DATE: Friday, June 27, 1997                 TAG: 9706270702

SECTION: BUSINESS                PAGE: D1   EDITION: FINAL 

SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER 

                                            LENGTH:   59 lines

SHIPPING COMPANY TO MOVE HEADQUARTERS TO NORFOLK FROM N.J., BRINGING 25 JOBS

Maersk Line Ltd. is in the process of moving its headquarters to Norfolk from New Jersey, bringing 25 jobs.

The economic development was announced by Gov. George F. Allen's office and confirmed by the head of a locally based Maersk Line subsidiary.

The move adds to Maersk's growing presence in Hampton Roads and Virginia. The announcement follows the recent initiation of Maersk Line's new commercial shipping service through Norfolk using U.S.-flag containerships.

That service to the Mediterranean Sea region is expected to generate about 135,000 tons of cargo a year for the port of Hampton Roads, which according to economic formulas will help create 73 new jobs, the governor's office said.

Maersk Line is the U.S.-flag subsidiary of Maersk Inc., which means it operates U.S.-flag ships with U.S. crews. Madison, N.J.-based Maersk Inc. is the American arm of A.P. Moller Group, one of the world's largest shipping concerns. A.P. Moller is based in Denmark.

``We are excited about the relocation of Maersk Line Ltd. to Norfolk Commerce Park,'' said Mayor Paul D. Fraim, in a preparedstatement. ``We're particularly pleased because it meets with the city's strategy to attract more maritime-related businesses.''

Allen made the announcement after meeting with A.P. Moller officials during his ongoing trade trip to northern Europe.

Maersk Line operates 12 U.S.-flag ships, including four containerships in commercial service, three vessels chartered to the Defense Department and five roll-on/roll-off cargo ships for the Marine Corps' Maritime Prepositioned Force.

A unit already based in Norfolk, U.S. Marine Management Inc., operates 10 surveillance ships for the Military Sealift Command.

The plan is to merge U.S. Marine Management with Maersk Line in the relocation, though the merger is not a done deal yet, said Bradford Sauer, president of U.S. Marine Management, which has offices in Norfolk Commerce Park.

Maersk Line is moving here and merging with U.S. Marine Management because ``there are a lot of similarities between much of the operations of the two companies and it makes economic sense,'' Sauer said.

Hampton Roads has a good labor market, a lower cost of living and is a nice place to live, said Sauer, who's been here since the 1980s.

By combining the two companies, Maersk will be able to eliminate some redundancies between them, Sauer said.

About 25 new jobs will come here either in the form of transfers from New Jersey or new hires, Sauer said. That will push Maersk Line's local employment to nearly 60 people, he said.

Maersk Line recently awarded a ship repair contract to Newport News Shipbuilding for maintenance on the five pre-positioned cargo ships.

Maersk Inc. also operates a sales office in downtown Norfolk and has local trucking and stevedoring operations in Hampton Roads. ILLUSTRATION: THE COMPANY

Maersk Line Ltd. is the U.S.-flag subsidiary of Maersk Inc., which

means it operates U.S.-flag ships with U.S. crews. Maersk Inc. is

the American arm of A.P. Moller Group, one of the world's largest

shipping concerns. A.P. Moller is based in Denmark.

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