Press Releases

It is with great pleasure that I warmly welcome you to the Maritime Cyprus 2023 Conference, organised for the 18^th time. Maritime executives and personalities from around the globe have gathered here today with a common purpose: to exchange ideas, and address some of the most pressing shipping challenges of our time. The Conference also provides the opportunity to become more familiar with the strong maritime tradition of Cyprus and its dynamic future.

In fact, this gathering is not just a conference of international recognition; it is a testament to the power of knowledge and collaboration, of the commitment to jointly implement our vision for adapting to the challenges and changes that lie ahead and convert them into opportunities. That is one of the greatest strengths of the Maritime Cyprus Conference, namely the opportunity to collaborate and network. Shipping stakeholders and regulators come together, forge new connections, and engage in meaningful discussions that can lead to lasting collaborations.

Indeed, the need for change and collaboration are reflected in the title of this year’s Conference: “Shipping in Action: An Agenda for Change”.

My presence here underlines the importance that the Government of Cyprus attaches on shipping and the blue economy, as one of the main drivers of economic growth in our country. Shipping is one of the most important pillars of the Cyprus economy and has contributed significantly to the GDP of the country throughout the years. In fact, as the island's history reveals, shipping has been developing in Cyprus since ancient times, and has been continuously evolving to the constant challenges it faces, proving its resilience. We are immensely proud of its remarkable growth.

In particular, the Cyprus Ship Registry has developed over the last 60 years into a sizeable and important Registry, ranking 11th worldwide and 3rd in the EU, with a strong presence at european and international level.

Cyprus is not just a leading Ship Registry, but also a major maritime cluster, with more than 250 shipping companies based or having offices in Cyprus, offering a wide spectrum of shipping related activities, such as ship management, chartering, marine insurance etc. It is further noted that Cyprus is considered the largest ship management center in Europe and one of the biggest in the world.

It goes without saying that the shipping sector thrives in the context of a healthy economy. As such, the recent double upgrade of the Cypriot economy and the return of our country’s credit rating to investment grade by Moody’s rating house after 12 years, is heralding growth also for the shipping sector. The recovery of the investment grade will translate into perspective and opportunities, quality investment and new jobs. The Government has been committed to this path of economic stability and responsibility for the seven months it has been in office, and this is how we will continue to govern, shielding our economy and strengthening its dynamic course.

The stable fiscal and business friendly environment, the expertise and customer-orientated approach of maritime specialists, as well as the excellent cooperation between the private and the public sector, are the driving forces of the Cyprus maritime cluster. This, in conjunction with a unique set of competitive advantages and in particular the Tonnage Tax System, which has been approved once again by the EU, as well as the comparatively low fees and dues, have enabled Cyprus to grow steadily and develop into a world-class maritime centre. It is worth mentioning that, over the last decade, the number of companies benefiting from the Cyprus Tonnage Tax System has quadrupled in size, from 95 to approximately 400 at present.

Our actions and efforts are not restricted to the further development of our Ship Registry and our maritime cluster. They also extend to strengthening our role in the international maritime scene. In this regard, Cyprus actively participates and contributes in the formulation of international and european maritime strategies and policies for the sustainable development of the maritime industry.

Moreover, since 1987, Cyprus has been elected to the Council of the International Maritime Organisation (IMO), with a strong voice and significant involvement in the decision-making process. I am pleased that the Secretary General of the IMO has once again honoured us with his presence, continuing the tradition since the first Maritime Conference held in 1989. I also welcome the newly elected Secretary General, and as we have done in the past, I look forward to continuing the excellent cooperation and exploring new areas of collaboration. Cyprus remains strongly committed to continue contributing to the significant work of the IMO.

As you are all well aware, the shipping sector operates in a constantly evolving environment and is exposed to unpredictable and unforeseen external factors. This, in turn, requires effective response and adaptation, innovative planning, adaptability, and a proactive mindset.

In this regard, following the illegal russian invasion in Ukraine, Cyprus issued Sanctions Information Notices, which address specific issues pertaining to sanctions in the context of shipping, and provide guidance, recommendations and clarifications on the implementation of the EU sanctions.

At the same time, in August, I wrote to the UN Secretary General to underline the importance of Cyprus as one of the biggest flag States, to contribute to the provision of services for the transportation of foodstuffs and fertilisers in the Black Sea Grain Initiative, in the case that the Initiative resumes. It is not acceptable that Cyprus flagged or Cyprus connected ships have effectively been prohibited by Turkey from participating in the Initiative.

Furthermore, in recent years the EU maritime transport industry has been affected by numerous developments, including competitive global pressures, protectionism practices, and national and regional policies, pertaining to sustainability, seaborne trade, and climate change.

At the same time, maritime transport is a complex industry; it involves numerous stakeholders and touches on a number of policy areas. As a result, there is fragmentation of maritime related policies and decision-making processes.

Taking into account the importance, but also the particularities, of the maritime transport industry and its exposure to international competition, I am of the view that maritime transport should be given due attention and a prominent position, especially within the EU. It is, therefore, imperative to adopt a holistic approach and create a long-term, stable and predictable environment, in which the maritime transport industry can formulate its strategic planning.

It is in this context that I recently sent a letter to the President of the European Commission, underlining the importance of enhancing European shipping and the need to address the fragmentation of competencies between the various Commission services dealing with shipping. To this end, and in view of the next Commission to be formulated in 2024, I suggested that all EU maritime transport-related policy areas should fall under a dedicated and centralised organisational structure. This, for example, could be a Vice-President tasked with the coordination of shipping related issues, or a dedicated Commissioner specifically appointed to address the particular needs and challenges of the maritime sector and ensure the development of coordinated and harmonised EU legislation. This would, in turn, ensure a global level-playing field, enhance the EU's maritime transport competitiveness in the global market, and strengthen the environmental and sustainability efforts of the EU.

The green transition is one of the main challenges that the shipping industry is facing, and a major issue that must be urgently dealt with. In recent years, environmental issues have justifiably attracted the attention of the international community, and the need to mitigate climate change has become an immediate necessity. The shipping industry is also called to adopt measures for the reduction of carbon dioxide emissions, the conservation of the environment, and the protection of marine ecosystems.

As Cyprus is an island with a maritime tradition, we believe it is our duty and responsibility to contribute constructively to the transition of shipping to a low or even zero carbon industry, by achieving the green transformation. At the same time, the path should be realistic and feasible.

To this end, Cyprus introduced measures to support the shipping industry to achieve its decarbonisation goals, by providing tonnage tax reductions up to 30% to owners of Cyprus and Community ships that use mechanisms-equipment for the environmental preservation of the marine environment and the reduction of the effects of climate change. At the same time, Cyprus participates actively in the formulation of policies and initiatives aiming to achieve the emissions reduction targets both at EU and IMO level.

Today, more than ever, digitalisation is an integral part of our daily lives, and is becoming increasingly important in all areas of shipping. Cyprus has made significant progress in simplifying its procedures and is working towards reducing bureaucracy and becoming a paperless Maritime Administration. The Shipping Deputy Ministry, following this direction, is in the process of digitalising its internal processes, as well as the services provided to the maritime industry. This will provide a more flexible, effective, efficient and high-quality service that will further increase the attractiveness of the Cyprus Ship Registry and improve our environmental footprint.

Furthermore, the Shipping Deputy Ministry is also establishing a one-stop-shipping centre, in cooperation with the Ministry of Interior, offering services traditionally provided by the Civil Registry and Migration Department, so that the shipping industry can be served from a single point. To this end I am in the very pleasant position to announce that the one-stop-shipping centre will commence its operations on the premises of the Shipping Deputy Ministry, in Lemesos, at the beginning of November.

Additionally, the implementation of the Shipping Limited Liability Company Law will simplify the procedures and expedite the formation and registration of shipping companies owning Cyprus ships at the Shipping Deputy Ministry. This will also improve the competitiveness of the Cyprus flag.

One of the most persisting problems that the shipping industry faces today is the inadequate supply of qualified seafarers. The problem has become even more acute as we observe a continuously declining interest from young people for a seafaring career. Seafarers are shipping’s most valuable asset. Unless there is an increased effort to encourage, train and educate seafarers, the shipping industry will suffer the consequences, namely reduced quality of services, poor safety levels and increased environmental pollution.

Therefore, the Government, the Shipping Deputy Minister has put forward an action plan in strengthening the collaboration between the educational sector and the employment sector, as it is a crucial aspect towards improving the skills of the maritime workforce. Furthermore, campaigns to familiarise the wider public with the advantages of shipping, and to expand their overall awareness of the very positive and vital role of the shipping industry, are a priority for the Republic of Cyprus.

In this respect, Cyprus has introduced a number of initiatives aiming to inform, inspire and attract the younger generation to pursue careers in maritime professions, and the Maritime Administration has recently concluded a number of Memoranda of Cooperation with marine and maritime academies as well as with universities here in Cyprus offering shipping related programmes, in an effort to align educational programmes with the needs and demands of the industry.

At the same time, shipping has historically been male-dominated. Cyprus actively promotes diversity and gender equality within the maritime industry. The formulation of an action plan on gender equality in the maritime sector is a first step, and includes the mapping of the needs of women in shipping. Moreover, Cyprus supports and promotes the United Nations Sustainable Development Goal in respect to gender equality and diversity, through the celebration of the “IMO International Day for Women in Maritime”.To underline the significance we attach to this issue, I am pleased to announce that Cyprus has nominated a Cypriot, Mrs Despina Theodosiou, for the IMO Gender Equality Award.

In concluding, I would like to reiterate the Government’s commitment to the growth of the shipping sector through a holistic approach that transforms challenges into opportunities, that encourages investment in new technologies, and that makes maritime transport more sustainable, efficient and resilient.

I welcome you once again to Maritime Cyprus and wish you a very fruitful and productive Conference.

(RM/AP/SCH)