Press Releases

It is indeed a great honour to once again address the Annual General Meeting of the Cyprus Shipping Chamber.

This year marks the 30th anniversary since the establishment of the Cyprus Shipping Chamber in 1989 and I feel obliged to praise the fact that the Chamber throughout all these years has remained true to its founding purpose which is:

"……promoting the interests of Cyprus Shipping and furthering the reputation of the Cyprus flag, whilst promoting and protecting the interests of its Members both nationally and internationally…..”.

Therefore, it is no coincidence that the Chamber has proved to be one of the closest and most significant collaborators of the Government in substantially improving our infrastructure, policies and procedures as regards enhancing and strengthening Cyprus shipping.

It is characteristic that today the Chamber’s member-companies located in Cyprus and the wider shipping sector in Cyprus collectively employ around 9.000 persons on shore and more than 55.000 seafarers serving on Cyprus’ flag vessels.

Further, I would also like to express the appreciation of the Government to the Chamber for promoting Maritime Education, either through the first ever maritime career fair organised last year or through various awareness campaigns undertaken.

Shipping is a sector for which Cyprus is proud of and represents an invaluable asset which in recent years has proven catalytic towards the steady recovery of our economy, acting not only as a gateway of foreign investments but also as an export destination for ship management services.

Nonetheless, we are all aware that the Cyprus shipping sector operates in a highly competitive global environment, which in turn requires stability and long-term innovative planning, in order to further evolve and enhance the competitiveness of our flag and maritime cluster.

To this end, please allow me to briefly mention some of the recent steps undertaken by the Government towards this direction:

● Establishing on March 1, 2018 a Shipping Deputy Ministry in order to meet the existing and future challenges arising from regional and international economic and geopolitical developments, through a well-structured and co-ordinated strategic plan. In this regard, I am pleased to note that:

● A new organisational structure has been adopted which will undoubtedly increase the effectiveness, efficiency and decision-making with the Deputy Ministry.

● A new and upgraded promotional strategy has also been adopted with promising potential. It includes a new brand image, a new website with additional electronic functions and various promotional activities.

● The full digitalization of the Shipping Deputy Ministry is already underway, while a reduction of bureaucracy and the ISO certification of the shipping processes and procedures have already been completed.

● The transfer of our shipping administration by 2020 to a new, modern and efficient building that will facilitate the improvement of the productivity of the personnel and reflect the constant evolution of Cyprus Shipping.

● Enhancing our competitive shipping taxation framework by adopting a series of new measures, such as a new system of registration for companies in Cyprus Tonnage Tax System, introducing the Non-Domicile concept and offering tax exemption on income tax to foreign personnel.

And taking this opportunity, I wish to assure that we will continue examining ways of introducing further tax and other incentives, within the framework of the European Union regulations, so as to ensure that Cyprus remains at the edge of the competition as a shipping centre.

At the same time, there is a continuous diversification and enrichment of our shipping cluster with new growth-related activities, such as maritime training academies, ship financing, P & I Clubs (Protection and Indemnity Insurance), bunkering activities and new marine technology companies.

Cyprus constitutes one of the most modern, qualitative and complete international shipping centres, having the eleventh largest shipping fleet in the world and the third largest in Europe, while it also represents the largest third-party ship-management centre in Europe.

And I am pleased to assess that the excellent infrastructure of our country, the accumulated shipping expertise, our strategic location and above all our determination to take necessary organizational, structural and tax reforms already analysed, indicate a promising future, as evident by the following:

• Based on the latest survey of the Central Bank, the revenues from ship-management companies in 2018 reached €1.034 billion, compared to €948 million in 2017, recording an increase of 9%, with the overall GDP contribution of the shipping sector in Cyprus remaining at 7%.
• In 2018, 69 new ships registered in the Cyprus Registry, while the companies using Cyprus tonnage system increased by 28.
• Further, a number of well-renowned multinational shipping companies have transferred their headquarters to Cyprus.

In parallel, the discovery of significant quantities of hydrocarbons not only in Cyprus but in the wider Eastern Mediterranean region creates new prospects and opportunities for our shipping industry in establishing synergies with the energy sector and relevant auxiliary services.

At the same time, I feel obliged to stress and commend the fact that the ongoing and steady growth of the Cyprus shipping industry continues unhindered, despite the ongoing illegal restrictive measures imposed by Turkey on Cyprus ships calling Turkish ports.

Our efforts towards lifting these anachronistic and unlawful restrictions will be further intensified, as they constitute a sheer violation of international law.

We are committed to further exploiting the positive momentum in the shipping sector and enhancing the competitiveness of our flag and our shipping industry in general, always in close collaboration with the private sector and, of course, the Cyprus Shipping Chamber.

This is all the more applicable if one takes into account that the new foundations of Cyprus’s success story in shipping are based on the hard work and the excellent co-operation developed throughout these years between the public and private sectors of the industry. 

In concluding, please allow me to warmly thank the distinguished delegates of the international maritime and shipping industry for their presence today, which, yet again, validates their ongoing trust and support to Cyprus and its shipping industry.

I would like to assure you that my Government and I stand ready to facilitate and actively support investment initiatives that contribute towards sustainable economic growth.

Last, but not least, I would like to once more express my sincere appreciation to the Cyprus Shipping Chamber for its direct and active participation in the shipping affairs of Cyprus, and the expertise and professionalism which has always characterised its views and proposals.

I wish to all every success in your deliberations and a successful conclusion of the 30th Annual General Meeting. Please allow me to make a particular mention to the Chamber’s President, Mr Themis Papadopoulos, who I understand is completing his presidency term today, and I, therefore, wish to thank him for the excellent cooperation we have enjoyed the last four years.

I am confident that - as the most important components of our efforts to further advance Cyprus’ position in the international shipping arena - you will identify a number of new joint entrepreneurial and business initiatives, as well as new areas for future co-operation.  

(RM/MG)