Gold Magazine Issue 54 by INBusiness

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ISSUE 54 september 14 october 13, 2015 PRICE €4.95

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Gold ISSUE 54 | september 14 - october 13,

presents

2015 | SHIPPING: the invisible industry

The Invisible

Industry Shipping in Cyprus and the World

We support you to create the value you are looking for by providing specialised solutions based on quality. Together we build relationships based on trust and we say things as they are, to assist you to deal with issues that tomorrow will prove important. We adapt our expertise and the power of our global network to your specific needs helping you make the difference.

Interviews with: KOJI SEKIMIZU PETER HINCHLIFFE PETER SAND ANDREAS CHRYSOSTOMOU THEMIS PAPADOPOULOS george mouskas

MARIOS ARGYRIDES 5 2 912 95 0 005 77

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Gold

www.pwc.com.cy

BAT Cyprus Changing With the Times

LORD LAMONT OF LERWICK Austerity & the Intrusive EU

LUNCH WITH GOLD

Former EU Commissioner Androulla Vassiliou

WHAT’S ON

Theatre, Film, Dance, Art, Music & More

One drop is all it takes to start a ripple effect. And in this case it started with EY being commissioned to conduct a study for the Department of Merchant Shipping of the Ministry of Transport, Communications and Works on the future of shipping in Cyprus. EY is proud that our advisors, in conjunction with the Cyprus government, were able to bring these insights to light — insights that, we believe, will lead to better working shipping businesses in Cyprus. For more information, visit us at ey.com/CY/en/Home

One drop is all it takes to start a ripple effect. And in this case it started with EY being commissioned to conduct a study for the Department of Merchant Shipping of the Ministry of Transport, Communications and Works on the future of shipping in Cyprus. EY is proud that our advisors, in conjunction with the Cyprus government, were able to bring these insights to light â&#x20AC;&#x201D; insights that, we believe, will lead to better working shipping businesses in Cyprus. For more information, visit us at ey.com/CY/en/Home

Is the next evolution of big data, big judgment? Find out how EY is helping companies transform the way decisions are made. ey.com/analytics #BetterQuestions

IMH and GOLD

EXTEND A WARM WELCOME TO ALL THE SPEAKERS AND DELEGATES AT MARITIME CYPRUS 2015.

We wish you a successful conference and an enjoyable stay in Cyprus.

GOLD

GOLD D A I LY N E W S L E T T E R

Cyprus is at the forefront of global shipping with a fully functional and innovative department of merchant shipping, an EU approved tonnage tax regime and a committed resident shipping industry. At KPMG Cyprus, our dedicated team of shipping professionals provide support to our clients by drawing on a depth of shipping knowledge and experience, offering tailored solutions to the challenges they face. Our highly qualiﬁed practitioners undergo continuous industry speciﬁc training so as to remain at the forefront of developments within the shipping industry and, together with our global network of shipping specialists, apply this expertise to the services we offer to the maritime sector, which include: • Audit and assurance related services •

International and local tax planning, structuring and restructuring

• Tonnage tax compliance services • Advisory services (corporate ﬁnance, valuations, mergers and acquisitions, restructurings) • ISAE 3402 service reports on ship managers for communicating information to ship owners on the former’s internal controls For more information please contact: Sylvia A. Loizides Board Member, Head of Shipping T: 25 869 138, F: 25 363 842 E: sloizides@kpmg.com Alexandros S. Sofocleous Board Member T: 25 869 223, F: 25 363 842 E: asofocleous@kpmg.com

kpmg.com.cy

©2015 KPMG Limited, a Cyprus limited liability company and member of the KPMG network of independent member ﬁrms afﬁliated with KPMG International Cooperative (”KPMG International”), a Swiss entity. All rights reserved.

We understand shipping

ISSUE 54 SEPTEMBER 14 - OCTOBER 13, 2015

T H E

B U S I N E S S

M A G A Z I N E

O F

C Y P R U S

| COVER STORY |

Th T he IInvisible is iibl ib bl b ble l The Invis nv nvi n sib The he In IInvisibl nv vis isi sible e

INDUSTRY

When the Maritime Foundation, a charity that promotes seafarer matters, asked the residents of the UK port of Southampton how many goods are transported by sea, their answers were varied but

uniformly wrong. The correct answer is “Nearly everything”. Trade carried by sea has grown fourfold since 1970 and is still growing. There are more than one hundred thousand ships at sea carrying all the solids, liquids and gases that we need to live. And yet, despite its size and importance, shipping continues to be something of an “invisible industry”. Here are some facts and figures from the updated version of Oxford Economics’ 2014 study The economic value of the EU shipping industry, • In 2013, the EU shipping industry is estimated to have directly contributed €56 billion to EU GDP and employed 615,000 people. • It is estimated that around 80% of posts, or 501,000 jobs, are based at sea. It is tentatively estimated that around 44% of these seafarers are EU or EEA nationals. • Shipping is a high productivity indus-

22 | GOLD | The Business Magazine of Cyprus

REGARDING CYPRUS:

• About 1,800 ships are registered with 22 million gross tons (out of which, the ocean-going ships under the Registry are just under 1,000 Ships). • It is the 10th largest merchant fleet in the world and the 3rd largest in the European Union. • It is the 2nd largest ship management centre in the world • It is the largest 3rd Party Ship Management Centre in the EU Despite these impressive statistics, the shipping industry continues to maintain a low profile, although according to Andreas Chrysostomou, Acting Director of the Department of Merchant Shipping, it is not something that Cyprus shipping aspires to: “If people are not told about something, they won’t know about it. Everyone involved needs to communicate better.” One of the most important platforms for such communication is the biennial Maritime Cyprus conference, which brings together some of the most important figures in the global shipping industry and has gained a worldwide reputation as one of the key events in the international maritime calendar,

By John Vickers

n 2013, Rose George wrote a book called Ninety Percent of Everything. The meaning was explained in the book’s subtitle: “Inside shipping, the invisible industry that puts clothes on your back, gas in your car, and food on your plate”.

CONTENTS

try: each worker is estimated to have generated €85,000 of GDP, significantly above the EU average of €53,000. • The shipping industry indirectly supported an estimated €61 billion contribution to GDP and 1.1 million jobs through its European supply chain in 2013. • The spending of wages by those employed in the shipping industry and itsn supply chain supported an estimated €30 billion of GDP and jobs for 516,000 people. • Taking the together (direct, indirect and induced), the total GDP contribution of the European shipping industry in 2013 is estimated to have been €147 billion. • For every €1 million the European shipping industry contributes to GDP itself, it creates another €1.6 million elsewhere in the European economy. • The industry also supports employment for an estimated 2.2 million people.

COVER

bringing hundreds of shipping executives, ship owners, managers, and delegates from international shipping organisations to the island. The main theme of the Maritime Cyprus 2015 Conference, is Shipping: Game Change. As the title suggests, it will focused on crucial issues of concern to the international shipping industry. These include policy and regulatory matters and forthcoming changes to the international shipping scene, economic and environmental matters and their interaction with technology, geopolitical and energy developments and forecasting for the recovery of the economy and for the freight markets. The conference will be officially opened by President Nicos Anastasiades, while speakers include Koji Sekimizu, outgoing Secretary-General of the International Maritime Organization, Thomas Rehder, President of the European Community Shipowners’ Associations (ECSA), Peter Hinchliffe, Secretary-General of the International Chamber of Shipping, and Peter Sand, Chief Shipping Analyst at BIMCO. On the following pages, you can read exclusive interviews with them, as

STORY

well as with Andreas Chrysostomou, Acting Director of the Department of Merchant Shipping, and Themis Papadopoulos, President of the Cyprus Shipping Chamber. The main aim of the biennial Maritime Cyprus conference is to provide a forum where important and current issues relating to international shipping are presented by distinguished speakers and subsequently discussed by the international shipping community, thereby helping to formulate sound and well-balanced decisions and policies on crucial shipping issues. Maritime Cyprus also enables the participants to become more familiar with the strong maritime tradition of Cyprus and its people. The island’s shipping infrastructure constitutes an invaluable asset not only to the country but to Europe and the broader international shipping community. Moreover, for three days in September, the eyes of the shipping world are focused on Cyprus, helping it raise its global profile and remove the ‘invisible’ tag that continues to be attached to an industry that contributes an estimated 7% to the country’s GDP.

www.goldnews.com.cy | GOLD | 23

8 | EDITORIAL 10 | BUSINESS BRIEFING

Economic & Business Highlights of the past month

14 | MY WAY

Dionisis Pirivolisianos’ management style

16 | FIVE MINUTES WITH… Alexandros Tsirides

18 | THEY SAID WHAT?

A selection of memorable recent quotes

OPINION 23 | Naming and Shaming

35 | The Invisible

Industry Shipping in Cyprus and the World. Interviews with key speakers at Maritime Cyprus 2015

By Andreas Neocleous

34 | All About China

By George Theocharides

106 | Sights for Sore Eyes

By George Mouskides

109 | Who Will Reform Greece? By George Mountis FEATURES 20 | Austerity and the ‘Instrusive’ European Union Interview with Lord Lamont of Lerwick

24 | Cyprus as an Investment Funds Hub

Angelos Gregoriades on the upcoming CIFA Conference

26 | Going Green…

An overall evaluation of the BIOforLIFE action plan

28 | Increasing Sales Through Social Media

How the hotel industry can take advantage of new marketing opportunities

30 | Making Movies

Behind the scenes of Behind the Mirror

100 | Changing with the Times

Marios Argyrides, Head of Finance at BAT Cyprus

104 | Mediation in Cyprus The advantages of mediation and the trends in Cyprus

SPECIAL PROMOTIONAL FEATURE Shipping in Cyprus

51 |

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6 | GOLD | The Business Magazine of Cyprus

108 | Turning Good Leaders into Great Leaders The IN Business Executive Leadership Programme 112 | Ten Years On The world is becoming a more dangerous place

116 | Dream it. Build it. Live it. ;OL ÄUHSZ VM 4PJYVZVM[»Z Imagine Cup

120 | BOOKSHELF Five of the best new business titles

122 | IN GOOD COMPANY 6W[PTPZPUN Z[HɈ ZH[PZMHJ[PVU H[ 0UMV:JYLLU 124 | LUNCH WITH GOLD Androulla Vassiliou, former First Lady and ex-European Commissioner 127 | BUSINESS CLASS George Petrakides, Microsoft Country Manager, Cyprus and Malta

128 | WHAT’S ON Gold’s guide to the best cultural events 130 | A DAY IN THE LIFE Demetris Taxitaris

BUSINESS BRIEFING IN THE NEWS

CYPRUS PROBLEM

RESUMED TALKS CREATE MOMENTUM

HMS Ambush in Limassol

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MY ECONO

ELECTRICITY INTEGRATION ON SCHEDULE

BRITISH CHEESEMAKERS

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BATTLE

â&#x20AC;&#x2DC;LEADING BY EXAMPLEâ&#x20AC;&#x2122; INTERNSHIP PROGRAMME

Cyprusâ&#x20AC;&#x2122; Sovereign Outlook â&#x20AC;&#x2DC;Positiveâ&#x20AC;&#x2122;

apital Intelligence (CI), the international credit rating agency, announced on August 28, that it has affirmed Cyprusâ&#x20AC;&#x2122; Long-Term and Short-Term Foreign Currency Sovereign Ratings at â&#x20AC;&#x2DC;Bâ&#x20AC;&#x2122;. The Outlook for the ratings was revised to â&#x20AC;&#x2DC;Positiveâ&#x20AC;&#x2122; from â&#x20AC;&#x2DC;Stableâ&#x20AC;&#x2122;. The revision of the Outlook reflects the countryâ&#x20AC;&#x2122;s better-than-expected economic performance; the Governmentâ&#x20AC;&#x2122;s commitment to reforms, which is paving the way for Cyprus to exit the international rescue programme in March 2016; renewed â&#x20AC;&#x201C; albeit limited â&#x20AC;&#x201C; access to the international capital markets, enabling the government to lower its refinancing risks; and manageable short-term financing risks in view of the support of the economic programme agreed with and fully backed by the eurozone member states through the European Stability Mechanism (ESM) and the International Monetary Fund (IMF).

10 | GOLD | The Business Magazine of Cyprus

JOIN HALLOUMI Several British cheesemakers have expressed their opposition to the EUâ&#x20AC;&#x2122;s move to grant protected designation of origin (PDO) status to halloumi cheese, meaning that it can only be produced in Cyprus. In July, during his visit to Cyprus, European Commission President Jean-Claude Juncker noted that â&#x20AC;&#x153;Halloumi/Hellim cheese symbolises the shared heritage of the island of Cyprus. It is a tradition which has linked the communities living here for centuries.â&#x20AC;?

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BANKING ACQUISITION

BARING PRIVATE EQUITY ASIA ACQUIRES ORANGEFIELD

aring Private Equity Asia has announced that its affiliated funds have entered into an agreement with AAC Capital Partners to acquire Orangefield Group, the global fund administration and corporate services firm. The acquisition will be Baring Asia’s second investment into the corporate and trust services (CTS) industry and follows the execution in May 2015 of the agreement to acquire Vistra Group. The parties have agreed not to disclose the financial terms of the transaction, which is subject to regulatory approvals and other customary closing conditions. Orangefield Group is a global full service provider of administrative, fund, corporate and management services with a strong focus of working for funds and multinational companies. The company’s 34 full service offices provide support in 45 countries around the world, including Cyprus.

HELLENIC BANK RECORDS €500,000 PROFIT Hellenic Bank realised a net profit of €500,000 during the first six months of 2015, compared to a loss of €95 million for the same period in 2014. CEO Bert Pijls noted that the result “demonstrates the progress we have made in managing our NPLs as well as in providing new lending to viable Cypriot households and businesses. The recent economic developments in Cyprus have been encouraging. Hellenic Bank remains a strong bank ready to serve the needs of the recovering Cypriot economy.”

THE MARSHALL ISLANDS REGISTRY service and quality are within your reach

€60 MILLION PROFIT FOR BANK OF CYPRUS Bank of Cyprus announced a €60 million profit after tax for the first half of 2015. The profit for the second quarter of 2015 was €31 million, compared to €29 million for the first quarter of 2015. CEO John Hourican stated: “The Bank’s strengthened capital position and overall improvement in its financial position enhance its funding options and will facilitate access to the capital markets for wholesale funding, subject to market conditions and investor appetite, allowing the Bank to further normalise its funding structure”.

LIMASSOL

35 BIDDERS SELECTED FOR LI-

MASSOL PORT COMMERCIALISATION

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International Registries, Inc. MR EJ½PMEXMSR [MXL XLI 1EVWLEPP -WPERHW 1EVMXMQI 'SVTSVEXI %HQMRMWXVEXSVW

tel: +30 210 4293 223 piraeus@register-iri.com

www.goldnews.com.cy | GOLD | 11

www.register-iri.com

BUSINESS BRIEFING

LEISURE & TOURISM

Cyprus tops 5-star hotels list

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Best value-for-money eurozone holiday destination

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OIL

Transfer of Oil Reserves MYVT 3HYUHJH 9LÃ&#x201E;ULY` Completed

he Ministry of Energy and Commerce recently announced that the transfer of oil reserves from Larnaca to the Vasilikos Energy Centre was completed on August 14. The Government had decided to move the reserves from Larnaca, in July 2014, in response to a long-standing demand by the townâ&#x20AC;&#x2122;s residents. In addition to the strategic reserves, private companies will have to move their liquid gas and liquid fuel facilities out of Larnaca by the beginning of 2017. For the final movement of all oil and gas reserves from Larnaca, the Ministry of Energy has already offered private companies a chance to lease land at the Vasilikos Energy Centre on which to build their own storage facilities.

12 | GOLD | The Business Magazine of Cyprus

WHATâ&#x20AC;&#x2122;S NEW

Quality Award for Coral Beach Hotel

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TRA & HOTVEEL LS

Emirates express lane at Larnaca Airport

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NEW NAME

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NEW BUILDING

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NEW COURT

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NEW STORE

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Our local knowledge, your global advantage

Limassol seafront building sold for â&#x201A;Ź15.9 million

REA ESTATL E

ollowing the recent acquisition of a new building in Nicosia by Trust Cyprus Insurance Company, which is wholly owned by Nest Investments (Holdings) Limited, two more of its subsidiaries have now completed the purchase of another building in Limassol. Trust Re Bahrain Cyprus Branch and World Trade Center Cyprus have jointly pur-

STATISTICS

Vehicle registrations up ;OL [V[HS YLNPZ[YH[PVU VM TV[VY ]LOPJSLZ PUJYLHZLK ZPNUPĂ&#x201E;JHU[S` K\YPUN [OL Ă&#x201E;YZ[ ZL]LU TVU[OZ VM JVTWHYLK [V [OL ZHTL WLYPVK VM [OL WYL]PV\Z `LHY (JJVYKPUN [V [OL :[H[PZ[PJHS :LY]PJL [V[HS YLNPZ[YH[PVUZ VM TV[VY ]LOPJSLZ PUJYLHZLK I` [V PU 1HU\HY`Âś1\S` \W MYVT PU [OL JVYYLZWVUKPUN WLYPVK VM 9LNPZ[YH[PVUZ VM WHZZLUNLY ZHSVVU JHYZ PUJYLHZLK I` [V MYVT PU 1HU\HY`Âś1\S`

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Tourist arrivals increase

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chased a new seafront building under construction by property developer Takis Vashiotis Limited for â&#x201A;Ź15.9 million. Occupying a prominent position on the seafront main thoroughfare, the 7-storey 3,700-sqm building will be delivered by May 2016. Part of the building will be occupied by staff of the two companies but the majority of the office space will be turned in to prestigious fully serviced business offices. HYYP]HSZ YLHJOLK (JJVYKPUN [V [OL :[H[PZ[PJHS :LY]PJL HYYP]HSZ ^LYL PU 1\S` JVTWHYLK [V PU [OL ZHTL TVU[O SHZ[ `LHY ;V\YPZ[ HYYP]HSZ MYVT [OL <2 PUJYLHZLK I` MYVT PU 1\S` [V PU 1\S`

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Economic sentiment rises

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MY WAY

Dionisis Pirovolisianos

Store Manager, IKEA Cyprus

WHAT MAKES A GOOD MANAGER? THERE ARE MANY ANSWERS TO THIS QUESTION, RANGING FROM PARTICULAR DELEGATION METHODS TO VARIOUS ‘COMMAND AND CONTROL’ TECHNIQUES. ACCORDING TO DIONISIS PIROVOLISIANOS, STORE MANAGER AT IKEA CYPRUS, THE KEY TO EFFECTIVELY MANAGING ANY FIRM LIES IN TAKING THE TIME TO ENCOURAGE AND DEVELOP ITS MOST VALUABLE ASSET: ITS PEOPLE. HERE HE SHARES HIS UNIQUE PROFESSIONAL AND PERSONAL INSIGHTS INTO THE INSTRUMENTAL ROLE THAT CORPORATE LEADERS PLAY, DESCRIBING HIS OWN MANAGEMENT STYLE ALONG THE WAY.

“T

he quality that has helped me most through my career is most probably my goal orientation and the fact that I manage to be self-driven, and demonstrate passion and drive in my everyday work life.”

“I

would describe my management style as Attainer Style, as I am motivated by working with others and combining my interpersonal skills with an objective-based and analytical point of view. Willing to offer help and encourage others, I am inspired internally by my personal goals, while concurrently maintaining a task-oriented focus with the aim of ensuring team success. My personal leadership style has been influenced by a variety of factors such as personal values, education, experiences and – last but not least – the people I have collaborated with throughout the years.”

“T “M he object of my professional admiration is Ingvar Kamprand, the founder of IKEA, who has managed to establish, and indeed grow, such a wonderful organisation. His innovative spirit and exemplary values – such as humility and willpower, constant desire for renewal, simplicity, daring to be different and cost consciousness – are the both driving powers and the competitive advantages of our company’s great success.”

y greatest professional achievement is that IKEA Cyprus was nominated for the Best Performing Store Award for 2014 – ranked in the top 12 among 361 stores, despite the very tough and challenging local financial environment at that time. This was indeed a collective accomplishment of all our Store employees who continue to work together as a very effective and efficient team.”

“H

ow do I achieve a healthy balance between life at work and at home? During these turbulent times, it is becoming difficult to accomplish this. Nevertheless, I always try to find some time for myself and my hobbies and, when it comes to my family, my ultimate goal is to spend quality time with them, especially during the weekends and holidays when they have my full attention. My favourite pastime is spending time with my family as I have two lovely young children. I also enjoy cinema, listening to music and reading history books.”

14 | GOLD | The Business Magazine of Cyprus

“I

believe that the most common mistake managers make is not trusting or empowering their employees. They engage in micromanagement and do not share responsibility and ownership with their team. As a result, people often lose their engagement and drive and the team as a whole hole thus loses its effectiveness eness and functionality.”

Dionisis Pirovolisianos relax holds a Bachelor’s Degree through gh in Hotel and Catering sports,, Management from the University and of Bath. With over 15 years of use this as a means experience in the retail secto overcome tor through his roles as Store work-related stress Manager of Pizza Hut and Food and pressure. At the & Beverages Retail Manager of same time, a day-outt IKEA Greece-Cyprus-Bulgaria, with good companyy he was appointed Store and interesting discususManager of IKEA Cyprus sion is always welcome.” me.” in March 2012.

“I

FIVE

MINUTES WITH

you think the establishment of the new Administrative Court will have a positive effect on the dispensation of justice in Cyprus? I believe the establishment of the new Administrative Court will have a positive effect in relation to the backlog of appeals pending before the Supreme Court. At the moment, appeals take between 2-3 years to be heard. In addition, appeals on interim applications â&#x20AC;&#x201C; including appeals against judgments in relation to interim injunctive relief (which should be dispensed with on an expedited basis) â&#x20AC;&#x201C; take a long time to be heard by the Supreme Court and, as a result, they do not serve their purpose. I believe the establishment of the new Administrative Court will enable the Supreme Court to speed up the hearings of such appeals. What else can be done to speed up the system? Specialisation has now become a necessity. The creation of a Commercial Court is now more important than ever. If we want to maintain Cyprus as in international litigation centre, we need to create the mechanism for the speedy and efficient litigation of disputes. The Commercial Court, to which cases of a particular nature or over a certain threshold of value can be referred, will assist in this process. The improvement of the Civil Procedures Rules in an overall and comprehensive manner, taking modern needs and methods into consideration, 16 | GOLD | The Business Magazine of Cyprus

ALEXANDROS TSIRIDES

will also assist in the speeding up of the system. At the moment, only piecemeal amendments are made. Do you think more judges need to be appointed? The appointment of more judges will assist in speeding up the system. However, the quality of candidates is also very important. This is where the issue

Partner, Costas Tsirides & Co. LLC

of specialisation plays an important role. Judges should be able to specialise and handle cases in the area of their expertise. In this way, they would become more efficient and the overall quality of the legal system would improve. Is the system whereby judges are appointed satisfactory? Even though the system generally works, it could be improved. As explained

above, specialisation would improve the situation. Lawyers who work in a particular field would find it more attractive to become judges if they continued to work in the field of their specialisation. Do you believe that people can and should trust the Cypriot justice system? The Cypriot justice system is one of the institutions that has not been aflast ins fected by corruption. Its independence is unquestionable and people should trust unque system. It is for this reason that many the sys foreigners trust the Cyprus legal system foreign and choose the Cyprus Courts as a venue for resolving their disputes. As ven a country we should capitalise on tthis trust and make our courts even more accessible to foreigners. m Arbitration and mediation are A ggenerally viewed as effective methods of Alternative Dispute m Resolution that can relieve some R of tthe burden on courts but they are not ccommonly used in Cyprus. Why do you think this is? Media Mediation is a relatively new concept in Cyp Cyprus and although it has a lot of potential, there is a need to educate both professional advisers and the public of the advantages of an early mediation attempt, which may save costs for both sides and reach a settlement quickly. Arbitration has unfortunately not yet become a commonly used dispute resolution method for various reasons. People believe that litigation through the courts is a cheaper option and until recently there was no organised arbitration centre to which parties could refer their disputes. This led to delays in the proceedings. Hopefully the existence of new arbitration centres will gradually help change current attitudes towards arbitration.

QUOTES OF THE MONTH

They Said What? A selection of the most memorable statements uttered in Cyprus over the past month.

MAYORS HAVE THE LOWEST PENSIONS AS FAR AS PUBLICLY ELECTED PEOPLE ARE CONCERNED BUT THE RESPONSIBILITIES OF MAYORS FAR EXCEED THOSE OF MPS.”

GEORGE LOUCAIDES

“INVESTORS WILL ENGAGE IN TAX EVASION AND TAX AVOIDANCE AND THEY WILL TAKE ALL THEIR PROFITS OUT OF CYPRUS OR KEEP THEM IN BANK ACCOUNTS INSTEAD OF INJECTING THEM INTO THE REAL ECONOMY.”

Alexis Galanos, who is – can you guess? – President of the Union of Cyprus Municipalities, knows unfairness when he sees it. ALEXIS GALANOS

“THE NEWLY-FORMED OMADA KYPROS (OK) HAS BEEN CARRYING OUT AN ISLANDWIDE SURVEY ON THE PLAN FOR A SOLUTION OF THE CYPRUS PROBLEM. EVERYONE KNOWS THAT SUCH SURVEYS REQUIRE COSTS OF SEVERAL THOUSAND EUROS AND ONE WONDERS HOW, WITHIN ONE MONTH, THIS ORGANISATION SECURED SUCH FUNDING.” The Socialist Party EDEK, evidently just as worried as the British Residents Society in the occupied areas about the possibility of a settlement, recognises that the best way of making it appear to be a bad thing is to suggest that those in favour are probably paid agents of unnamed foreign enemies of Cyprus. MARINOS SIZOPOULOS

AKEL spokesman George Loucaides explains why privatisation is a bad thing.

“BANKS WILL NOT RECOVER AND THIS COUNTRY WILL NOT RECOVER UNLESS WE GET BACK INTO THE HABIT OF MEETING OUR OBLIGATIONS WHEN WE BORROW MONEY.” Bank of Cyprus CEO John Hourican explains a concept which many MPs and developers still ÀQG GLIÀFXOW WR JUDVS JOHN HOURICAN

ARCHBISHOP CHRYSOSTOMOS

“IF I HAD KNOWN THE MONEY WAS FOR A SPECIFIC PURPOSE I WOULD NOT HAVE TAKEN IT.”

Archbishop Chrysostomos II talks about the €450,000 that he took from the bank account of the Trachonas Church Committee, allegedly to pay SULHVWV· VDODULHV $OO D PLVWDNH EXW now, unfortunately, he is unable to give it back.

“PEOPLE SHOULD BEAR IN MIND THE PSYCHOLOGICAL STATE OF THE OFFICERS AT THE TIME.”

Andreas Symeou, head of the Cyprus Police Association, explains why it was OK for two thugs in uniform to beat a man unconscious in a cell at Polis Chysochous police station – it was all to do with their delicate psychological state.

18 | GOLD | The Business Magazine of Cyprus

“UNREALISTIC PROMISES AND POPULIST SLOGANS HAVE NO PLACE WHEN IT COMES TO THE NATIONAL PROBLEM.”

NICOS ANASTASIADES

President Nicos Anastasiades echoes what HYHU\RQH H[FHSW WKH LVODQG·V SROLWLFLDQV KDYH EHHQ saying for the last 40 years.

“THE POSSIBLE DIRECTION THAT THE CURRENT CYPRUS TALKS ARE TAKING IS CAUSING WIDESPREAD CONCERN AMONGST OUR MEMBERSHIP ABOUT THE LONG-TERM SECURITY OF OUR INTERESTS HERE.” The British Residents Society in the occupied north of Cyprus decided to write to the Turkish Cypriot leader Mustafa Akinci. They were actually warned years ago about buying property from sellers who GLGQ·W DFWXDOO\ RZQ LW

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| INTERVIEW |

AUSTERITY AND THE ‘INTRUSIVE’ EUROPEAN UNION

BRITAIN’S “BRAVEST CHANCELLOR” TO ADDRESS THE LIMASSOL ECONOMIC FORUM

orman Lamont was Europe and Greece”. That still Britain’s Chancellor hasn’t happened, although it of the Exchequer appears closer today. Is that the from November only way forward for Greece? 1990 until May 1993, presiding L.L.: I still think a debt-right off over the withdrawal of sterling is important for Greece. I don’t from the Exchange Rate Mechthink it is an optimal solution to anism and what quickly became have more “extending and preknown as Black Wednesday. He tending”, i.e. a lower interest rate has since been described by the and a longer period for repayment By John Vickers economist Sir Alan Walters as “not but still leaving Greece with a masonly the most effective, but also sive amount of debt. The IMF is the bravest Chancellor since the keen on a debt write-off. The realiwar.” In 1998 he was made a life ty is that the Greek debt will never peer, entering the House of Lords as Lord Lamont of Lerwick. be repaid but Germany doesn’t want to admit that. Lord Lamont, who is one of the keynote speakers at next month’s Limassol Economic Forum, spoke exclusively to Gold. Gold: You have been very critical of the austerity measures imposed on Greece but many observers argue that the situaGold: Nine months ago, in what proved to be a remarkably tion today is not so much a result of those measures but of the prescient article on Greece, you wrote: “Mr Tsipras will be fact that they were, in fact, not implemented. Isn’t there some under pressure from people to the Left of him” and that is truth in this? exactly the situation he is facing today. Do you believe that L.L.: There has been plenty of austerity on Greece. What was, it is possible for any government to implement policies and perhaps, not implemented as much as it should have been conmeasures that are, in reality, diametrically opposed to its basic cerned structural reforms to the supply side rather than austerity political philosophy? measures. Greece certainly needed cuts in expenditure and needed Lord Lamont: It is extremely difficult for any government to go reform as well. My view was, however, was that the degree of ausagainst its basic principles for the simple reason that it relies on terity and the timing of it became, in the end, counter-productive its supporters for votes in parliament. Mr Tsipras remains a very and made the problem of indebtedness worse. popular politician in Greece but his party, of course, has split and we shall have to see how that works out and whether he can win support elsewhere. Gold: In the same article, you noted that “a real debt writeoff, if it was conditional on sensible policies, would help both

20 | GOLD | The Business Magazine of Cyprus

Gold: Cyprus has also undergone a so-called economic adjustment programme, the positive results of which are becoming increasingly evident but, on the negative side, it also saw the collapse of one of its two biggest banks, a bail-in of depositors and, of course, record unemployment. What is your view of

LORD LAMONT OF LERWICK

Lord Lamont was a Conservative MP for 25 years. A supporter of Margaret Thatcher, he rose through the ministerial ranks, becoming a Minister in the Departments of Energy, Industry, Defence and the Treasury. He was Chief Secretary in Mrs Thatcher’s Cabinet. When John Major became Prime Minister, he became Chancellor of the Exchequer. 0[ ^HZ H KPɉJ\S[ WLYPVK ^P[O a recession and the need for austerity measures to reduce [OL I\KNL[ KLÄJP[ :PY (SHU Walters, Mrs Thatcher’s economics adviser, described him as “not only the most LɈLJ[P]L I\[ HSZV [OL IYH]LZ[ Chancellor since the War”. While Chancellor, he recruited the future Prime Minister, David Cameron, to be his special adviser. He was Britain’s chief negotiator for the Maastricht Treaty and was responsible for negotiating Britain’s opt-out from the euro. He was Chairman of the EU Finance Ministers in 1992 and Chairman of The G7 Group of Finance Ministers in 1991. He worked closely with Russian Presidents Gorbachev and Yeltsin on economic reform and privatisation. He has published two books: 0U 6MÄJL, about his time as Chancellor and :V]LYLPNU )YP[HPU, about Britain’s relationship with the EU.

www.goldnews.com.cy ld | GOLD | 21

| INTERVIEW |

THE REALITY IS THAT THE GREEK K DE BT DEBT WILL NEVER REPA P ID BE REPAID BUT GERMANY DOESN’T WANT TO ADMIT THAT

how Cyprus and its economic and banking problems were dealt with in 2013? L.L.: I am not an expert – far from it – on the Cyprus situation but it seems to me that the root causes of Greece’s and Cyprus’s problems were different. Cyprus got into problems because of the connection between banks and real estate as Ireland did. In Greece, the crisis originated with the public debt and then affected the banks. The fiscal austerity imposed on Greece by the eurozone was greater than on Cyprus and the result was a milder recession than in Greece. In Cyprus, bank deposits were converted into shares of banks. Of course, businesses were hard hit, as were pension funds. Some of the measures imposed on Greece – increased taxes on shipping or corporation tax – may help Cyprus’s competitive position.

Gold: Do you agree with those who point to the country’s return to the international markets, the successful recapitalisation of the banks and successive upgrades by the rating agencies as proof that austerity is a necessary evil but one that works in the end? L.L.: Austerity for countries that have run up large stock of debt is unavoidable. However, too much up-front austerity may increase indebtedness. Once an economy has already shrunk by 25% because of austerity, more of the same may do more harm than good. I believe that ‘phased austerity’, as seen in the UK and the US, was more sensible than what happened in Greece. Gold: You have described the euro as “a flawed concept: a currency without fiscal union, without a government, without a single flexible labour market.” There was never any likelihood of the UK ditching the pound sterling for the euro 25 years ago but are you surprised that the single currency has survived? L.L.: You say there was never any likelihood of the UK joining the euro 25 years ago but when John Major and I negotiated our “opt out” from the euro, there was a lot of criticism. Many people, including Tony Blair, advised joining. I am not surprised entirely that the single currency has survived. Firstly, history shows that currency unions last quite a long time, sometimes several decades. I have never predicted the early breakup of the euro, not least because there is enormous political capital invested in the project. The motivation is no doubt honourable, particularly the wish to banish the threat of war and conflict from the continent of Europe. Nonetheless, the idea that you could have a currency without moving towards political integration and having a European Finance Ministry is, I think, unrealistic. And a European Government, if it happens, will be in conflict with national electorates as we saw in Greece. The nation state still has a lot of life in it and we ignore that at our peril. Gold: I think it’s fair to say that you remain best known for your time as Chancellor of the Exchequer (1990-1993). Almost

22 | GOLD | The Business Magazine of Cyprus

25 years later, how do you view that period? Has hindsight forced to see your policies and actions in a more positive or negative light? L.L.: I certainly don’t want to sound complacent and I don’t deny that I have made my share of mistakes. However, the policies that I implemented were, I believe, in the circumstances I inherited, unavoidable. They were not popular but, as a result of them, the British economy was in a much a better state when I left office than when I took office. My policies created the stability and conditions for the boom of the Nineties. They had a long-term, beneficial effect on the British economy but the main political beneficiaries were Tony Blair and Gordon Brown. Gold: Although the UK business world appears united in its desire for the UK to remain within the EU, a considerable section of public opinion is very anti-Brussels. Do you think that David Cameron will be able to renegotiate the terms of Britain’s EU membership and can you envision the referendum leading to an exit from the EU? L.L.: I believe that David Cameron will be able to achieve some changes to the terms of Britain’s EU membership. The question is whether it will be sufficient to satisfy British public opinion. Personally, I think the EU is in need of big reform. Certain powers should be repatriated. I am sceptical about the sacrosanct nature of the freedom of movement principle. Personally, what I would like to see is a looser, less integrationist EU. We need some overarching organisation for the European continent but it should not be as intrusive as the one we have today. Whatever the result of the EU referendum, I doubt if it will settle the question of Britain and the EU forever. Britain has a different view of Europe from other countries. Gold: Although you are a Member of the House of Lords, do you ever miss the intensity of the Commons or are you happy to leave that to a younger generation of politicians? L.L.: You are right. I do sometimes miss the cut and thrust of the House of Commons. The House of Lords is a very calm assembly and has a large number of people who are very experienced and very expert in their subjects. Sometimes it can appear a little over-polite. Occasionally I miss the noise – and even the rudeness – of the House of Commons! Gold: What can those attending the Limassol Economic Forum in October expect to hear from you? L.L.: Well, everything is changing so quickly that it is difficult to know how things will look in a month’s time. I will say something about the questions you have asked me – about the future of the eurozone and Britain’s relationship with it and the EU. I also expect to update my views on the world economy following the setback to the Chinese economy.

Opinion

NAMING AND SHAMING

TAX BLACKLISTS CONVENIENTLY OMIT THE WORLD’S BIGGEST PLAYERS

By Andreas Neocleous

frecent report rt from the website and replaced by in The Econoa watered-down version signed by none two minor officials. mist magazine highlights This revisionist approach to the arbitrary history is eloquent testimony to nature and the lack of transparency inherinconsistency of international tax ent in international bodies such blacklists. It takes the list of 30 soas the OECD. It does not take a called “non-co-operative” jurisdicconspiracy theorist to wonder why tions issued by the European Commthe OECD, which is dominated mission in June this year and points ts by the major Western economies, out the errors on which it is based has never raised its voice against and the inconsistent standards used d commercial and tax practices in by different countries within the EU the USA and the United Kingdom to define such jurisdictions. w when it is quick to criticise them in This, however, is only the tip of smaller, less powerful countries. the iceberg. What the article hints The Economist drew attention to some of these in a 2013 report.The at, but does not explore in detail, iss American state of Delaware meets A the role that politics plays in assess-all the tests of a tax haven. There is ing compliance with international no taxation for “offshore” limited standards, and the lack of transliability companies and it provides parency and objectivity involved Info: Andreas Neocleous is the Founder and Chairman of Andreas privacy for the beneficial owners of entities. More in the process. By way of example it points to Neocleous & Co LLC than a million companies are incorporated there Panama’s success in being excluded from a monand one building alone is the registered office of ey-laundering blacklist by threatening to withmore than 285,000 different businesses. The United Kingdom draw lucrative engineering contracts for work on the Panama Financial Services Authority has acknowledged that the British Canal from the major economic powers. banking system is used for money laundering, and the UK’s The EU list quickly achieved the distinction of being connon-domiciled tax regime offers immense tax advantages to demned not only by the jurisdictions concerned but also by other bodies with supposedly the same objectives, including the wealthy individuals. Ireland, the Netherlands and Luxembourg are well-known venues for what most people would regard as Tax Justice Network, a campaign group, and the Organisation highly artificial tax schemes that would most likely be struck for Economic Co-operation and Development (OECD). down elsewhere. As The Economist points out, these double The head of research at Tax Justice Network pointed out standards, far from being accidental, may well be a deliberate the lack of objectivity in categorising countries as “tax havens” ploy designed to keep smaller countries in their place. or “non-co-operative”, and criticised blacklists on the grounds While it is gratifying that Cyprus is not included on the EU that they are politicised and tend to focus on small jurisdictions, list, we should take no pleasure at rather than on the large countries the discomfiture of our competitors that are the real problem. IN THE AMERICAN STATE that are included. Such lists are, at Soon after the list was announced, best, highly arbitrary and inconsisthe Secretary General of the OECD OF DELAWARE, ONE and they may well be the prodwrote to the European Commission BUILDING ALONE IS THE tent uct of a cynical hypocrisy on the part detailing the Organisation’s comREGISTERED OFFICE of those who compile them, who plaints and criticisms. The letter was OF MORE THAN 285,000 share the view of Thrasymachus that published on the OECD website but unaccountably, and without DIFFERENT BUSINESSES “the just is nothing other than the advantage of the stronger.” any explanation, it was removed www.goldnews.com.cy | GOLD | 23

| CONFERENCE |

CYPRUS AS

AN INVESTMENT FUNDS HUB “CYPRUS AS AN INVESTMENT FUNDS HUB” IS THE TITLE OF THE FIRST SUMMIT ORGANISED BY THE CYPRUS INVESTMENT FUNDS ASSOCIATION (CIFA), WHICH TAKES PLACE ON 9 OCTOBER, 2015 AT THE FILOXENIA CONFERENCE CENTRE IN NICOSIA. THE SUMMIT AIMS TO PRESENT CURRENT GLOBAL TRENDS IN THE FUNDS SECTOR, IMPORTANT LOCAL DEVELOPMENTS AND KEY ASPECTS AND ADVANTAGES OF THE CYPRUS FUNDS SECTOR. GOLD SPOKE TO CIFA PRESIDENT ANGELOS GREGORIADES ABOUT THE SUMMIT AND THE CURRENT SITUATION REGARDING THE INDUSTRY IN CYPRUS.

he forthcoming CIFA-organised Summit is being held under the auspices of the Ministry of Finance and the Cyprus Investment Promotion Agency (CIPA), and is endorsed by the European Fund and Asset Management Association (EFAMA). The main message that Angelos Gregoriades wishes to send to those present concerns the importance of sharing knowledge. “In Cyprus we tend not to do this but in order to have a successful funds jurisdiction you need to share your knowledge with all those involved. So the Big Four accounting firms should share with one another, as should the lawyers and service providers, for example.” He cites the examples of Luxembourg and Ireland where, he says, “Everybody is contributing to their full extent” in the name of the country, not simply each firm

24 | GOLD | The Business Magazine of Cyprus

for itself. This is something that, in Gregoriades’ view, is currently lacking in Cyprus. “The private sector, the government, CySEC, everyone should be on board. The main aim of this Summit is to share the knowledge that we have gained, not only amongst ourselves but with the people we are bringing from abroad. If we manage to overcome the hurdle of keeping everything to ourselves and we learn to cooperate better, this will help Cyprus thrive as a successful funds jurisdiction.” CIFA was founded two years ago, with one of its main goals being to promote Cyprus as a competitive investment fund and asset management jurisdiction, as well as to facilitate its members and all professionals in the investment funds sector to best utilize related international developments. Have these two years been more difficult than the association’s President expected? No, he says: “I was expecting this process to take time because I know what has happened in other countries. Nobody has managed to develop an industry within a year or

two. It is something that grows gradually, year on year. Malta and Ireland, for example, needed 4-5 years before they reached a certain level and this is what I was – and am still – expecting. Don’t forget that we are still making amendments to the legislation but we should have everything in place by the end of this year.” Do these now established jurisdictions still offer things that Cyprus doesn’t? On this, Gregoriades is firm: not only does Cyprus have the same things, he insists, but it has even more to offer than its competitors. But, he admits, “We lack the most important thing: expertise. We don’t have people who have been in this field for many years, which brings us back to the point about sharing knowledge. The human factor is the most important of all.” Essentially, Cyprus wants to attract some of those experts who are currently in places like Ireland and Luxembourg, as well as new fund managers who are now deciding on the best place to operate from. As a low-cost jurisdiction, close to the Middle East as well as Europe, Cyprus is an attractive option but, says Gregoriades,

once they decide on Cyprus, they need to find as an evolving concept, funds distribution and people here with the necessary knowledge. the MiFID II implications for Alternative In“This is all about continuous education for vestment Funds. those who are already in the sector and, for The second session will focus on the Euronewcomers, the universities need to offer the pean fundraising market and the role of investrelevant courses and they have started to do so.” ment funds in capital raising for financing of CIFA considers the upcoming Summit to be the real economy, the role of private equity in a unique opportunity both for networking and alternative financing, as well as on European learning, Gregoriades says. “We are pleased that Long Term Investment Funds. The Juncker our efforts have been successful to include high- Investment Plan, which focuses on the removcalibre speakers from major international organ- al of obstacles to investment and aims to create isations with a wide range of expertise. We truly an investment-friendly environment, will also believe that all professionals with an interest in be presented. this constantly developing sector, such as fund The third and final session will concentrate managers, investment funds and asset manage- on the Cyprus funds industry. In particular, ment companies, law firms, accounting, audit there will be presentations on the competitive and tax firms, will enhance their knowledge advantages of Cyprus, such as its tax regime and acquire an in-depth understanding of the and its strategic position, as well as on the main trends in this industry, on an internasetting up and redomiciliation of investment tional, European and local level.” funds in Cyprus. In addition to KPMG (Gregoriades Asked if he is optimistic about the way things is a Partner and Chairman), the are going overall, as far as the Cyprus fund other three biggest audit firms in industry is concerned, Angelos Gregoriades Cyprus (PwC, EY and Deloitte) laughs and says, “I have no choice but to be have all responded to his call for optimistic! It was never going to be an easy foreign experts to speak at the ride but we’re on the right course.” Summit and to draw the attention of their offices around the world to Cyprus as an Investment what is happening in Funds Hub Cyprus regarding its Venue: Filoxenia Conference Cenfledgling fund industry. tre, Nicosia, Cyprus The Summit is diDate: Friday, 9 October 2015 Secretariat: IMH vided in three sessions. Communication Sponsors: The first session will IN Business magazine and Gold present key aspects magazine relating to Alternative For further information: Investment Funds, such Tel: 22505555, Fax: 22679820, as the lessons learnt from email: events@imhbusiness.com the Alternative Investment Event website: Fund Managers Directive, www.cyprusfundssummit.com Alternative Investment Funds CIFA President Angelos Gregoriades

IF WE LEARN TO COOPERATE BETTER, THIS WILL HELP CYPRUS THRIVE AS A SUCCESSFUL FUNDS JURISDICTION www.goldnews.com.cy | GOLD | 25

| BIODIVERSITY |

Going Green... ERH FIRIÁXMRK ]SYV FYWMRIWW ERH XLI GSYRXV] AN OVERALL EVALUATION OF THE BIOFORLIFE ACTION PLAN By Dr. Celia Hadjichristodoulou

orporate Social Responsibility (CSR) is a buzzword that we very often hear nowadays in corporate corridors and at business conferences. However, besides being a buzzword, it is also a reality. Companies have realised that they cannot perform their usual activities without taking account of their impact on society, the economy and the environment. That is why the business logic of sustainability is now widely accepted around the globe and is becoming more popular year after year in Cyprus. The

BIOforLIFE project aimed at creating awareness among specific stakeholders and the public at large of the importance of biodiversity protection. One of the project’s main objectives was to bring to the table the issue of environmental sustainability for business people, explaining at the same time why this made financial sense for themselves as well. In September 2012, when the BIOforLIFE team started to implement this project in Cyprus, no-one could have anticipated the extensive changes that we would all have to go through, both at a professional and personal level, following the dramatic events relating to the haircut of deposits and the economic collapse in March 2013. Our project suddenly seemed irrelevant to most business people at a time when everyone was striving to keep his/her business alive. “Why

would I bother going to an event related to biodiversity loss? I have a lot more important and urgent financial issues to consider!” was a common reaction. The project strove to change this misconception by organising a well-rounded, comprehensive communication and awareness campaign aimed mainly at business people in the tourism, construction and agriculture sectors. Moreover, the project directly informed other stakeholder groups and the general public about the importance of biodiversity protection. In order to achieve the project’s aims, during the threeyear period we implemented the following actions: • 35 seminars and networking activities, kiosks at trade fairs and other events with more than 20,000 participants. • 25 TV shows with special reference to BIOforLIFE, each having an average viewing audience of 78,000. • 65 articles on the City Free Press portal, with an average of 205,000 monthly readers. • 18 TV spots, each broadcast on average 100 times over an 18-month period, each with an average viewing audience of 20,000. • Production and broadcasting via Sigma TV of 6 cartoons about biodiversity. • 17 radio spots and 3 live links on Radio Proto, with an average daily listening figure of 106,000 in the 13-64 age group. • 3 live links on Super FM with an average daily listening figure of 75,000. • 9 articles in the magazines and online portals of Dias Publishing House, with an average monthly readership of 235,000.

• 30 photos and 6 articles in subject, you need a long-term action plan and continuous Simerini newspaper, with an average readership of 35,000. evaluation of its results. However, a more practical way to mea• A dedicated banner and sure whether your messages are articles on Sigmalive, with a monthly average of 1 million actually conveyed in the right way is through a telephone viewers. • 6 articles in Gold magazine, survey, which is repeated yearly. with an average readership of Since 2011, we have been conducting a national telephone 38,000. • 12 articles in INBusiness survey with the help of a promagazine, with an average read- fessional market research comership of 50,000. pany, with the same questions repeated each year. More than • 29,000 unique visitors with 600 telephone interviews were 53,500 page views on BIOforLIFE’s dedicated website. conducted on a yearly basis, givHave we managed to achieve ing a representative sample of the population of Cyprus. The our project’s goals through participants were adults from these communication actions? rural and urban districts around It seems that we have! In relathe country’s six main towns. tion to our target groups, both An analysis of the survey the enthusiasm of the profesresults year after year clearly sionals who participated in our shows that, over this five-year training seminars, workshops, period, our project managed networking events and other to convey the right messages to activities and their willingness people. Some indicative comto contribute to the discussions and the follow-up actions was a parative results are presented below: pleasant surprise for us. Regarding the general public, • When asked “Which is the main environmental problem in an awareness-raising projof Cyprus?” the percentage ect like BIOforLIFE, it is not of people who believe that enough to show how many events we have organised or biodiversity loss is the most important problem has more how many TV spots we have than doubled since 2011 (from broadcast. In reality if we care 10% to 23%), with the youngabout the long-term impact of er generation being more aware our project, what is important is how many people we have about the urgency of protecting actually persuadbiodiversity. • When asked ed. How many IF WE CARE “What is biopeople changed ABOUT THE diversity?”, their views, atLONG-TERM titudes and bemore than 2 haviours towards IMPACT OF OUR out of 3 people our natural capPROJECT, WHAT now know the ital? It is widely correct answer, IS IMPORTANT i.e. that it refers accepted that in IS HOW MANY to any form of order to record behavioural life. In relation PEOPLE WE 2011 this changes and a HAVE ACTUALLY to percentage of different mindPERSUADED people has inset on any given

creased by 14%. • When asked “Why do you think that some people are against the killing of blackcaps (ambelopoulia)”, the majority (47%) answered that they know that this is due to the cruel practice of massive illegal trapping through nets, which results in many other endangered species being trapped as well. The percentage of people who know the correct answer nowadays has increased by 95% since 2011. • When asked about the disappearance of bees from the earth, there is a steady yearly increase in the percentage of people who answer that there would be important economic consequences for humankind (an increase of 89% between 2011 and 2015). Also, others responded that human survival will be negatively affected and put at risk (9% increase) and the balance of nature will be distorted (29% of increase from 2011 until 2015). Our project officially ends with the presentation of the main results on 15 September at the European University Cyprus but our actions will not stop here! All partners involved will continue to organise activities to safeguard the continuation of the project and the longterm impact of our activities. For more information on how you can protect biodiversity through your daily business and personal activities, please contact us via the project website (www.cyprusbiodeversity. eu). Info: Dr. Celia Hadjichristodoulou is Managing Director of GrantXpert Consulting Ltd (www.grantxpert.eu). This article was written within the framework of the BIOforLIFE Project (2012-2015) which aims to make Cypriots aware of the significance of biodiversity in our lives.

[[[ KSPHRI[W GSQ G] | GOLD | 27

Increasing Sales

Through

SOCIAL Media HOW THE HOTEL INDUSTRY CAN TAKE ADVANTAGE OF NEW MARKETING OPPORTUNITIES By Mariana Antonescu

28 | GOLD | The Business Magazine of Cyprus

ourism has been the leading growth sector in the economy of Cyprus since 1980 and now constitutes the backbone of the Cyprus economy. At present, the island hosts more than two million tourists every year according to a 2015 Cyprus Tourism Market Report conducted by KPMG. At the same time, the number of people who book hotel reservations through online travel agencies like Booking.com and Hotels.com continues to grow each year. Although this type of booking helps hotels increase sales, it takes away the hotel’s direct interaction with the customer. This trend also reduces the revenue that hotels make from those bookings since the online travel agencies have to take their cut too. Fortunately, social networks like Facebook present a significant opportunity for hotels

to build relationships that lead to brand awareness, word-of-mouth marketing, and ultimately, sales. In recent years, social media has grown to be one of the most effective means for tourists seeking information and wishing to share travel experiences. The places people choose to visit and the activities they take part in are hugely influenced by current trends, the opinion of friends and the power of social opinion. Approximately one-fifth of leisure travellers worldwide turn to social media platforms for inspiration within different categories of their travel planning including: hotels (23%), vacation activities (22%), attractions (21%) and restaurants (17%). In addition, a survey has found that the travel plans of 52% of Facebook users are affected by seeing friends’ pictures of trips. Of people who have already made travel plans, only 48% stick with their original plan after checking what has being said on social media channels, 33% change their hotel and 7% alter their entire trip by changing destinations. The influence of social media on a traveller’s decision-making cannot be ignored. My company has managed marketing solutions for hotels since 2010. Around mid2013 we put a dedicated social media team to work on managing complete campaigns for our clients. What we’ve learned is that the hotels that get the most direct return on investment in social media are those that adopt the following practices: BUILD A COMMUNITY OF LOYAL FOLLOWERS. The size of your community is an obvious factor in using social media to drive revenue. Simply put, more followers equals more revenue. However it’s not about acquiring as many connections as possible; it’s about quality. You need ‘Likes’ from people who really do like you, who will act as your hotel’s brand ambassadors and spread the good word to their Facebook friends. If you manage your Facebook page properly, you can create long-lasting relationships with your guests who will stay with you whenever they can, interact with you frequently on your social media platform and share with their friends the wonderful time they are having during their holiday, thus extending the reach of your brand and increasing your return on investment. OPTIMIZE FOR MOBILE DEVICES. Mobile devices (smartphones and tablets) are

| MARKETING |

here to stay! According to research Google conducted in Europe, 40% of leisure travellers and 36% of business travellers now book using their mobile devices. While this shift has already driven online travel agencies to expand their services, luxury hotels in Cyprus have been slow to explore expanding their services. A user-friendly mobile site and or an integrated mobile brand app is a way for hotels to increase their revenue through mobile bookings and by sending special offers through push notifications to users. MANAGE YOUR ONLINE REPUTATION. Here’s the reality of today: consumers have an unprecedented impact on a hotel’s reputation and success. Travellers who have had a poor experience with a hotel will often vent their anger in social media forums. Negative comments, if not acknowledged and followed up with remedial action, can be devastating to the reputation of the hotel and, therefore, sales, as the sheer reach of social networks means that negative publicity spreads very rapidly. On the other hand, effective service recovery can actually

Social media has grown to be one of the most effective means for tourists seeking information and wishing to share travel experiences increase customer loyalty as it conveys the perception that the company cares for its customers. Have a dedicated team that monitors social comments on a daily basis, and ensures prompt response to customer issues and feedback. SHARE TRIPADVISOR REVIEWS. TripAdvisor is one of the most important resources when it comes to swaying a potential guest to sealing the deal and choosing to stay with you. Don’t shy away from sharing exceptional, 5-star TripAdvisor reviews with your followers, while also encouraging reviews from your past guests. In Cyprus, Kanika Hotels make a point of sharing TripAdvisor awards and certificates of excel-

lence on their Facebook page as well as encouraging guests to share their experience at their hotels and they have already witnessed an increase in user reviews on the platform. Though social media marketing in the hotel industry has a long way to go, it has a lot of potential and ignoring it would be a mistake. Integrating social media into a company’s marketing communications programme is necessary to help bring companies closer to their customers, to listen to them, to meaningfully engage with them and ultimately boost customer service, brand and sales. Info: Mariana Antonescu is a social media marketing consultant, a corporate social media trainer, an international speaker and author.

www.goldnews.com.cy | GOLD | 29

| FILM |

MAKING MOVIES By Artemis Constantinidou, Photo by Harris Kyprianou

Nicolas D. Sampson

Savvas Liasis

30 | GOLD | The Business Magazine of Cyprus

THE PRODUCTION TEAM BEHIND THE AWARD-WINNING PSYCHOLOGICAL DRAMA BEHIND THE MIRROR TALK ABOUT HOW THEIR COLLABORATION CAME ABOUT AND WHY THEY THINK THAT CYPRUS COULD HAVE A FUTURE AS A FILM LOCATION.

he winner of the Best Thriller Award at this year’s Manhattan Film Festival has several interesting Cypriot connections. Behind the Mirror started out as a short story and developed into a novel before eventually turning into a screenplay. The writer is Nicolas D. Sampson, founder of Sampsonic Media, which executive produced the movie, while the second Executive Producer is Savvas Liasis, a Partner in the boutique investment firm Elements Capital Partners Ltd. The two spoke spoke to Gold about their recent collaboration, the film’s success and the prospects for Cyprus as a centre of film production. Behind the Mirror, directed and produced by Minos Papas, is a psychological drama

that revolves around author Xavier who moves with his family to a small town in upstate New York. A real estate development in town, which Xavier opposes, creates conflict with the local residents, which eventually escalates into a dramatic confrontation with the people around him. “Although there are Cypriots behind the film’s set-up, it is a New York production so we are predominantly trying to approach an American audience,” explained Nicolas Sampson. “In general,

the film has to do with individuals who speak out against the system and against group mentality. It deals with the themes of individualism vs groupthink, freedom of expression and ‘hot’ topics such as drug use, gun ownership, bullying, culture, religion, and crypto-homosexuality,” he added. Sampson and director Minos Papas were friends at the English School in Nicosia where they worked together on school projects. Sampson sought Papas out after the latter had made a feature film. “I liked his work, we got to talking and our ideas matched. That is how we came to make a short film called The Politics of Conflict,” he explained. Following the success of that collaboration, they decided to make a feature film. “When making a m movie, one m should start sh with the baw sic sics,” Sampson said. “It so is vital to get along with al an and understa stand the pe person you are de dealing with. T Then you can bu build a team ar around that.”

IN ORDER TO ATTRACT THE MOVIE BUSINESS TO CYPRUS, YOU NEED A GOOD INCENTIVE PACKAGE

Asked about how he became involved in writing and film production, Nicolas Sampson admitted that he “took the long way round,” studying psychology and doing a stint in advertising,“so I took all that in, learnt enough about the human condition and then I started writing about it. I began with short stories,and articles and then I decided to try and break into movies which has always been my passion. My mum was a huge film buff and it was something I always had in mind.” Behind the Mirror eventually came to life thanks to the decision by the investment firm Elements Capital Partners to get involved in the project. Savvas Liasis revealed the story behind the firm’s involvement in this project: “I have known Nicolas for a number of years now and he has been sharing his progress with regard to his projects. This became more and more interesting to me and I slowly managed to transfer this feeling to the rest of the firm. In order to get an independent movie like this off the ground, you need to have a production crew and cast that believe in the project,” he said. “Success was not certain, so we had to minimise the upfront cost as much as possible.” Even though this was the company’s first project in the film industry, it proved to be an excellent investment overall. “The firm took over the legal work and marketing behind it and we learnt most things as we went along. In

www.goldnews.com.cy | GOLD | 31

| FILM |

A MOVIE WOULD NEED A BUDGET OF ABOUT US$100 MILLION BUT A TV SERIES IS MORE AFFORDABLE the end, it turned out to be a lot better than anyone had expected and that forced our belief that this was a good place for us to be in,” Liasis explained. What do the Cypriot producers of this movie think about the frequently discussed idea that, with the right infrastructure and incentives in place, their country could become a popular location for filmmakers from all over the world? “I believe that Cyprus can indeed become a film centre,” Sampson told Gold. “The island is perfectly situated between two continents. It has a variety of locations, ranging from the beach to the mountains and to the forests, exactly like California. I don’t see why Cyprus cannot take advantage of this in the same way.” “In order to attract the movie business to Cyprus, you need a good incentive package,” added Liasis. “For instance, you need to cover basic needs with some infrastructure and studio work and tax breaks are necessary in order to minimise production risks, as happens in places like Canada and Ireland.” Even though he described recent legislation on Intellectual Property which sets tax rates at a maximum of 2.5% on profits as “incredible”, Liasis expressed the view that, “The

law on Intellectual Property rights law should have existed a long time ago, as it does in the rest of the world. In that sense, it does not give Cyprus an advantage. Sadly, the country has been a piracy haven for a long time.” Referring to the fact that talented Cypriots are forced to leave the country in search of opportunities elsewhere, Nicolas Sampson pointed out that this happens because, “As a country, we are not quite there yet” and he pointed to the examples of Haris Zambarloukos (Director of Photography on Thor and Mamma Mia), who built his career in the USA, and film composer George Kallis (who wrote the score for Behind the Mirror) whose film career took off in Los Angeles. “Given the right circumstances, people of such great talent will be able to return and support the cinema industry in Cyprus and this will have a lasting impact,” he said. On the same subject but from a more business-oriented perspective, Savvas Liasis explained that Elements Capital

Partners is a private equity firm which strategically looks at what is undervalued in the region. “Nicolas and I put our heads together and decided that what would best suit this region would be some sort of incubator, where talented artists and writers who have no opportunity to share their work would be able to come for funding in order to start off their projects. We are specifically interested in the film industry in the region of South-East Europe where the firm mainly specialises.” He noted that there is what he calls “a big chasm between opportunities and liquidity”, meaning that there is very little capital available to can go into these projects but, he added, “I think that with the right people, we would be able to do some good work.” The goal of Sampsonic Media, according to its founder, is not to focus on a particular type of cinema but on a range of different media. “The market is growing so cinema constitutes just one medium of a range of multimedia,” he

TO GET AN INDEPENDENT MOVIE LIKE THIS OFF THE GROUND, YOU NEED TO HAVE A PRODUCTION CREW AND CAST THAT BELIEVE IN THE PROJECT

32 | GOLD | The Business Magazine of Cyprus

clarified. “Sampsonic Media is interested in informing people, provoking thought and also entertaining through graphic novels, apps and interactive media.” Sampson also enthusiastically revealed that, in collaboration with Elements Capital Partners, he is already working on his next project, Wake of Liberty, which focuses on the French Revolution. “It is mainly historical fiction with elements of dark fantasy, to add an extra touch of entertainment,” he explained. The story involves a ghost which takes the main character back in time and shows him how history has evolved.The primary format that he is looking at is a TV production, possibly in the UK or the US. “Turning it into a movie would need a budget of about US$100 million but a TV series is more affordable,” he said. Sampson describes Behind the Mirror as “an experiment that worked out well. We took the plunge and it worked out; we’ve learnt what to do and what not to do. We’ll take all this in and apply it to our next production which is going to be bigger and with greater scope.” Behind the Mirror premiered in New York in July and will have its Cyprus premiere in Nicosia on Friday, October 9.

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Opinion

ALL ABOUT CHINA

THE LATEST GLOBAL FINANCIAL CRISIS IS MAINLY ABOUT THE SLOWDOWN IN THE CHINESE ECONOMY By George Theocharides

uring the Bank decided to devalue the Chilast month, h, nese yuan by around 2% against global the dollar and thus de-peg it from markets the US currency. Only two days have been after this decision, Chinese officials rocked by a decided to reverse this decision financial crisis that emanated from and halt the devaluation by interm China but was soon affecting other er vvening in the currency markets parts of the world. To put things when needed. Since then, they w into perspective, during the month have spent almost $200 billion h of August more than $5 trillion was in currency markets to halt the as lost from global equity values amid devaluation. The Chinese market d fears that the growth rate and proshas lost around $4.5 trillion since spects for the world’s second largestt the peak in early June and the economy, China, were worse than shocks from China did not go n previously expected. On top of that, unnoticed in other places, with at, the US Federal Reserve looks readyy stock markets tumbling one after to raise interest rates (in the autumn the other. In the US alone, more mn or early next year) after many yearss than $2 trillion was wiped off of a low interest-rate environment,, stock markets last month, while despite slowing global economic the MSCI All-Country World Info: Dr. George Theocharides is an growth. Some argue that the current crisis is Index dropped 6.5% in August, its biggest fall Associate Professor of Finance at reminiscent of the one that started in Thailand since May 2012. Cyprus International Institute of Management (CIIM) and the Director in 1997 and spread quickly to other East Asian One reason behind the current crisis is the of the MSc in Financial Services. ‘tigers’ such as Indonesia, Malaysia, the Philiprealization that the Chinese economy is slowing pines and South Korea. Currencies and stock down. The growth of China’s GDP of 7.4% markets plunged across the region, even in places as far as Latin for last year was the slowest in the last 24 years, while the America, threatening a global recession. So how did this crisis expectation is that this year China will not be able to achieve its start and what are the fundamental reasons behind it? target of 7%. At the same time, investors seem to have lost faith in Chinese stock markets (including the benchmark Shanghai the incoherent policy actions of the Chinese government. FurtherComposite Index) have been rising rapidly in the last few years, more, given the positive state of the US economy, interest rates are with some fearing that it was a bubble about to burst. The inexpected to rise soon amid fears of future high levels of inflation dex peaked in mid-June and then plummeted. In an effort to after years of monetary easing. This expectation puts more pressure save the capital markets, the government used aggressive tactics on global equities, which is why we have been observing a movesuch as banning short sales, stopping initial public offerings, ment of investors to safe havens, i.e. away from the dollar and prohibiting the sales of shares by moving to the euro and the yen, as major investors, and instructing well as to safe Treasury securities. IN THE US ALONE, MORE Lastly, it may be argued that what state-owned funds and investors to THAN $2 TRILLION WAS we have been experiencing is a corbuy up shares to raise prices. Then, in an unprecedented move just rection of globally inflated equity WIPED OFF STOCK prior to the opening of the markets MARKETS LAST MONTH prices which are now moving back on August 11, the Chinese Central to their fundamental value.

34 | GOLD | The Business Magazine of Cyprus

PRESENTS

SHIPPING IN CYPRUS

and the World Interviews by John Vickers

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www.goldnews.com.cy | GOLD | 35

| COVER STORY |

INDUSTRY

I By John Vickers

When the Maritime Foundation, a charity that promotes seafarer matters, asked the residents of the UK port of Southampton how many goods are transported by sea, their answers were varied but

36 | GOLD | The Business Magazine of Cyprus

try: each worker is estimated to have generated €85,000 of GDP, significantly above the EU average of €53,000. • The shipping industry indirectly supported an estimated €61 billion contribution to GDP and 1.1 million jobs through its European supply chain in 2013. • The spending of wages by those employed in the shipping industry and itsn supply chain supported an estimated €30 billion of GDP and jobs for 516,000 people. • Taking them together (direct, indirect and induced), the total GDP contribution of the European shipping industry in 2013 is estimated to have been €147 billion. • For every €1 million the European shipping industry contributes to GDP itself, it creates another €1.6 million elsewhere in the European economy. • The industry also supports employment for an estimated 2.2 million people.

REGARDING CYPRUS:

bringing hundreds of shipping executives, ship owners, managers, and delegates from international shipping organisations to the island. The main theme of the Maritime Cyprus 2015 Conference, is Shipping: Game Change. As the title suggests, it will focus on crucial issues of concern to the international shipping industry. These include policy and regulatory matters and forthcoming changes to the international shipping scene, economic and environmental matters and their interaction with technology, geopolitical and energy developments and forecasting for the recovery of the economy and for the freight markets. The conference will be officially opened by President Nicos Anastasiades, while speakers include Koji Sekimizu, outgoing Secretary-General of the International Maritime Organization, Peter Hinchliffe, Secretary-General of the International Chamber of Shipping, and Peter Sand, Chief Shipping Analyst at BIMCO. On the following pages, you can read exclusive interviews with them, as well as with Andreas Chrysostomou, Acting Director of the Department of Merchant Shipping, Themis

Papadopoulos, President of the Cyprus Shipping Chamber, and George Mouskas, President of the Cyprus Union of Shipowners. The main aim of the biennial Maritime Cyprus conference is to provide a forum where important and current issues relating to international shipping are presented by distinguished speakers and subsequently discussed by the international shipping community, thereby helping to formulate sound and well-balanced decisions and policies on crucial shipping issues. Maritime Cyprus also enables the participants to become more familiar with the strong maritime tradition of Cyprus and its people. The island’s shipping infrastructure constitutes an invaluable asset not only to the country but to Europe and the broader international shipping community. Moreover, for three days in September, the eyes of the shipping world are focused on Cyprus, helping it raise its global profile and remove the ‘invisible’ tag that continues to be attached to an industry that contributes an estimated 7% to the country’s GDP.

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| COVER STORY |

The outgoing SecretaryGeneral of the International Maritime Organization, Koji Sekimizu, looks at the problems facing the shipping community and assesses his term in office positively.

Four Years OF PROGRESS 38 | GOLD | The Business Magazine of Cyprus

W hen the last Maritime Cyprus conference was held in 2013, one of the main problems facing the shipping industry was piracy. Two years on, do you feel that it has been tackled successfully? Does a lot of work still remain? Koji Sekimizu: No hijack has been reported in the western Indian Ocean for the past three years, so I think there is cause to be optimistic â&#x20AC;&#x201C; although never complacent. In that region, a combination of coordinated and cooperative efforts including merchant ships continuing to implement IMO guidance and best management practices, naval forces continuing to deter and disrupt pirate activities and IMO Member States continuing to prosecute suspected pirates and increasing their maritime law enforcement capabilities has contributed to the containment of piracy in the region. Incidents of piracy and armed robbery against ships are occurring in other areas, so IMOâ&#x20AC;&#x2122;s work is continuing, as part of our capacity-building programme for global maritime security. The decline of piracy in the western Indian Ocean presents a window of opportunity for IMO Member States in the region to implement capacity-building programmes to prevent a resurgence and to address wider issues, including other transnational organized crimes committed at sea. This is vital for the sustainable development of the maritime sector in the region.IMO remains committed to address piracy and maritime security issues in other regions, too.

sea in the first place, and the Gold: The piracy problem IMO perpetrators of these appalling seems to have been replaced ;OL 0U[LYUH[PVUHS crimes against humanity must â&#x20AC;&#x201C; at least in terms of public 4HYP[PTL 6YNHUbe stopped. There is a clear awareness â&#x20AC;&#x201C; by the migrant PaH[PVU 046 PZ H ZWLJPHSPaLK need for stronger action by crisis in the Mediterranean HNLUJ` VM [OL governments and the internaand elsewhere. What do you <UP[LK 5H[PVUZ tional community. think can be done to deal with HUK [OL NSVIHS Gold: The ICS has said that the problem today and in the Z[HUKHYK ZL[[PUN the cost to the global shipping future? H\[OVYP[` MVY [OL industry of implementing K.I.: It was, in fact, at Maritime ZHML[` ZLJ\YP[` HUK LU]PYVUTLUnew environmental rules is Cyprus in October 2013, imme[HS WLYMVYTHUJL expected to amount to over diately after the Lampedusa tragVM PU[LYUH[PVUHS US $500 billion over the next edy, that I first spoke out on this ZOPWWPUN 0[Z THPU decade, and describes this as matter. I mentioned then that YVSL PZ [V JYLH[L â&#x20AC;&#x153;something which was not more effort needed to be put H YLN\SH[VY` into preventing unsafe, illegal, MYHTL^VYR MVY [OL fully considered when these rules were adopted by the sea passages. Since then, I have ZOPWWPUN PUK\Z[Y` [OH[ PZ MHPY HUK IMO.â&#x20AC;? Is a new approach reiterated my calls for concerted LÉ&#x2C6;LJ[P]L \UP]LYneeded to the question of action by the international comZHSS` HKVW[LK HUK regulation? munity to tackle the problems \UP]LYZHSS` PTK.I.: The cost of implementrelated to the large number of WSLTLU[LK 046 ing environmental regulations migrants on board unseaworTLHZ\YLZ LUZ\YL has to be seen holistically. thy boats drifting for rescue in [OH[ [OPZ ]P[HS ZLJThe sustainability of maritime the Mediterranean.I raised the [VY MVY YLTHPUZ ZHML LU]PYVUtransport, the cost to matter at the Chief Executives TLU[HSS` ZV\UK the environment Board of the United Nations LULYN` LÉ&#x2030;JPLU[ of measures not System, in December 2014, HUK ZLJ\YL being impleand in March 2015 I hosted a mented and our high-level inter-agency meeting general responsibility as citizens at IMO Headquarters.At that meeting, I towards caring for our planet said that during 2015, as many as 400,000 all have to be taken into to 450,000 people might need to be resaccount. The direct cued at sea. As the year and indirect costs has unfolded, that grim of implementing prediction is proving sadly individual regularealistic.It is clear that we tions are considered need further concerted when regulations are action to tackle the actions of people smugglers, drawn up and discussed and international who are continuing to send people to sea in craft non-governmental organisations like that are totally unsuitICS have conable for passengers and sultative status crowding them on board at IMO and to levels that are comcan contribpletely unsafe. Not only ute â&#x20AC;&#x201C; and have are these activities illegal, done so â&#x20AC;&#x201C; to they are also carried out those discussions. with a callous disregard for human life and a total Indeed, there have been several recent examdisrespect for any of the internationally ples whereby IMO has comaccepted standards for safety of life at sea, missioned expert studies to assess the developed and adopted by IMO. These impact of measures on the industry, such boats should never be allowed to go to

WE NEED further concerted action to tackle the actions of people smugglers

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| COVER STORY |

as the current study on availability of fuel oil to meet impending sulphur oxide emissions requirements. Furthermore, under the guidelines on the organisation and method of work of the Maritime Safety Committee and the Marine Environment Protection Committee and their subsidiary bodies, any proposals for unplanned outputs in the programme of work of the main IMO technical committees require consideration of cost, specifically whether the analysis of the implications of the issue has sufficiently addressed the cost to the maritime industry as well as the relevant legislative and administrative burdens. So I do believe that the method of work of the Organization is not done in isolation and does consider the potential cost to the maritime industry – as well as legislative and administrative burdens. Gold: The IMO has long supported greater integration of women in the maritime sector. How would you describe the present situation compared with a decade ago? K.I.: Shipping has historically been a male-dominated industry and that tradition runs long and deep. However, through its global programme on the Integration of Women in the Maritime Sector, IMO is making a concerted effort to help the industry move on from that tradition and to help women achieve a representation within it that is more in keeping with 21stcentury expectations. While the number of female maritime administrators and lawyers has increased significantly over the past decade, there remain practical, social and cultural obstacles to be overcome; and there are very significant regional differences in the level of acceptance achieved by women in shipping. There are, undoubtedly, more and

more women making their presence felt in areas such as policy making, regulation, management, finance and the promotion of shipping. More women are also finding their way into seafaring careers, too, although this still remains a very difficult sector of the industry for women to make their way in, not just because of the entrenched traditions that still prevail, but also for a host of practical reasons that are not easily overcome. Nevertheless, some progress is being made, even here, at the “sharp end” of the industry.There is no doubt that increasing opportunities for women to serve at sea would be a very significant factor in boosting recruitment of women throughout shipping, as seafaring is seen as such an important grounding for so many sectors of the industry. And, just as society as a whole benefits from the full and active participation of women in the work environment, so does the shipping industry stand to benefit from their wholesale integration into the workforce.

the debate on greenhouse gas emissions; the IMO Member State Audit Scheme; preparation of a new set of international rules for navigation in the Polar regions; sustainable financing for the World Maritime University and its future operation; and the need to review and strengthen the Organization’s technical cooperation and capacity-building efforts. I also referred to the fact that 2012 would mark 100 years since the sinking of the Titanic and that the anniversary would provide an excellent opportunity for IMO and the maritime community to review past achievements, consider present challenges and contemplate the future of ship safety; and I emphasized the significance of the United Nations Conference on Sustainable Development, Rio+20, held in June 2012, and that IMO should play a critical role for the world economy in ensuring environmentally sound and sustainable shipping. I also instigated a process of review and reform of all activities within the Organization itself, covering financial stability of IMO; a total review of the sub-committee structure; the Secretariat’s meeting-support arrangements; human resource management in the Secretariat; application of the latest information and communication technologies to the work of IMO; strengthening our outreach programmes by extensive use of social media; and inauguration of the IMO Maritime Ambassador Scheme. I think we have already made significant progress in each of these areas, as well as several other new challenges. I believe I will leave IMO well equipped to face the future.

I believe I will leave IMO well equipped to face the

FUTURE

Gold: Your term as Secretary-General ends this year. Do you feel satisfied with what you have achieved over the past 4 years? K.I.: Yes I do feel a personal satisfaction with what the Organization has achieved during the past four years. When I began in my role as Secretary-General, I highlighted a number of challenges that would face IMO in the coming years. These included difficult financial situations for Member Governments, reconstructing their economies after the economic downturn; combating piracy;

IMO IS MAKING A CONCERTED EFFORT TO HELP WOMEN ACHIEVE A REPRESENTATION WITHIN THE SHIPPING INDUSTRY THAT IS MORE IN KEEPING WITH 21ST CENTURY EXPECTATIONS

40 | GOLD | The Business Magazine of Cyprus

A Huge VOICE

The global reputation of the biennial Maritime Cyprus conference reflects the island’s importance, says Andreas Chrysostomou, Acting Director of the Department of Merchant Shipping.

as the migrant crisis in the Mediterranean and elsewhere been causing Cypriot ships and their owners? A.C.: Obviously, where there are migrants in distress, ships will be called to assist them but it can be a problem, for example, if a ship with a 15-member crew has to rescue 400 migrants. A number of our ships have been involved with such rescue missions and it is clear that something needs to be done to tackle the issue. Gold: Cyprus has managed to retain its impressive ranking as the 10th largest shipping registry in the world and the 3rd largest fleet in the EU for many years now. What can it do to ensure that it is not overtaken by other nations?

A.C.: It’s true to say that we haven’t expanded a great deal over the years but we have managed to maintain what we had, despite the entry of new jurisdictions such as the Marshall Islands, Hong Kong and others. There is no question that Cyprus is a very high quality flag and today, we are striving to become more competitive and more clientcentric by offering more modern and faster services. Many documents can now be filed online, of course, but we can do more. In particular, I want to reduce our response time to any queries. At present it is between 30 and 60 minutes and I am aiming to reduce it by half. We are already very fast and we’re proud to be competing with all the bigger registries, many of which are run as private companies while we are a fully fledged government body. This actually gives us greater prestige. We are also unique in that, unlike other open registries, Cyprus is also a major base for international shipping operations. A maritime cluster has been developed here, a large part of which was established with foreign investment. The nucleus of this cluster comprises ship owning and ship management companies which own or manage more than 2,000 ships of 30 million gross tonnage which amounts to more than 5% of the world’s merchant fleet. Several of these companies rank among the largest of their kind in the world. It’s good that we have both the flag and

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| COVER STORY | DEPARTMENT OF MERCHANT SHIPPING the cluster coexisting – and one supports the other in many ways. This combination makes Cyprus unique among open registries and offers business opportunities beyond mere ship registration. I believe that, as a package, we offer one of the best in the market. Our ambition is to be a step ahead of competition at any time, both as an international registry and as a base for international shipping operations. Gold: As part of a global industry, the Cyprus shipping sector is affected by many events and situations beyond its control. However, are you optimistic that it will maintain its status and contribution to the country’s economy in the foreseeable future? A.C.: It is a fact that the shipping sector operates in a continuously evolving, highly competitive global environment and this, in turn, requires a stable environment which supports long-term planning and investment. We are confident that Cyprus shipping will not only maintain its status and contribution to the country’s economy, but will also further enhance it. Shipping is a significant pillar of our economy in its capacity

to act as a wide gateway of foreign investments to our island. It constitutes a business sector of which Cyprus is proud. It represents an invaluable asset for Cyprus with significant political and economic advantages. Therefore it is of paramount importance for our economy to safeguard the shipping industry. Of course, we are always looking at new areas of opportunity, one of which is the oil and gas industry in our area.

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Gold: How important is the biennial Maritime Cyprus conference in maintaining Cyprus’ profile in the global shipping industry? A.C.: It’s more than important! From its beginnings in the 1980s, it has evolved into one of the best-known global shipping conferences in the world. It attracts between 800 and 1,000 participants, including many at the very highest level of the sector. As well as being extremely important for the shipping industry itself, the conference means that for three months before and three months after, we gain so much international coverage that this has a very positive effect on Cyprus in general. And I can tell you that others have copied us, which means that we’re doing something right! Maritime Cyprus has always been a forum where important and current issues relating to international shipping are presented by distinguished speakers and subsequently discussed by the international shipping community, thereby helping to formulate sound and well balanced decisions and policies on crucial shipping issues. The conference is always full to capacity and the mere fact that it takes two years to organise shows how big it is. For us, it also provides an opportunity

for participants to become more familiar with the strong maritime tradition of Cyprus and its people.

Gold: It seems to me that Cyprus shipping, despite its size and importance to the country, has always maintained a surprisingly low profile. And others have referred to global shipping as the ‘invisible industry’. Why do you think this is? A.C.: People don’t realise the importance of shipping because they have not been given the right information and so I’m glad that publications like Gold are giving the local shipping sector a voice. It’s good, too, that you are presenting a broad spectrum of perspectives of the industry. And it’s good to let the public know that, when it comes to shipping, Cyprus is not small. The industry is extremely big for the size of the country. Cyprus has a huge voice in international fora and a great reputation in this global industry. Gold: Finally, what’s your view of the proposed commercialisation of Cyprus’ ports? A.C.: It will definitely have a positive effect. I have no doubt about this. A port is a living organism in a city and the changes are going to create a lot of jobs and prospects. I am sure it will be successful. The sustainable growth of Cyprus shipping is one of the Government’s priorities and our objective for the future is to consolidate and further develop our role in world shipping and to provide the right conditions for a sustainable growth of the shipping sector in Cyprus.

SHIPPING represents an invaluable asset for Cyprus with WMKRMÁGERX political and economic advantages

42 | GOLD | The Business Magazine of Cyprus

Changes to the Chinese economy affects the global shipping industry, says Peter Sand, Chief Shipping Analyst, BIMCO.

t seems that, for the global shipping industry, 2015 has not turned out to be the positive year that was anticipated. Why is this? Peter Sand: Youâ&#x20AC;&#x2122;re right, things started to go wrong in mid-2014, primarily in dry bulk but also for container shipping. In an era of overcapacity it has actually been the demand side which has caused most of the commotion. For dry bulk, the changes have occurred in China, where the economy is in transition towards a more domestically consumer-driven one, while for container shipping it is due to the fragile recovery in Europe, primarily the southernmost part where the demand for containerized goods has been very weak this year in particular. On the other side, crude oil and oil product tankers are really enjoying the summer

The China

SYNDROME

for once and extending the strength of the market, potentially all the way to the end of the upcoming 2015-2016 winter season in the northern hemisphere. Gold: Why do you think the longstanding problem of oversupply has not been resolved? P.S.: Most of the current overcapacity originates from 2009, 2010, 2011 and 2012, when an extraordinary amount of new shipping capacity was delivered into a market where the demand side had been negative for a couple of years. Since then, annual demand growth has been more or less balanced with annual supply growth but the accumulated excess capacity within the active fleet is still weighing down on todayâ&#x20AC;&#x2122;s markets. We need to see several years where demand growth outstrips supply growth in order to improve the fundamental balance between supply and demand significantly. For many reasons it can be difficult to part with your ship, and so in that way a limited contribution to the solution from the demolition side is as expected. The extensive use of slow-steaming has, on the other hand, done a lot to ease the pressure. The trouble is that the most effective remedy (slow-steaming) is also temporary in nature. Finally, the placing of new orders has not helped to resolve the matter. In spite of all the good

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| COVER STORY |

reasons that may also be behind any new order, it needs to be offset by a ship being demolished so as not to impact the market balance negatively. Gold: How has the dramatic fall in oil prices affected the shipping industry? P.S.: Coming from average prices around US$600 per mt, itâ&#x20AC;&#x2122;s a huge cost cut to see bunkers at US$200 per mt at the end of August. Those who benefit are those who are paying the bill, which differs depending on what type of contract is involved. If itâ&#x20AC;&#x2122;s a ship trading in the spot market, the owner/operator benefits, and if itâ&#x20AC;&#x2122;s a ship chartered out, the charterer benefits. For bulker and container ships, the oil prices drop has mostly meant lower costs, and some of it has already been passed on to costumers due to tough competition. For tankers, the drop in oil prices has meant so much more. Higher refinery margins have resulted in more work for both crude oil tankers and oil product tankers. This has extended a very strong start of the year throughout the summer, which is normally slow and uninspiring. The only potential downside, from a commercial point of view, is that some ships may speed up and, by doing that, add more capacity to the market. Gold: What kind of problems has the migrant crisis in the Mediterranean and elsewhere been causing your members? How can it be tackled? P.S.: BIMCO issued a statement on 24 April in which it expressed its appreciation for the new efforts by EU leaders to reduce increasing reliance on merchant shipping to rescue the growing numbers of distressed migrants in the

Mediterranean Sea. Let me quote Lars Robert Pedersen, Deputy Secretary General of BIMCO, who said this: â&#x20AC;&#x153;Merchant ships are ill-equipped to deal with large-scale rescue operations involving many hundreds of migrants and it may compromise the safety of those onboard as well as those whom they attempt to rescue. The long-term problem of huge migratory flow in the Mediterranean has led to a humanitarian crisis at sea that merchant shipping is not equipped to handle. Migration is an issue for nations to resolveâ&#x20AC;ŚBIMCO will continue to give practical advice to Shipmasters on how to effectively deal with calls for search and rescue assistance.â&#x20AC;?

BIMCO

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Gold: The Chinese economy appears to be slowing this year. What will such a development mean for the shipping industry? P.S.: In short, a lot! China is the growth driver in dry bulk and crude oil tankers. And for container shipping, itâ&#x20AC;&#x2122;s the undisputed number one producer of containerized goods, meaning huge exports to ports all over the world. China is not just slowing; itâ&#x20AC;&#x2122;s also changing the composition of its economy, meaning that consumption and demand patterns are changing, and changing fast these days, causing a lot of anxiety. We can feel and measure the effect it has on shipping but all the unknowns about China scare us. Itâ&#x20AC;&#x2122;s hard to be confident about a continued strong GDP growth when most of the indicators we are looking at imply a significantly lower level of activity. In dry bulk, the lack of coal

imports into China is harmful to the market. Meanwhile, iron ore imports going forward need steel mills to substitute domestically produced poor-quality ore with higher-quality imported ore. This is happening slowly, with iron ore prices being lower every day but it needs to continue. The slowdown means lower growth in energy consumption. The creation of a large domestic market for private consumers should benefit intra-Asian container trade, while higher gasoline/diesel consumption should support crude oil tanker demand in the coming years.

Gold: Ever-bigger container ships are becoming the norm. Is this a positive or a negative development in your view? P.S.: The key to container shipping is the ability to fill your ships. Larger and larger container ships are here to lower the unit costs. Container shipping is a small margin business where you make your money on volumes and lower unit costs than the market average. Larger ships are perfect for long-haul, high-volume trades. Optimizing your hub and spoke networks is key to running a profitable business. Gold: Do you think the TTIP negotiations will lead to a win-win situation for US and European ship owners? P.S.: Any removal of trade restrictions is welcome to BIMCO members as it improves business opportunities. The transatlantic trading lane for container ships is the biggest non-main lane in East-West trade, so it does matter to the industry if something positive comes out of the talks. For tankers and also bulkers, some improvements could be developed too.

ANY NEW ORDER NEEDS TO BE OFFSET BY A SHIP BEING DEMOLISHED SO AS NOT TO IMPACT THE MARKET BALANCE NEGATIVELY

44 | GOLD | The Business Magazine of Cyprus

LIFTING

the Turkish Embargo George Mouskas, President of the Cyprus Union of Shipowners, is confident that Turkeyâ&#x20AC;&#x2122;s ban on Cyprusflagged vessels will eventually be a thing of the past.

Ę ow has the dramatic fall in oil prices affected the shipping industry? G.M.: The fall in price has helped the tanker industry where daily income has

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| COVER STORY |

risen by 300% in one year. There has not been much effect on dry cargo, either positive or negative. Gold: In what way do you expect the recent expansion of the Suez Canal to affect your members? G.M.: It will have a minor effect, merely allowing ships to transit faster and avoid delays. However, with the drop in the oil price it is now costeffective to go round the Cape of Good Hope even though it’s about 4,000 miles longer. So the Egyptian government will not see an immediate benefit from its new canal project. Gold: Cyprus has managed to retain its impressive ranking as the 10th largest shipping registry in the world and the largest 3rd party ship management centre in the EU for many years now. What can it do to ensure that it is not overtaken by other nations? G.M.: Cyprus will maintain its position as a management centre and the flag will also expand because Cyprus offers the most competitive tax environment in the European Union. It is a reliable place to operate from

with good quality people to choose from and a Government that really cares about shipping and does everything it can to help the shipping companies. The new non-domicile legislation will also encourage ship owners to operate from Cyprus. Gold: Do you expect Cyprus to benefit from the recent crisis in Greece and proposed changes to the tax regime for ship owners there? G.M.: Yes. I expect a number of Greek shipping companies to open offices in Cyprus as a ‘Plan B’ in case Greece becomes uncompetitive with new taxes being imposed.

CYPRUS UNION OF SHIPOWNERS

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The UK Government is on our side on this

Gold: How significant has the Tonnage Tax been to the Cyprus shipping industry? G.M.: It is the main reason why shipping has expanded so much in the last 10-15 years and will continue to be a major source of income for Cyprus.

very close to my heart and, as President of the Cyprus Union of Shipowners, I have tried very hard as to influence governments in Europe to persuade Turkey to abandon this illegal embargo. As an organisation we have visited Turkey to try and persuade the Turkish Chamber of Shipping to influence the Turkish government. I recently had a meeting at the Foreign Office in London and received strong assurances that the UK Government is on our side on this matter and will try to use its friendly relations with Turkey to persuade it to adopt the Ankara Protocol.

Gold: How important is the biennial Maritime Cyprus conference in maintaining Cyprus’ profile in the global shipping industry? G.M.: Maritime Cyprus certainly puts Cyprus in the limelight in the world of shipping. It is a great advert for our island with people from all corners of the world attending and a great boost for the economy.

MATTER

Gold: Have recent developments made you optimistic that the Turkish embargo on Cyprus-flagged ships could soon be lifted? G.M.: The embargo is something

MARITIME CYPRUS CERTAINLY PUTS CYPRUS IN THE LIMELIGHT IN THE WORLD OF SHIPPING

46 | GOLD | The Business Magazine of Cyprus

Bigger and BETTER Cyprus can continue to grow as a quality maritime centre, says Themis Papadopoulos, President of the Cyprus Shipping Chamber.

hy has 2015 been a worse year for the global shipping industry than expected? Themis Papadopoulos: In many ways, shipping is a mirror image of the health of the global economy and the truth is that we have still not fully recovered from the 2008 crash. We are witnessing an uneven and patchy recovery with some countries faring better than others. The current slowdown in China is certainly causing a great deal of concern to

the global markets and shipping is no exception. n. The dry bulk markets, in particular, have felt thiss slowdown with freight rates being particularly soft for over a year. Gold: Why do you think ink the longstanding probblem of oversupply hass not been resolved? T.P.: Shipping will always ways be a cyclical business with periods of healthyy earnings as well as periods ods of oversupply. This hass been exacerbated in recent cent years by big growth in ship building capacity, led by China, which, in turn, has led to ships being delivered ered within 18 months of orrdering. Historically, this is is

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| COVER STORY | a remarkably quick turnaround. In addition, ship ownership is particularly fragmented and has recently been attractive to large fund managers not traditionally associated with shipping investments. Itâ&#x20AC;&#x2122;s hard to see how a pattern of periodical oversupply can be overcome. Gold: How has the dramatic fall in oil prices affected the shipping industry? T.P.: Overall itâ&#x20AC;&#x2122;s been a positive development, particularly for crude and product tankers which are reaping the rewards of an increase in trade for crude oil and refined products. Generally, all vessels are benefiting from reduced daily running costs and I believe that a lower oil price is good for the global economy. It is, however, having a negative effect on oil companiesâ&#x20AC;&#x2122; exploration programmes and, consequently, on companies which provide services to the oil industry all along the food chain. Gold: In what way do you expect the recent expansion of the Suez Canal to affect your members? T.P.: Itâ&#x20AC;&#x2122;s too early to determine how trading patterns may be affected by the expanded Suez Canal but, in general, shipping welcomes any development which is beneficial to the expansion of global trade. We are also expecting the expanded Panama Canal to come into operation next year. Gold: Has the piracy problem been tacked successfully? T.P.: Global piracy is a complex problem that will probably never be fully eradicated. However, through a combination of concerted action and a functioning government in Somalia, the specific problem of Somali piracy in the Indian Ocean seems to be under control. We must remain vigilant, though, and continue to follow best practices to ensure the continued safety of our crew, ships and cargo as piracy incidents are still a threat in various parts of the world. Gold: What kind of problems has the migrant crisis in the Mediterranean and elsewhere been causing your members? How can it be tackled? T.P.: This tragic humanitarian crisis is having a big impact on all shipping companies with ships trading in the Mediterranean. Merchant ships with accommodation, facilities and supplies for 20-25 crew members are being asked to pick up hundreds of mi-

48 | GOLD | The Business Magazine of Cyprus

grants usually from unseaworthy boats. These poor people are usually hungry, thirsty and desperate and, in many cases, in vessels that are only minutes away from capsizing due to overcrowding. The solutions for tackling this humanitarian crisis must be found soon by national governments and the EU and while no-one can pretend they will be straightforward or easy, they must be found as a matter of urgency.While commercial shipping will always come to the aid of anyone in distress, it cannot continue to be used indefinitely to rescue migrants in these numbers. Merchant ships lack the resources, facilities and proper training to perform this dangerous activity safely.

CSC

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Gold: Cyprus has managed to retain its impressive ranking as the 10th largest ship registry in the world and the largest 3rd party ship management centre in the EU for many years now. What can it do to ensure that it is not overtaken by other nations? T.P.: It is imperative that we do not stand still as a maritime centre. Our competition is global and growing aggressively. We must continue to offer an attractive package and make sure we are promoting our advantages properly. Iâ&#x20AC;&#x2122;m delighted to say that the Government has taken this very seriously and the Minister of Transport, Communications and Works has launched a dynamic initiative to improve and expand our shipping industry. This is a great example of how the public and private sectors can work hand in hand and the Minister can rest assured that he has our full support in order to make this drive a success.

is for Greece to overcome its problems quickly and to succeed in transforming itself from the very difficult circumstances it finds itself in today.

Gold: As part of a global industry, the Cyprus shipping sector is affected by many events and situations beyond its control. However, are you optimistic that it will maintain its status and contribution to the countryâ&#x20AC;&#x2122;s economy in the foreseeable future? T.P.: The shipping industry in Cyprus has grown impressively over the years both in overall presence and in importance to the economy of Cyprus as a whole. This has been achieved without any government funding, rather only with strong support from successive governments. In addition, the income earned is almost entirely derived from abroad, making it an invaluable industry for Cyprus. I believe that with continued support and a concerted effort to promote ourselves properly as a quality maritime centre, there is no reason why it cannot grow further. One thing worth mentioning is that a possible solution of the Cyprus problem and an end to the ongoing Turkish embargo would be a transformational event for our maritime industry.

GLOBAL

piracy is a complex problem that will probably never be fully eradicated

Gold: Has Cyprus benefited from the recent crisis in Greece and proposed changes to the tax regime for ship owners? T.P.: A lot has been written about this but I personally donâ&#x20AC;&#x2122;t believe there will be a big exit of Greek shipping companies. My wish

Gold: How important is the biennial Maritime Cyprus conference in maintaining Cyprusâ&#x20AC;&#x2122; profile in the global shipping industry? T.P.: In a word - very! It is a high-calibre event that keeps us relevant in the shipping world and allows us to bring many of the global players and decisionmakers to Cyprus for a few days. We must make every effort to maintain the Maritime Cyprus Conference as one of the leading global shipping gatherings. The Government can rest assured that it will always have the support of the Cyprus Shipping Chamber to help achieve this aim.

A New APPROACH Required Greater emphasis should be placed on proper regulatory impact assessments, says Peter Hinchliffe, Secretary-General, International Chamber of Shipping.

he ICS believes that the IMO needs to take a new approach to the development of future regulation. Why and what are you proposing? Peter Hinchliffe: This is a long-term initiative which is still being discussed and developed internally by the ICS membership, so there are limits to comments that can be made at present. Self-evidently, for over 50 years, IMO has contributed greatly to improving the shippingâ&#x20AC;&#x2122;s industryâ&#x20AC;&#x2122;s safety record and its environmental performance. IMOâ&#x20AC;&#x2122;s process of regulatory development has served the industry and society very well, providing a comprehensive regulatory framework that can be implemented and enforced worldwide. However, there is a

growing concern that something might be wrong with the procedure that has created some recent regulatory changes. Too often the industry has seen regulatory proposals by governments being taken forward either without real evidence of a compelling need or when assessed against the economic impacts and the actual benefits delivered to have imposed unreasonable or unexpected economic effects. ICS is planning to submit a proposal to the IMO Council suggesting a new approach towards the development of future regulations. It will be suggested that more emphasis should be given, when rule changes are proposed, to full and proper regulatory impact assessments which take greater account of the economic sustainability of maritime transport.

SHIPS

have been involved in rescues of up to 500 people, with serious implications for the safety and security of their crews

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| COVER STORY |

ICS Gold: In what way do you expect the recent expansion of the Suez Canal to affect your members? P.H.: The Suez expansion project has deepened the existing canal and created an additional channel that will run parallel to the existing canal for 35km. These developments will bring a number of significant benefits to the shipping industry, including reduced waiting and transit times, an increased capacity for vessel transits, and redundancy in the event of a ship breakdown in one channel. Both canals will now be able to transit vessels with a draft of up to 66ft. The expansion project has been implemented based on projections of significant increases in global trade and maritime traffic through the canal. Only time will tell whether these predictions come to fruition, but the industry is keen to build a solid relationship with the SCA, so as to ensure improved dialogue between the industry and the authoritiesregarding any future developments.

,Z[HISPZOLK PU [OL 0U[LYUH[PVUHS *OHTILY VM :OPWWPUN 0*: PZ [OL WYPUJPWHS PU[LYUH[PVUHS [YHKL HZZVJPH[PVU MVY [OL ZOPWWPUN PUK\Z[Y` YLWYLZLU[PUN ZOPW VÛLYZ HUK VWLYH[VYZ PU HSS ZLJ[VYZ HUK [YHKLZ 0*: TLTILYZOPW JVTWYPZLZ UH[PVUHS ZOPW VÛLYZÂť HZZVJPH[PVUZ PU (ZPH ,\YVWL HUK [OL (TLYPJHZ ÔVZL TLTILY ZOPWWPUN JVTWHUPLZ VWLYH[L V]LY of the worldâ&#x20AC;&#x2122;s TLYJOHU[ [VUUHNL 0*: HSZV KL]LSVWZ ILZ[ WYHJ[PJLZ HUK N\PKHUJL \ZLK I` ZOPW VWLYH[VYZ NSVIHSS`

involved in rescues of up to 500 people, with serious implications for the safety and security of their crews. While there are other impacts on the industry, this is the primary concern of ICS. In order to address some of these issues, ICS has published guidance for shipping companies on the conduct of large-scale rescue operations at sea, which havejust been revised based upon recent industry experience. But there is still concern in the industry that governments are relying on merchant ships to undertake large scale rescue operations. Immediately after the widely reported loss of around 800 lives in April this year, an emergency summit of EU leaders agreed to increase resources for Search and Rescue operations.Although this was a positive development, serious questions remain as to the extent to which the scale and coverage of this new commitment will be sufficient to prevent the further loss of life.

Any changes to the Chinese economy therefore have the potential to impact WMKRMĂ GERXP] upon the global shipping

Gold: What kind of problems has the migrant crisis in the Mediterranean and elsewhere been causing your members? How can it be tackled? P.H.: Since the crisis began to escalate in 2014, over 1,000 merchant ships have been involved in migrant rescue operations in the Mediterranean, thereby assisting with the rescue of over 50,000 people. This number appears certain to increase over the coming years. The international shipping industry fully accepts its legal obligations to come to the assistance of anyone in distress at sea. However, individual ships have been

Gold: The Chinese economy appears to be slowing this year. What will such a development mean for the shipping industry? P.H.: Both as an importer of raw materials and exporter of manufactured goods, China has been a key driver of demand for shipping services over the past two decades. Any changes to the Chinese economy therefore have the potential to impact significantly upon the global shipping industry. The slowing rate of Chinaâ&#x20AC;&#x2122;s economic growth is impacting on demand for shipping services across a number of trades. China is also currently in the process of economic transformation as its government seeks to

INDUSTRY

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engineer a shift away from the manufacturing and trade focus of recent years, towards an economic model focused on services and domestic consumption. We are already beginning to observe shifts in trade patterns that appear to be linked to these trends, such as a decline in Chinaâ&#x20AC;&#x2122;s importation of raw materials and â&#x20AC;&#x2DC;componentsâ&#x20AC;&#x2122; to support its heavy manufacturing industries. Nothing, of course, is certain, and the recent devaluation of the Chinese currency may even signal a reversal of the above trend. However, Chinaâ&#x20AC;&#x2122;s apparent move towards a service-led economy may be symptomatic of a broader shift in the global economy, wherein the relationship between GDP growth and trade is increasingly uncoupled as a result of service-led growth and shortened supply chains. Gold: Ever-bigger container ships are becoming the norm. Is this a positive or a negative development in your view? P.H.: The steady growth in the size of ships has been a game-changing development within the shipping industry, particularly within the container sector. As the representative body for a broad spectrum of companies, from large to small, it would not be appropriate for ICS to adopt a formal position on the topic of â&#x20AC;&#x2DC;mega-shipsâ&#x20AC;&#x2122;. The decision to invest in such vessels has to make commercial sense for the company involved in the context of its own trade and operations. Clearly, when utilised to their full potential, â&#x20AC;&#x2DC;mega-shipsâ&#x20AC;&#x2122; can deliver considerable reduction in fuel consumption per unit of cargo transported, thereby enabling shipping companies to significantly reduce their CO2 emissions at the same time as delivering cost savings to the end consumer. In this way, the growth in the size of ships has no doubt contributed to the shippingâ&#x20AC;&#x2122;s achievement of a 10% reduction in its total CO2 emissions between 2007 and 2012. There are, of course, also outstanding questions and areas of debate, such as the challenges facing ports in accommodatingthe larger vessels, and the implications for supply chain resilience of the concentration of cargo on fewer vessels. How this all plays out in the future is a matter ICS will continue to monitor with interest.

SPECIAL PROMOTIONAL FEATURE

PRESENTS

SHIPPING IN CYPRUS ON THE OCCASION OF THE MARITIME CYPRUS 2015 SHIPPING CONFERENCE, 24 COMPANIES AND ORGANISATIONS IN CYPRUS PRESENT DETAILS OF THEIR SHIPPING-RELATED SERVICES AND PRODUCTS.

contents contents contents EY CYPRUS ABB MARINE & TURBOCHARGING AIRFRANCE KLM ARETI CHARIDEMOU & ASSOCIATES LLC BSM C.D. MESSIOS LLC CHRISTODOULOS G. VASSILIADES & CO LLC COSTAS INDIANOS & CO DELOITTE DELTASOFT LTD FURUNO HORWATH DSP LIMITED

52 54 56 58 60 62 64 66 68 70 72 74

INTERORIENT SHIPMANAGEMENT INTERSHIP NAVIGATION L. NEMITSAS LTD LAVAR SHIPPING - VTS VTS VASILIKO TERMINAL SERVICES LIMASSOL MARINA LOWLAND MICHAEL KYPRIANOU & CO. LLC ÖSTERREICHISCHER LLOYD SHIPPING PwC SALAMIS SHIPPING SERVICES TOTOTHEO GROUP UiBS

76 78 80 82 84 86 88 90 92 94 96 98

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SPECIAL promotional feature

EY CYPRUS NAVIGATING THE WATERS EY HAS BEEN AT THE FOREFRONT OF THE GLOBAL SHIPPING INDUSTRY FOR MANY YEARS SERVING A LARGE NUMBER OF PUBLIC AS WELL AS PRIVATE SHIPPING COMPANIES.

ur approach is based on years of hands-on experience of catering to your needs and is designed to support you, not just for this moment in time, but rather in the context of a cyclical industry. Our global network can serve our clients, regardless of location, by combining local knowledge with international experience. EY Cyprus has a long-term and deep commitment to the shipping industry, with strong track record of service. We are able to respond fast and accurately to our clients’ needs, irrespective of their location, with tailored services from experienced teams with in-depth industry knowledge. Together with EY Greece, we are a team of over 130 experienced professionals dedicated solely to supporting our shipping clients. Other than the traditional financial statement, audit and tax compliance services, we also offer specialised services relating to the needs of our shipping clients, such as Valuation and Business Modelling services, Fraud Investigation and Dispute Services, Service Organisation Controls Reporting (ISAE 3402),Tax Advisory services related to the tonnage tax regime and IPO readiness services. Recently, we were commissioned to conduct a study for the Department of Merchant Shipping of the Ministry of Transport, Communications & Works regarding the development of a holistic Strategic Plan for the Cyprus

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At EY, we are committed to building a better working world – with increased trust and confidence in business, sustainable growth, development of talent in all its forms, and greater collaboration. We want to build a better working world through our own actions and by engaging with like-minded organisations and individuals. This is our purpose and why we exist as an organisation. Running through our organisation is a strong sense of obligation to serve a number of different stakeholders who count on us to deliver quality and excellence in everything we do. We want to use our global reach and scale to convene the conversation about the challenges facing economies and the capital markets. When business works better, the world works better. We are the most globally integrated professional services organisation – in our mindset, actions and structure. We are 210.000 people based in 728 offices in 150 countries, organised into 28 Regions and four Areas. At EY, we have long thought that globalisation is one of the defining issues of our time. Our response has been to transform our organisation so that we keep in step with the changing needs of our clients and our people. EY’s origins in Cyprus date back to the 1930s. The local firm is part of EY’s Europe, Middle East, India and Africa (EMEIA) Area and one of the 21 countries that comprise the Central and Southeast Europe (CSE) Region.

EY WORKS COLLABORATIVELY WITH EVERY SHIPPING CLIENT, SHARING INSIGHTS AND LEADING PRACTICES ON WHAT QUESTIONS TO ASK AND WHICH METHODS AND TOOLS TO EMPLOY FOR DATA ANALYSIS AND REPORTING Shipping Industry, based on the examination and analysis of the present as well as foreseeable future trends and developments in the International Shipping

market. As part of this exercise, we have shared our insights and ideas for the development of the local market and we have proposed a number of specific measures that will incentivise and strengthen the local shipping industry. We are proud of the fact that our proposed measures are already in the process of being implemented by the Ministry of Transport, Communications &Works.

LEVERAGING DATA FOR ACTIONABLE INSIGHTS AND MARITIME INTELLIGENCE

A new theme that is presently emerging in the shipping industry is data analytics and Business Intelligence (BI). BI refers to an enterprise’s capability to capture, transform and report data or events in an actionable manner, enabling fact-based tactical and strategic decisionmaking. Ultimately, the goal is to turn data into insights and insights into driver-centric and KPI-focused actions. Shipping is a data-intensive industry that presents unique challenges and opportunities for BI applications. To drive better decisions, shipping companies must first ask the right business questions and then seek answers in the data. EY works collaboratively with every shipping client, sharing insights and leading practices on what questions to ask and which methods and tools to employ for data analysis and reporting. We are helping shipping companies develop BI capabilities in all facets of their business, including budgeting and voyage performance monitoring, chartering, technical management and preventive maintenance, risk management, procurement and crewing. A practical example of exploiting data to improve business performance within a shipping company is operating expenses (OPEX) analytics. Many shipping companies do not realize the wealth of information they keep in their accounting or ERP system in the form of historical data for various OPEX cat-

egories (crew costs, spare parts, lubricants, paints, supplies, maintenance, etc.). Although OPEX play a key part in budgeting, forecasting and investment appraisal calculations, they are typically ignored, badly approximated or treated as exogenous estimation parameters. A more in-depth analysis of past OPEX data can help determine the key cost drivers of the company and identify opportunities for better cost management and potential savings. This is critical in today’s charter market environment for ensuring a positive cash flow and maintaining a sustainable profit margin. Another BI example and a true ‘big data’ application in shipping is Automatic Identification System (AIS) analytics. By analysing vast volumes of historical and live AIS data on vessel positions, shipping companies are able to achieve tremendous benefits in the domain of maritime intelligence. EY has the commercial insights, data analytics and IT capabilities to help shipping clients design and develop bespoke tools for capturing, storing and analysing AIS data for a variety of tactical and strategic purposes: tracking competitor movements, analysing cargo trading patterns, updating Expected Time of Arrival (ETAs) and regional tonnage balances, monitoring speed for fuel optimisation, amongst others. With a deep commitment to the industry and vast resources from our Global network, we stand ready to offer fresh insights that translate to business advantages for our shipping clients. We do look forward to sharing our insights and ideas for building a better shipping industry and enhancing the capabilities of the local shipping community.

OUR SHIPPING SERVICE OFFERINGS

ASSURANCE SERVICES • Financial Statements Audit • Financial Accounting Advisory Services • Assistance during the IPO process • Fraud Investigation and Dispute Services • Climate Change and Sustainability Services • Accounting Compliance Services

TAX ADVISORY & COMPLIANCE SERVICES • Business Tax Services • Transaction Tax • Indirect Tax • Human Capital • International Tax Services (ITS) • Tax advice in relation to planning of investments in shipping through holding structures • Tax advice related to the tonnage tax regime TRANSACTION ADVISORY SERVICES • Valuations and Business Modelling • Restructuring • Transaction support • M&A Advisory • Project Finance ADVISORY SERVICES • Enterprise Intelligence & Data Analytics • Performance improvement • Risk • Service Organization Controls Reporting ((e.g., ISAE 3402/SSAE 16, ISO 27001) • Information Security • Enterprise Intelligence & Data Analytics • IT Internal Audit • Financial Services Risk Management • Actuarial Services GLOBAL COMPLIANCE AND REPORTING • Establishment and set up of legal entities • Corporate Secretarial Support Services • Administration Services • Accounting Services • Payroll Administration and personnel related services • Tax and VAT services

CONTACT DETAILS

Address: Jean Nouvel Tower, 6, Stasinou Avenue, P.O.Box 21656, 1511, Nicosia Tel: (+357) 22209999 Fax: (+357) 22209997 e-mail: ey.cyprus@cy.ey.com Website: ey.com/cy

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SPECIAL promotional feature

ABB MARINE & TURBOCHARGING THE NEXT BIG WAVE IN MARITIME INNOVATION TWO HUNDRED YEARS AGO THE STEAM ENGINE BROUGHT US RAILWAYS, MECHANIZED SHIPPING AND FACTORIES, AND THE INDUSTRIAL REVOLUTION WAS BORN.

his was a ‘sea change’ from rural agricultural economies to industrial urbanization, the beginning of mass production, and widespread electrification. Computers and the Internet have given us unprecedented access to information and a communication superhighway that has fueled a globalized economy. Today a new era of economic expansion is dawning, brought about by the connection of intelligent machines, fitted with a growing number of electronic sensors, via the Internet, usually referred to as the ‘Internet of Things’. ABB takes a more-holistic approach. For one, ABB’s approach extends beyond manufacturing, or discrete automation, to include process industries as well as utilities and infrastructure. And ABB’s approach concentrates not just on things – those physical devices that are undergoing an automation revolution – but also on services, to ensure these devices are running optimally. People remain central to the process, in that they are making decisions, programming and optimizing all activities performed by these devices. Put simply, this is the Internet of Things, Services and People (IoTSP) at ABB: Intelligent indus-

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trial devices, connected via networks that expand opportunities for remote services and that allow people to make better decisions thanks to their ability to collect, analyze and act on data. The IoTSP is enabling us to ‘see, hear, and feel’ more acutely than ever before. This revolution is allowing us to operate machines more safely, with greater efficiency, and with less environmental impact, not just individually, but as complete systems, such as power grids and fleets of locomotives, airplanes, and ships. For the maritime industry, this transition takes advantage of the mass of sensors already on-board, such as for motion monitoring, engine and power data and GPS (global positioning system), but will require the addition of more to create an ecosystem of sensors and the software to cope with the data. In addition to power and propulsion

solutions ABB is now delivering integrated systems, including sensors and monitoring hardware, and the software to visualize operations, not only for the crew on the ship, but also for the owners onshore, at their operations centers. Using networks of sensors, ship owners can capture a range of ship-voyage information, including location, weather and ocean-current data, together with performance data from on-board equipment and cargo status. By applying sophisticated analytics to new and historical fleet data, and using data visualization technology to present the insights, ship owners can monitor their vessels’ status and condition in real-time, enabling data-driven decisions that support more efficient fleet operations. For example, shifts towards preventive, condition-based maintenance

will enable an engine service to be requested ahead of a predicted decline in engine performance, without wasting time servicing them on a fixed schedule. This will help to reduce unplanned stoppages, resulting in more cost-effective shipping. Should a failure occur, the availability of performance data means remote diagnosis and on-board fault repair can become a reality. Imagine a 100,000 DWT (deadweight tons) LNG (liquefied natural gas) carrier sailing at full speed across the ocean. An unexpected trip in the starboard power frequency converter causes an immediate loss of 50 percent of its propulsion power. The giant vessel does not lose any of its safety-critical maneuvering capability, but it has to reduce speed significantly. Slower sailing means a longer journey time, resulting directly in higher operational costs. In a typical case, such a fault would lead to slow sailing for several days, until a qualified service engineer could be reached at the destination. Here, however, that scenario was avoided, because the ship was equipped with an ABB remote diagnostic system (RDS), connected, in the middle of an ocean, to the IoTSP. The crew, having recognized a fault, notified an ABB technical support engineer and within 20 minutes he was able to connect on-line to the RDS on board. The ABB specialists helped the on-board engineer to verify the diagnosis and the component was replaced from spares stored on board. The entire troubleshooting process took about two hours from the first call until the entire propulsion system was back in operation. Improved satellite connectivity and access to information, through the IoTSP, allows vessels to be on-line, almost all the time, connected to their operators, their owners and to each other. By exchanging shipping route

information, captains can know each other’s intended course, allowing the safest and most fuel-efficient diversionary actions to be taken. ABB’s voyage advisory system, connected via the cloud, enables better time of arrival forecasting and can even predict optimal vessel behaviors under certain weather conditions. These predictions allow the Captain to adjust a ship’s trim for better sailing. Similarly, by constantly measuring the energy and power savings of on-board installations, such as ABB drives and motors, and sending data, including emissions data and fuel consumption to the cloud, ABB’s energy advisory system can recommend actions to optimize fuel consumption and reduce energy losses. So, by integrating automation and power, both electrical (including the ABB Azipod propulsion system) and mechanical (including ABB turbocharged diesel generators), and life cycle services (through ABB’s RDS), improvements can be made in the overall operational efficiency of individual vessels and ultimately entire fleets. By extending real-time data collection and exchanging information across vessels, ports, cargo and land logistics, the entire movement of people and goods can now be made safer and more efficient. The Azipod system’s signature benefits – low fuel consumption, greater speed using less power, better maneuverability, reduced noise and a compact footprint – typically reduce energy consumption of open-water vessels by 5 to 15 percent, but savings as high as 25 percent have been recorded. Additionally, ABB announced the first application on a marine

engine of its second generation twostage turbocharging solution. ABB Power2 800-M consists the most advanced two-stage turbocharging solution in the marine market. The innovative two-stage ABB Turbocharging technology has increased pressure ratio capabilities up to 12, from 8 in the first generation, and turbocharger efficiency beyond 75%, compared to a single-stage turbocharger which is typically around 65-70%. This combination of higher efficiency and higher pressure ratio contributes to increased engine power density, and also translates into significant potential for saving on fuel consumption costs and up to 60% lower NOx emissions. This second generation of Power2 800-M is also over 20% more compact than conventional two-stage solutions, enabling space to be maximized on the engine. It was also designed with high availability and minimum downtime in mind being both easier to accommodate on the engine and, significantly for operators, it enables fast service execution under limited space conditions due to the ‘extractable cartridge’ concept. ABB Process Automation is delivering products and solutions not only to the Marine Industry, but to Oil & Gas, Mining, Food & Beverage, Pharma and Chemical segments as well. Contact ABB to find out more about the innovative tools and applications that enable smarter and faster ways to collaborate, not only by making your operations more efficient, but making them safer and more rewarding too.

CONTACT DETAILS

Address: 1, Alexandrias St.,Ind. Zone Ag. Sylla, 3rd Phase, 4180 Limassol Tel.: (+357) 25343428 e-mail: turbo@cy.abb.com, services.marine@ cy.abb.com Website: http://new.abb.com/marine-ports

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ARETI CHARIDEMOU & ASSOCIATES LLC COMMITMENT TO EXCELLENCE ESTABLISHED IN LIMASSOL MORE THAN 20 YEARS AGO, THE FIRM OFFERS LEGAL EXPERTISE IN PROPERTY, TRUST AND COMPANY LAW, LEGAL REPRESENTATION FOR FINANCIAL SERVICES COMPANIES, BANKING AND FINANCE LAW, MERGERS AND ACQUISITIONS, TAX LAW, INTELLECTUAL PROPERTY AND SHIPPING LAW TO INDIVIDUAL AND CORPORATE CLIENTS FROM ALL OVER THE WORLD.

pending a day on the premises of Areti Charidemou & Associates LLC, one realizes that a Law Firm established in the early 90’s has succeeded in concentrating and bringing together young, fresh and energetic passion with seasoned senior, highly experienced professionals to offer the ultimate combination of knowledge and expertise to its clients. Sharp and ambitious young lawyers, with top academic credentials, add value to the long established Firm’s reputation. The team’s hard work and resulting achievements are reflected in the well-respected diverse portfolio of international clientele, ranking the Law Firm within the top 15 in Cyprus. Socrates Ellinas, the Firm’s Head of Commercial Law Department, says: “We believe in creativity and a fresh mindset. The new world commercial landscape demands new and innovative legal thinking. We recruit and train the best people within our industry. Our philosophy has attracted the highest academically educated and professionally qualified personnel in the market, whilst their young, energetic, eager and charismatic personalities have become synonymous with our firms character and commitment to excellence”.

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HARD WORK, INTEGRITY, PROFESSIONALISM

From the most modest of beginnings, Areti Charidemou & Associates LLC revolutionized the industry, through its commitment to helping clients achieve their goals by providing commercially focused legal advice that consistently exceeded clients’ expectations. Through hard work, integrity and professionalism in commercial legal consultation, the Firm has enjoyed over two decades of success. “Through the combination of the highest Global Standards of business law and local excellence of service our firm ensures that our clients benefit from the best legal advice and corporate representation. We are committed to maintaining the depth, quality and scale of resources necessary to meet and exceed our clients’ expectations, wherever and whenever they arise. We pride ourselves on finding optimal solutions to complex business issues and working together with our clients. We pride ourselves on our creative way of thinking. No matter how complicated or challenging the task ahead, we are not satisfied until we have delivered the highest quality, and the most commercially viable solution,” notes Areti Charidemou, the founder of the Firm.

MAKING IT PERSONAL

The lawyers at Areti Charidemou & Associates LLC work with each client as a single team, focusing on strong, longstanding relationships, understanding individual ambitions and making the client’s goals personal. Key to the Firm’s mentality and culture is the awareness that its own development is interrelated with and determined by its clients’ success

and growth. Anticipating clients’ needs is not only about understanding future services but also about how clients will want these services delivered. Areti Charidemou & Associates LLC has been at the forefront of revolutionizing the management of processes for the most efficient delivery of legal services. Through its commitment to excellence, it has introduced sophisticated management systems and processes in order to successfully provide efficient and cost-effective legal support and administrative business information to its clientele.

THE SHIPPING LAW DIVISION

Areti Charidemou & Associates LLC provides legal services in the field of admiralty and shipping law, advising owners, managers, charterers, freight forwarders and their respective insurers. Shipping Law is an area in which the Firm has invested time and resources and, through informed advice, succeeded in persuading clients to choose Cyprus as their flag of choice, resulting to an impressive increase of the Firm’s market share, which is expected to increase further in the coming years.

LIMASSOL PORT: REPEATING PIRAEUS’ SUCCESS STORY? Following a massive expression of interest by more than 70 entities and consortia from around the world, the Ministry of Transport, Communications and Works recently informed qualified interested parties that a dialogue will be launched on the terms of the potential concession. According to the Tender Documentation released during the Expression of Interest Stage, there will be three separate concessions: for the Container Terminal, the Multi-Purpose Terminal and the Marine Services. Qualified candidates have been requested to enter into Confidentiality Agreements with the Tender Board in order to be provided with the Tender Documents as well as technical information and Financial Data, in the light of a scheduled submission of their final offer by the end of November. The procedure is expected to be completed by March 2016 when concessions will be granted to the successful bidders. Speaking to the CyBC, Ports Authority Chairman Alecos Michaelides mentioned that the shortlist contains twelve companies/consortia that will be invited to tender for the Container Terminal, ten for the

marine services and thirteen for the multipurpose terminal. Furthermore, according to Mr. Michaelides, China’s COSCO which manages the Port of Piraeus is amongst the qualified parties. Although the shortlist has not been published, it seems that the biggest international port operators are competing for the commercialization of the Cyprus Port Authorities’ activities in the Limassol Port. The Minister of Transport, Communications & Works, Marios Demetriades, recently noted the “interest from other organisations similar in size to COSCO”, thanks to the continuous efforts of the Ministry and its consultants on this project. Piraeus Port is a success story of a publicly managed port that has been privatized and, through the implementation and effectiveness of strategic collaborations with large terminal operators such as COSCO, has managed for the first time in its history to be ranked 39th in the world in terms of the number of handled containers (TEU). According to Lloyd’s List, Piraeus is now ranked 8th largest in Europe and the 4th largest in the Mediterranean.

In contrast, the volume of cargo handled by the Limassol Port has significantly decreased during the last years and it is disproportionate to the Port’s competitive advantages, in particular its technical characteristics, its strategic location and its close proximity to other important ports in the region. The amount of cargo handled is considerably lower than the current capacity of the Port, and the Ministry has implemented an ambitious multi-million development programme of technical upgrades, increased capacity and improved efficiency. The completion of the scheduled works will undoubtedly add value to the already attractive characteristics of Limassol Port and justify the strong interest of some of the most important players of the international sea-port management sector. Cyprus’ strategic location, the Government’s continuous efforts to turn it into an international transshipment centre, the island’s well-established and reputable shipping sector, the potential involvement of one of the major port operators, as well as the advantages that Cyprus’ business environment offers, makes the Limassol Port commercialization case an attractive investment opportunity that has the potential to become another success story following that of Piraeus Port. Moreover, Cyprus’ EU membership and the expected lifting of the Turkish embargo give very optimistic prospects to the future of the Port and its cargo and passenger traffic. Andria Antoniou (a.antoniou@aretilaw.com) Socrates Ellinas (socratis.ellinas@aretilaw.com)

CONTACT DETAILS

Address: 21, Vasilis Michailides St., 3026 Limassol, Cyprus Tel: (+357) 25508000 Fax: (+357) 25508032 e-mail: shipping@aretilaw.com Website: www.aretilaw.com

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BSM – AN OCEAN OF EXPERTISE BERNHARD SCHULTE SHIPMANAGEMENT (BSM) IS AN INTEGRATED MARITIME SOLUTIONS LEADER, WITH MORE THAN 130 YEARS OF EXPERIENCE IN THE SHIPPING INDUSTRY.

anaging a fleet of over 600 vessels, our 20,000 employees globally enable us to deliver local expertise as well as safe, reliable and efficient ship management services through a network of 9 ship management, 23 crew service and 5maritime training centres across the world. Alongside our comprehensive shipmanagement services – crew, technical and commercial management – BSM offers a suite of complementary integrated maritime solutions tailored to customerspecific requirements to help customers and business partners increase their business’ competitiveness. Aligned with the company’s vision, to be a leading maritime solutions provider and the leader in quality shipmanagement, as well as focused on enabling its business partners to achieve their objectives through applied knowledge, experience and innovation, BSM’s commitment to every customer is: • Maximum vessel availability, safety, reliability and effciency to achieve higher income at the lowest possible operating cost • Protection of customer reputation through integrity, full compliance and a top quartile safety and performance record • Full transparency and easy access to vessel information through BSM’s ‘Client Web Access’ Bernhard Schulte Shipmanagement (Cyprus) Ltd, (BSM Cyprus), headed by Mr. Arthur McWhinnie,was the first active shipmanagement company to be incorporated on the island in 1972. Strategically thinking of the geographical

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location as a rising opportunity, a “gateway” to Europe and the Middle East, BSM’s presence in Cyprus has been instrumental in aiding to structure the island as a leading shipmanagement hub, not only regionally but also globally. BSM’s office in Cyprus employees over 180 personnel and has established a branch office in Caracas, Venezuela, to provide local support and close collaboration to our seafarers, stakeholders and fleet that trade in South America and the Caribbean. BSM’s global expertise with highly experienced sea and shore based professionals, lies within the management of various vessel types – container, bulk, tanker, gas and offshore – being fully equipped to meet owners’ and charterers’ requirements. BSM Cyprus specializes in the management of gas, dry and specifically wet vessel types with over 75% of the Cyprus fleet being chemical, product and oil tankers. The fleet is manned with a developing pool of skilled and experienced seafarers and managed ashore by the most competent superintendents within the industry. BSM’s valuable relationship with charterers, major oil companies and clients are essential pillars to our success and sustainability in the shipping industry. BSM maintains one of the largest pools, with over 12,000 seafarers on board our managed vessels globally at any given time. To meet its own stringent requirements and those of the industry, BSM’s wholly owned Maritime Training Centres have been established all over the world, including one in the heart of Limassol, where over 3,000 cadets are trained annually in a state-of-the-art training facility to learn and develop competences. BSM Cyprus is an active member of

Mr. Arthur McWhinnie, Managing Director, BSM Cyprus

the Cyprus Shipping Chamber (CSC), the Cyprus Marine and Environmental Association (CYMEPA), and was honoured with one of the first prestigious International Investment Awards presented by the Cyprus Investment Promotion Agency (CIPA) in 2012. For any further information, please reach out to one of our professional experts, who will be present at “Maritime Cyprus” (Stand No. 2) and will be happy to assist you.

CONTACT DETAILS

Address: Hanseatic House, 111 Spyrou Araouzou St., 3036 Limassol, Cyprus Tel: (+357) 25846400 Fax: (+357) 25745245 e-mail: cy-smc-man@bs-shipmanagement.com Website: www.bs-shipmanagement.com

Maritime Solutions powered by people An ocean of expertise dedicated to safe, reliable and efficient ship management

www.bs-shipmanagement.com

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CHRISTODOULOS G. VASSILIADES & CO LLC THE LAW FIRM OF CHRISTODOULOS G. VASSILIADES & CO. WAS ESTABLISHED BY CHRISTODOULOS G. VASSILIADES IN 1984. THE FIRM, SUBSEQUENTLY NAMED CHRISTODOULOS G. VASSILIADES & CO. LLC, SWIFTLY DEVELOPED A REPUTATION FOR EXCELLENCE AND DILIGENCE IN ALL LEGAL AND BUSINESS MATTERS – A REPUTATION THAT IT HAS CULTIVATED AND MAINTAINED TO THE PRESENT DAY

LEADING LAW FIRM

With more than 30 years of experience, the firm is presently universally cited as one of the leading law firms in Cyprus and worldwide. The firm has singled itself out as a full-service law firm entrusted by high-profile corporations and private clients with their legal and business matters, in both domestic and international law.

WHAT MAKES US STAND OUT

y 30 years of experience y An extensive corporate network y Commitment to Excellence y Continuous Training for our Staff y Tailored Made Solutions y Everlasting lawyer-client relationships y Dedication y Passion y Affiliated offices: Cyprus, Greece, Russia, Malta, Hungary, UK, Belize, Seychelles 64 | GOLD | The Business Magazine of Cyprus

"WE ARE WHAT WE REPEATEDLY DO. EXCELLENCE, THEN, IS NOT AN ACT, BUT A HABIT" ARISTOTLE y Membership with numerous professional associations and networks: IBA, Interlaw, Mackrell International Laworld, Lexwork , LEGUS, IFA, INTA, STEP, Marques, ECTA, ASIPI

SHIPPING DEPARTMENT

Shipping and Maritime law is one of the key practice areas of the firm, which has seen considerable growth over the past decade. The firm’s Shipping Department consists of a team of professionals committed to providing high quality service in the field of Shipping Law while, at the same time, promoting the business interests of its clients and ensuring full client satisfaction at all times.

SERVICES OFFERED

y Establishment and daily operation of shipping companies y Sale /Purchase of vessels y Financing transactions y Mortgaging of vessels y Charterparties y Joint Venture Agreements y Worldwide registration of vessels in Cyprus, Malta, Belize, Panama, Seychelles, Liberia, Marshall Islands y Shipping litigation y Tax advice

CONTACT DETAILS

15 Agiou Pavlou Str. LEDRA HOUSE, 1105, Nicosia, Cyprus | www.vasslaw.net information@vasslaw.net

The Yacht Registration Centre, Y.R.C, was launched earlier this year with the coming together of a team of experts in the area; lawyers, tax advisors, shipping agents, VAT specialists. The purpose of Y.R.C is to facilitate in the worldwide registration of yachts and to provide all required ancillary services, taking into consideration all practical, legal and tax matters. SERVICES WE OFFER: x Worldwide registration of yachts x Continuous legal and tax support x Company incorporation services x Implementation of yacht leasing schemes

YACHT REGISTRATION CENTRE, Y.R.C 15 Agiou Pavlou Str., LEDRA HOUSE,1105, Nicosia, Cyprus | www.yachtregistrationcentre.com | info@yachtregistrationcentre.com

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COSTAS INDIANOS & CO ESTABLISHED IN1924, COSTAS INDIANOS & CO ADVOCATES & LEGAL CONSULTANTS MAINTAINS A WIDE NETWORK BUSINESS COOPERATION WITH MARITIME FIRMS ACROSS THE EU, RUSSIA AND ELSEWHERE.

OUR FIRM

Our law firm provides custom-made shipping services with afocus on quality Mr. Anthony Indianos, and time efManaging Director / Lawyer ficiency: • Cyprus Shipping Companies & Cyprus Flag • Provisional, Permanent & Parallel Registration of vessels • Loan Facility Agreements • Mortgage of Vessels • Refinancing of vessels, • Sale & Purchase of vessels, • Reflagging & Deletion of vessels • Vessel & crew administration • Yacht registration • etc.

WHY CYPRUS SHIPPING?:

The Merchant Shipping Tonnage Tax Legislation 44(I) 2010 Cyprus is ranked the 3rd top maritime nation in the EU and the 10th worldwide, it has more than 1,857 vessels with 21 million gross tonnage and more than 130 ship owning and ship management-related companies with offices in Cyprus, conducting international activities, even though Turkey maintains its embargo on Cyprus-flagged ships. The Merchant Shipping Tonnage Tax Legislation 44(I) 2010 provides full tax exemption to ship owners, charterers and ship manag-

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ers who can take full advantage of the following: • No tax on income of a qualifying owner /charterer derived from the operation of a qualifying ship in a qualifying shipping activity. • No tax on income of a qualifying ship manager from the rendering of crew and/or technical management services/ship management to a qualifying ship. • No tax on profit dividends paid to shareholders directly or indirectly from the operation/ship management of a qualifying ship or, from the sale of a qualifying ship by ship owners. • No tax on bank interest earned on

working capital or shipping revenue provided they are used by a qualifying owner paying expenses for the financing and/or operation and/or maintenance of the ship, by a charterer to pay expenses related to the charter party, by a ship manager to pay expenses relevant to the management of a qualifying ship. • No tax (capital gains tax) on profit income made by a qualifying ship owner from the sale of a qualifying ship, or the sale of shares of a Shipping Company owning a qualifying ship. • No exchange controls and freedom of movement of foreign currency • Double Tax Treaties with 50 countries.

â&#x20AC;˘ No estate duty on the inheritance of shares in a ship owning company â&#x20AC;˘ No income tax on the emoluments of officers and crew â&#x20AC;˘ No stamp duty on ship mortgage deeds or other security documents â&#x20AC;˘ Signatory to numerous international maritime conventions and active member of the IMO (International Maritime Organization). â&#x20AC;˘ Bilateral agreements with 29 countries, through which Cyprus ships receive either national or favoured nation treatment in the ports of other countries â&#x20AC;˘ Competitive ship registration costs and annual tonnage taxes â&#x20AC;˘ Full protection for financiers and mortgages â&#x20AC;˘ Cyprus has adopted a maritime safety policy focusing on the effective control of ships and the improvement of the quality of the countryâ&#x20AC;&#x2122;s merchant fleet. â&#x20AC;˘ Low set-up and operating costs for companies â&#x20AC;˘ Excellent telecommunications and

easy access by air and sea â&#x20AC;˘ Highly qualified managerial, clerical and technical staff available â&#x20AC;˘ Modern and efficient legal services based on English practices â&#x20AC;˘ Member of the European Union â&#x20AC;˘ Democratic country with a free market economy â&#x20AC;˘ Strategic location at the crossroads of three countries

SCOPE OF TONNAGE TAX LEGISLATION 44(I) 2010

The Merchant Shipping (Fees & Taxing Provisions) Law 44(I) 2010 was enacted in May 2010 and introduced a new tonnage tax system in Cyprus. This simplified tonnage tax system was approved for the first time for an EU Member State with an open registry, thus making it available to the world shipping business community. The tonnage tax system which provides for full exemption on income tax is available to any owner, charterer or ship manager who owns charters or manages a qualifying ship in a qualify-

ing shipping activity. This includes the obligation for the owner, charterer or ship manager to be Cyprus tax residents. In practice, this means for the foreign ship owner or charterer to incorporate a resident Cyprus Shipping Company on which the vessel shall be transferred & registered and/or for the foreign ship manager to incorporate a Cyprus Ship management Company. The above includes a bareboat charterer of a foreign ship under parallelin registration in Cyprus. The tonnage tax is calculated on the net tonnage of the ship according to a broad range of bands and rates prescribed in the legislation. Furthermore, a â&#x20AC;&#x2DC;CommunityFlagged shareâ&#x20AC;&#x2122; requirement that share applies to owners of foreign ships, charterers and managers requires that a share of the fleet in terms of tonnage must be comprised of Community ships, with the obligation to maintain that share for at least 3 years, unless the share of Community Ships is more than 60% of the fleet. Finally, all terms & conditions of Law 44(I) 2010 can be found in the website of the Department of Merchant Shipping (DMS).

CONTACT DETAILS

Address: Address: Kermia House, [O -SVVY 6É&#x2030;JLZ +PHNVYV\ :[ 1097 Nicosia, Cyprus Postal Address: P.O.Box 21574,1510 Nicosia, Cyprus Tel: (+357) 22675231 & (+357) 22665232 Fax: (+357) 22669678 e-mail: indianos@indianos.com.cy Skype: anthony.indianos Website: www.indianos.com.cy

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Shipping in Cyprus Your trusted advisors Why Shipping in Cyprus?

Our Services

Cyprus has without a doubt developed to be one of the most attractive shipping centres in the world with its ship registry today ranking tenth among international ﬂeets. Its Tonnage Tax (TT) system which was signiﬁcantly amended in 2010 and fully approved by the EU, makes it one of the most advanced and most competitive. Coupled with a sound legal framework, highly favorable corporate taxation and highly skilled and educated workforce Cyprus attracted some of the biggest third party shipmanagers in the world, making it the largest such center within EU. The Cyprus registry is continuously upgrading its services in order to offer a high standard of support to international shipping and a reputation of a “Flag of Progress”.

Our ﬁrm offers shipping clients a broad range of audit, tax, consulting and ﬁnancial advisory services.

In summary, the main advantages and beneﬁts of Cyprus are:

We offer our shipping clients a broad range of audit and advisory services. Our client service teams, under the leadership of a Lead Client Service Partner, are multiple disciplined and are dedicated to serving the shipping industry. Our global shipping network helps our clients to meet their expectations anywhere in the world.

• Strategic geographical location • EU membership • Stable political system with sound legal framework • Highly skilled and educated workforce • Comparatively low cost base centre • Competitive ship registration costs • EU fully approved TT system available to ship owners, ship managers and charterers, that provides full exemption from corporate taxation of: - Profits from exploitation of a qualifying ship employed in a qualified activity - Profits from the disposal of a qualifying ship - Profits from rendering crewing and/or technical shipmanageement services to a qualifying ship • Full tax exemption of dividends paid out of profits falling within the TT regime

Why Deloitte? In partnering with Deloitte our shipping clients benefit from: Integrated Solutions Our unique difference is that we are the only professional services firm that has all the competencies, audit, tax, consulting, financial advisory integrated to understand our clients’ issues and serve them best with their business needs. Local and global knowledge and expertise Deloitte is amongst the leaders in providing professional services to the Shipping Community in Cyprus and has an excellent reputation in shipping worldwide. Further we are one of the biggest contributors to the success of Cyprus in becoming a truly international business and shipping centre. Strong sustainable business relationships Through our positive contribution to the success of our clients we build long term relationships based on trust. Objectivity and integrity We ensure independence, integrity and objectivity on all client engagements to secure delivery of reliable and professional business advice. 68 | GOLD | The Business Magazine of Cyprus

Our client service teams provide powerful solutions for organisations operating anywhere in the world. This integrated approach combines insight and innovation from multiple disciplines with business knowledge and industry expertise to help our clients exceed their expectations. Audit & Accounting Quality and trust

Tax Insight and innovation Deloitte has one of the largest teams of taxation experts in Cyprus, providing a full range of business and taxation services. Our tax experts keep our clients up to speed on the developments that may affect their business, help them interpret their signiﬁcance and integrate tax considerations into their strategy. Risk Security. Evolved. We help our clients address the entire spectrum of emerging risks, including cyber, innovation, geopolitical and other trends. Deloitte’s cyber risk practice is a world leader in security consulting with capabilities that cross the disciplines of risk management, IT consulting and organisational transformation. Financial Advisory Creating Value Our Financial Advisory Services (FAS) professionals provide strategic and ﬁnancial advisory services to clients throughout every phase of the economic cycle. By managing our service offerings, we can extract synergies from our deep specialisms and our shipping industry programs to provide added value to our clients. Consulting Helping organisations innovate, transform and lead Our team of experts deliver comprehensive and tailored integrated consulting solutions, which range from helping our shipping clients align their people and business strategies to reorganising their service delivery models and improving their business systems and policies.

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FURUNO (CYPRUS) LTD FURUNO, AN INTERNATIONAL MARINE ELECTRONICS COMPANY, WAS ESTABLISHED IN JAPAN IN 1938 ON THE SIMPLEST OF PHILOSOPHIES: TO IDENTIFY UNANTICIPATED CHALLENGES WITHIN THE MARITIME INDUSTRY AND DELIVER QUALITY SOLUTIONS TO ASSIST ITS CLIENTS TO OVERCOME THOSE CHALLENGES.

n 1948, FURUNO commercialized the world’s first practical Fish Finder and has since then continued to strive for innovative excellence and quality manufacturing for its entire product portfolio which includes Marine Radars, Navigational GPS, Navigational Echo Sounder, the entire GMDSS Product Range, Automatic Identification System (AIS), Voyage Data Recorder (VDR), Fleet Broadband & VSAT Communication Systems, Electronic Chart Display and Information Systems (ECDIS) and other marine electronic devices. Today, FURUNO remains the global leader in the Marine Electronics market, which has been achieved through the integration of its knowledge, skills and knowhow gathered through ongoing research and business activities.FURUNO’s position in the maritime market is further enhanced by its ability to adapt to the changing needs of its clients, whilst always staying true to its vision and goals.

GLOBAL PRESENCE

FURUNO has managed to establish a massive international presence through its investment in 17 subsidiaries and local partnerships worldwide. FURUNO is the only marine electronics manufacturer

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with such an extensive investment in its own subsidiaries globally. These subsidiaries are accompanied by an impressive 83 national distributors, enabling FURUNO to have a true international presence and ensuring that its customers enjoy quality service right where they need it. Through its loyalty and commitment to national distributors, FURUNO has also proven that its business relations go beyond the strict boundaries of commercial agreements. It is FURUNO’s philosophy to share knowledge with local partners so that they then become better equipped to serve the needs of their customers within that particular maritime community. FURUNO recognizes that local personnel inevitably know the idiosyncrasies of their own market, which is why we fol-

low this approach of localising knowledge. In this way, FURUNO has managed to develop a very strong and competent worldwide network that can serve every customer anywhere in the world.

SETTING ITSELF APART FROM GLOBAL COMPETITORS

Originating from the ethos of Japanese culture, FURUNO’s lead in terms of market share within the Marine Electronics market can be attributed to its three core management principles, which are deeply engrained in every aspect of its business. These are: Its commitment to serving its customers well though its willingness to

THE CYPRUS TEAM

adapt to a changing market Ensuring that its management always remains creative in all facets of business Recognising that employee happiness and company growth are intrinsically linked. These principles have been shared with and passed on to local partners, thus creating a dynamic synergy.

WHY CYPRUS?

Cyprus is a very attractive jurisdiction in terms of its maritime legislation and ship registry. It is home to the 10th largest fleet globally and is the second-largest ship management centre in the world. This is further enhanced by its favourable tax system, applicable not only to Cyprus flag ship owners but also to owners of other flag ships, ship managers and charterers. This makes the island a very strong competitive contender within the maritime sector. With the local presence of some of the world’s leading names in the shipping industry in Cyprus, FURUNO quickly realised the importance of the Cypriot maritime community, hence the opening of FURUNO Cyprus Ltd two years ago.

MARKET SECTORS

The company’s primary market is Merchant Marine, to which it supplies a wide range of Deepsea navigational and communication products. This is followed by the leisure fishing sector and, to a lesser degree, the professional fishing sector and recreational boaters. In the Merchant Marine market, given that FURUNO is the leading manufacturer of marine electronics internationally, the vast majority of vessels across the globe have FURUNO products installed. This fact has consequently led to an increased demand for retrofit projects and service/ spare parts supply, which is the main focus of the company’s business. For the leisure fishing sector it is an unquestionable fact that FURUNO has the best Fish Finder in the market, with unique features including Bottom Discrimination and Accufish that immediately sets FURUNO apart as the market leader. FURUNO Cyprus’ target is to create a community here that amateur fisherman can rely on for support and sharing of experiences.

The FURUNO Cyprus team is composed of industry professionals who, through their passion for marine technologies, have become renowned not only for their expertise and know-how on FURUNO products but also for the skilled manner in which they are able to provide FURUNO certified services. These personnel are well-trained and certified to international standards and have the necessary practical experience to deliver top-quality support to FURUNO customers.

FURUNO CYPRUS GOING FORWARD

The company’s vision is twofold. In Cyprus, it aims to further enhance its establishment as a strategic partner through mutually beneficial associations with Cyprus-based shipping companies. At the same time, taking into account Cyprus’ strategic geographical location, the company has the capability to undertake any mandate handed to it by FURUNO ELECTRIC COMPANY (FEC HQ) relevant to service in this region.

CONTACT DETAILS

Address: 82, Nicou Pattichi St., Maritania Court, 3070 Limassol Tel: (+357) 25734466 Fax: (+357) 25734460 | Mob: (+357) 97855855 | e-mail: info@furuno.com.cy Website: www.furuno.com.cy

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HORWATH DSP LIMITED HORWATH DSP LIMITED IS A MEMBER OF CROWE HORWATH INTERNATIONAL, ONE OF THE TOP 10 GLOBAL ACCOUNTING NETWORKS. THE CROWE HORWATH NETWORK CONSISTS OF MORE THAN 200 INDEPENDENT ACCOUNTING AND ADVISORY SERVICES FIRMS IN OVER 120 COUNTRIES AROUND THE WORLD.

ABOUT US

Established in 1987, Horwath DSP Limited is an accountancy firm with offices in Nicosia and Limassol, offering audit, tax, risk and advisory solutions to a diverse clientele in the local market and abroad.

SHIPPING AND PRIVATE EQUITY

Bank financing has traditionally played a significant role in shipping finance with some banks, mainly German, holding a significant portfolio of shipping loans. The shipping industry has been adversely affected by the coexistence of the slowdown in shipping and the financial crisis with rates tumbling to historical lows. The downturn resulted in many ship owners facing difficulties in servicing their debts resulting in default on their loans. As a result, the banks ended up with a huge portfolio of non-performing loans on their balance sheets. In particular, some German banks with large exposures in shipping were on the brink of collapse, and the German government had to step in to provide government guarantees to keep them afloat. Such a turbulent and uncertain economic environment, along with the efforts of the banks to significantly reduce their exposure in shipping, attracted private equity investors who saw opportunities for an industry which was previously regarded as ‘uncharted waters’. As A.W. Kirkaldy nicely puts 74 | GOLD | The Business Magazine of Cyprus

it in his book British Shipping, “For the ordinary investor, the tramp company remains a form of investment to be avoided. It is a very special business and at its best financed and managed by those who are versed in its difficulties.” The economic conditions did not only attract private equity but also triggered consolidation and major restructurings within the shipping industry, examples of which are Hapag-Lloyd / CSAV and ZIM respectively. There are, of course, some difficulties since both the ship owning and ship management businesses are unique. At times, management decisions and approaches can also be unique and, at the same time, unfamiliar to the private equity investor. Moreover, ship owners and managers are likely to have a different approach from private equity investors to business risk. Regardless of the differences between private equity and ship owners and given the number of transactions that have taken place in recent years, both in absolute terms and value, as well as the need for new sources of finance, it is safe to conclude that private equity is here to stay. We, at Horwath DSP, have recently been involved in major and innovative refinancing projects of shipping groups and therefore have all the up-to-date necessary knowledge and experience to advise and assist clients with their financial restructurings. A comprehensive list of our services to the shipping industry follows:

• Advice on the Cyprus Tonnage Tax System • Compliance with the requirements of the Cyprus Department of Merchant Shipping • Compliance and advice on Cyprus shipping VAT issues • Advice on Mergers and Acquisitions • Advice on structuring of shipping groups • Advice on shipping finance • Administration, accounting and audit • Setting up and administration of Cyprus and other jurisdiction shipping companies • Assistance with registration of vessels under the Cyprus and other jurisdiction flag For any comments on the above article, please contact Emilios Ayiomamitis, Head of Shipping by e-mail: emiliosa@ crowehorwath.com.cy

CONTACT DETAILS

Address: 5PJVSHV\ 7LU[HKYVTVZ *LU[LY 6ɉJL 801, 3026 Limassol, Cyprus Postal Address: P.O.Box 70726, 3802 Limassol, Cyprus Tel: (+357) 25255550 Fax: (+357) 25255551 e-mail: EmiliosA@crowehorwath.com.cy Website: www.crowehorwath.com.cy

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Horwath DSP Limited Member Crowe Horwath International 8 Stassinos Avenue, 1st Floor, Photiades Business Center, 1060 Nicosia, Cyprus, P.O.Box 22545, 1522 Nicosia, Cyprus. Main +357 22755656, Fax +357 22452055, www.crowehorwath.com.cy

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INTERORIENT SHIPMANAGEMENT INTERORIENT SHIPMANAGEMENT WAS FOUNDED IN 1979 AND TODAY PRIDES ITSELF AS BEING ONE OF THE LEADERS IN QUALITY SHIP MANAGEMENT IN THE SHIPPING INDUSTRY WITH A LONG AND SUCCESSFUL HISTORY

he company’s infrastructure of ship management and manning agencies worldwide maintains the highest degree of operational and safety integrity over a managed fleet of more than 100 vessels with over 3,000 employees onboard and ashore. The company places great emphasis on its employees, its human capital, and enjoys a high degree of employee retention and loyalty both in its branch offices and amongst its seafarers. Our management experience includes technical, crew and commercial management of various types of vessels, including crude and product tankers, bulkers of all sizes, container vessels, general cargo, and offshore support and supply boats. The company also provides a full range of newbuilding services from initial design to final delivery of vessel. Interorient Shipmanagement is an active member of all the primary industry trade associations. Through this active membership the company is able to be proactive in respect to regulatory developments resulting in cost effective compliance for ship owners. Interorient Shipmanagement has in-house expertise and a proven track record in providing all management services a ship owner may require. The company offers tailor made management solutions for ship owners and has also assisted companies with their first ventures into ship owning.

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“WITH THE EVER INCREASING REGULATORY DEMANDS, THE MANAGEMENT OF SHIPS HAS BECOME A COMPLEX ISSUE. INTERORIENT SHIPMANAGEMENT PROVIDES A HIGH QUALITY LEVEL OF SERVICE AND MANAGEMENT TO SHIP OWNERS THROUGHOUT THE WORLD” Due to the ever-increasing regulatory arena and the demands of society placed upon the shipping industry, the management of ships has become a complex business that demands a high level of expertise and competence. The company is able to offer the full spectrum of ship management services: • Technical management • Full range of newbuilding services • Crew management • Project management

• Commercial management • Marine insurance • Legal services • Travel services (via an in-house IATA accredited travel company)

CONTACT DETAILS

Address: 142, Franklin Roosevelt P.O.Box 51309, CY-3504 Limassol Tel: +357 25 840300, Fax: +357 25 575895 info@interorient.com www.interorientshipmanagement.com

“with over 3,000 well trained “with over 3,000 well trained “with over 3,000 well traine and experienced personnel, and experienced personnel, and experienced personne you can rest assured your you can rest assured your you can rest assured you vessels are hands” vessels are ingreat great hands” vessels are iningreat hands

www.interorientshipmanagement.com

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INTERSHIP NAVIGATION STILL SETTING THE RIGHT COURSE SINCE ITS FOUNDING IN 1988, CYPRUS-BASED INTERSHIP NAVIGATION HAS GROWN FROM A SMALL OPERATION SET UP BY THE HARTMANN GROUP OF GERMANY INTO A MAJOR INTERNATIONAL SHIP OWNER AND MANAGER ENJOYING A ‘BLUE-CHIP’ REPUTATION IN ITS OWN RIGHT.

Dieter Rohdenburg, CEO

he company currently has 84 ships under ownership or full management, the majority belonging to the Hartmann Group. Of these, 18 are tankers and the rest dry, mostly bulk carriers ranging from 5,700dwt all the way up to 180,000dwt Capesizes, plus around 20 general cargo vessels. In addition, Intership partly manages a fleet of more than 100 ships on a crew management basis. The company also stands at the forefront of technical and commercial innovation, having ordered a significant number of newbuilds in recent years. These include prototypes for several series of ships that have proved highly popular, both with charterers and other owners who have since ordered the same. As well as designing its own ships,

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Intership has been able to partner leading suppliers and technical bodies in introducing new equipment and systems that improve efficiency and reduce environmental impact. One such innovative project will see the conversion of two pneumatic cement carriers to LNG propulsion. Intership has always strived to maintain close relations with its clients, charterers and industrial partners. Not only meeting customers’ expectations, but consistently exceeding them has been the target. Today, Intership enjoys long-term relations with its partners, which have grown beyond the transport of cargo from A to B. Intership offers tailor-made solutions such as stockpile/inventory management and other logistical tasks. In some cases, relations have grown beyond shipping to the extent that Intership today manages a power plant in Jamaica for one of its shipping customers. Intership also continues to develop new buildings, always in close liaison with its in-

dustrial partners, so that new ships meet customers’ needs. Intership co-ordinates its global operations with a network of technical support offices in Houston, New Orleans, Montreal and Brisbane, as well as commercial and manning offices in Germany, Poland and the Philippines. A key characteristic of Intership is the importance it places on the training and welfare of seafarers. In 1994, Intership Navigation established its own training centre in Manila, Philippines and in the same year saw the first batch of company cadets graduating after their shipboard familiarisation training. Intership Navigation Training School, (ISNTC) has been certified by Germanischer Lloyd for compliance with ISO 9001. ISNTC conducts courses in compliance with the IMO requirements, particularly the codes of STCW, ISM and MLC. The training school is

recognized by the Philippine authorities as a professional training institution and has obtained several Flagstate approvals for their courses. ISNTC operates sophisticated bridge and engine simulators and maintains an extensive range of deck and engine equipment for hands-on training, which includes a full scale mooring station and the only real ship’s crane available in the Philippines. Soon a fully operational engine room will allow real-time training for engineers and engine ratings. Having moved several offices over the years to accommodate an ever- growing number of personnel, Intership settled into new purpose-built offices in 2013. The new Hartmann House in Limassol, Cyprus comprises 5,700m2 of open-plan office space, which is fully automated and equipped with the latest technology, pro-

viding an ideal base for the next chapter in Intership’s unfolding success story. The new offices boast a large cafeteria (serving subsidized lunch), as well as a lounge area with TVs, a well-equipped gym and a ‘games room’ to promote physical and mental well-being. Recently a Day Care Centre was constructed adjacent to the building exclusively for employees’ children. It comes as no surprised that Intership maintains a remarkably high staff retention rate of 96%. For Intership, human capital is considered as its main asset. Intership Navigation was the first shipping company on the island to be certified for compliance with the “Investors in People” shore staff development program. This program is now well implemented in the company – offering a flexible work-hour

scheme; on-the-job coaching for new employees; training for existing employees, as well as career planning tools. Indeed, the company’s contribution to the national economy was recognised when it was presented with a CIPA (Cyprus Investment Promotion Agency) International Investment Award at a special ceremony held at the Presidential Palace in early September 2013. With all this in its favour, CEO Dieter Rohdenburg justly believes the company is well positioned to face the challenges of the future.

CONTACT DETAILS

Address: 32 Miltonos Street, 3050 Limassol - Cyprus P.O. Box 70185, 4161 Limassol – Cyprus Tel: +357 25 584 000 Fax: +357 25 585 762 email: mail@intership-cyprus.com web: www.intership-cyprus.com

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LAVAR SHIPPING LAVAR SHIPPING: 50 YEARS OF SHIPPING EXCELLENCE AND INNOVATION CELEBRATING ITS 50TH ANNIVERSARY, LAVAR SHIPPING – ONE OF THE VERY FIRST SHIPPING COMPANIES ESTABLISHED IN CYPRUS – CONTINUES TO PLAY A LEADING ROLE IN THE EVOLUTION OF THE INDUSTRY AND IN THE STRENGTHENING OF CYPRUS’ POSITION AS A SHIPPING HUB IN THE EASTERN MEDITERRANEAN REGION.

fter the first shipping law for Cyprus-owned vessels was passed in 1963, Pantelis Tsanos – one of industry’s greatest visionaries – and a number of partners founded Lavar Shipping in 1965. Today it is one of the top three shipping agencies in Cyprus, with an employee base of over 30 Cypriot professionals. One of the pioneers of ship management in Cyprus, Tsanos’ career evolved from his trading activities in the late 1950s and the chartering of vessels for the export of local Cyprus produce. More recently, under the stewardship of Pantelis Tsanos’ son Reginos, Lavar Shipping has evolved into a multi-faceted organisation, offering traditional and specialised maritime services to the local and international industry. It represents a number of prestigious clients, ranging from high-profile ship owners and global oil companies to commercial representatives and traders. The company has positioned itself as the main shipping agent operating at Cyprus’ ports and terminals, acting on behalf of many global shipping hub agencies, and handling all types of vessels, from tankers to bulk carriers and from cruise ships to container vessels. Recently the company has seen an increase in its core activity with the number of calls expected to exceed 300 vessels on an annual basis. In addition to its Port Agency services, Lavar Shipping’s highly experienced team also provides a vast range of services including Forwarding, Husbandry, and Technical Support, while more recently it has specialised

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in the field of oil and gas logistics. The company has expanded its Forwarding and Logistics activities to provide complete cargo solutions to and from Cyprus, as well as crosstrade services through its extended network of agents worldwide. Leading traders place their trust in Lavar Shipping for the prompt delivery of their orders, while perishable traders are increasingly counting on the company for the safe import and export of sensitive refrigerated cargo. Lavar Shipping also plays an important role in ship-to-ship operations performed off Limassol Port limits and at designated points of anchorage. Tsanos maintains that, despite recent financial difficulties, there is a promising future for the industry and for Cyprus.

activities. Specialisation in the onshore and offshore logistics of oil and gas has led to collaborations with energy giants such as Halliburton, in developing supportive warehousing and office facilities in Cyprus. Both Lavar Shipping and the RPT Group operate under a uniform set of policies and procedures, conforming to the highest standards of professional performance and in strict compliance with Cypriot, European and International laws and regulations such as ISPS, FONASBA, and CSA.

Established in 2003, the privately-owned RPT Group has grown to encompass a diversified range of companies, offering services across five interconnected lines of business: Maritime, International Business, Travel, Property Development and Trade. With an outstanding track record as a base, the Group is broadening and strengthening its portfolio, building longlasting client relationships based on reliability, strong performance and trust.

“As our country slowly but steadily exits the economic quagmire which enveloped it in 2013, the shipping industry – and companies like ours – can be at the forefront of this recovery, building on our strengths and professionalism, while at the same time continuing to diversify our products and services”, said Tsanos. “Staying true to our founding principles, Lavar Shipping will continue to broaden its – and Cyprus’ – horizons in the years to come.” The flagship company of the RPT Group, Lavar Shipping has also played an important role in diversifying the group’s services and

Keeping constantly abreast of developments in its fields of expertise, the RPT Group is working towards a vision of Cyprus as a financial, shipping and energy hub for the Eastern Mediterranean, by offering the highest quality of integrated services to both local and international companies and investors.

CONTACT DETAILS

Address: 109, Omonia Ave., Flamingo Building, Ground Floor, 3048 Limassol, Cyprus Tel: (+357) 25258800 Fax: (+357) 25258801 e-mail: info@lavarshipping.com Website: www.lavarshipping.com

VTS VASILIKO TERMINAL SERVICES SETTING THE STANDARD FOR THE EASTERN MEDITERRANEAN WITH THE GROWING IMPORTANCE OF THE EASTERN MEDITERRANEAN REGION IN THE FIELD OF ENERGY – AND PARTICULARLY SINCE THE DISCOVERY OF NATURAL GAS DEPOSITS IN ISRAEL, CYPRUS AND NOW EGYPT – THERE IS A NEED TO DEVELOP THE INFRASTRUCTURE TO SERVICE THE BURGEONING OIL AND GAS SECTOR.

n important step in the right direction was the licensing of the largest private Oil Terminal in Cyprus, and the first of its kind in the Eastern Mediterranean region, at Vasiliko, a project bought in June 2010 by VTTI to a tune of over €250 million. With the terminal becoming fully operational in 2014, and with an urgent need for top-quality marine services, VTS Vasiliko Terminal Services was established with the aim of meeting the demands of the industry. VTS provides services to the Terminal, including pilotage, towage, mooring and sludge collection services, operating under a license agreement signed with the Cyprus Ports Authority (CPA), whereby the CPA receives fees. The company launched its operations at the jetty of VTT Vasiliko Ltd (VTTV) terminal on 29 November 2014, when the first Tanker berthed at the VTTV Jetty, delivering Gasoil. As part of the operation, VTS provided towage, mooring, berthing and un-berthing services through its two new ASD tugboats, poignantly named VTS KYRENIA and VTS AMMOCHOSTOS. The tugboats are unique both to Cyprus and the region, and represent a significant investment of €15 million. Both operate under the Cyprus flag, and are manned by Cypriot and Greek crew and officers. The first operation at the terminal was observed by experienced Tug Masters and Tugboat Operators from the Netherlands, who lavished praise on VTS for its performance. The company – which employs 30 Cypriot professionals – prides itself on

the fact that its crew, officers and masters have undergone repeated training abroad with leading organisations in various fields including those of health and safety, and the operation of tugboats. Another milestone was completed on 17 December 2014, when four vessels berthed at the jetty for the first time. Since the launch of its operations, VTS has serviced over 80 vessels at the VTTV Jetty. “VTS has invested heavily in equipment infrastructure in order to perform marine services to the highest international standards, adhering to very strict health and safety procedures. As a Cyprus-based and owned company we take pride in being able to set an industry standard within our own country, and hope to contribute to the growth and development of the energy and other sectors, as well as to the rejuvenation of the Cypriot economy,” said CEO Reginos Tsanos.

CONTACT DETAILS

Address: Vasiliko Port, 75 Mari, Vasiliko-Mari, 7736 Larnaca, Cyprus e-mail: info@vtsvasilikoterminal.com Website: www.vtsvasilikoterminal.com

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LIMASSOL MARINA Living on the sea BACK IN THE SUMMER OF 2010, WHEN THE FIRST RESIDENTIAL COMPUTER-GENERATED IMAGES AND PRICELISTS WERE UNVEILED TO THE PUBLIC, IT WAS HARD TO IMAGINE THAT A LUXURY DEVELOPMENT ON THE SEA IN LIMASSOL WOULD BECOME A TANGIBLE REALITY.

nd yet, just five years later and following the most challenging period for the island’s economy, 90% of the apartments and 45% of the newly delivered villas at Limassol Marina have not only been sold, but a majority also occupied. The villas on the Peninsula have introduced an unrivalled concept to the shores of Limassol. Built on the sea, with direct access to a sandy beach or private berths attached to each individual property, they are the only homes of their kind in Cyprus and, moreover, in the Mediterranean. Situated on the western side of the development, they were the next in line for delivery following the successful completion of the apartments at Nereids, Thetis and Dioni Residences in 2013 and 2014 consecutively. Rare in their design, the Peninsula Villas truly capture the essence of ‘living on the sea’ and have provided an ideal investment opportunity for a broad range of property buyers- now from a total of 16 nationalities. Adding to the charm of these elegant homes’ unique design and architecture, is their location. Part of an intergrated development, the first superyacht marina in Cyprus, they are just a stone’s throw away from the heart of a vibrant city. Their residents also benefit from the harmonious blend of privacy or community and can choose whether to take advantage of the numerous facilities and services on offer, or simply

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stay cocooned in their own luxurious surroundings. From the serenity of their gardens, swimming pools, sundecks, beach or yachts to the buzz of a thriving commercial area with its very own restaurants, cafes, bars and shops, living at Limassol Marina offers a convenience far from the stress and bustle of daily city life and traffic.

With the word ‘lifestyle’ at the pinacle of everything Limassol Marina aspired to during its planning, not only do residents have access to a luxury spa and gym, they also have a boutique mini market, a bank, a pharmacy, an optician and a car rental service on site, complete with designer shops, an international gallery, carpet art and a world-famous jeweller. For the yacht owners, a fully-stocked chandlery, showroom, yacht brokers and agents of all top brands are also based in the commercial area and adjacent to an active cultural centre. Be it fine dining, shopping, fitness, culture or leisure on demand, there is always something for residents to do, literally just steps away from their home. Apartment, villa and yacht owners are all served by a central Reception and

Concierge, with a dedicated team of professionals meeting their individual needs throughout the week and weekends. Between the 24 hour security and Marina Attendants, there is always someone on hand to assist them and enhance their stay, regardless of the time. Now over a year in operation, Limassol Marina offers 650 berths for yachts up to 110m, 162 luxury apartments and 74 exclusive villas, with private berths or direct access to the beach. It also benefits from dining and shopping establishments, spa and fitness facilities, and a listed building which houses a marine training school and cultural centre for events throughout the year. Located in the heart of a vibrant city, it is surrounded by a rich history and a diverse, international community.

Beyond the luxury residences, the Marina itself has been attracting a string of distinguished superyachts, including 97.2m M/Y Carinthia VII and 88.5m M/Y Nirvana. It offers facilities and services of the highest standards, with the internationally renowned stamp of Camper & Nicholsons Marinas behind the management and operations. Every berth has access to fresh water, electricity, fibre to the boat, high-speed wireless internet and telephone, fuel and waste removal. There are also haul out and shore-side technical facilities, a 100 ton travel lift and 40 ton trailer, slipway, fuel station, helipad and boatyard for light repairs and maintenance, combined with 24-hour security and concierge services. Visitors at Limassol Marina can find an array of dining and shopping establishments at their disposal for a full day of leisure, facilitated by parking for 750 cars. Epsilon was the final restaurant to join the successful mix of food and beverage units along the promenade. Graff, the diamond company extraordinaire synonymous with the most fabulous jewels in the world, has also been accompanied by Zilli fine garments for men, world-renowned Halcyon Gallery, Sunseeker and brands like Vilebrequin, Havaianas and Shiraz. These additions are just a handful of new arrivals enhancing the product mix at the exciting new destination. Exuding charm in an unrivalled environment, Limassol Marina offers the perfect blend of luxury and elegance, comfort and convenience, privacy and community. Unique, rare in its concept and a first for Cyprus! A modern resort at one with history and the natural beauty of the Mediterranean, with easy access to all that Limassol has to offer.

CONTACT DETAILS

For more information on ‘living on the sea’ or to book a private viewing of the new show homes, contact 25020020 or visit limassolmarina.com.

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LOWLAND INTERNATIONAL SHIPPING CYPRUS LTD LOWLAND INTERNATIONAL SHIPPING CYPRUS LTD. IS A SHIPPING COMPANY ESTABLISHED IN LARNACA, CYPRUS AND OPERATING SINCE THE YEAR 2009.

he company is part of the Lowland International Group, which was founded in 1993 with offices across 20 countries and Headquarters in the Netherlands. We provide services for parties in the shipping and offshore industry involved in third-party technical ship management and ship operation, maintaining a large pool of seafarers. We work according to the strictest standards, rules and procedures in order to always be able to provide our clients with superior services. Evidence of this is our recent accreditation from Lloyds of the MLC 2006 certificate. Lowland International Shipping Cyprus is a full member of the Cyprus Shipping Chamber. Our services and, therefore, Lowland International Group services, cover the following:

MARITIME

Our core business activity is to provide integrated crew management services to ship owners worldwide. We sail any type of ship and outfit them with complete crews of dedicated and qualified people whom we employ ourselves. Our track record in 2014 was shipping 85 vessels in management worldwide. We manage vessels like tankers (oil, gas and bitumen), heavy lift, supply vessels, tug vessels, offshore diving support vessels and many more. The fact that we have our own

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manning offices worldwide can only be seen as positive to meet our clients’ high demands and requirements.

OFFSHORE OIL AND GAS

For 23 years Lowland International has specialized in providing maritime crews for the offshore oil and gas sector. We are active in the drilling and production installations, as well as in all types of offshore support vessels (including diving vessels) and inland barges. We provide services to large multinationals as well as to national oil and gas companies, independents and small operators. Our operations span the globe. With the latest developments in the energy sector, we have established a new company

‘Lowland Cyprus Offshore’ (www. lowlandcyprusoffshore.com) with Mr. James Pretty (Offshore Manager) in charge, to better provide such services to the Eastern Mediterranean region. Lowland Cyprus Offshore is a member of the Cyprus Oil & Gas Association (COGAS).

MEDICAL

One of our historical core activities, Lowland Medical Services, specializes in medical care and Health, Safety and Environment (HSE) Services. Lowland Medical Services provides medical facilities together with highly trained and very experienced doctors and medics for remote locations. The position of medic is often combined

companies, on different vessels or rigs and in different positions, we enable our staff to accelerate their careers. We arrange participation in training and educational programs, both at our in-house facilities as well as externally. We perform regular professional performance assessments and discuss the results with our employees to help them reach their goals. We support ocean shipping schools in Ukraine, Russia, Romania and Philippines and have initiated career projects in various other countries.

HEALTH, SAFETY, ENVIRONMENT & QUALITY (HSEQ)

to support our medics on a 24/7 basis.

RECRUITMENT & SELECTION

In those situations where a client prefers to provide permanent employment to the person or persons that will fill a specific vacancy on board a vessel or offshore installation, Lowland is your preferred partner for the recruitment and selection process required to identify the best candidate(s). Lowland has a long track record of identifying and selecting the best talent for a given maritime or offshore function.

TRAINING & EDUCATION

with that of safety coordinator. Our medics are specially trained to fill this role and, for this reason, can also act as HSE advisors. If legally required or specifically requested by our clients, we make experienced doctors available

We believe that an essential part of our services is to ensure that our personnel have the means and opportunity advance professionally through training and career management. By gaining experience in different

Lowland International is a shipping company and approved marine & offshore crew management contractor. We plan and deliver integrated services in harsh and challenging environments for the maritime industry and the offshore oil and gas industry worldwide. We are committed to a policy of achieving HSE and Quality excellence in all of our business activities and operations. Through our quality and safety management systems, we have established a framework for setting and reviewing HSE and Quality objectives for our company: Our HSE and Quality philosophy is based on the international standards of OHSAS 18001 for occupational health and safety, ISO 9001 for quality assurance, and STC/VCA for safety. It is worth mentioning that in 2014 we encountered ZERO Lost Time incidents.

NEN 4400-1

CONTACT DETAILS

Address: 5A, 28th October St., 7560 Pervolia, Larnaca, Tel: (+357) 24427342 Fax: (+357) 24427343 Contact: Pavlos Michaelides e-mail: pavlos.michaelides@lowland.com.cy Website: www.lowland.com

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MICHAEL KYPRIANOU & CO. LLC MICHAEL KYPRIANOU & CO. LLC HAS STRONG TIES WITH THE SHIPPING INDUSTRY.

he firm’s shipping links date back to the first years of the firm’s establishment. The law firm’s offices in Cyprus, Greece and Malta have been assisting individuals and corporations from around the globe, providing legal advice and assistance on a wide range of services. The maritime and admiralty team of Michael Kyprianou & Co. LLC acts for various ship owners, ship managers, financial institutions, maritime security companies and other shipping corporations. The team often advises on and negotiates transactions, and issues legal opinions on a range of ship financing transactions, guarantees and securities. The firm has been assisting clients with the registration and deletion of ship mortgages in the Cyprus Ships Registry and other securities registered with the Registrar of Companies in Cyprus. The team also provides assistance in relation to vessel registration under the Cyprus flag and advises on contracts for the chartering and employment, sale and purchase of ships as well as the financing of these activities. The firm is recommended by the International Legal Directory Legal 500 for its practice in the maritime and admiralty sector. The calibre of the firm’s lawyers and their dedication to providing clients with practical and 88 | GOLD | The Business Magazine of Cyprus

cost-effective legal advice is the cornerstone of the firm’s success. These are the attributes which have made it the law firm of choice for a number of leading international firms and preeminent clients. Partners Tonia Antoniou and Lambros Soteriou head the maritime department. Lambros Soteriou deals with Ship Registration and Tax Planning for vessels, yachts and crew. Lambros is described as a “notable practitioner” in the area of Tax by the Chambers and Partners. Tonia Antoniou focuses on Ship Finance, advising owners and banking institutions. Tonia is ranked first amongst Cypriot lawyers in the practice area of Banking and Finance in the 2015 edition of Chambers and Partners. Managing Partner Menelaos Kyprianou heads the admiralty department, advising and representing clients in maritime disputes. Menelaos is also described as a “notable practitioner” and is often recommended by legal directories for his practice in litigation and arbitration. Partner Savvas Savvides was recently awarded as a Leading Lawyer in Cyprus by the Citywealth Leader List 2015. Michael Kyprianou, the Founder and Senior Partner of Michael Kyprianou & Co. LLC, is described as an “eminent practitioner” in the practice area of Dispute Resolution in the newly released 2015 Chambers and Partners Europe guide. Michael Kyprianou is regarded as an “excellent lawyer” in

criminal matters and a “highly influential lawyer”. Michael Kyprianou & Co. LLC has a long history of over two decades in Cyprus. Over the years, the firm has been involved in a number of important transactions both in the shipping and admiralty sectors. Cyprus offers a variety of competitive advantages to shipping market participants. The island has a prominent role in the shipping industry, as it is considered as a leading shipping and ship management centre. Cyprus’ favourable shipping regime offers a competitive advantage to ship owners and ship managers. Michael Kyprianou & Co. LLC is one of the largest law firms in Cyprus. The firm maintains six fully fledged offices: three in Cyprus (Nicosia, Limassol and Paphos), two in Greece (Athens and Thessaloniki) and one in Malta (Birkinhara). Michael Kyprianou & Co. LLC has been recently praised by the reputable international legal directory “The Legal 500” for providing “practical and of a high standard” advice and for being “responsive” with an “in-depth business understanding.”

CONTACT DETAILS

Address: Michael Kyprianou House, 116 Gladstonos Street, 3032 Limassol, Cyprus Tel.: +357 25 363685 Fax: +357 25 363698 Email: limassol@kyprianou.com.cy

MICHAEL K

U NO IA & CO. LL

Michael Kyprianou, Founding Partner, Nicosia

LOCATIONS Nicosia Address: 2 Agias Elenis Street, 6th & 7th Floor, 1060 Nicosia, Cyprus. Tel.: +357 22 447777 Fax: +357 22 767880 Email: info@kyprianou.com.cy

Menelaos Kyprianou, Managing Partner, Nicosia

Limassol Address: Michael Kyprianou House, 116 Gladstonos Street, 3032 Limassol, Cyprus Tel.: +357 25 363685 Fax: +357 25 363698 Email: limassol@kyprianou.com.cy Paphos Address: Michael Kyprianou House, 19 Kinira Street, 8011 Paphos, Cyprus Tel.: +357 26 930800 Fax: +357 26 930808 Email: paphos@kyprianou.com.cy

Tonia Antoniou, Partner Limassol

Athens Address: 5 Zalokosta Street, 3rd Floor, Syntagma 10671, Athens, Greece Tel.: +30 210 3387060 Fax: +30 211 7150149 Email: info@kyprianou.gr

Lambros Soteriou, Partner Limassol

Thessaloniki Address: 44 Tsimiski Avenue & Karolou Diehl, Thessaloniki 546 23, Greece Tel.: +30 2310 222267 Fax: +30 2310 222269 Email: thessaloniki@kyprianou.gr Birkirkara Address: 115A Valley Road, Level 5, Birkirkara, BKR 9024, Malta Tel.: +356 21 331810 Fax: +356 21 331810 Email: info@kyprianou.com.mt www.kyprianou.com.cy

Savvas Savvides, Partner, Paphos Ilias Tsintavis, Partner of Greece, Athens

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IPPING SH

CYPRUS

SPECIAL promotional feature

PwC CYPRUS PLAYS A PROMINENT ROLE AS A LEADING SHIPPING AND SHIP MANAGEMENT CENTRE AND AIMS TO STRENGTHEN FURTHER ITS POSITION IN THE WORLD ECONOMY BY MAINTAINING AND ENHANCING ITS SOUND MARITIME INFRASTRUCTURE, FAVOURABLE TAX REGIME AND COMPETITIVE SHIP REGISTRATION AND ANNUAL TONNAGE TAX RATES. WHY CYPRUS?

Cyprus offers a unique experience to investors and trading partners. A strong pro-business attitude, the multi-lingual and highly skilled human capital, the state-of-the-art telecommunications infrastructure and the favourable tax system have made the island one of the most progressive and efficient business locations in Europe. The Cyprus Shipping Registry is one of the largest in the EU, as it is estimated to constitute 25% of the whole EU fleet, and the 10th largest worldwide. Moreover, Cyprus is the biggest third party ship management centre in the EU and the Cyprus flag is on the white list of the Paris MoU. Cyprus has the most modern, competitive, flexible, fully approved Tonnage Tax system in the EU, combined with an excellent infrastructure and an extremely competitive tax system with the lowest corporate tax rate in the EU. • Stable environment, consistent government policy, supportive tax department • Tonnage Tax (TT) system provides for TT on net tonnage of the vessels and full exemption from corporate income tax (CIT) on actual profits • Totally exempt companies are regulated completely by the Department of Merchant Shipping rather than the Tax Authorities • Applies to owners, charterers and shipmanagers of mixed fleets (EU/EEA and non EU/EEA) • Grants total tax exemption of profits tax and capital gains and distribution tax at all levels • Allows mixed activities (shipping 92 | GOLD | The Business Magazine of Cyprus

subject to TT and other subject to CIT) within a company/group • Supports an open registry • Allows split shipmanagement activities (crewing or technical) • Non TT qualifying income is only taxed at 12,5% CIT with other benefits The tax incentives combined with the economic and the other advantages, including the excellent infrastructure, make Cyprus the ideal choice for shipowners, charterers and shipmanagers.

PwC CYPRUS SHIPPING & PORTS TEAM

The PwC Cyprus Shipping & Ports Team has grown over the years in step with the industry, supporting our clients through the turbulence of supply and demand imbalances and financial crises as well as industry restructurings, regulatory transformations, technological advances and changes in financial reporting and corporate governance requirements. Our experience and network of dedicated shipping industry practitioners enables us to provide our clients with quality professional services, uniquely tailored to the needs of leading shipping and port organisations, whether family-owned or publicly listed, large or small. We have developed our Shipping and Ports expertise through working with leading shipping and port companies operating in various countries over the world. We have a longstanding and proven track record in auditing and consulting within the contexts of international shipping, ports, logistics and supply chain management.

HOW WE CAN HELP?

We deliver customised services from our industry specialists in the following areas: • Setting up an office in Cyprus • Tax planning, structuring and restructuring (legal, finance and operational) • Audit and assurance • Listings/IPOs • Consulting to achieve cost efficiencies and business process re-engineering • Deals support (corporate finance, valuations, mergers & acquisitions) • Registration of shipping companies (shipowning, chartering or shipmanagement) • Registration of holding and/or finance companies • Ship registrations, deletions, transfers and mortgages • Maintenance and full compliance services of Cyprus-registered companies • Operations and quality management for obtaining ISO 9000 certification • Human resource advisory including full repatriation service for expatriates Payroll services and accounting outsourcing • Provident fund services

CONTACT DETAILS

Address: Julia House, 3, Themistocles Dervis Street CY-1066 Nicosia Tel: (+357) 22555000 Fax: (+357) 22555001 e-mail: yiangos.kaponides@cy.pwc.com Website: www.pwc.com.cy

www.pwc.com.cy

We do more than just consult We deliver

Shipping

We support you to create the value you are looking for in the shipping industry by providing specialised and innovative solutions based on quality. Together we build relationships based on trust and we say things as they are, to assist you to deal with issues that tomorrow will prove important. We adapt our expertise and the power of our global network to your specific needs helping you make the difference.

IPPING SH

CYPRUS

SPECIAL promotional feature

SALAMIS SHIPPING SERVICES SALAMIS SHIPPING SERVICES LTD, A MEMBER OF THE SALAMIS ORGANISATION, IS A WELL-ESTABLISHED SHIPPING COMPANY WHICH WAS FOUNDED OVER 55 YEARS AGO, PROVIDING TOTAL TRANSPORT AND SHIPPING SOLUTIONS UNDER ONE UMBRELLA.

t Salamis Shipping Services there is a hard-working team, known for its ability to identify and execute the most appropriate transportation solutions, tailored made for each customer’s needs and expectations. The flexible set-up of our company with local offices across Cyprus, and in cooperation with Salamis Shipping S.A., the affiliate company in Piraeus, Greece, we guarantee fast and quality services. We provide parallel services as port operators and port agency for thirdparty vessels, such as cruise vessels, bulk carriers, container ships and tankers, calling at Cyprus ports and anchorages.

SERVICES

PORT AGENCY AND PORT OPERATION We represent many Shipping Lines from different sectors, such as cruise liners, bulk carriers, RO/RO carriers and tankers. We have a considerable advantage by using our own equipment for the loading and discharging of mostly RO/RO vessels. In addition, we provide the following shipping services: • Stevedoring • Ship handling • Provisions supplies - Bonded stores • Fuel and engine oils supply • Technical services, repairs, generators • Spare parts and consumables • Cranes/forklift operations 94 | GOLD | The Business Magazine of Cyprus

• Crew handling • Container transshipment operations • Surveys CRUISE VESSELS AND YACHTS The most popular cruise liners worldwide trust us for providing port and tourist services. In addition, we have a dedicated team for VIP handling in the yachting sector. CARGO HANDLING, OCEAN SHIPMENTS/FORWARDING We handle multimodal door-to-door worldwide service for any kind and type of cargo. OIL AND GAS LOGISTICS In the light of recent developments in the oil and gas industry in Cyprus, our company has invested in this field and, in this respect, we can provide storage facilities, supplies, tug boat services, crew handling, hotel accommodation and transportation, cargo handling, road transportation and special projects. AIR FREIGHT We maintain perfect relations with the most reliable airlines which allocate us the requested space to/from any destination. TIR TRAILER ROAD SERVICE CIR Ltd belongs wholly to Salamis Shipping Services Ltd and specializes in the road transportation of all types of cargo, reefer or dry. CIR Ltd is organized to offer reliable, safe and fast

transportation of goods, aiming to keep its customers satisfied to the maximum possible level. The company owns a considerable number of new Reefer and Tilt Trailers as well as flat platforms trading mainly to /from Cyprus, Israel, Greece and Central Europe. LOCAL TRANSPORT - CUSTOMS CLEARING - WAREHOUSE Inland haulage in Cyprus is a vital part of our logistics package. With our own fleet of truck units and platform trailers, we can carry promptly any kind of cargo, machinery and containers to and from any place in Cyprus according to the customer’s requirements. Our highly specialized Customs Clearing Department offers all customs services, including warehousing and logistics, for dry and refrigerated cargoes. A direct link with the Cyprus Customs Office and the Cyprus Ports Authority enables online access to a complete and quick Customs Clearing Operation. MARINE INSURANCE We offer Marine insurance (All Risks, FPA, Class “C”, etc.) for your cargo, offering the best and lowest-cost protection against any risk you intend to cover.

CONTACT DETAILS

Address: 124, Franklin Roosevelt Ave., P.O. Box 55609, 3781 Limassol Tel: (+357) 25899999 | Fax: (+357) 25563426 e-mail: shipping@salamis-shipping.com Website: www.salamisshipping.com

IPPING SH

CYPRUS

SPECIAL promotional feature

TOTOTHEO GROUP INNOVATION EFFICIENCY INTEGRITY THE LEADING SUPPLIER OF HIGH-QUALITY SOPHISTICATED ON-BOARD ELECTRONIC EQUIPMENT IN CYPRUS.

ith its headquarters strategically located in Limassol, one of the biggest shipping hubs in Europe, and offices in Athens and Singapore, the Group continues to grow with new locations and services offered worldwide. As an active member of the Cyprus Shipping Community, Tototheo is a member of several local and international organisations. Sharing knowledge and experiences is a basic principle of the company which allows us to grow, dynamically respond to the market’s needs and even foresee and affect trends and changes. Participating on the Cyprus Shipping Chamber Board of Directors, the Group actively contributes to strategic and policy-making decisions for the shipping industry: “We feel it is our duty to take what has been built over the years and take it to the next level, always keeping Cyprus amongst the top shipping centres globally”, says Mrs Despina Panayiotou Theodosiou, Group CFOO. Established in Limassol in 1978, the Group specializes in innovative, efficient and functional solutions in the fields of satellite and radio communication, automation, navigation systems and ship repairs. Every day we support our customers with the supply and installation of high quality on-board electronic equipment, maintenance and integration engineer duties, security and surveillance for the equipment in use, online tracking solutions, and management tool consultancy services. A complete range of quality products from well-established manufacturers allows us to offer our customers tailormade solutions, varying from supply and installation to engineering, project

96 | GOLD | The Business Magazine of Cyprus

management, shore-based & conditionbased maintenance, traffic accounting and training. Our fast and reliable service, through a world-wide network of qualified partners and branches along international shipping routes, enables us to serve merchant fleets, the offshore industry, the fishing industry and governmental organisations.

MARITIME SOLUTIONS

A leader in providing mobile and fixed satellite and conventional communications services, we also specialize in navigation systems and technical services around the globe, representing leading manufacturers. Hundreds of vessels rely on our unrivalled end-to-end systems and service availability for global coverage and operational communications, navigation and safety solutions.

LAND SOLUTIONS

Tototheo Group provides a broad portfolio of global voice, broadband data, M2M and value-added services. From oil and gas engineers carrying out remote diagnostics on an oil wellhead, through to journalists reporting live with breaking news, our services offer a compelling proposition for businesses requiring 'must-have' remote, fixed and mobile connectivity.

GOVERNMENT SOLUTIONS

Our comprehensive portfolio of services delivers seamless voice, data and video communications across the globe – for use on land, at sea and in the air.

ENGINEERING SERVICES

As prime contractor, Tototheo Engineering Services, combines close co-operation with the most capable and technically advanced workshops and shipyards in Greece and abroad, with its dedicated highly qualified and experienced Technical Management team. It is a Purely Technical Company that offers services and technical support worldwide.

VALUE ADDED SERVICES is our in-house developed Tracking System and is an endpoint solution for the management and fleet operation of vessels. It simplifies the way of handling asset information and reports in order to support ship management companies with an easier decision making process, and asset tracking. Constant development allows Tr@ckLite to keep up and even stay ahead of the most demanding requirements. is a bandwidth management and optimisation solution, especially designed and developed to reduce the costs of both business and crew communications. Multiple benefits such as all-in-one solution for easy & intuitive communication, access through secure user profiles, user friendly interface, effective & proactive cost control through monitoring, alerts and reports, Solid State Hard drive, easy installation and low cost maintenance, integration with other systems and being a fully customisable-in house development make S@tLite a high value added product. With over 30 years of successful operation, Tototheo Group is the reliable partner you need to support you at all levels of Satellite Communications as well as Ship Repairs. Our experience and global network of owned offices and partners ensure that you will always receive timely service and deliveries of any desired brand.

CONTACT DETAILS

Address: 89 Omonoias Avenue, P.O. Box 51449, 3048, Limassol – Cyprus Email: info@tototheo.com.cy Website: www.tototheo.com Tel: 25570868 Fax: 25267033

www.goldnews.com.cy | GOLD | 97

www.goldnews.com.cy | GOLD | 99

| PROFILE |

Changing

With The Times

BAT IS STILL HERE AND SUPPORTING CYPRUS MARIOS ARGYRIDES, HEAD OF FINANCE AT BAT CYPRUS, TALKS TO GOLD ABOUT THE COMPANY’S RICH HISTORY, CURRENT CHALLENGES AND ITS AMBITIOUS PLANS FOR A FUTURE IN CYPRUS THAT IS AS SUCCESSFUL AS ITS PAST. By Effy Pafitis | Photo by Jo Michaelides

ew companies may justifiably boast the impressive record that British American Tobacco (BAT) lays claim to in Cyprus. Indeed, with tobacco use being demonized in recent years due to its health implications, it is easy to overlook the significant contribution that the company has made to the island’s trade sector and the economy over the course of its 64-year history here. “We have had a firm presence in Cyprus since 1951, and throughout the years have supported the local economy – and society – through our strong industrial activity at a time of economic difficulty for the country,” Marios Argyrides begins. Even today, he says, the company maintains its significant position on and contribution to the island, despite challenging conditions within the local market.

products in Cyprus. The only international This cooperation has laid tobacco company with a presthe foundations for an even ence in Cyprus, BAT leads greater social contribution by the local market with a share the tobacco company. “The exceeding 40%. “BAT has two companies today support contributed some €520 milsome 2,700 families across the lion in taxes to the Republic supply chain of tobacco prodof Cyprus in recent years,” Argyrides stresses, underlining ucts and provide thousands of jobs, while total investments the company’s commitment in Cypriot suppliers and local to upholding the fair and businesses exceed €15 miltransparent fulfilment of its lion per year,” Argyrides states obligations. proudly. The prominence of BAT, Despite this strong comGold learns, is the result bination and a proven track of strategic developments record of local embarked upon during the peak AS A RESULT profitability, BAT has not of financial unOF THE remained certainty on the CONSUMPTION unaffected by island. Three OF ILLICIT the financial years ago, Arturbulence of gyrides reveals, TOBACCO the company PRODUCTS, recent years. “The trade joined forces with Photos Photiades THE LEGITIMATE environment MARKET IS in Cyprus has Distributors Ltd, been severely one of the largest SHRINKING distribution com- AND THE STATE affected by the economic crisis, panies in Cyprus. IS LOSING the decline in Through the REVENUES agreement, the disposable incompany is now come and high OF ABOUT responsible for €10 MILLION unemployment the exclusive disrates,” ArgyrANNUALLY tribution of BAT ides confides.

Over the past two years, he continues, BAT has seen a reduction in sales of over 19% mainly due to an increase in the illicit tobacco trade, something that is also confirmed by official Governmental data. However, the sale of illicit cigarettes from the non-government controlled areas is not the main problem. “What is interesting,” he explains, “is that a large number of the illicit tobacco products consumed in Cyprus are brands previously unknown to adult consumers which are not within the range of those sold legally in Cyprus.” As a result of the consumption of illicit tobacco products, adult smokers consume products of unknown quality, the legitimate market is shrinking and the state is losing revenues of about €10 million annually from uncollected taxes from cigarettes. “We believe that we all need to contribute to authorities’ efforts to tackle this problem,” he imparts. While the legal market should be protected, Argyrides does not believe that reducing the taxation on towww.goldnews.com.cy | GOLD | 101

| PROFILE |

bacco products is the answer to dealing with the illicit cigarette trade. “We do not want to promote actions that will reduce government revenue,” he says. “Instead, targeted measures need to be taken, such as increased checks at crossing points with the non-government controlled areas and at ports and airports, higher fines, the exchange of information with countries that have successfully tackled the problem and, of course, the continuous training of those involved in the battle against illicit trade and raising the awareness of adults about the health risks of the consumption of illicit products.” This is an effort that should involve both national authorities and tobacco companies and, to this end, BAT has created a specialized Anti-Smuggling Unit which examines and identifies the origin of illicit tobacco products. “This Unit,” Argyrides explains, “remains at the disposal of the state to provide our knowhow on tackling illicit trade in the best way possible.” The BAT Cyprus Head of Finance also argues that increased taxation on tobacco products – which has affected both product sales and, as a result, state revenue – has had a particular effect on cigarette sales, which represent 86% of total tobacco consumption, while roll-yourown products represent the remaining 14%. Turning to the effect that regulation of the tobacco industry has had in recent years, and how BAT responded to an increas-

ingly restrictive believe that it is THE environment, a trend that will MARKET Argyrides reveals: continue,” he adds, “We have man“and e-cigarettes FOR aged to maintain play an E-CIGARETTES could our leadership important role in IS NOT in the market, reducing the risk YET WELL through our from tobacco use. commitment ESTABLISHED For this reason, to providing BAT is investing in BUT WE products of high such New GeneraBELIEVE quality to adult tion products that THAT IT IS A consumers and offer an alternative building strong to cigarette smokTREND partnerships, ing and can have a THAT WILL always fully positive impact on CONTINUE respecting local public health.” He and international notes that BAT is legislation.” BAT, he says, offers not yet ready to release any rea large portfolio of innovative lated products but is planning products and continues to invest to do so in the future. in the market. “Our partner This is only part, the BAT in Cyprus, Photos Photiades official reveals, of a strategy to Distributors, has also played a deal and comply with further strategic role in the sale of our measures to deter people from products.” smoking. Such measures are On whether current trends inexpected in the coming years, dicate that the number of smok- and the company is preparers is declining, Argyrides stresses ing for the full adoption and that it is not a matter of fighting implementation of the EU a losing battle. “The market may Tobacco Product Directive, shrink” – and as a consequence which amongst others, proBAT may inevitably do the same vides for health warnings that – “but our goal is to maintain combine text with pictures. our market share among smok“We are expecting this to ers.” In fact, this comprises apply in Cyprus and we are a top priority of the Group, working to fully comply with he says, which is working tothe new regulation,” he says. wards reducing health risks for Though Cyprus is just one those who choose to smoke. of 60 markets within which With regard to the emerBAT holds a leading position, gence of electronic cigarettes, the island is more than merely Argyrides admits that they a good sales performer for the have had an impact on tracompany. “British American ditional cigarette sales. “The Tobacco Cyprus is a vital and market for e-cigarettes is not dynamic part of a cluster of yet well established, but we countries, including Greece

102 | GOLD | The Business Magazine of Cyprus

and Switzerland. From our offices in Cyprus, we also support the market of Israel, which is a fast-growing country in all sectors, and that allows us to bring more revenue and investment to Cyprus,” Argyrides confirms. The way in which BAT Cyprus operates enables it to support other countries, such as Malta, and offers the prospect to the company’s people to further develop themselves and gain new skills on the job through a cross-country experience. Turning to the company’s long-term strategy, Argyrides reveals his plans for a bright future for BAT in Cyprus. “We will continue our growth plan in Cyprus in order to maintain our leading position through our established portfolio, more innovative products and additive-free choices while developing new ways of working with our stakeholders by helping them tackle illicit trade.” BAT Cyprus’ plans do not stop there; indeed, they extend to a further contribution to society through a comprehensive Corporate Social Responsibility strategy. “Under our common vision to continue bringing value to Cypriot society, we will continue – together with Photos Photiades Distributors – the implementation of our plan for further investments and support to the thousands of Cypriot suppliers we work with and to the economy of this beautiful country.”

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)ULGD\ 2FWREHU _ )LOR[HQLD &RQIHUHQFH &HQWUH _ 1LFRVLD _ &\SUXV ([SHUW 6SHDNHUV ,QFOXGH Christopher Stuart-Sinclair, Director - Strategy & Corporate Finance, Deloitte, Luxembourg

Agathi Pafili, Senior Policy Advisor, EFAMA, Belgium

Roy Stockell Partner - EMEIA Wealth and Asset Management Leader, EY, UK

Maria Shaw-Barragan, Head of the Strategy Division, European Investment Bank, Luxembourg

Kevin Mudd, CEO of KMG Capital Markets, Member of the Executive Board of CIFSA, Cyprus

Simon Thomas, Partner, Investment Management Group, Macfarlanes LLP, UK

Dr. Markus Lange, Partner, Head of Financial Services Legal, KPMG, Germany

Aki Corsoni-Husain, Partner, Investment Funds and Regulatory, Harney Westwood & Riegels, Cyprus

Muneer Khan, Partner, Simmons & Simmons, UAE

Olwyn Alexander, FCA, CFA, PwC EMEA Alternatives Asset Management Leader, Ireland

Tamasin Little, Partner, Financial Regulation, King & Wood Mallesons LLP, UK

Nilesh Ashar, Partner, International Tax, KPMG, UAE

Robert Brimeyer, Group Head, Fund Services, Alter Domus, Luxembourg

Jonathan Blake, Partner Head of the International Funds Group, King & Wood Mallesons LLP, UK

Neophytos Neophytou, Managing Director, Taxatelier, Cyprus

Yitz Raab, Founder and Managing Partner of Tzur Management, Israel

Plus panel discussion with

Full attendance to the summit corresponds to 5 CPD units

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â&#x20AC;˘ Investment Funds and Asset Management Companies â&#x20AC;˘ Fund Managers â&#x20AC;˘ Custodians â&#x20AC;˘ Fund Administrators â&#x20AC;˘ Investment Managers and Consultants â&#x20AC;˘ Legal Advisors Specialised in the Funds Industry â&#x20AC;˘ Accounting, Audit and Tax Advisory firms â&#x20AC;˘ Investment Banks, Credit Institutions and Financial Services Companies â&#x20AC;˘ Family Offices

Alternative Investment Funds The European fundraising market The Cyprus Investment Funds Industry and the outlook for the future

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| ALTERNATIVE DISPUTE RESOLUTION |

MEDIATION IS A FLEXIBLE AND CONFIDENTIAL PROCEDURE WHICH HELPS THE PARTIES TO FIND THEIR COMMON GROUND AND WORK TOWARDS RESOLVING THEIR DISPUTE BY AGREEMENT.AS A FORM OF ALTERNATIVE DISPUTE RESOLUTION, MEDIATION IS BECOMING INCREASINGLY POPULAR. MENELAOS KYPRIANOU, MANAGING PARTNER OF MICHAEL KYPRIANOU & CO. LLC, COMMENTS ON THE ADVANTAGES OF MEDIATION AND THE TRENDS IN CYPRUS. What would you say are the main benefits for companies of choosing this method of ADR? Mediation is a low-cost and flexible procedure. It is also a confidential procedure which allows parties the opportunity to resolve their differences in a manner that will not attract negative publicity. Another advantage of mediation is that it leads to an outcome without delay, whether this outcome is reaching an agreement to settle the dispute or not reaching an agreement. However, the benefit of mediation that, in my mind, truly sets it apart from other forms of ADR, is the balance that it strikes between attempting to resolve a dispute, on the one hand, and respecting the partiesâ&#x20AC;&#x2122; previous commercial relationship, and attempting to leave it intact on the other. Mediation involves a third person helping the parties find their 104 | GOLD | The Business Magazine of Cyprus

common ground and working towards resolving their dispute by agreement. It is in this respect unlike adversarial methods of resolving disputes, which may often deal the final blow to the partiesâ&#x20AC;&#x2122; relationship. Also, because it involves resolving disputes by agreement, such agreements are often easier to enforce than Court judgments or arbitral awards. Do you think that mediation is likely to grow in popularity over the next year or so? Mediation is becoming increasingly popular as a form of ADR and I believe that this trend will continue. Directive 2008/52/EC of the European Parliament and of the Council of 21 May 2008 on certain aspects of mediation in civil and commercial matters has arguably given a boost to mediation. At least with respect

to Cyprus, this directive has been implemented (Law 159(I)/2012), a register of mediators has been created, and a number of mediation courses are now taking place on a frequent basis. At the same time, it is to be expected that parties to a dispute will increasingly turn to ADR in view of the large caseload which is overwhelming the courts and causing substantial delays to the administration of justice. Parties are turning to ADR as a faster and more cost-effective way of resolving their disputes. A formidable example of this concerns the debt restructuring mediations taking place in Cyprus between consumers and the banks with the aid of the financial ombudsman. Do certain methods of dispute resolution (arbitration, litigation, mediation) suit certain types of dispute more than

IN CYPR US others? Which types of dispute are more suitable to be resolved via mediation? Why? Mediation is not always the most appropriate method of resolving a dispute; for example, where the parties are unwilling to cooperate and find common ground. It is also potentially not appropriate in very complex cases where the parties themselves find it difficult to grasp all the issues. In such cases, having a person decide the dispute for the parties (i.e. litigation or arbitration) is more suitable. Mediation is arguably best suited to those cases where the parties genuinely wish to avoid prolonging the dispute, an escalation of costs, and where they wish to preserve their relationship. At the very least, mediation can act as a filtering process for litigation or arbitration, leaving only those disputes where there is no genuine willingness on the part of the parties to resolve them amicably to be decided by a court or tribunal.

There are times when a party to a dispute will accept to engage in mediation with the other party without, at the same time, having a genuine will to resolve the dispute by any form of agreement. Such parties treat the mediation process without respect and merely as a stepping stone to litigation. The most difficult challenge is getting such

â&#x20AC;&#x201C; and the one that the parties will more readily listen to â&#x20AC;&#x201C; is simply one that they had not thought about previously. What regulatory changes would you make to the field of dispute resolution if you had the power? ADR is not adequately marketed and steps must be taken to make sure that parties consider all their options to resolve the dispute. To this effect, my proposal is to link litigation to ADR by embedding options for pursuing the latter within the civil procedure rules. For example, mediation can become a compulsory step in all litigation proceedings. This need not delay the proceedings in any way or lead to an increase in costs if the parties retain the right to bypass the mediation process. However, the fact that they will have to state that they wish to bypass the said procedure will, I believe, force them to consider this option. Following mediation, the parties could then opt to either pursue their case before the courts or through litigation. Again, this option need not delay the proceedings.

MEDIATION IS BECOMING INCREASINGLY POPULAR AS A FORM OF ADR AND I BELIEVE THAT THIS TREND WILL CONTINUE

What challenges do you come across in your mediation work?

parties to understand the importance of the mediation process and helping them find some common ground with the other party without betraying their trust. How do you get around these challenges? I try to be as subtle as possible in guiding the parties through their dispute and to a resolution. A statement by implication, for example, is more powerful than a direct statement. Apart from subtlety, preparation is also extremely important. Sometimes the best solution

www.goldnews.com.cy | GOLD | 105

Opinion

SIGHTS FOR SORE EYES

OWNERS MUST BE MADE RESPONSIBLE FOR THE MAINTENANCE OF THEIR BUILDINGS

By George Mouskides

ity buildings in ing’s Main Administrative Cyprus are in Committee employs a licensed such a bad state engineer to inspect and report that one is better problems, based on set guideoff not looking at lines. them. Many have If the inspector’s repair list never been maintained, resulting is not followed and repairs in an unacceptable state of affairs, are not carried out within 6 from the standpoints of both semonths, a newly established curity and aesthetics, in almost all agency would have the right to urban areas. As a result, the resistep in, make the repairs and dents of these buildings and their charge the owners. neighbours have to put up with Completion of the necessary this chaos. repairs would be confirmed by What no-one seems to undera relevant certificate posted on stand is the fact that the value of the building’s notice board. these buildings, as well as that of The certificate would have to newer ones in the vicinity, is diminbe presented during the sale or ishing at an alarming rate. Conserent of any flat. quently, when such properties go The relevant law (on on the market, the owners will nevcommonly held buildings), er obtain a good selling price. requires several changes to beA ray of hope emerged following come efficient, including: Info: George Mouskides is General several cases of damage caused by falling old balx All owners must automatically be members Manager, FOX Smart Estate Agency and Chairman, Cyprus Association of conies but it was forgotten soon afterwards. of the Administrative Committee, by law, reProperty Owners (KSIA) One of the stumbling blocks to restoring these gardless of whether they attend the meetings or buildings remains the fact that, according to curnot, so that they bear the responsibility for all rent legislation, too many agencies are involved: the Department decisions of Lands & Surveys, the municipalities and others. x The Administrative Committee’s ability to collect common Experience also tells us that many owners are unwilling to pay expenses must be strengthened by law, i.e. legal proceedings for repairs to their aging properties. Home owners know that must be expedited for small claims. minor maintenance work is required every about three years, x Any illegal activities by owners/tenants regarding common only to be followed by a major refurbishment every decade. Ma- areas, (staircases, roof, parking place), must be regarded as a jor repairs can account for 10% or more of the cost of the house. criminal offence and the police must be empowered to interMany owners of flats fail to understand that buildings as vene. whole need maintenance and, as a result, no-one wants to pay x The amount of common expenses to be paid by each flat for such work. must be clearly calculated and not be left to the discretion of The Cyprus Association of each Administrative Committee. Property Owners has set the x The law must explicitly provide for WHEN SUCH PROPERTIES the creation of a sinking fund to aid maintenance of these buildGO ON THE MARKET, ings as a priority. It might be future repairs and maintenance. a good idea to set up a system It is really high time that state and THE OWNERS WILL along the lines of the motor NEVER OBTAIN A GOOD municipal officials took measures to vehicle MOT inspections, ensure a better and safer picture of SELLING PRICE whereby every 3 years a buildour cities and their buildings.

106 | GOLD | The Business Magazine of Cyprus

7851,1* *22' /($'(56 ,172

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THE IN BUSINESS EXECUTIVE LEADERSHIP PROGRAMME

N Business magazine, in cooperation with the Cyprus Institute of Marketing and IMH, is organising five training courses between November 2015 and January 2016. The IN Business Executive Leadership Programme will deliver 90 hours of training to help participants gain new insights and determine their business priorities in the most effective manner. The programme (in English) is for executives, directors and managers seeking executive leadership training to strengthen their skills to help them motivate and inspire others to drive results. The courses will be run by the following trainers:

6WUDWHJLF 0DUNHWLQJ MALCOLM MCDONALD, Emeritus Professor, Cranfield University was, until 2003, Professor of Marketing and Deputy Director of Cranfield University School of Management, with special responsibility for E-Business. He spends

much of his time working with the operating boards of the world’s biggest multinational companies, such as IBM, Xerox, BP and the like, in most countries in the world. He has written 46 books, including the bestseller Marketing Plans: How to Prepare Them; How to Use Them.

&RUSRUDWH )LQDQFH RAGHAVENDRA RAU is the Sir Evelyn de Rothschild Professor of Finance at the Cambridge Judge Business School. He is a director of the Cambridge Centre for Alternative Finance, Head of the School’s Finance & Accounting subject group, a past president of the European Finance Association, and a member of the Cambridge Corporate Governance Network (CCGN). He was also Principal at Barclays Global Investors, then the largest asset manager in the world, in San Francisco from 2008-2009.

%HFRPLQJ D :RUOG &ODVV /HDGHU ANDREW KAKABADSE has consulted and lectured in

108 | GOLD | The Business Magazine of Cyprus

the UK, Europe, the USA, SE Asia, China, Japan, Russia, Georgia, the Gulf States and Australia. He is Professor of Governance and Strategic Leadership at the UK’s Henley Business School, and also an Emeritus Professor of International Management Development at Cranfield University’s School of Management. He has published 40 books, and was ranked in the 2011 Thinkers50, a listing of the world’s top 50 business thinkers.

6WUDWHJLF 0DQDJHPHQW STELIOS ZYGLIDOPOULOS joined the University of Glasgow Adam Smith Business School as a Reader in Strategy in 2014. He holds a PhD in Strategy and Organisation and an MBA from McGill University, a MA (Cantab) from the University of Cambridge, an MA in Philosophy from Birkbeck College, University of London, and an MSc from the University of Piraeus, Greece. He is co-author of the book Charting Corporate Corruption: Agency, Structure and Escalation.

/HDGLQJ DQG 0DQDJLQJ 3HRSOH FRANCOISE CHEVALIER PhD, Associate Professor at HEC Paris, is a member of the Academic Board for HEC Executive Education. She is a research expert for ANRT (Agence Nationale de la Recherche et de la Technologie), Vice-President in charge of Pedagogy for AGRH (Human Resource Management Academic Association) and a regular visiting professor in China, Vietnam, Indonesia, Tunisia, Algeria, Iran, New Caledonia and Lebanon. She has published several books and articles in academic and professional journals.

Organiser: INBusiness magazine Coorganiser: The Cyprus Institute of Marketing (CIM) Coordination: IMH Tel: 22505555 Fax: 22679820 e-mail: events@imhbusiness.com Website: www.imhbusiness. com/executive-leadershipprogramme.

Opinion

WHO WILL REFORM GREECE? THE RESPONSIBILITIES OF GREECE’S PARTNERS AND THE POLITICS OF AUSTERITY By Dr. George Mountis

ince the EU – GerUnfortunately, it will be many in particular proven in practice how easy – has established it is to expect an economically that the “obsolete” and socially distraught nation structures of the to implement the toughest ausGreek economy terity and adjustment measures. and society are not compatible Let’s not forget the millions of with those of the EU, it ought to unemployed (about 75% of intervene to gradually bring them people under 30) and the huge into line with the current system. percentage of the population This obligation is not an economw who are dependent on their ic one but rather a political and families (the economically active certainly a social one. An opporpopulation does not exceed 2.5 tunity arose with the introduction million). The Troika’s only exof the first Memorandum of Uncuse for their stance is that they derstanding (MoU), when the socannot find credible reformist called “partners” faced the Greek proponents in the country, on state’s resistance to the reforms. w whom they can rely for the imThe policies of austerity which, plementation of these reforms. in practice, have only brought The political parties and the recession and social upheavals to vvast majority of the people have Greece, are still being pursued tobecome trapped in their own day. The situation would surely have been difinterests, meaning that they do nothing. Info: Dr. George Mountis is the Managing Partner of Delfi Partners ferent altogether if, from the outset, payments If there is a silver lining, there will likely be a & Co.. had been linked to progress in institutional few billion euros injected into the Greek econchanges and the creation of the ‘correct’ social omy for growth. A prerequisite for this is that structures. Their substitution with pressing tax enforcement these funds be diverted into the private and real economy. The measures is a mistake of strategic importance. country’s political class, amid the ruins of the national econoI believe that the Troika, with its in-depth knowledge of my, must finally take decisions that promote growth through the fundamental problems of the Greek political system, the country’s small and medium sized businesses. This is a bet should have taken ownership of the program so that, thanks that has little chance of success, since the same political entito the reforms imposed on it, Greece could have reached a ties will be required to manage development packages (funds European level, mainly in terms of proper public infrastrucfrom the EU/IMF). These are people with a strong political ture. There is now a belief in the other 18 countries of the bias against entrepreneurship and the entrenched perception eurozone that they and the Greek crisis can coexist harmthat the state should overshadow the private sector. lessly. Today, the country is collapsing since it’s not making The EU needs to understand that the European experiment substantial reforms. has to be flexible and adaptable to the new circumstances It is widely accepted that Greece’s debt is not sustainable affecting the economies and societies of its member states and can only be reduced and instead of leaving some of them at lengthened so that the governmercy of the richest countries’ IT IS WIDELY ACCEPTED the ment can gradually repay it. To taxpayers. Greece has forever changed THAT GREECE’S DEBT IS the way in which small European this end, it needs to establish NOT SUSTAINABLE the confidence that the country countries see the eurozone and the can produce fiscal surpluses. European Union. www.goldnews.com.cy | GOLD | 109

SPECIAL PROMOTIONAL FEATURE

HELLENIC BANK

Strategically positioned to serve you! ince ancient times, Cyprus has served the world from its strategic location at the crossroads of three continents. The Hellenic Bank Group, strategically positioned in Cyprus since its establishment in 1976, has been steadily developing its local and international clientele, becoming the second largest commercial bank in Cyprus. Operating through a network of 60 branches, four International Business Centres and the first Shipping Business Centre in Cyprus, four Representative Offices in South Africa, Russia and Ukraine, the Group employs over 1,400 people, offering a full spectrum of banking and insurance products and services. Focusing on upholding its core values, Hellenic Bank looks to the future with renewed energy and optimism. With an enhanced shareholder base and a renewed Board of Directors and Executive Management, Hellenic Bank is leading the way in the fast-recovering economy of Cyprus as a key agent of growth. Leveraging on its excellent reputation, exemplary service and high levels of liquidity, over the coming years the Hellenic Bank Group aims to actively support the continuous growth and internationalisation of Cyprus and fulfil its strategic aim of increasing profitability and growing its customer base.

Hellenic Bank International Business Division - Shipping Business Centre

The International Business Division of Hellenic Bank is considered a major pillar of the Group’s success. It was back in the ‘80s when the offshore department of Hellenic Bank was first established in Limassol, with clients of the shipping industry at its core. At the time, nobody could really have predicted the significance of the role it would play in the future development and prosperity of the organisation. By 1990, the Bank had established the first International Business Centre (IBC) of its kind by integrating that offshore department within its operations. The rest is history.

110 | GOLD | The Business Magazine of Cyprus

Today, Hellenic’s International Business Division is rightfully considered a major pillar of the Group’s success. The four IBCs (two in Nicosia, one in Limassol and one in Larnaca), along with the Shipping Business Centre in Limassol and Representative Offices in Moscow, Saint Petersburg, Kiev and Johannesburg, all staffed by highly experienced professionals, spearhead the Group’s commitment to this lucrative and highly successful line of business.

Cyprus as a shipping centre

Throughout the years, Cyprus has gained international recognition as a reputable shipping centre. With close to 1,000 ships registered under the Cyprus flag, the country maintains the third largest merchant fleet in Europe and the tenth largest in the world. More than 130 shipping-related companies operate out of Cyprus, controlling a fleet of 2,300 ships worldwide. The significant benefits of the new Shipping Tonnage Tax System (revised and approved by the European Union in 2010) are expected to further boost the country as one of the leading shipping centres in the world. In summary, some of Cyprus’ key benefits in shipping are: The country’s strategic position at the crossroads of Europe, the Middle East and Africa.

Dedicated to exclusively serving the Shipping Business Community!

a new level of experience to this select group of clients. The flexibility that the “Open Registry” provides to non-Cypriot As a member of the Cyprus Shipping Chamber, the Shipping citizens to register ships under the Cyprus flag. No income tax, capital gains tax and estate duty for ships registered Business Centre is also a keen supporter of the focal purpose of the organization, which is the promotion of the interests of Cyprus under the Cyprus flag. Shipping and the advancement of the reputation of the Cyprus Advanced maritime infrastructure and services. flag. Low registration fees for ships. No stamp duty on documents or mortgage deeds. The Hellenic Bank Shipping Business Anonymity of beneficial owners through trustee CONTACT INFORMATION: Center, located in Limassol, serves shareholders and nominees. shipping, ship management and other Hellenic Bank related shipping services companies with a Public Co Ltd wide range of banking services including: Current accounts and multicurrency Address: P.O.Box 24747, 1394 The shipping sector had been successfully served Nicosia, Cyprus accounts in all freely convertible currencies. by Hellenic Bank years before the inception of Tel: (+357) 22500500 / 8000 International and local payments using 9999 the International Business Centre. Since then, a advanced electronic payment systems for (from Cyprus) sizeable portfolio of reputable customers from the handling payments to suppliers, insurance Fax: (+357) 22500083 shipping industry has been developed. e-mail: companies, utility payments, standing orders, serviceline@hellenicbank.com This customer portfolio consists of some of the local staff salary payments, as well as salary Website: best-known companies in the business, with payments to crew members. www.hellenicbank.com activities ranging from ship owning and ship Cash Management services, working capital management to chartering, bunkering, marine International Business management, short-term fixed and overnight Division insurance and others. deposits. Address: 131, Archbishop Dedicated to exclusively serving the shipping Spot and forward foreign exchange Makarios III Ave. & Ioanni Polemi business community of the island and capitalising Ave., 5th Floor, 3021 Limassol transactions, hedging positions in currencies Tel: (+357) 25502411 on the Bank’s longstanding affiliation with the and interest rates. Fax: (+357) 25502484 shipping industry sector, the Hellenic Bank Corporate and personal Debit & Credit e-mail: Shipping Business Centre, established in 2013, Cards. a.charitou@hellenicbank.com was the first of its kind in Cyprus. Finance to shipping companies for working Shipping Business Centre All the know-how and expertise accumulated capital, credit facilities against blocked funds, Corner of Gladstone St. & 1, throughout the years is now available under shipping finance through syndicated loans Evangelistrias St, Agathangelou a single roof. Through a mixture of core and )\ZPULZZ *LU[YL Z[ ÅVVY with international banks and others. customised services, combined with a highly Limassol Trade finance and letter of guarantees Tel: (+357) 25502700 experienced team of professionals, the Hellenic services. Fax: (+357) 25345430 Bank Shipping Business Centre can now provide e-mail: sbc@hellenicbank.com

The Shipping Business Centre

www.goldnews.com.cy | GOLD | 111

| PREDICTIONS |

THE WORLD IS BECOMING A MORE DANGEROUS PLACE, SAYS STRATEGIC FORECASTING

By Andrew Lumley-Holmes

very year the private intelligence firm Strategic Forecasting publishes its decade forecast, featuring ten things it expects to happen in the global and political landscape over the next ten years. In its latest release it thinks the world will be a more dangerous place with US power reducing while other prominent countries experience decline. Let’s look at these forecasts in more detail:

1. GERMANY IS GOING TO HAVE PROBLEMS Germany has an export-dependent economy, which has richly benefitted from the continent-wide trade liberalisation ushered in by the European Union and the euro. However, that means the country has the most to

112 | GOLD | The Business Magazine of Cyprus

lose from a worsening euro crisis and a resulting wave of euroscepticism.

2. POLAND WILL BE ONE OF EUROPE’S LEADERS Poland is predicted to find itself at the centre of economic growth and increasing political influence. Its population won’t decline as much as those of the other major European nations. The fact that it’s the largest and most prosperous European state on Russia’s western border will also thrust it into a position of regional leadership that the country could leverage into greater political and economic prestige.

3. THERE WILL BE FOUR EUROPES It wasn’t long ago that European unity seemed like an unstoppable force but, in 10 years’ time, that may seem like a distant memory. Strategic Forecasting talks about ‘four Europes’ that will

become increasingly estranged from one another: Western Europe, Eastern Europe, Scandinavia, and the UK. They will still have to share the same neighbourhood but they won’t be as closely connected as they were before. Greece’s recent problems are only bringing this to the fore sooner rather than later. The European Union might survive in some sense but European economic, political, and military relations will be governed primarily by bilateral or limited multilateral relationships that will be small in scope and not binding.

4. TURKEY AND THE US WILL HAVE TO BE CLOSE ALLIES BUT FOR AN UNEXPECTED REASON Several Arab countries are in a state of freefall and the forecast doesn’t see the chaos ending anytime soon. The major beneficiary from all of this will be

Turkey, a strong, relatively stable country whose borders stretch from the Black Sea all the way down to Syria and Iraq. Turkey will be reluctant to intervene in conflicts on its borders but will inevitably have to, while it will become an indispensable US partner. In return, Turkey will want the help of the US to keep Moscow out of its backyard.

5. RUSSIA WILL COLLAPSE Sanctions, declining oil prices, a plunging rouble, rising military expenses and increasing internal discord will weaken the hold of Russia’s central government over the world’s largest country. Russia will not officially split into multiple countries but Moscow’s power may loosen to the point that Russia will effectively become a string of semi-autonomous regions that might not even get along with one another.

6. THE US WILL HAVE TO USE ITS MILITARY TO SECURE RUSSIAN NUCLEAR WEAPONS Russia’s nuclear weapons infrastructure is spread across a vast geographic area. If the predicted political disintegration happens, weapons, uranium stocks and delivery systems could end up exposed in what will suddenly become the world’s most dangerous power vacuum.The breakout of Russia’s nuclear weapons stockpile could be the greatest crisis of the next decade.The US will have to figure out what to do about it, even if it means dispatching ground troops to secure loose weapons, materials and delivery systems.

7. CHINA WILL FACE ONE HUGE PROBLEM China may have a rough decade ahead as economic growth slows, leading to widespread discontent with the ruling Communist Party. But the party will not liberalize, which means its only viable option for controlling the gathering chaos while remaining in power will be

to increase internal oppression. Beijing also faces another, perhaps even bigger problem: China’s growth hasn’t been geographically distributed very evenly. Coastal cities are thriving, but China’s interior has less access to international markets and is comparatively much poorer. That problem will only get worse as the country continues to urbanize, which may cause regional fissures.

8. JAPAN WILL BE ASIA’S RISING NAVAL POWER Japan has a maritime tradition going back centuries and as an island nation it is dependent on imports. China is building a new navy of its own and it may become more aggressive in controlling shipping routes in the East that Japan depends upon. Japan will have no option but to project power into the region to counter China and protect its supply routes. Fighting

countries as entry-level manufacturing jobs will migrate to 16 emerging economies with a combined population of 1.15 billion. So while China’s growth will reduce, leading to unforeseeable political and economic consequences, Mexico, Nicaragua, the Dominican Republic, Peru, Ethiopia, Uganda, Kenya, Tanzania, Bangladesh, Myanmar, Sri Lanka, Laos, Vietnam, Cambodia, the Philippines and Indonesia could see improving economic fortunes over the next decade as more jobs and investment arrives.

10. US POWER WILL DECLINE With the world becoming a more disorderly and unpredictable place, the US will respond by being increasingly judicious about how it picks its challenges, rather than taking an active leadership role in solving the world’s

EUROPEAN ECONOMIC, POLITICAL, AND MILITARY RELATIONS WILL BE GOVERNED PRIMARILY BY BILATERAL OR LIMITED MULTILATERAL RELATIONSHIPS over the minor islands producing unprofitable energy will not be the issue in the region. Rather Russia, the declining power, will increasingly lose the ability to protect its maritime interests. The Chinese and Japanese will both be interested in acquiring these and in preventing each other from having them.

9. THERE WILL BE 16 MINI-CHINAS China’s economy will slow down, and growth in its production ability will stall. That’s good news for a handful of

problems. A growing economy, surging domestic energy production, declining exports, and the safety of being in the most stable corner of the world will give the US the luxury of being able to insulate itself against the world’s crises. While this more restrained US role in global affairs will make the world an even less predictable place, it’s a reality that other countries will have to deal with. Info: Andrew Lumley-Holmes is an independent financial adviser with Finsbury Private Wealth Management. e-mail: andrew.holmes@finsbury-group.com or (+357) 96418652.

www.goldnews.com.cy | GOLD | 113

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| CREATIVITY |

Dream it. Build it. Live it JULY SAW THE CONCLUSION OF THE WORLD’S PREMIER GLOBAL STUDENT TECHNOLOGY PROGRAMME AND COMPETITION, MICROSOFT’S IMAGINE CUP. WITH THE SLOGAN “DREAM IT. BUILD IT. LIVE IT.”, THE PROGRAMME PROVIDES STUDENTS ACROSS THE GLOBE FROM ALL DISCIPLINES THE OPPORTUNITY TO USE THEIR CREATIVITY, PASSION AND KNOWLEDGE TO CREATE APPLICATIONS, GAMES AND INTEGRATED SOLUTIONS THAT CAN CHANGE THE WAY WE LIVE, WORK AND PLAY. GOLD WAS THERE EVERY STEP OF THE WAY, TRAVELLING

TO MICROSOFT’S HEADQUARTERS IN AMERICA TO EXPERIENCE THE ELECTRIC FINALS FIRST

HAND. By Effy Pafitis

s I arrived at Microsoft’s expansive headquarters, nestled in the foothills of Redmond, USA, so large that it takes an entire campus – almost a village – to house it, my mind turned to something I had read just a few days previously: “If coders don’t run the world, they run the things that run the world,” wrote

116 | GOLD | The Business Magazine of Cyprus

Paul Ford in a 90+ page essay published in Bloomberg Businessweek on the importance of tech development and programming in our modern world. Taking in my vast view of the Microsoft premises, of which I had seen just a minuscule portion, I concluded that Ford was right, and only those who headed something extremely important could possibly work here. Contemplating further his theory on how programming has truly shaped our reality today, and how it will determine the

world of tomorrow, I finally began to grasp the significance of the event which was the reason for my journey: Microsoft’s Imagine Cup. Imagine Cup, now in its 13th year, is the world’s premier global student technology programme and competition, and a cornerstone of the Microsoft YouthSpark initiative. It provides an opportunity for student technologists, developers and aspiring entrepreneurs from all academic backgrounds to collaborate, develop a technology application, create a business plan and gain a keen understanding of what is needed to bring a concept to market. Students compete in teams of up to four people in the Games, Innovation or World Citizenship categories to create an original technology project from start to finish – create an idea, make a plan, build the project and compete. Having advanced through various rounds of the competition either online or through in-person National Final events organised by Microsoft subsidiaries all over the world, the three first-placed teams in each category from each participating country are entered into the World Semifinals online, and the winners are then awarded travel to the Imagine Cup World Finals, where they compete for cash prizes and gain once-in-a-lifetime experiences. The Imagine Cup World Finals are held at Microsoft’s renowned headquarters in Seattle, Washington and this year took place on July 27-31. The finals are geared up to be among the most exciting events of Microsoft’s YouthSpark initiative. Indeed, as I entered the campus – passing employees reclining comfortably in groups of three or four, discussing technical topics far beyond my modest knowledge of such matters – and approached the Imagine Cup students who had already converged on campus, the excitement was tangible. Huddled around projects large and small, preparing for their initial presentations before the competition’s esteemed judging panel, the teams were mostly stressed, evidenced by the omnipresent film of perspiration on their brows. This was no surprise to me – the finals are intense, challenging not only the technical capabilities of the projects and critically examining the sustainability of their business plans, but also testing the commitment and teamwork of the students among themselves. Working my way through the maze of

teams, however, I came to a group unique in their demeanour; calm and happy, their conversational tone contrasting starkly with the anxious hushed whispers around them. This – I knew at once – was the Cyprus team. They greeted me with smiles and beckoned me to join them. Yes, among the 33 teams which took part in this year’s competition was Cyprus’ very own team, Smart Ecological Cultivation System (S.E.C.S.) from Frederick University, which outperformed 150 teams from 65 countries from around the world to compete in the world finals. The local team, comprising students Iasonas Iasonos, Katerina Prodromou, Peter Hadjichristodoulou and Theodoros Acha, mentored by Christophoros Kronis, pooled its members’ knowledge together to create an ingenious system for agricultural production. The project, a smart and ecological system, was developed in order to control cultivation – in a greenhouse or in the fields – by using an App from a remote place in real time. Thus, anyone maintaining a small or large crop – from a simple gardener to a professional farmer – can use sensors and other specialised equipment to manage it economically and ecologically through an application for smartphones, including functions such as irrigation, fertilisation, as well as monitoring of humidity and temperature. Having developed the project tirelessly for months on end and proceeded through countless stages in order to secure their place in Seattle, the team finally came before the judging panel on July 29, and – in just 10 minutes – presented the concept of S.E.C.S. and the inspiration behind its creation. The judges were impressed, as was I. The experience didn’t end at the live presentations; S.E.C.S. later addressed questions and detailed analysis of their project during the hands-on judging session and finally opened the floor to questions from journalists and members of the public during the Showcase. “The team performed at an exceptional level during their presentations,” Ioannis Stavrinides, Developer eXperience Evangelist, Microsoft Cyprus told Gold following the presentation. “They pre-

www.goldnews.com.cy | GOLD | 117

sented their project with professionalism and passion, which was reflected in the judges’ positive reactions.” Despite their most valiant efforts, S.E.C.S. was not named this year’s winner – a clear reflection of the tough competition at Imagine Cup. The coveted title of Imagine Cup Champion went to the Brazilian team eFitFashion and their Clothes For Me project . The experience and feedback gained during the competition, however, will prove instrumental to their future success. Indeed, this experience, Stavrinides noted, “has given them a greater appreciation of what is expected from a start-up company, from the early stages of development to actually creating and presenting their product.” “Imagine Cup has been a great learning experience for us,” the team told Gold, “and an excellent platform through which to acquire the knowledge and networking opportunities which will prove invaluable as we work to take S.E.C.S. to market. Imagine Cup has only served to fuel our passion for this project, and will no doubt contribute to our future success.”

Tynes reminisced. “And so we had a whole generation like myself, who grew up learning programming from a young age and went into computer science. These people went on to create the Internet, as well as the software and applications that we use each and every day.” But as computers became more consumer devices, it became more typical to simply purchase the software needed. “Most people now use computers the way they use the refrigerator or their car; they are just devices that power their lives.” Although this trend brought computing to an enormous audience and facilitated the development of all sectors of the economy around the globe, it also resulted in the loss of the unique user connection to programming. “We want to change that,” Tynes affirmed. For this reason, he explained, Microsoft and many other companies worldwide are trying to re-expose young people to programming, and show them that games and applications are the products of the imagination and programming of real people. “We want them to think – ‘I can do that too’.” This is where Imagine Cup comes in. Though a negative factor for world-class tech companies, this dilemma presents a huge, unique opportunity for today’s youth, who have the ability to fill this gap and do so with the support available today, which has never been so intense. “Imagine Cup is the showcase programme for young students who are creating technology and bringing projects to life,” explained Tynes. “For us it is a chance to celebrate these top students and what they have accomplished, but globally, we aim to inspire the next generation of developers coming behind them. Worldwide, Microsoft is really invested in helping young people of all ages, all backgrounds and all cultures, through our technology, tools and programmes. The reason for that is simple: we believe that an educated, diverse workforce globally is going to make amazing innovations happen.” The Corporation, he said, knows that innovation does not come just from Silicon Valley, but from around the world and Imagine Cup proves this. Part of the initiative, however, is making sure students don’t just have access to technology, but actually find their passion for it. “Understanding how to solve a problem in your life, let alone in software, is a crucial life skill. And I think that programming to some degree is a metaphor within which you can explore problem solving in analysis and taking in data, applying your analysis to it and reaching a decision.”

Imagine Cup is the showcase programme for young students who are creating technology and bringing projects to life

FINDING TOMORROW’S TECHNOLOGY LEADERS

“Now that software lives in our pockets, runs our cars and homes, and dominates our waking lives, ignorance is no longer acceptable. The world belongs to people who code. Those who don’t understand will be left behind,” Bloomberg’s Josh Tyrangiel warns in his introduction to the aforementioned Businessweek essay. Despite this dominant trend towards technology, however, there is a worryingly short supply of professional developers, I was told by John Scott Tynes, leader of Microsoft’s Imagine Cup worldwide and DX Student Developer Evangelism Programme Lead. “Worldwide there is a giant gap in the number of jobs available in the technology field and those qualified to fill them. This is a problem in America; it is a problem everywhere,” he explained. What he actually meant is that this is a problem for Microsoft, as the worldrenowned company cannot hire all the candidates it wants to, due to their lack of proficient developing abilities. “When I was young and had my first computer, what you did with a computer was you programmed,”

118 | GOLD | The Business Magazine of Cyprus

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BOOK SHELF

BOOKS of the month

Creating habits that can make our lives better

A simple guide to a smarter strategy for the investor

A great introduction in to the psychology of leadership

The founder of Nasty Gal shares her remarkable success story

How and why they do their jobs

THE ACHIEVEMENT HABIT: STOP WISHING, START DOING, AND TAKE COMMAND OF YOUR LIFE By Bernard Roth (HarperBusiness, 2015) R.R.P. £18.99 (£15.90 FROM AMAZON.CO.UK)

A WEALTH OF COMMON SENSE: WHY SIMPLICITY TRUMPS COMPLEXITY IN ANY INVESTMENT PLAN By Ben Carlson (John Wiley & Sons, 2015) R.R.P. £26.99 (£21.34 FROM AMAZON.CO.UK)

Roth applies insights that stem from design thinking to help us realize the power for positive change we all have within us and shows how we can create habits that make our lives better. Recommendations include “Believe you are a doer and achiever and you’ll become one” and “Learn to ignore distractions that prevent you from achieving your goals”.

The financial market is a complex system, but that doesn´t mean it requires a complex strategy; in fact, Carlson argues, this false premise is the driving force behind many investors´ market “mistakes.” He shows how to view the markets and your portfolio, and the simple strategies that make investing more profitable, less confusing, and less time–consuming.

120 | GOLD | The Business Magazine of Cyprus

With trust in business and political leaders at record lows, there’s never been a better time for a fresh perspective on communication and, according to Lancaster, the ancient Greeks were the first to study the art 2,500 years ago. Here he blends ancient rhetoric and neuroscience to create the definitive guide to the timeless set of cues and signals that determines who reaches the top.

In the space of ten years, Sophia Amoruso went from high-school dropout to founder and Executive Chairman of Nasty Gal, one of the fastest-growing retailers in the world. She has never been a typical executive (or a typical anything), and she’s written her inspiring and motivating story for other girls like her to prove that success is about trusting your instincts and knowing which rules to follow and which to break.

The book charts the progress of more than 20 English football managers, including Brendan Rodgers and Roberto Martinez, who are still in place, and others who have been sacked. The award-winning author offers a unique insight into a profession which has been described by Arsenal’s longstanding manager Arsene Wenger as like “living on a volcano: any day may be your last”.

WINNING MINDS: SECRETS FROM THE LANGUAGE OF LEADERSHIP By Simon Lancaster (Palgrave Macmillan, 2015) R.R.P. £19.99 (£19.99 FROM AMAZON.CO.UK)

#GIRLBOSS By Sophia Amoruso (Portfolio Penguin, 2015) R.R.P. £9.99 (£6.99 FROM AMAZON.CO.UK)

LIVING ON THE VOLCANO: THE SECRETS OF SURVIVING AS A FOOTBALL MANAGER By Michael Calvin (Century, 2015) R.R.P. £16.99 (£11.89 FROM AMAZON.CO.UK)

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The Future of the European Economy The Forum is a prestigious and major platform of debate on political, economic and business issues in Europe and the Eastern Mediterranean.

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This yearâ&#x20AC;&#x2122;s agenda includes: â&#x20AC;˘ The state of the European Economy â&#x20AC;˘ The main threats to European Economic Recovery â&#x20AC;˘ How can Europe return to growth? â&#x20AC;˘ The challenges of the Greek Debt Crisis for Greece and the implications for Europe â&#x20AC;˘ Germanyâ&#x20AC;&#x2122;s role in Europe

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122 | GOLD | The Business Magazine of Cyprus

ith one of the most professional and highly educated workforces in the region, it is unsurprising that Cyprus’ prominent companies are beginning to acknowledge that their success is a direct result of the incredible performance of their personnel – the true jewels in their asset portfolios. Melina Lori, Business Development and Marketing Manager at one such firm – InfoScreen – spoke to Gold about what the company does for its employees and how it stands out as an employer so that innovative minds seek to obtain and retain a position there. According to Lori, the level of job satisfaction among employees of the specialist software development company is very high. This, she says, is the result of

strategic efforts undertaken throughout InfoScreen’s 20 years on the island to establish a positive and productive working environment. These efforts have not gone unnoticed as, in addition to gaining approval from staff, InfoScreen was the the first local ICT company to be accredited with the Investors in People standard. Investors in People is a management framework for high performance through people. The prestigious accreditation, granted following a rigorous and objective assessment to determine performance, is recognised across the world as a mark of excellence. “We work towards maintaining a very friendly environment, where any problems or concerns that may arise among team members are addressed in a very positive and constructive way in order to find the best possible solution,” Lori explained. “In plain terms, we want our people to be happy!” In order to accomplish this, and in keeping with its profile as an innovative firm involved in cutting-edge technology, the company provides its 24-member staff with the most advanced tools in the industry to help them in their day-to-day work. “Our aim is to help them stay up to date with the latest technological developments, giving them a significant advantage in the market.” To support its employees’ social integration into the workplace and encourage personal as well as professional wellbeing, InfoScreen organises numerous team-building activities such as paintball, evening outings and barbecues and

participates in corporate team events such as the Limassol Marathon – which it won in March 2015. “The company has managed to cultivate a team-oriented workplace so that each and every employee feels appreciated and valued as an important component of a well-oiled machine, with everyone working towards the same goal,” Lori explained. Over the years, InfoScreen has introduced a number of benefits for its people. “Employees are entitled to medical insurance, a 13th salary and 22 days of annual leave. Also, we have annual reviews of salaries and job levels and offer performance-related bonuses.” However, Lori told Gold, a skillfocused support approach has been the true key to InfoScreen’s employee satisfaction. “We support them in identifying and making full use of their strong points. So our employees are encouraged to take part in professional and educational seminars – accredited by international organisations – sponsored by the company, that will further develop their skill sets and broaden their knowledge, based on their professional aspirations.” So, what is InfoScreen’s defining quality as an employer of choice in its industry? “It is more about what the company offers to its people: a dynamic and friendly environment focused on innovation and progress,” answered Lori. Furthermore, as part of an international company, InfoScreen’s people are exposed to a variety of business styles and requirements. Having to interact with local and foreign companies pushes employees to step out of their comfort zones and enhance their knowledge and expertise to meet international standards, a major asset to any professional which only a handful of companies on the island offer. “InfoScreen’s people are the company. The collaboration between us is exceptional; there is mutual respect for each other’s work and a constructive exchange of opinions. Most importantly, however, we are all driven by the same goal: to join forces and further expand and develop the company since, at the end of the day, success belongs to each and every one of us.”

www.goldnews.com.cy | GOLD | 123

Lunc Lunch with ANDROULLA VASSILIOU

THE FORMER FIRST LADY AND EX-EUROPEAN COMMISSIONER TALKS ABOUT WHAT SHE LEARNED IN BRUSSELS, HOW SHE INTENDS TO WRITE ABOUT HER TIME THERE AND WHY SHE BELIEVES THAT A SOLUTION TO THE CYPRUS ISSUE IS CLOSER THAN IT HAS EVER BEEN.

Gold

N 124 | GOLD | The Business Magazine of Cyprus

egotiating Nicosia’s midday rush hour traffic is never easy and so I am determined to arrive on time for my lunch appointment with Androulla Vassiliou. As I walk towards the entrance of the Hilton with five minutes to spare, I hear someone call my name and, turning to see who it is, I find my dining companion just a few steps behind me. “I don’t like to keep people waiting,” she explains. “In fact, when I was in Brussels, I had a reputation for always being five minutes early for everything, which sometimes caused more problems than being late!”

By John Vickers

ANT RESTAUR FONTANA s ru Hilton Cyp III Ave., Makarios 98, Arch. Nicosia

€58.00 ALMON 2 BAKED S E €16.00 TRITIS WIN 2 15CL PE €4.00 WATER 1 KYKKOS €78.00 TOTAL

We enter the Fontana Restaurant, carefully chosen to ensure a quiet atmosphere. It is almost empty…but not for long. The waitress tells us apologetically that she is expecting 130 diners this lunchtime. We find a peaceful corner but Androulla Vassiliou remains one of the most recognizable women in Cyprus and she is soon being greeted by friends and acquaintances from Cyprus and elsewhere. “This always happens,” she confides later but having been

First Lady of Cyprus for the five years of her husband George Vassiliou’s term as President (1988-1993), an MP (1996-2006) and then European Commissioner for Health (2008-2010) and, subsequently, Education, Culture, Multilingualism and Youth (2010-2014), she has grown accustomed to being the centre of attention and dealing with even the most unwanted attention gracefully. Once we have had a chance to order (baked salmon and a glass of white wine each), I ask if she now considers herself retired. “Far from it!” she says, almost laughing at the idea. “I could never retire. I could perhaps take things more easy, if you like, but I’ve discovered since my return to Cyprus that I could either be active or I could say no to everything and spend my time going from one coffee morning to another. That’s not for me.” She therefore keeps herself busy, among other things by writing: “I have already started work on a book on the history of women in Cyprus in the 20th century,” she tells me. “I’ve interviewed a lot of women from the older generation and I want to finish that. I also want to write about my time in Brussels but for now, I have no time for it. I know that I need to cut down on various things and prioritise if I’m to finish them.” She may leave the book on women to one side while her recollections of her seven years in Brussels are still fresh. Having lived there myself, I am curious to know whether

she enjoyed life in the Belgian capital. The question receives a ‘yes and no’ answer: “The truth is that I could just as easily have been in Amsterdam or Vienna because I was travelling so much. In all that time there was not a single week when I didn’t have to go to another country, so although Brussels was my base I didn’t really have much of a chance to enjoy it in the way that you probably did. I might have done

something there at the weekend if I wasn’t away but I also had to spend many weekends studying work files. Weekdays were spent in meetings, seminars, conferences and so on, so all the serious reading had to be done at the weekend, unfortunately.” Nonetheless, she was able to take in the occasional concert, opera and exhibition, thanks in part to her second portfolio which included

culture. Aware of her active interest in all things cultural, I assume that she enjoyed her second term as Commissioner more than her first. “I found them both very interesting,” she replies. “The most interesting part of being Health Commissioner for me was not so much human health as food safety and animal health and welfare. In that post I had a lot of power to legislate on big issues like GMOs, cloning, nanotechnology and so on. I found the food safety issues very interesting and we had to deal with several food crises during my time there.” I suggest that it must be a great burden to be accepting or rejecting legislation that will affect more than 500 million people in 28 countries and I ask the former Commissioner how she was able to determine what the populations of all the EU member states would or would not want. “I had a lot of dealings with NGOs,” she explains. “My ‘constituency’, for want of a better word, consisted of the Parliament, the Council and civil society. In both my portfolios, the role of civil society was very strong and I was flooded with requests for meetings by NGOs who were working very closely with the ministries in their own countries.”

WORKING IN BRUSSELS MADE ME MORE EUROPEAN AND I SAW FOR MYSELF THE STRENGTH OF ITS MULTICULTURALISM www.goldnews.com.cy | GOLD | 125

| LUNCH WITH GOLD |

While it might be assumed that, by its very nature, the Health portfolio would be more demanding of the Commissioner, Androulla Vassiliou’s experience did not bear this out. “Health was more limited but the second portfolio was just endless! Just take the NGOs – they were different for Education, different for Youth, etc. I was in charge of so many issues, and I had to run three DGs [Directorates-General] with a total of 4,500 people. It really was a huge burden. Now, much of what I was dealing with has gone to other Commissioners.” In many countries, the general public has a very negative view of Brussels and the European Commission (“I wonder how many Cypriots understand what we actually do there”, she says at one point in the conversation). Are people justified to view it with a certain amount of suspicion? “Partly,” she concedes, “which is why we need to spend more on informing the public. We can’t expect people to be pro-Brussels, especially during difficult times, if they don’t know how the system works. As many young people as possible should be given the chance to visit Brussels. When people understand, they have a much better view. Take the Erasmus programme. I have not met a single Erasmus beneficiary who is not pro-European.” Working as a European Commissioner was a great learning experience for Androulla Vassiliou herself and it was there, she says, that she came to appreciate multiculturalism. “There is a rule that a Commissioner has to have at least four different nationalities in his/ her cabinet,” she explains. “And in the DGs, too, every time someone came to brief me on something, that person would be of a different nationality from the previous one. At first I wondered how this would ever work and yet I soon discovered that the question of nationality comes to have no meaning and everyone works together for the common good. I always tell people that working in Brussels made me more European and I saw for myself the strength of its multiculturalism. I believe in it

126 | GOLD | The Business Magazine of Cyprus

and I think we must preserve our cultural and linguistic diversity. It is a richness that should be maintained.” Back in Cyprus after seven years in Brussels (“I was happy to end my mandate because I was really very tired,” she says), she is still too busy to finish writing her two books. She chairs the Bank of Cyprus Oncology Centre, which, she says, is becoming more and more challenging and taking up more of her time due to an increase in the number of patients attending the centre and a shortage of doctors. She is also a member of the Board of the prestigious European University Institute in Florence, which specializes in PhD and post-doctoral European Studies, a member of the Board of Trustees of the Brussels-based think tank Friends of Europe (Les Amis de l’Europe), and a member of Europa Nostra. “They are all things that interest me and they keep me closer to Europe,” she explains.

about their Greek Cypriot counterparts. However, she tells me: “I have a feeling that if President Anastasiades does things properly and DISY and AKEL are united on the agreed solution, there will be a majority in both referenda.” The fact that the other two main opposition parties appear to be divided on the issue means that there will be votes in favour from their supporters too. “I think there has been a shift in opinion from 2004,” she says, “and people are ready now. What is clear is that now we have the best climate we could possibly have wished for and Europe supports us all the way.” Does Androulla Vassiliou still think back to the time she was First Lady of Cyprus? Will she write about that too? “No,” she insists. “That book will consist of various memories of my time as Commissioner. Of course, I have lots of memories of the time when my husband was President, and also of when I was a

WE CAN’T EXPECT PEOPLE TO BE PRO-BRUSSELS, ESPECIALLY DURING DIFFICULT TIMES, IF THEY DON’T KNOW HOW THE SYSTEM WORKS She also chairs the recently established bicommunal committee on culture and is optimistic that a solution can finally be found to the longstanding Cyprus issue. She knows the Turkish Cypriot leader Mustafa Akinci very well, describing him as “a wonderful person and a very honest man.” Indeed, she is sorry that her husband did not have him to negotiate with instead of Rauf Denktash all those years ago: “Things would have been completely different,” she says wistfully. She believes that young Turkish Cypriots want a solution because they see it as the way forward to give them more opportunities and a better future but she confesses that she is not so sure

Member of Parliament, but if I were to write a complete autobiography I would need too much time and I don’t think I would ever find it!” As we prepare to leave (she declines dessert and coffee), she says: “I would like to say one thing: What I have seen and experienced in Cyprus is that unless someone takes the initiative to push for things and to carry them forward, nothing gets done. We need people with plenty of determination and energy to make things work.” With this, she heads off to a meeting to plan a Europa Nostra event for October. I fear those books by Androulla Vassiliou may not be available at our local stores for some time to come…

BUSINESS CLASS

How often do y you travel,, whether for business or pleasure?

If you could travel anywhere tomorrow, where would you go?

I travel on a mon monthly business. basis, mainly for bu The countries I us usually USA, visit are USA Germany and Malta.

Te Tell T Tel ellll m me e about b your best corporate t travel t l experience. i .

Without a doubt, my trip to Monte Carlo last October! It was a combination of business and pleasure with h my family, after I won a prestigious ‘Circle of Excellence’ internal award.. o This trip gave me the opportunity to share the “Microsoft World” experience with my family so that they could better understand the culture of this amazing company.

Tough question... Actually I have two destinations I would like to visit in the near future: Brazil and Japan. Both countries have a fascinating culture and a colourful history that I would like to explore further.

George Petrakides The Microsoft Country Manager, Cyprus and Malta, tells ls Gold how he has traversed the globe, visiting locations from Europe to the United States of America and even Africa, and explains why – despite his many experiences abroad – there is still no n place p like home. By Effy fyy Pafitis How does Cyprus compare?

What is the mostt exciting destination you y have visited for wor work?

Through my employment at Microsoft I have had the pleasu pleasure of travelling to numerous countries. coun If I had to choose one, it would be my trip to Johannesburg, South (MYPJH IHJR PU 0[ ^HZ T` ÄYZ[ time there, and I was surprisingly amazed by the African culture and its people.

What is your favourite airline, and why?

I have travelled with almost all airlines on the planet, with generally positive experiences. Over the last couple of years however I have become “committed” to British Airways for my long-dis[HUJL ÅPNO[Z

And forr p pleasure? leasure?

Las Vegas! This s city for me is the entertainment capital of the world and the global leader in the hospitality industry. It has the most luxurious hotels and casinos, the most spectacular shows, and the best KPUPUN VɈLYPU KPUPUN VɈLYPUN UN

What is th the e most most mo s impresst impres p sive hotel you have ever stayed at and why?

The Burj Al Arab Jumeirah hotel in Dubai; it’s a luxurious, stunning hotel with a distinctive ZHPS ZOHWLK ÄN\YL ;OL OV[LS PZ SVJH[LK VU HU HY[PÄJPHS PZSHUK and provides a top-class stay and service. Highly recommended!

There is no place like home! Cyprus is a great country to live in and whenever I am away for a long period period peri od of time, time, I alwa a lwayy look long always forward coming forwar for ward d to to comi c oming ng bac back. k. Very often people people tend tend to undervalue unde und e often Cyprus Cyprus but but thos tthose hose ew who ho travel travv a lot tra really ap appre precia ciate te the quality quali qu ality ty of life really appreciate V\Y SV]LS` JV\U[Y` VɈLYZ V\Y SV SV]LS ]LS` J ` JV\U V\U[Y` [Y` VɈ VɈL L

What is your favourite international destination and why?

New York City is by far my most beloved destination. I spent 6 years of my life there, I have many unforgettable memories and had countless enjoyable experiences. I still visit New York on a yearly basis, even if it’s only for a couple of days.

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WHAT’S

THINGS

to do

STROVOLOS MUNICIPAL THEATRE, NICOSIA TUESDAY, SEPTEMBER 15 & WEDNESDAY, SEPTEMBER 16, 8.30PM RIALTO THEATRE, LIMASSOL FRIDAY, SEPTEMBER 18, 8.30PM

MUSIC ACADEMY OF ST. MARTIN IN THE FIELDS One of the world’s premier orchestras, founded by STROVOLOS Sir Neville Marriner in MUNICIPAL 1958, famous for its THEATRE distinctive sound, FRIDAY, virtuosity and brilliant SEPTEMBER 25, interpretations, 8.30PM RIALTO THEATRE performs Bach and SATURDAY, SEPTEMBER 26, Shostakovich, plus works by Phanos 8.30PM Dymiotis and Nikos Christodoulou.

GUABA BEACH BAR, AYIOS TYCHONAS, LIMASSOL SUNDAY, SEPTEMBER 27, 3PM DJ SKAZI The renowned Israeli electronic music producer and DJ comes to Cyprus.

GREEK MUSIC ELEFTHERIA ARVANITAKI Two concerts by the acclaimed Greek singer. Makarios III Amphitheatre (School for the Blind), Nicosia. Thursday, September 17, 8.30pm Ancient Curium Amphitheatre, Epiksopi Friday, September 18, 8.30pm

128 | GOLD | The Business Magazine of Cyprus

DANCE BROKEN Highly athletic dance is submerged within intricate digital imagery and original music in an unashamedly visual and adrenaline-fuelled spectacle by Motionhouse, one of the UK’s foremost dance theatre companies.

STAVROS XARCHAKOS One of the greatest Greek composers of the ‘60s & ‘70s presents some of his best-known songs, performed by Iro Saia, Zaharias Karounis and Neoklis Neophytides.

Municipal Garden Theatre, Limassol Tuesday, September 22nd, 2015 Makarios III Amphitheatre (School for the Blind), Nicosia. Wednesday, September 23, 8.30pm

THEATRE UNCLE VANYA Directed by Lilly Meleme, this Greek-language production of Chekhov’s play features three legendary Greek actors: Giannis Voglis, Giannis Fertis and Stelios Mainas.

RIALTO THEATRE, LIMASSOL SATURDAY, SEPTEMBER 19 & SUNDAY, SEPTEMBER 20, 8.30PM STROVOLOS MUNICIPAL THEATRE, NICOSIA MONDAY, 21 SEPTEMBER & TUESDAY, 22 SEPTEMBER, 8.30PM

EROFILI REPEAT A contemporary adaptation of the classic Cretan renaissance MUNICIPAL tragedy Erofili, a love story THEATRE, LARNACA written in verse, which raises FRIDAY, 2 OCTOBER, 8.30PM questions about the posiSTROVOLOS MUNICIPAL tion of women in society. THEATRE TUESDAY, 6 OCTOBER Directed by Maria KyriakMAKARIOS III LYCEUM, ou for the Cypriot theatre PAPHOS THURSDAY, 8 OCTOBER group One/Off.

RIALTO THEATRE,LIMASSOL FRIDAY, 9 OCTOBER MAKARIOS III AMPHITHEATRE (SCHOOL FOR THE BLIND), NICOSIA. MONDAY, SEPTEMBER 28, 9PM IT HAD TO BE YOU MUNICIPAL GARDEN THEATRE, LIMASSOL Greek-language production of the TUESDAY, SEPTEMBER comedy by Joseph Bologna and Renee 29, 9PM PATTICHION MUNICIPAL Taylor, directed by Grigoris Valtinos who THEATRE, LARNACA co-stars with Zeta Makrypoulia. WEDNESDAY, SEPTEMBER 30, 9PM

AYIA NAPA FESTIVAL

7thh INTERNATIONAL INTERN PHAROS CONTEMPORARY MUSIC FESTIVAL

VASSILIS LEKKAS The Greek singer, accompanied by a choir and dance groups, presents a panorama of Greek songs entitled “From Manos Hadjidakis to Vasilis Tsitsanis” Main Square, Ayia Napa Friday, September 25, 8.30pm

he International Pharos Contemporary Music Festival has established itself as one of the most innovative and cutting-edge annual music events in Eastern Mediterranean. It is dedicated to the promotion of well-established 20th century masterpieces as well as new works by the younger generation of composers. All concerts are at the Shoe Factory, Nicosia.

MARIO FRANGOULIS The Greek tenor performs “Beautiful Things” with soprano Deborah Myers and the Cyprus Youth Symphony Orchestra. Main Square, Ayia Napa Saturday, September 26, 8.30pm PANTELIS THALASSINOS & SOFIA PAPAZOGLOU. Two well-established Greek singers perform songs by Mikis Theodorakis to mark the composer’s 90th birthday. Main Square, Ayia Napa Sunday, September 27, 8.30pm

SLAGWERK DEN HAAG (SDH), the renowned Dutch percussion group, performs on the traditional arsenal of percussion instruments and custom-made instruments made of unconventional material such as porcelain, glass or 3D-printed objects. Friday, 2 October, 8.30pm HET COLLECTIEF, the eminent Belgian ensemble, performs the Cyprus premieres of works by Arnold Schönberg and Louis Andriessen, plus compositions by Kaija Saariaho, and Cypriot composers Christina Athinodorou and Haris Sofokleous. Sunday 4 October

A MIDSUMMER NIGHT’S DREAM Shakespeare meets Mendelssohn in this abridged version THOC of Shakespeare’s Theatre, Nicosia play, with inciThursday, 24 Sepdental music by tember, 8.30pm Felix MendelsRialto Theatre, sohn, which inLimassol Friday, 25 Septemcludes the famous ber, 8.30pm Wedding March. Performed in Greek by the Cyprus Theatre Organisation (THOC) and the Cyprus Symphony Orchestra.

VIOLINIST PETER SHEPPARD SKAERVED joins forces with Carly Lake (horn) and Roderick Chadwick (piano). Tuesday 6 October, 8.30pm ROBIN GREEN, one of the most talented young pianists of his generation, gives the Cyprus premiere of Frederic Rzewski’s hour-long The People United Will Never Be Defeated! Sunday 11 October, 8.30pm

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A DAY IN THE LIFE

Demetris Taxitaris

“I don’t get up later than 6am because that’s when my 2-year-old son wakes me up. I’ve always tried to get a little exercise in the morning and I’m now doing push-ups with him, which is great fun. My working week is split between Nicosia and Limassol and in either city my day is never what you’d call routine. I may plan what I intend to do at the office but, ten hours later, I often find myself realising that I didn’t actually get any of it done because, in the meantime a million other things came up. As a kid, I wanted to become a mathematician and I studied Mathematics with Statistics at Imperial College, London.

But before graduating I realised that I knew nothing about accounting, business, economics and finance, which play such a major part in today’s world, so I did my Master’s degree in Mathematical Trading & Finance. Then, because I wanted to become more competitive and develop myself further, I decided that I needed a widely known and recognised professional qualification and I trained as a Chartered Accountant with Deloitte in London. I came back to Cyprus and I was employed at Bank of Cyprus in the Asset Management unit, which was then in its initial stages. I eventually spent 12 years at Bank

The General Manager of MAP S. Platis and Chairman of Symmetria on how he became a Financial Services Consultant, why he is still excited by his work, ERH LS[ HMJÁGYPX MX GER FI XS balance it with family life.

of Cyprus doing work which I found very interesting. I think it’s very important to love your job and to be excited about it, and that’s one of the reasons why I eventually decided to move on and set up my own investment firm, Symmetria, with two other partners. It was doing well but then we had an offer from MAP S. Platis to work together, which I found even more interesting, hence my current position as General Manager of the Group. I like the dynamic nature of the business and the fact that we have a blend of Cypriot and foreign clients. It’s a great challenge, especially when there are so many different projects requiring attention at the same time, not to mention overseeing the work of 90 people at the office. The best thing about my job is, ironically, also the worst: I like it so much and it takes up so many hours of my week that I don’t have enough time to spend with my family. I try to get home around 7pm so as to catch my son awake before he goes to bed. Then it’s dinner and TV with my wife. We tend to watch movies rather than local programmes. The last really good movie I enjoyed is a 20-year-old classic – The Shawshank Redemption. I love reading

I THINK IT’S VERY IMPORTANT TO LOVE YOUR JOB AND

too, though it’s hard to find time. One of my favourite authors is the Alkyoni PapaGreek novelist daki is one of Alkyoni Papa- my favourite authors. daki. I also love music – my aunt was a music teacher and she taught me to play piano and guitar. I‘m a fan of Once a classic, classic Greek always a classic. music and singers such as Dimitris Mitropanos, Haris Alexiou, Pyx Lax, etc. At weekends I love her music. I try not to do anything work-related and to devote it to the family. Looking to the future, I would like to become more involved in strategic decision-making rather than the execution side. I’m attracted to the idea of being able to affect how a business or organisation should move forward. My main challenge right now is to find a better work/family balance. Otherwise I’m very happy, both professionally and personally.”

TO BE EXCITED ABOUT IT 130 | GOLD | The Business Magazine of Cyprus

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