transport and logistics sector which implies less manual transport and more knowledge intensive activities like freight forwarding. This has been documented for the Øresund Region where the analysis comprises the longer period This upgrading implies that larger, often international firms integrate manual transport with other activities like freight forwarding and hereby supplies total solutions for the customer. At the same time freight transport by road is often outsourced to smaller firms, which operate on commodity base. This upgrading can be seen as a way of meeting low price international competition besides reflagging. 5

6 Interesting to note is that freight transport by road in the period has decreased in the Island of Zealand while it has increased in the Region of Scania. This can be explained by a faster structural change in the Island of Zealand with less manufacturing and more business in the services sector than in Region Scania, which in turn implies less B2B transport on the Zealand side. This fact stresses the importance of analysing the industrial structure when analysing the freight transport and logistics sector. Concerning location of transport and logistics firms we can see clear tendencies of agglomeration. Knowledge intensive industries like freight forwarding are locating in centre regions close to their customers like in Hamburg and Copenhagen and in Region Scania in Malmö and Helsingborg. Freight transport by road, mainly locate in the outskirts of big centres and along the European road infrastructure. Typical for the transport and logistics sector is that it has been subject to increased liberalization, implying increasing international and private competition. One of these industries is the postal and courier industry, where a national monopoly has met increasing competitive pressure. This in turn has forced actors to implement strategy and organizational changes like moving into new market segments and implement mergers and buy ups. 6

7 Content CHAPTER THE GENERAL DEVELOPMENT OF THE FREIGHT TRANSPORT AND LOGISTICS SECTOR IN THE STRING REGION THE DEVELOPMENT OF EMPLOYMENT OF FREIGHT TRANSPORT AND LOGISTICS ON THE ISLAND OF ZEALAND THE NUMBER OF LOCAL UNITS IN THE FREIGHT TRANSPORT AND LOGISTICS SECTOR ON THE ISLAND OF ZEALAND THE DEVELOPMENT OF EMPLOYMENT IN FREIGHT TRANSPORT AND LOGISTICS IN REGION SCANIA THE NUMBER OF LOCAL UNITS IN THE FREIGHT TRANSPORT AND LOGISTICS SECTOR IN REGION SCANIA THE DEVELOPMENT OF EMPLOYMENT IN FREIGHT TRANSPORT AND LOGISTICS IN THE GERMAN PART OF THE STRING REGION THE STRUCTURE OF THE FREIGHT TRANSPORT AND LOGISTICS SECTOR IN THE STRING REGION THE EMPLOYMENT IN THE FREIGHT TRANSPORT AND LOGISTICS SECTOR IN THE ØRESUND REGION THE STRUCTURE EMPLOYMENT IN THE FREIGHT TRANSPORT AND LOGISTICS SECTOR ON THE ISLAND OF ZEALAND THE STRUCTURE OF EMPLOYMENT IN THE FREIGHT TRANSPORT AND LOGISTICS SECTOR IN REGION SCANIA THE STRUCTURE OF EMPLOYMENT IN THE FREIGHT TRANSPORT AND LOGISTICS SECTOR IN HAMBURG THE STRUCTURE OF EMPLOYMENT IN THE FREIGHT TRANSPORT AND LOGISTICS SECTOR IN SCHLESWIG-HOLSTEIN CONCLUSION CHAPTER EMPLOYMENT, TURNOVER AND FIRMS IN FREIGHT TRANSPORT BY ROAD INTRODUCTION FREIGHT TRANSPORT BY ROAD IN THE ØRESUND REGION Employment in freight transport by road in the Øresund Region Turnover in the freight transport by road firms in the Øresund Region FREIGHT TRANSPORT BY ROAD ON THE ISLAND OF ZEALAND

8 2.3.1 Employment in freight transport by road on the Island of Zealand Turnover in freight transport by road firms on the Island of Zealand Agglomeration within freight transport by road on the island of Zealand Local units within freight transport by road on the Island of Zealand Localization, firm structure and their business activities on the Island of Zealand Summary FREIGHT TRANSPORT BY ROAD IN REGION SCANIA Employment in freight transport by road in Region Scania Turnover in freight transport by road firms in Region Scania Agglomeration within freight transport by road in Region Scania Localization, firm structure and important firms and their business activities in Region Scania Summary FREIGHT TRANSPORT BY ROAD IN THE GERMAN PART OF THE STRING-REGION Employment in freight transport by road in the German part of the STRING region Turnover in freight transport by road in the German part of the STRING region Localization and important firms and their business activities in the German part of the STRING region CONCLUSION CHAPTER EMPLOYMENT, TURNOVER AND FIRMS IN MARITIME FREIGHT TRANSPORT IN THE STRING REGION INTRODUCTION MARITIME FREIGHT TRANSPORT IN THE ØRESUND REGION Employment in maritime freight transport in the Øresund Region Turnover in maritime freight transport firms in the Øresund Region MARITIME FREIGHT TRANSPORT ON THE ISLAND OF ZEALAND Employment in maritime freight transport on the Island of Zealand Turnover in maritime freight transport firms on the Island of Zealand

9 3.3.3 Agglomeration in maritime freight transport on the Island of Zealand Localization, firm structure and their business activities on the Island of Zealand MARITIME FREIGHT TRANSPORT IN REGION SCANIA Employment in maritime freight transport in Region Scania Turnover in maritime freight transport in Region Scania Localization, firm structure and their business activities in Region Scania MARITIME FREIGHT TRANSPORT IN THE GERMAN PART OF THE STRING REGION Employment in the German part of the STRING region Turnover in maritime freight firms in the German part of the STRING-region Localization, firm structure and their business activities in the German parts of the STRING region CONCLUSION CHAPTER EMPLOYMENT, TURNOVER AND FIRMS IN FREIGHT RAIL TRANSPORT IN THE STRING REGION INTRODUCTION FREIGHT RAIL TRANSPORT IN THE ØRESUND REGION Employment in freight rail transport in the Øresund Region FREIGHT RAIL TRANSPORT ON THE ISLAND OF ZEALAND Employment in freight rail transport on the Island of Zealand Localization, firm structure and their business activities on the Island of Zealand FREIGHT RAIL TRANSPORT IN REGION SCANIA The employment in freight rail transport in Region Scania The development of turnover in freight rail transport in Region Scania Agglomeration in freight rail transport in Region Scania Localization, firm structure and their business activities in Region Scania FREIGHT RAIL TRANSPORT IN THE GERMAN PART OF THE STRING-REGION EMPLOYMENT IN FREIGHT RAIL TRANSPORT

10 4.5.2 Turnover in freight rail transport firms in the German part of the STRING region Localization and agglomeration of freight rail transport firms in the German part of the STRING region CONCLUSION CHAPTER EMPLOYMENT, TURNOVER AND FIRMS IN FREIGHT AIR TRANSPORT IN THE STRING REGION INTRODUCTION FREIGHT AIR TRANSPORT IN THE ØRESUND REGION The employment in freight air transport in the Øresund Region Turnover in freight air transport in the Øresund Region FREIGHT AIR TRANSPORT ON THE ISLAND OF ZEALAND Employment in freight air transport on the Island of Zealand Turnover in freight air transport firms on the Island of Zealand Agglomeration in freight air transport on the Island of Zealand Localization, firm structure and their business activities in the Island of Zealand Zealand FREIGHT AIR TRANSPORT IN REGION SCANIA Employment in freight air transport in Region Scania Turnover in freight air transport firms in Region Scania Agglomeration in freight air transport in Region Scania Localization, firm structure and their business activities in Region Scania FREIGHT AIR TRANSPORT IN THE GERMAN PART OF THE STRING REGION Employment in freight air transport in the German part of the STRING region Turnover in freight air transport firms in the German part of the STRING region Localization, firm structure and their business activities in the German part of the STRING region CONCLUSION

11 CHAPTER EMPLOYMENT, TURNOVER AND FIRMS IN POSTAL AND COURIER ACTIVITIES INTRODUCTION POSTAL AND COURIER ACTIVITIES IN THE ØRESUND REGION Employment in postal and courier activities in the Øresund Region Turnover in postal and courier activities in the Øresund Region POSTAL AND COURIER ACTIVITIES ON THE ISLAND OF ZEALAND Employment in postal and courier activities on the Island of Zealand Turnover in postal and courier activities on Zealand Agglomeration in postal and courier activities on the Island of Zealand Localization, firm structure and their business activities on the Island of Zealand POSTAL AND COURIER ACTIVITIES IN REGION SCANIA Employment in postal and courier activities in Region Scania Turnover in postal and courier firms in Region Scania Agglomeration in postal and courier activities in Region Scania Localization, firm structure and their business activities in Region Scania POSTAL AND COURIER ACTIVITIES IN THE GERMAN PART OF THE STRING REGION Employment in postal and courier activities in the German part of the STRING region Turnover in postal and courier activities in the German part of the STRING region Localization, firm structure and their business activities in the German part of the STRING region SUMMARY CHAPTER EMPLOYMENT, TURNOVER AND FIRMS IN SUPPORT ACTIVITIES FOR FREIGHT TRANSPORT INTRODUCTION WAREHOUSES AND CARGO HANDLING Introduction Warehouses and cargo handling firms in the Øresund Region

12 Warehouses and cargo loading firms on the Island of Zealand Warehouses and cargo handling firms in Region Scania Warehouses and cargo handling firms in the German part of the STRING region Summary EMPLOYMENT, TURNOVER AND FIRMS IN SERVICE ACTIVITIES INCIDENTAL TO WATER TRANSPORT Introduction Service activities incidental to water transport in the Øresund Region Service activities incidental to water transport on the Island of Zealand Service activities incidental to water transport in Region Scania Service activities incidental to water transport in the German part of the STRING region Summary SERVICE ACTIVITIES INCIDENTAL TO AIR TRANSPORT Introduction Firms in service activities incidental to air transport in the Øresund Region Firms in service activities incidental to air transport on the Island of Zealand Firms in service activities incidental to air transport in Region Scania Service activities incidental to air transport in the German part of the STRING region Summary EMPLOYMENT, TURNOVER AND FIRMS IN SERVICE ACTIVITIES INCIDENTAL TO LAND TRANSPORT Introduction Firms in service activities incidental to land transport in the Øresund Region Firms in service activities incidental to land transport on the Island of Zealand Firms in service activities incidental to land transport in Region Scania Firms in service activities incidental to land transport in the German part of the STRING region Summary

13 7.6 EMPLOYMENT, TURNOVER AND FIRMS IN OTHER TRANSPORTATION SUPPORT ACTIVITIES INCLUDING FREIGHT FORWARDING AND ORGANISATION OF GROUP CONSIGNMENT BY SEA Introduction Other transportation support activities in the Øresund Region Other transportation support activities on the Island of Zealand Other transportation support activities in Region Scania Other transportation support activities in the German part of the STRING region CONCLUSION CHAPTER CONCLUSION Structural changes - The new on-demand The advanced logistics, its structure and transport by road Liberalization and the accelerated pace of the "greener time-is-money" firm Mergers and the success of local infrastructure Support services to advanced logistics LIST OF FIGURES REFERENCES INTERNET SOURCES APPENDIX METHODS AND STATISTICAL SOURCES APPENDIX

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15 CHAPTER 1 THE GENERAL DEVELOPMENT OF THE FREIGHT TRANSPORT AND LOGISTICS SECTOR IN THE STRING REGION This chapter begins with an analysis of the development of employment in the transport and logistics sector for the whole STRING region on a general level, and in the sections that follow, we will go deeper into the development of employment in the different parts of the region. The purpose of this chapter is to identify the structure of the transport and logistics sector in the STRING region, and analyse if there are differences in the structure of the sector between the different regions which constitute STRING. In this part of the study we analyse the development of freight transport both divided into different modes of transport and geographically in the region. By analysing the structure of the transport and logistics sector in the STRING region with point of departure in employment, it will be possible to analyse the resources in the form of competencies and knowledge which exist in the region. We analyse the geographical pattern of these competencies within the STRING region, both between the regions which constitute the STRING region and within the single regions which constitute it. Analysing these competencies and their location is in turn a prerequisite for analysing the development of the freight transport and logistics structure and especially its adaptability and ability to restructure to a more energy-saving and environmental freight transport structure. Here, existing knowledge is a prerequisite for transferring and absorbing new knowledge and thereby to make a restructuring of the transport structure possible. Figure 1. The development of employment in freight transport and logistics in the STRING region divided into different regions ( ) The Island of Zealand Scania Hamburg Schleswig-Holstein Total Source: Statistics Denmark, Statistics Sweden and Statistikamt Nord, special extracts. Statistics based on NACE Rev 2 is only available for Sweden from 2007 and for Germany from

16 In Figure 1. the development of employment in the transport and logistics sector for the whole STRING region is presented. From Figure 1. it is clear that the largest freight transport and logistics sector measured in employment is found in Hamburg. It is nearly double that of the Island of Zealand. Schleswig-Holstein comes in at number two, while the smallest sector is found in Region Scania. Figure 1. also shows that there were 179,916 employed in the freight transports and logistics sector in the STRING region in This is a decrease of 4.5% from the year before or 8,519 persons and a decrease of 6.3% since But the development pattern differs between the different parts of the STRING region. For the whole of the Island of Zealand we can see a sharp decline in employment for the entire period, decreasing by16.8% for the period In Hamburg there was both an increase and decrease in employment during the period , but there was an overall decline of 4.6% for the whole period, while the employment for the other German region, Schleswig-Holstein, was almost stable. Region Scania also experienced a small decline in employment of 3.6% during the period The largest decrease was found in the Island of Zealand with a decrease of 18.6% in the period If we look at the distribution of the employment in freight transport and logistics between the regions, a very uneven distribution appears. The share of the German part of the STRING region is 67.7%. Hamburg s share of total employment alone is 40.4%. This can be compared to 27.3% in Schleswig-Holstein, 20.7% in the Island of Zealand and 11.6% in Region Scania. This finding allows us, once again, to point at Hamburg as the outstanding strong freight transportation and logistics hub in the region. Moreover, within the different regions there are large differences in the employment in the freight transport and the logistics sector between the different municipalities. 1.1 THE DEVELOPMENT OF EMPLOYMENT OF FREIGHT TRANSPORT AND LOGISTICS ON THE ISLAND OF ZEALAND As mentioned in the preceding section, the decline in the employment in freight transport and logistics on the Island of Zealand has been rather strong. In this section we will analyse how this decline has come to be expressed on the municipal level on the Island of Zealand. Figure 2 presents the municipalities with the largest number of people employed in freight transport and logistics together with the growth rates in employment. As shown in Figure 2 there has been a differentiated development in the municipalities, with the largest employment in freight transport and logistics. The most dramatic decrease has been in the two municipalities with the largest employment, which are Copenhagen and Tårnby, although in the latter case a large part of the decrease can be 16

17 explained with a more precise definition of air freight transport. There has also been a large decrease in employment in the transport and logistics sector in Slagelse. Figure 2. Employment and growth in employment in freight transport and logistics in municipalities on the Island of Zealand in 1998, 2006 and % % Copenhagen Tårnby Brøndby Høje-Taastrup Hvidovre Albertslund Holbæk Køge Greve Næstved Slagelse Gentofte Lyngby- Taarbæk Roskilde Source: Statistics Denmark, special extracts 1 The employment here is based on NACE Rev 1.1. which in Denmark is DB03. The statistics come from Povl A. Hansen and Göran Serin: The development of freight transport in the Øresund Region (Godstransportens udvikling i 2 The number of people employed in Tårnby is too high because it includes ruteflyvning (transport over regular routes) 6472, which includes both cargo and passengers. 17

18 Figure 3. Employment in the freight transport and logistics sector the Island of Zealand divided into municipalities in 2010 Source: Statistics Denmark; Map: Holzweber, Holm, Wagner (RUC) The municipalities in which there has been an increase in employment both in the longer period and in the period include Gentofte, Lyngby- Taarbæk, Greve and Albertslund, while in Brøndby, Køge and Høje-Taastrup there was an increase in the longer perspective from and a decrease in the shorter perspective from

19 Figure 3 presents a map that illustrates the employment in transport and logistics on the Island Zealand for the different municipalities. The map given in Figure 3. above is an indication of the agglomeration tendencies in the freight transport and logistics sector. The map shows a geographical concentration of employment in the capital Copenhagen and surrounding municipalities, where the municipality of Tårnby comes in second due to the location of Copenhagen Airport. But we also find municipalities west and south of Copenhagen with large employment within freight transport and logistics. These include the neighbouring municipalities of Brøndby, Høje-Taastrup, Hvidovre and Albertslund located west of Copenhagen and the neighbouring municipalities of Greve and Køge located south of Copenhagen. One contributing factor in the latter case is the Scandinavian Transport Centre located in Køge and owned by the municipality, which supplies support services for transport and grounds for transport intensive firms. Høje-Taastrup Transport Centre plays the same role for the agglomeration of freight transport and logistics firms in the above mentioned municipalities west of Copenhagen. Moreover, it is important to mention that COOP Denmark has located one of its central warehouses in Albertslund. Thus, we can see a concentration of employment in the centre of the region. We will discuss in more detail why this pattern has developed in further chapters. However, the general explanation for the large employment in freight transport and logistics in these municipalities is the large employment in road freight transport, freight forwarding and post sectors except for Copenhagen and Tårnby, where the maritime and air freight sectors are also important. If, however, we look at the growth in employment in freight transport and logistics on the Island of Zealand, there has only been a positive growth in employment in freight transport and logistics in eight out of Zealand s forty-six municipalities during the period We can, therefore, speak of a general decline geographically in the sector on the Island of Zealand. 3 In the shorter perspective ( ), the picture is much the same with only eight municipalities showing growth in employment. Furthermore, only four municipalities experienced growth in employment in freight transport and logistics both in long and short term perspectives, and these were Gentofte, Lyngby-Taarbæk, Albertslund and Greve. 3 It is important to keep in mind that the development during the period is based both on NACE rev 1.1(for the years1998 and 2004) and NACE rev. 2 ( ). Because freight transport is more precisely defined in NACE rev 2 this will imply that the decrease in employment in the long term perspective will be exaggerated. 19

20 1.2. THE NUMBER OF LOCAL UNITS IN THE FREIGHT TRANSPORT AND LOGISTICS SECTOR ON THE ISLAND OF ZEALAND If we look at the number of local units on the Island of Zealand, we also find a decrease in this number, as outlined in Figure 4 below. Figure 4. The number of local units on the Island of Zealand divided into the Capital Region and Region Zealand in the transport and logistics sector ( ) Growth % The Capital Region Region Zealand Total Island of Zealand Source: Statistics Denmark, special extracts Figure 5. Municipalities with most local units in freight transport and logistics on the Island of Zealand ( ) Municipality Growth % Copenhagen Hvidovre Høje Taastrup Greve Tårnby Køge Roskilde Slagelse Næstved Holbæk Guldborgsund Brøndby Gentofte Source: Statistics Denmark, special extracts. 20

21 On the Island of Zealand we can see a rather sharp decline in the number of local units with a decline of 10.5% in the period After an increase in 2007 there has been a continuing decrease from the first crisis year in The decline has been somewhat stronger in the Capital Region than in Region Zealand, with a decline of 11.3% and 9.6% respectively. This is also in line with the development of employment where there was a slightly stronger decrease in the Capital Region compared to Region Zealand (see section 1.8). Figure 5. lists the municipalities with most local units within freight transport and logistics. As was the case with employment (Figure 2) we find that Copenhagen without competition has the largest number of local units in freight transport and logistics with 731 local units. It is also worth noting that Tårnby and Brøndby, which are placed number two and three in employment, are placed number five and twelve in local units. These findings indicate that the firms in these municipalities are larger than the average size firm, given the high employment and low number of local units. Figure 1.5 also confirms the picture of an agglomeration of freight transport and logistics in Copenhagen and the municipalities west and south of the capital THE DEVELOPMENT OF EMPLOYMENT IN FREIGHT TRANSPORT AND LOGISTICS IN REGION SCANIA The decrease in employment, as mentioned above, has not been very strong in Region Scania, neither for the longer period nor for the shorter period In the first period the decline amounted to 590 persons, while for the shorter period the decline was somewhat higher at 803. In Region Scania there are two municipalities which are outstanding concerning employment in freight transport and logistics, namely the two largest cities Malmö and Helsingborg. The municipality of Lund, which is nearly on par with Helsingborg in relation to the number of inhabitants, has only about one fifth of Helsingborg s employment in freight transport and logistics and comes in at number six. Svedala is number three because Malmö Airport is located here. The high ranking of Kristiansand, Ängelholm and Hässleholm on the list can mainly be explained by large road freight sectors, while the two largest cities, Malmö and Helsingborg, naturally have a more diverse freight transport and logistics sector. 4 The same problem with NACE codes which was mentioned in the previous reference also applies to Region Scania. The problem is however less in Region Scania because air transport, where this problem is especially pronounced, has less importance. 21

22 Figure 6. Employment in freight transport and logistics, municipalities in Region Scania 1998, 2007 and 2010 Municipalities % % Malmö Helsingborg Svedala Kristianstad Ängelholm Lund Hässleholm Trelleborg Ystad Klippan Source: Statistics Sweden, special extracts In the map given in Figure 7, we can see the employment in freight transport and logistics in Region Scania. The map shows that we cannot identify the same form of geographical concentration of the employment in freight transport and logistics as we observed on Zealand, except for Malmö and Helsingborg. Looking at the development of employment in freight transport and logistics in Region Scania, we see that from almost half of the municipalities have experienced growth in freight transport and logistics employment, which is in contrast to Zealand. This equates to 16 out of the 33 municipalities. However, during the same period Malmö experienced stagnant growth. Among the leading ten municipalities of employment in freight transport and logistics, four experienced growth, with Ängelholm and Ystad experiencing the highest growth. If we look at the last four years ( ), the number of municipalities experiencing growth has been markedly reduced. Only eight of the 33 municipalities had growth in employment in this period, and among the municipalities with the largest employment in freight transport and logistics only Helsingborg showed growth with an increase of 10.4%. 22

23 Figure 7. Employment in the freight transport and logistics sector in Region Scania divided into municipalities in THE NUMBER OF LOCAL UNITS IN THE FREIGHT TRANSPORT AND LOGISTICS SECTOR IN REGION SCANIA If we look at the number of local units within freight transport and logistics, the following picture emerges (Figure 8). 23

24 Figure 8. The number of local units in freight transport and logistics in Region Scania ( ) Growth % Number of local units Source: Statistics Sweden, special extracts In contrast to the island of Zealand, where we saw a rather sharp decline in the number of local units, the development of the number of local units has increased by 8.9% in the period Noteworthy is the increase of local units during the crisis years 2008 and The economic crisis has, thus, had a much less effect on the number of local units in the freight transport and logistics sector in Region Scania than on the island of Zealand. If we look at the development of local units in freight transport and logistics at the municipal level, we find that the following municipalities presented in Figure 9. have the largest number of local units within freight transport and logistics. Figure 9. Municipalities with most local units in freight transport and logistics in Region Scania ( ). Municipalities Growth % Malmö Helsingborg Kristianstad Hässleholm Lund Trelleborg Ängelholm Eslöv Ystad Vellinge Hörby Source: Statistics Sweden, special extracts 24

25 When we compare the development of local units with the development of employment in freight transport and logistics, we find that the same municipalities are at the top of the list, except for Svedala, which was number three in employment but does not figure in the list concerning local units. Of course, this result is natural, considering that the large employment in Svedala is primarily due to the location of Malmö Airport. Instead, Hässleholm has a strong position as number four. In addition, it is worth noticing that, in contrast to the island of Zealand, all the municipalities with the highest employment in freight transport and logistics have had a positive growth rate in the number of local units in the period The analysis of employment and local units at the municipal level confirms the status of Malmö, Helsingborg and Kristianstad as agglomeration centres in the freight transport and logistics sector. 1.5 THE DEVELOPMENT OF EMPLOYMENT IN FREIGHT TRANSPORT AND LOGISTICS IN THE GERMAN PART OF THE STRING REGION In the first section we noted that there had been a slight growth in employment in freight transport and logistics in Hamburg, while employment in Schleswig-Holstein has been rather stable. When we look at the development of the employment in freight transport and logistics in the German part of the STRING region, we can divide the development of employment into kreise where Hamburg is both a kreise and a Bundesland. 5 Figure 10 outlines the development of employment in the kresie of Schleswig- Holsteinand Hamburg during the period Naturally, the global HUB Hamburg is listed at the top with 60,474 employed. Lübeck is another city where the port dominates the freight transport, and it comes in at number 2, with 5,565 employed; followed next by the neighbouring kreise Stormarn with 3,203 employed. Landhauptstadt Kiel and kreise Rendsburg-Eckenförde along the Kiel canal are also kreise with large employment in freight transport and logistics. If we look at the development of employment in the period , we can see that the majority of the kreise has experienced negative growth, which is 10 out of sixteen. Flensburg Stadt und Nordfriesland have been the worst off with a decline of 23.8% and 14.9% respectively, while Neumünster Stadt and Stormarn have experienced the strongest growth with 7.8% and 7.4% respectively. 5 On kreise level it has not been possible to use the same source, Statistikamt Nord, as in figure 1.1 because these statistics are not available at kreise level. The statistics on kreise level are therefore based on employment statistics from Bundesagentur für Arbeit. These statistics are based on surveys sent out four times a year to the firms and only include employees who are socially secured. Because the target population is very small it is not possible to get employment statistics at the industry level. Statistics on four digit level and over are not allowed to be published. 25

26 Figure 10. Employment in freight transport and logistics in the German part of the STRING region, divided into kreise ( ) Kreise Growth % Hamburg Lübeck, Hansestadt Stormarn Kiel, Landeshauptstadt Rendsburg-Eckenförde Segeberg Pinneberg Schleswig-Flensburg Neumünster, Stadt Dithmarschen Herzogtum Lauenburg Flensburg, Stadt Ostholstein Nordfriesland Steinburg Plön Source: Bundesagentur für Arbeit, special extracts However, we can also look at the number of firms in the German part of the STRING region divided into kreise, which are listed in Figure 11. Once again, Hamburg is listed at the top with 2,523 firms. The kreise that follow are pretty close to each other with Segeberg at number 2 with 241 and Lübeck at number 3 with 231. Interestingly, Segeberg was only number six in employment which indicates that there are more small firms in this kreise. 26

27 Figure 10a. Employment in freight transport and logistics in the German part of the STRING region, divided into Kreise in

28 Figure 11. Kreise with most firms in freight transport and logistics in Kreise Number of firms Hamburg 2523 Segeberg 241 Lübeck, Hansestadt 232 Pinneberg 218 Stormarn 217 Rendsburg-Eckenförde 194 Schleswig-Flensburg 183 Herzogtum-Lauenburg 173 Source: Bundesagentur für Arbeit, special extracts 1.6 THE STRUCTURE OF THE FREIGHT TRANSPORT AND LOGISTICS SECTOR IN THE STRING REGION To analyze the geographical agglomeration, we have looked at the freight transport and logistics sector as a whole. To get a better picture of how the transport and logistics structure differ in the five regions of the STRING region we will divide the employment in the sector into its subsectors, which are given in Figure 12 below. From Figure 12. above we can see that there is clear differences in the freight transport and logistics structure between the different regions in the STRING region and thereby also in the competence structure of the different regions. To understand the figure above it is important to notice that road, maritime, rail and air freight only concern the direct operations and do not include related or support activities like cargo handling, harbours and airports. These other activities are categorized as support activities. This means that the number of people employed in the statistics from Bundesagentur für Arbeit is fewer than that from Statistikamt Nord. For Schleswig-Holstein this implies that the number of people employed in 2010 was ca. 16,000 fewer in the statistics from Bundesagentur für Arbeit compared to Statistikamt Nord and for Hamburg it was ca. 12,000 fewer. When the same method is used on all kreises it will be possible to make a comparison of the development of employment between the kreise, although it is not possible to compare it with the development in Zealand and Region Scania.When the same method is used on all kreises it will be possible to make a comparison of the development of employment between the kreise, although it is not possible to compare it with the development in Zealand and Region Scania. 6 Because of the specific method used, as shown in the reference above, the statistics in the figure cannot be compared with those for the Island of Zealand and Region Scania. It is not possible to obtain statistics for local units from the German part of the STRING region. 28

29 Of particular interest here is the strong position of maritime freight and transportation support activities in Hamburg, and in particular the subsector of transportation support activities, namely freight forwarding and organization of group consignments by sea. This strong position is, however, not surprising considering Hamburg s position as a north European global maritime Hub. The share of the maritime sector in the employment in freight transport and logistics was 19% in Hamburg, which is by far the largest in the STRING region. Also the Capital Region has a relatively strong position in the maritime sector compared to Region Zealand and Region Scania. Figure 12. The employment in the freight transport and logistics sector divided into subsectors in the five STRING regions (2010) Capital Region Region Zealand Region Scania Hamburg Schleswig Holstein Road freight Maritime freight Air freight Railway freight Post [A]Transportation support activities including warehousing and storage [subsector of A] Freight forwarding and organisation of group consignments by sea NA Total Source: Statistics Denmark, Statistics Sweden and Statistikamt Nord, special extracts. Another clear difference in the STRING region s transport structure is the strong position of road freight, in particular in Region Zealand and Region Scania. In the former, the share of road freight in total employment in transport and logistics was 57.2%, while in the latter it amounted to 42.1%. The strong domination of freight by road in Region Zealand compared to the Capital Region is also natural considering the more differentiated industrial structure in a capital region and the location of an airport and harbour there. Moreover, the strong position of the post sector in Schleswig Holstein is particularly noteworthy. Based on the data in Figure 12, we can conclude that there 29

30 are marked differences in the transport and logistics structure and thereby in competencies between the five regions in the STRING region with point of departure in employment. In the following sections we will discuss in more detail the development of the freight transport and logistics sector in the Øresund Region, by analyzing the structure in the two different regions that constitute the Øresund Region and thereby identify the types of competencies which are most dominant in the two parts THE EMPLOYMENT IN THE FREIGHT TRANSPORT AND LOGISTICS SECTOR IN THE ØRESUND REGION Figure 13. Total employment in freight transport and logistics in the Øresund Region Source: Statistics Denmark and Statistics Sweden, special extracts We have chosen to begin with presenting the development of the freight transport and logistics sector for the whole Øresund Region, which comprises of the two regions, namely the Island of Zealand and Region Scania. The reason for this is that a key point on the political agenda for both sides of the sound has been a focus on cross-border integration for establishing a cross-border region that can be strong enough to compete with other regions in Europe. Therefore, a discussion on this point can be of in- 30

31 terest in order to establish how strong such an Øresund Region can be when we focus on the freight transport and logistics sector. If we look at the development of employment in freight transport and logistics for the whole Øresund Region, we find a sharp decline in employment both in the long term from 1998 and during the last few years ( ), which is outlined in Figure 13 below. Figure 14. The share of employment in freight transport and logistics in the Øresund Region divided between the Island of Zealand and Region Scania 2010 (in percentage) Source: Statistics Denmark and Statistics Sweden, special extracts Figure 13 shows a decline in employment in the freight transport and logistics sector in the Øresund Region for the period amounting to 30.3%.7 For the period , the decline was 13.7%. This indicates that the downturn in employment cannot solely be ascribed to the economic crisis starting in From Figure 14 above we can see that within the Øresund Region, the Island of Zealand accounts for nearly two-thirds of the total employment within freight transport and logistics. However, this share has been declining during the period from 1998, when the share was 74.3% 7 The statistics for 1998 and 2004 are based on NACE Rev 1.1. and the report Povl. A. Hansen and Göran Serin: The development of freight transport in the Øresund Region (Godtransportsektoren udvikling i Öresundsregionen) (2006) while the statistics for the other years are based on NACE Rev. 2 The NACE codes for the industries constituting the freight transport and logistics sector are not fully comparable; therefore, a trend line has been made between the two studies. 31

32 1.8. THE STRUCTURE EMPLOYMENT IN THE FREIGHT TRANSPORT AND LOGISTICS SECTOR ON THE ISLAND OF ZEALAND The sharp decline in employment in the freight transport and logistics sector in the Øresund Region during the period can almost be explained fully by the decrease in employment on the Danish side of the sound. For the Island of Zealand as a whole there was a decrease in employment amounting to a decline of 39.9% in the period For the shorter period , the decline was 18.6% and for the period , 18.5%. The main reason for this development has been the change in the industrial structure which can be expressed in a deindustrialisation on the Island of Zealand and especially in the Capital Region, which in turn means a sharp decline in business to business transport. This means, for example, that employment which vanished during the economic down-turn, will, during the expected upturn of the economy, take place outside of the region in line with increasing globalisation. In Figure 15 we present the development of the freight transport and logistics structure in the two regions on the Island of Zealand, namely the Capital Region and Region Zealand. What is most striking from Figure 15 is that the freight transport and logistics sector are much more differentiated in the Capital Region than in Region Zealand, where the latter region is very much dependent on freight transport by road which accounts for 57.2% of employment in 2010, while freight transport by road only accounts for 17.8% in the Capital Region. On the other hand, support activities for transport are much stronger in the Capital Region, with particular focus on the subsector of support activities, freight forwarding and organisation of group consignment by sea. This subsector, in particular, can be seen as production of more advanced services. Support activities accounted for 35.5% of the employment in the freight transport and logistics sector in the Capital Region in 2010, while they only accounted for 18.4% in Region Zealand. The numbers for freight forwarding and group consignment by sea was 14.2% in the Capital Region and 7.3% in Region Zealand. This is an indication of a more upgraded freight transport and logistics structure in the Capital Region compared to Region Zealand, with less manual labour and therefore, the structure requires a greater input of more advanced competencies. However, if we look at the development during the period , some interesting tendencies emerge. 8 The statistics for 1998 and 2004 are based on NACE Rev 1.1. and the report Povl A. Hansen and Göran Serin: The development of freight transport in the Oresund Region (Godsttransportsektorens udvikling i Øresundsregionen) (2006). Here, the same objection can be raised as in footnote 3. 32