Press Releases

Ladies and gentlemen, good morning.

It gives me great pleasure to be here today at the International Business Day, celebrating the 30-year anniversary of the Cyprus International Business Association. It is indeed a privilege to address esteemed members of the international business community present here today.

Initiatives, such as this one, are extremely important and supported by the Government of Cyprus as they enhance the position of Cyprus as an important business hub and showcase the abundant opportunities towards economic growth, innovation and sustainable development.

Shipping is a sector which is of great pride to the Government of the Republic of Cyprus.

As shipping is a global industry, it is more vulnerable to geopolitical developments and challenges. The previous year was no exception as we witnessed a series of unprecedented and unpredictable events, which has put global shipping under extreme pressure. It is likely that some of these challenges may persist or evolve in 2024 and it appears that this year will be yet another turbulent year.

Starting in early 2022, the war in the Ukraine impacted shipping and seaborne trade. In recent months, international shipping has been faced with new challenges as a result of attacks by Houthi against ships crossing the Red Sea and more recently, the unrest in Israel. These attacks prompted the Shipping Deputy Ministry to immediately adopt specific security measures for the protection of Cyprus ships and notify accordingly the shipping community.

The maritime sector is an integral part of Cyprus' identity, reflecting our historical ties and economic strength. With one of the largest fleets, Cyprus contributes significantly to the global shipping landscape, playing a pivotal role in world trade and economic prosperity. Through proactive engagement in crucial decision-making processes that directly shape maritime affairs, Cyprus not only solidifies its status as a modern, efficient and integrated maritime cluster, but also demonstrates an unwavering commitment to global maritime governance.

Over the past year, the Shipping Deputy Ministry has spearheaded numerous strategic initiatives, demonstrating the unwavering commitment to excellence and innovation of the Government.

The continuous upgrading and strengthening of the services provided by the Shipping Deputy Ministry is undoubtedly one of the main priorities that have been set from the beginning, when the Government of Nikos Christodoulides took over. We are very pleased with the positive and very promising results, following the actions and initiatives that have been taken the last year.

Allow me to refer to some very important achievements. An increase of 5.5% has been achieved during the last six months in the fleet of Cyprus flagged seagoing vessels after its two-year decline. The number of companies registered in the Cyprus Tonnage Tax System have been increased by 14%, reaching 420 in number.

The Advisory Committee on Competitiveness and Quality Enhancement of the Cyprus Flag and the Advisory Committee on Competitiveness of the Cyprus Maritime Cluster have been established with the aim of continuously improving and enhancing the competitiveness of the Cyprus flag and Cyprus shipping.

The One Stop Shipping Centre commenced its operations in November, which aims to provide quality service to all shipping companies as well as companies whose activities are related to shipping and are based in Cyprus. Cyprus has been re-elected in the Council of the International Maritime Organisation, demonstrating the strong voice of Cyprus’ shipping in the international fora.

Following a decision of the Council of Ministers to allot government land for the construction of the new premises of the Shipping Deputy Ministry, all the necessary actions have been initiated for this very important project.

The Council of Ministers has approved a revised set of green incentives to reward ships that demonstrate effective greenhouse gas emission reductions. From January 2024, the annual tonnage tax for ships registered in the Register of Cyprus Ships will be reduced by up to 30% for each ship that demonstrates effective greenhouse gas emissions reduction measures, ensuring that shipowners are rewarded for their efforts for decarbonisation of the shipping sector.

The upgrading and targeted evolution of the "Maritime Cyprus 2023" conference, organised last October, resulted in a record high attendance, with over 1000 participants from 35 countries, establishing it as one of the best and most high-quality maritime conferences worldwide. “Maritime Cyprus 2025” will be organised in Limassol (Lemesos) between 5 - 8 October.

I would like at this point to particularly refer to the promotion of gender equality, an issue that this Government attaches great importance. Cyprus is a strong supporter of gender equality, diversity and inclusion in general, and not just within the maritime sector. We take pride in promoting women empowerment. We give equal opportunities to all, irrespective of their gender. We are breaking the stereotypes of the “male dominated” maritime sector. I am very pleased to see that in today’s world, women in maritime are gaining grounds.

In Cyprus, you can find women in all ranks and in all positions and roles within the maritime sector. Both ashore and onboard. Employees, managers, CEOs, government officials, crew, officers, captains and of course ministers.

Amongst the many actions we are engaging for promoting gender equality and women empowerment is the establishment of the Gender Equality Award in Cyprus Shipping, which will be bestowed annually to persons, irrespective of their gender, who have made significant contributions to advancing gender equality and women empowerment in the maritime sector.

Dear friends,

We find ourselves at a crucial juncture, witnessing the onset of a transformative era in the shipping industry marked by complex challenges. Fuels and technology, digitalisation and autonomous shipping combined with green financing are the main challenges of the industry that set the key trends for the future of shipping. And all those challenges are interrelated; a fuel needs to be available, cost-effective, compatible with existing and future technology and compliant with current and future environmental requirements. Digital technologies and solutions are being used to increase competitiveness and enhance operational efficiency.

At the same time, they offer major cost savings by improving fleet efficiency to help accelerate the decarbonisation of shipping. All the above cannot be achieved without funding. Green and sustainable financing plays a critical role in facilitating this transition towards a more sustainable future.

Decarbonisation emerges as the most significant challenge and opportunity for our sector. The urgent need to address climate change has placed a spotlight on the maritime industry's carbon footprint.

As a leading advocate for sustainable shipping, we believe that comprehensive and diverse measures are necessary at both global and regional levels to achieve emissions reduction targets and ensure a sustainable future for the industry. This entails the adoption of cleaner fuels, the establishment of relevant fuel infrastructure, the automation of ships, and the utilisation of energy-efficient technologies.

Committed to progress, we are encouraging the adoption of cutting-edge technologies for automation and optimisation to elevate ship management practices. Optimising fleet performance enhances operational efficiency, reduces environmental impact, and reinforces Cyprus' standing as a flag of excellence on the global maritime stage.

Charting the course to a sustainable future is not just a responsibility; it is our legacy to future generations. Preserving this legacy through collaboration, innovation, and adherence to international standards is of paramount importance.

In line with this year's theme as the “National Year of Youth”, we are committed to enhancing maritime education, launching initiatives to attract young talent and bolster the available workforce. This initiative emphasises the importance of empowering the younger generation to contribute to the industry's growth, innovation, and sustainability.

Ladies and gentlemen,

The global shipping industry is on the verge of a transformative era as it faces the urgent necessity to address environmental concerns. In the face of adversity, we must recognise that challenges also bring forth opportunities. We are committed to embracing these challenges and turning them into opportunities for sustainable growth.

We recognise that more can be done. In this context, further objectives have been set and certain actions and initiatives are in progress in order to further enhance the efficiency and the effectiveness of the Shipping Deputy Ministry. In this regard, the full digitalisation of the services provided by the Shipping Deputy Ministry is anticipated to be completed at the end of this year.

Concluding, I wish to reaffirm the firm commitment of this Government to supporting the shipping industry and addressing the pressing issues facing our maritime community.

Congratulations to the Cyprus International Business Association for 30 successful years in Cyprus. Thank you for your dedication and commitment to the advancement of business in Cyprus and I assure you that we will continue to work closely with you and all industry stakeholders, regulatory bodies, and international and European Union partners to develop innovative solutions, foster collaboration, and ensure the long-term sustainability and competitiveness of the Cyprus shipping sector.

(GS/AP)