maritime 2015
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Navigating the future
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Celebrating the Cyprus Maritime Conference 2015. Photo courtesy of Action PR
The Maritime Cyprus Conference 2015 to launch in Limassol
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he Cyprus Weekly marks the 2015 International Maritime Cyprus Conference in Limassol taking place next week with a special supplement focusing on the current status and future prospects of the shipping sector. Over 19 pages, we have interviews with the Minister of Transport, Communications and Works, Marios Demetriades and the Director General of the Cyprus Shipping Chamber, Thomas Kazakos. We also hear from the leading experts in the industry who will also be appearing at the conference. Inside, readers will also find The conference is a a number of articles from key landmark event for the stakeholders in the industry on international shipping the benefits of setting up in Cysector, bringing together prus to international shipping companies. industry leaders to assess Our special supplement also the current state of play in includes an assessment of the the business and discuss current global shipping climate and how Cyprus is faring and strategies for the future the impact of the offshore energy developments in the Eastern Mediterranean on the shipping sector. We also look at the new opportunities waiting for the shipping sector if the current talks to resolve the island’s long-standing division are solved, and hear from someone in the industry who is already preparing for the day after. The Maritime Cyprus Conference is a biennial international shipping conference which has been jointly organised in Cyprus since 1989 by the Ministry of Communications and Works, the Department of Merchant Shipping, the Cyprus Shipping Chamber and more recently the Cyprus Union of Shipowners. Strategies for the future It is a landmark event for the international ship-
ping sector, bringing together industry leaders to assess the current state of play in the business and discuss strategies for the future. The conference spans four days, starting with an opening reception on Sunday evening. Monday’s sessions are dedicated to politics and economics, Tuesday tackles the new shipping environment, including new technology, while the Wednesday sessions are focused on geopolitical developments and specifics of bulk carriers, tankers and containers.
A maritime scene. Photo courtesy of Action PR
A special session for young executives is held on Tuesday afternoon. The shipping industry has been hit lately by the dip in world trade precipitated by the slowdown in China as well as falling oil prices. However, things may be starting to look up. Asian container freight rates rose by more than 25% for two weeks running in late August and early September, according to International Shipping News.
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The island is
Global shipping has endured one of its worst ever downcycles
the bright spot in a depressed industry because of government interest and the progress of reunification talks
Shipping weathers storm By Samantha Shields
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President Nicos Anastasiades will give the opening address, as he did in 2013
aritime Cyprus, the biennial pilgrimage of the global shipping industry to the island, kicks off next week in Limassol amid signs that some sectors are showing the first signs of improvement after a long spell in the doldrums. Add to that fresh impetus for the promotion of shipping in Cyprus from the Ministry of Transport, Communications and Works and the unprecedented progress of reunification talks and the mood of the conference might be more positive than the state of global markets would seem to justify. “Coming from abroad to Cyprus the mood will be on a high level – we think that in 2016 shipping will become better,” Captain Eberhard Koch, Chairman, CEO & Partner of family-owned shipping company Osterreichischer Lloyd told the Cyprus Weekly. Koch said that, while world shipping markets are still very stressed because of an overcapacity of available tonnage, some segments are starting to improve. These include those for bigger containers capable of carrying between 4,500 and 6,000 TEU and smaller ones for up to 1,000 TEU. Thomas Kazakos, Director General of the Cyprus Shipping Chamber said freight rates boomed from 2000, before the financial crisis of 2008 triggered one of the shipping industry’s worst ever downcycles. “After 2008 we saw a sheer drop of up to 80%,” he said. “So shipping has recovered to a certain extent, but not to the levels of the fantastic years,” he added. The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities and is seen by investors as an indicator of global industrial activity, hit an all-time low earlier this year. Currency and stock market turmoil in China, the destination for well over half the world’s shipborne iron ore and 25% of its coal, is also rattling sentiment. Cyprus stands out Cyprus looks like a bright spot in all this gloom. The country’s fleet of over 1,000 vessels with 21 million in gross tonnage is Europe’s third and the world’s tenth largest. The industry accounts for around 6% of Cyprus GDP, mostly in the form of foreign direct investment. Minister of Transport, Communications and Works Marios Demetriades, who took up the post in March 2014, is in the final stages of putting together a study on how Cyprus shipping can expand. He has also established various working groups with industry representatives to explore ways to promote Cyprus and tempt more shipping compa-
There is a big opportunity for shipping if our president can negotiate reunification, in my opinion it will lead to a big boom
Shipping accounts for 6% of Cyprus’ GDP
nies to the island. “We have a lot to offer and we have to promote ourselves,” said Koch. Kazakos said the conference is a good platform for the promotion of Cyprus as a shipping hub. “We have the infrastructure to attract more investment and with political support shipping can only improve in terms of quality and figures,” he said, adding that the timing of the conference because participants will be able to gather in one venue to thrash out their views on developments in China, Russia and the Middle East. New oil storage terminal This is also the first time the conference will have convened since the opening of the private VTT Vasiliko Limited (VTTV) oil storage terminal just outside Limassol, which already houses most of Cyprus’ strategic fuel stocks and hopes to become a hub for the movement of oil products. VTTV’s General Manager and Managing Director George Papanastasiou said the terminal has already boosted shipping in the Eastern Mediterranean region by about 300 ships per year and that the figure is increasing steadily. “If the shipping restrictions imposed by Turkey on Cyprus are lifted, the number of ships in VTTV will increase geometrically,” he added. Turkey banned Cypriot ships from its ports in 1987 over the EU’s refusal to recognise the administration in the north, but the ongoing dispute is hobbling Turkey’s bid to join the EU, which buys a significant proportion of its exports. Various attempts have been made over the years to lift the Turkish ban on Cyprus-flagged ships as part of packages of what are called “confidence-building measures”. On the Turkish Cypriot side these packages have included the handover by the Turkish army of the ghost town of Varosha to Greek Cypriots, and on the Greek Cypriot side allowing the unrecognised northern port of Famagusta to trade directly with EU countries. Up until now a deal has proven elusive, but the latest talks are gaining momentum and President Nicos Anastasiades and Turkish Cypriot leader Mustafa Akinci are set for a highlevel meeting meet with UN Secretary General Ban Ki-moon in New York later this month. “There is a big opportunity for shipping if our president can negotiate reunification, in my opinion it will lead to a big boom,” Koch said.
FRIDAY SEPTEMBER 11 2015
MARITIME 2015
15 Minister of Transport Marios Demetriades is rolling out a long-term plan for shipping
In response to rising competition
the government is pushing ahead with reforms to promote the Cyprus shipping as a reliable, safe and tax-efficient place to do business. In an interview with the Cyprus Weekly, Minister of Transport, Communications and Works Marios Demetriades explained the government’s action plan as well as the reasons why action is needed
By Fiona Mullen (Director, Sapienta Economics)
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hipping is a global business. This has its advantages, as shipping is not directly affected by local economic conditions and can offset a downturn at home. But it also has its disadvantages in climates like the current one, in which global trade is slowing. With that in mind, Transport Minister Marios Demetriades has set out a five-point action plan to ensure that the Cyprus shipping sector, which accounts for some 6% of annual GDP, can withstand competition in the future.
Limassol port: its operations are due for privatisation
Keeping shipping in the 2013 crisis The shipping sector in Cyprus was not significantly affected by the financial crisis in 2013. While the Cyprus economy as a whole declined by 5.3% in real terms, the transport sector, which is dominated by shipping and the related warehousing business, fell by just 1.3%. This decline is likely to have had more to do with a slight drop in oil prices that year than anything else. “Shipping was not affected by the 2013 crisis because it has nothing to do with the local economy”, said Demetriades. “It was only a matter of convincing the companies to stay in Cyprus and that Cyprus is still a friendly place to do business … the impact was minimal from the 2013 crisis.” Another reason why companies were persuaded to stay was because of the stability of the shipping tax system. “Shipping companies are looking for a stable fiscal environment. Things like the tonnage tax did not change. This provided them with the comfort that, even in the middle of a huge crisis, we did not resort to easy solutions like taxing shipping companies,” said the minister. Under Cyprus’ tonnage tax system, shipping companies can choose taxation on the basis of net tonnage of the fleet, rather than corporation tax. More than just the tax rate However, Demetriades is not content to rely on the tax system alone. He says that Cyprus still has one of the best shipping tax systems but the tonnage tax system as such has become the standard. “Nowadays other countries in the EU have
Photo by Stefanos Kouratzis
Time to act a tonnage system … this is why we have to do more to attract companies to Cyprus … and this is why we proceeded with the EY study for the shipping sector.” Before EY undertook its study, the public and private sector came together to agree the terms of reference. EY then drew up a list of recommended measures that were codified under the following five pillars: 1. The Development and implementation of a national shipping promotion strategy. 2. Enhancement of cooperation within the Cyprus maritime cluster. 3. Establishment of shipping incentive schemes. 4. Fine-tuning of the Ship Registry pricing policy. 5. Development of the one-stop shipping shop. “This is a result of a very good cooperation between the public and the private sector,” said the minister. Demetriades acknowledged that the initiative is part of a broader effort of closer collaboration between the public and private sectors. “We consider the private sector to be our strategic partners,” Demetriades said.
“We can’t just rely on the tonnage system. We need to become more aggressive in promoting shipping, to promote the benefits of someone being based here”
National shipping promotion strategy The result is that the government is now working closely with the sector on the development and implementation of national shipping promotion strategy, using the five pillars to enhance the shipping sector in Cyprus. Having received approval from the Council of Ministers, there are now three working groups cooperating with the private sector to roll out the measures. These include areas like strengthening re-
Facts and figures on shipping In 2014 the transport and storage sector generated just over €1 billion in gross value-added according to the Statistical Service Cystat. This amounted to 6.5% of total gross valueadded or 6% of gross domestic product (GDP). Eurostat data show that shipping and the related warehousing subsector accounted for 85.4% of transport in 2013. Land (11%), air (0.6%) and postal services (3.1%) accounted for the remainder. Transport accounted for 4.3% of employment in 2012 according to Cystat. This does not include all of the professional and other services serving the shipping industry. The Cyprus Shipping Register numbered 1,809 ships in 2013 (latest published figures). This has been falling but in-
gional offices in various locations such as New York, London, Rotterdam, Hamburg and Piraeus, while professional services firms are also being hired for the purposes of shipping and others are being given incentives to promote shipping. “These are measures that are already being implemented,” said Demetriades. The measures have a dual purpose: to strengthen both the local shipping industry and the flag. “We do recognise the importance of both. You need the local industry for GDP and you need the flag to maintain the importance of Cyprus shipping internationally.” Horizontal measures In cooperation with other ministries, Demetriades is also working on horizontal measures. “Cyprus offers a lot of horizontal advantages like the personal taxation system. We recently introduced a number of measures like the nondomicile measures and the ten-year exemption.” The non-domicile measure allows an exemption from personal investment income (dividends and interest) of non-domiciled individuals, making Cyprus very tax-efficient for the holding by non-doms of investments in shares and bonds. The 50% exemption from income tax on eligible expatriate incomes over €100,000 will be extended from five to 10 years. “Over the last years we have accumulated a sort of expertise in this kind of business, so we have a shipping cluster in Cyprus. So we can offer expertise, high quality people and a favourable fiscal environment for both companies and individuals,” said Demetriades. The transport sector is dominated by shipping and related activities
dustry officials say that this is largely to do with a focus on quality over quantity. Loaded freight by sea leapt by 48.8% to 2.6 million metric tonnes in 2013, from 1.7m in 2012, while unloaded freight by sea fell to 5.0m tonnes in the same year, from 5.4m in 2012.
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Cyprus shipping: a sea of opportunities PwC Cyprus Shipping & Ports team will help you set up in Cyprus
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yprus 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. The strong pro-business attitude, the multilingual 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 The tax incentives in the EU as it is estimatcombined with the ed to constitute 25% of the economic and the whole EU “fleet” and the 10th largest worldwide. other advantages, Cyprus is the including the excellent Moreover, biggest third party ship infrastructure, make management centre in the EU and the Cyprus flag is Cyprus the ideal choice for ship owners, on the white list of Paris MoU.
charterers and ship managers
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 office • 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 subject to TT and other subject to CIT) within a company/group • Supports an open registry • Allows split ship management ac-
PwC Cyprus delivers customised services from industry specialists in many areas
tivities (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. Setting up an office in Cyprus – what are the next steps? 1. Set up an appropriate entity: • Set up the most efficient structure and decide on the most suitable vehicles e.g. branch, company, trust • Formation or redomiciliation process of the appropriate entity and registration with local authorities e.g. Tax, VAT, Social Insurance • Select banking provider (local and/or international banks) and open bank accounts • Arrange entry to the Tonnage Tax system 2. Set up the office and other business facilities and compliance: • Decide on business location and what type and size of commercial facilities are needed i.e. office, storage • Consider buying or leasing a commercial property • Once the above selections are made, examine and comply with statutory requirements arising from running a local office (e.g. Health & Safety, Environmental, Employer’s Liability, Employment Law, Migration Law) • Identify and select suitable local providers for office furniture, telecoms, infrastructure solutions, data security and controls, physical security and controls 3. Set up the local team: • Decide on the positions needed for the local office and whether posts will
be filled locally or by expatriates taking into account skills, salary levels and local requirements • Consider outsourcing solutions, interim staff and/or assistance with recruitment locally so that short-term, medium-term and long-term needs are met • Arrange relocation of expatriate staff as necessary i.e. employment/ residence permits, accommodation, schooling for children etc. • Employment contracts and registration of employees with local authorities • Set up systems, procedures and controls for the local office PwC Cyprus Shipping & Ports team 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 long-standing 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 ship management) • 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 Fo r m o r e i n fo r m a t i o n please contact Yiangos A Kaponides, Partner, In charge of Transportation & Logistics or Cleo Papadopoulou, Partner, Tax Advisory at 25555000.
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Solid advice for shipping through choppy waters Horwath DSP offers financial solutions for the maritime industry About Horwath DSP 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. 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, mainly German, banks holding a significant portfolio of shipping loans. The shipping industry has been adversely affected by both the slowdown in shipping and the financial crisis, with rates Regardless of the tumbling to historical differences between lows. The downturn resulted in many shipownprivate equity and facing difficulties in shipowners, it is safe to ers servicing their debts reconclude that private sulting in some defaultequity is here to stay ing on their loans. As a result, 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 to shipping, attracted private equity investors who saw opportunities for an industry which was previously regarded as ‘uncharted waters’. As A.W. Kirkaldy nicely puts 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
Our services
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 flags
Horwath DSP Limited is a member of Crowe Horwath International
best financed and managed by those who are versed in its difficulties.” The economic conditions attracted both private equity and 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 shipowning 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, shipowners and managers are likely to have a different approach from private equity investors to business risk. Regardless of the differences between private equity and shipowners and given the number of transactions that took 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. For any comments on the above article, please contact Emilios Ayiomamitis, Head of Shipping by email to: emiliosa@crowehorwath.com.cy
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Charting a course together EY Cyprus: at the forefront of the global shipping industry
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n shipping, the business environment can change as quickly as the weather. At EY, we understand that you need support not just today, but for the duration of your journey. Combining local industry knowledge with our global network, we offer support and insight to organisations across the world. EY has been standing at the forefront of the global shipping industry for many years serving a large number of public as well as EY works collaboratively private shipping companies. Our approach with every shipping is based on years of client, sharing insights hands-on experience of and leading practices of catering to your needs and is designed to supwhat questions to ask and which methods and port you not just for this moment in time, but tools to employ 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 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 location, with tailored services from experienced teams with deep 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 statements
To drive better decisions, shipping companies must first ask the right business questions and then seek answers in the data
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 and Works regarding the development of a holistic strategic plan for the Cyprus 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 and Works.
enabling fact-based tactical and strategic decision-making. Ultimately, the goal is to turn data into insights and insights into drivercentric 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 of 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. 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.
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
Reasons to choose Eurofast Ship management companies in Cyprus: an option worth considering
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t is no accident that Cyprus is a well-known and respected ship management centre.The reasons for Cyprus’ success are the numerous competitive advantages and opportunities of the Cypriot Merchant Shipping Legislation and the even more advantageous tax regime. Coupled with a strategic geographic location, these factors have been instrumental in the remarkable growth of the Cyprus Shipping Registry. Such advantages and opportunities include in brief the following: - Favourable Tonnage Tax System based on Net Tonnage or 12.5% corporation tax; - No taxation on profits from the technical and/or crew management of a QualAny foreign ship ifying Vessel (Cyprus/ EU/EEA) or on dividends or on interest income management - Split of shipmanagement activities company can take (crewing and technical) advantage of the - Extensive double tax treaties network - EU flag benefit, Cyprus Flag whitelistCypriot shipping ed regime by migrating to - Open Registry, low ship registration Cyprus cost, permanent & provisional registration. Any foreign ship management company can take advantage of the Cypriot shipping regime bymigrating to Cyprus. The procedure is very straightforward and this can be achieved by either establishing a new company or by transferring its seat to Cyprus. Of much interest are the favourable annual Tonnage Tax (TT) Rates calculated on the Net Tonnage (NT) of the vessels, which for Qualifying Ship Managers, reads as following:
The opportunities are endless and certain vessels may still qualify for the Tonnage Tax Regime even if the above mentioned requirements are not met
NT TT 0-1,000 €36.50 per 400 NT 1,001-10,000 €31.03 per 400 NT 10,001-25,000 €20.08 per 400 NT 25,001-40,000 €12.78 per 400 NT >40,000 €7.30 per 400 NT Moreover,to fall under the provisions of the aforementioned Tonnage Tax Regime the Cyprus Ship Management Company must be: A.“Qualifying Ship Manager…” which is a tax resident providing ship management services to a qualifying ship or ships of any nationality (flag) and satisfies certain, preset requirements, such as: - maintaining a fully fledged office in Cyprus and employ staff sufficient in number and qualification: - at least 51% of total number of the onshore persons
employed shall be EU/EEA citizens; - at least 2/3 of the total tonnage under management must be managed within the EU/EEA; - the fleet consisting of 2 or more vessels is composed by 60% of EU/EEA vessels. B. “Owning or managing a ‘Qualifying Vessel’”which is a vessel certified in accordance with the applicable international or national rules and regulations, and registered in the ship registry of any member of the International Maritime Organisation (IMO) / International Labour Organisation (ILO). C. “In a ‘Qualifying Shipping Activity’” which isany crew or technical management activity of a Qualifying Ship. The opportunities are endless and certain vessels may still qualify for the Tonnage Tax Regime even if the above mentioned requirements are not met. However, each case should be examined on its own merits. Our expert and dedicated shipping teams are at your disposal to assist you on the planning and execution of yourShipping Business Migrationto Cyprus and on all other relatedmatters involved (such as tax planning, setting of a company, ship registration, crew payroll, etc.). Maria Sarantopoulou - Tax & Legal Advisor Eurofast Global Ltd maria.sarantopoulou@eurofast.eu
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The maritime conference will provide a forum for decision makers to discuss the state of play in world shipping, Cyprus Shipping Chamber Director General Thomas Kazakos tells the Cyprus Weekly
There are only a few conferences of this magnitude around the world - we call it the Cyprus Shipping Olympics
Cyprus as hub
Kazakos said the government has finally realised that shipping is one of the jewels of the Cypriot economy
Participants will come from as many as 35 countries By Samantha Shields
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aritime Cyprus will give the international shipping community the opportunity to take stock of recent geopolitical and market developments, as well as allowing Cyprus to promote itself as a hub, Director General of the Cyprus Shipping Chamber Thomas Kazakos told the Cyprus Weekly in For the first time this year an interview. The three-day congovernmental agencies ference - organised will not just deliver by the Ministry of speeches but participate Transport, Communications and Works, in debates the Department of Merchant Shipping, the Cyprus Shipping Chamber and the Cyprus Union of Shipowners - will attract 750 to 800 participants from as many as 35 countries to a series of panel discussions with the overall theme of Shipping Game Change. Maritime “There are only a few conferences of Cyprus will bring this magnitude around the world - we together shipping call it the Cyprus Shipping Olympics,” regulators and Kazakos said. private sector “I think it’s very good timing for us organisations this year in the sense that there are on-
going developments in China, Russia, the Middle East and even Latin America,” he added. Kazakos said that for the first time this year governmental agencies will not just deliver speeches but participate in debates. “We’ve seen over the years that there is a need for interaction with the audience because a lot of people in the audience are experts themselves, so it’s a good thing to trigger a discussion,” he said. The conference kicks off on the evening of Sunday, September 13, with a reception attended by President Nicos Anastasiades in the Amathus Beach Hotel in Limassol. The first day’s theme is Shipping, Politics and Economics, and the session will bring together shipping regulators and private sector organisations. The opening session will be moderated by Cyprus’ Minister of Transport, Communications and Works Marios Demetriades. Participants include Secretary General of the International Maritime Organisation Koji Sekimizu, the US Coast Guard’s Assistant Commandant for Prevention Policy Admiral Paul Thomas and Vice Chair of the International Chamber of Shipping Karin Orsel. On the second day the focus turns to shipowners with the topic The New Shipping Environment. “The theme is whether we in the shipping industry can actually influence decisions taken on our behalf, from environmental to technical and structural issues,” Kazakos said. The first session will be moderated by the Acting Director of Cyprus’ Department of Merchant Shipping Andreas Chrysostomou. Panelists include External Relations Manager of the Grimaldi Group Paul Kyprianou and board
member of the Cousteau Society PierreYves Cousteau. Debate on the third day of the conference will centre on Shipping’s New World Order and include the traditional final day discussion on potential market developments over the next few months. Sessions will be chaired by the editor-in-chief of shipping newspaper Trade Winds Julian Bray and President of the Cyprus Shipping Chamber Themis Papadopoulos. Speakers include Cyprus’ Minister of Energy, Commerce, Industry and Tourism George Lakkotrypis and Senior Non-Resident Fellow of the German Marshall Fund of the United States John Richardson. The conference will also include many social and networking functions and a separate session for young executives, with all the speakers under 40, titled Challenge the Leadership Process. Kazakos said the conference will
showcase Cyprus’ strength as a shipping hub. He stressed that the island’s shipping industry has weathered the banking crisis with little collateral damage and proved to the Troika of international lenders – the European Commission, European Central Bank and International Monetary Fund – that Cyprus shipping’s legislative and tax foundations are solid, strong and very competitive. He added that the government has finally realised that shipping is one of the jewels of the Cypriot economy and is starting to give it the attention he believes it deserves to allow the industry to increase its contribution to GDP. “All in all I’d like to give a conservatively encouraging picture as far as Cyprus shipping is concerned. It has proven its worth, its loyalty and its tangible further potential and now it’s up to those who take decisions to make good use of them,” Kazakos said.
The conference theme is Shipping Game Change
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Union optimism on future Shipowners’ Union president: Turkish embargo high on Cyprus shipping agenda By Sarah Ktisti
A major global player
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ifting the Turkish embargo on Cyprus-flagged vessels is top priority for the island’s shipowners, as the government and private stakeholders work hard to restructure and consolidate one of the most important sectors of Cyprus’ economy. Turkish restrictions continue to disrupt the Cypriot shipping industry, with reported annual losses in the region of €100 mil“The Maritime Cyprus lion. Despite Turkey’s legal obligation to Conference certainly lift its embargo on Cypriot shipping, puts Cyprus in the Ankara refuses to meet its EU commitlimelight in the world ments. “Of course the main issue for Cyof shipping and is a prus Shipping is the Turkish Embargreat advert for our go... I have tried very hard as Presiisland” dent of the Cyprus Union of Shipowners to influence governments in Europe to persuade Turkey to abandon this illegal embargo,” President of the Cyprus Union of Shipowners, George Mouskas, told the Cyprus Weekly. “[Our organisation has] visited Turkey to try and persuade the Turkish Chamber of Shipping to use their influence on the Turkish government. “I have recently visited the UK Foreign Office and received strong assurances that the British government is on our side on this matter and will try to use their friendly relations with Turkey to adopt the Ankara Protocol,” Mouskas added.
Cyprus-flagged ships cannot dock in Turkey
Investment incentives New legislation on non-domicile status for non-residents planning to live permanently in Cyprus is one of the measures taken by the government to attract foreign investors to Cyprus. “We believe that this will attract many wealthy individuals to the island, which will mean new investments being made here and the creation of hundreds of new jobs,” said Mouskas. The government has also pushed ahead with reducing registration costs for ships under the Cyprus flag by scrapping stamp duty on mortgages and restructuring the Department of Merchant Shipping, making it a “one-stop shop” for all shipping matters, to simplify the administrative work for shipping companies flying the Cyprus flag, in an effort to upgrade the Cyprus Flag and Cyprus Cluster.
The Cyprus shipping register represents nearly 12% of the European registry and one quarter of the world’s ship management is represented by Cyprus. The Cyprus ship registry ranks tenth among international fleets and third in the EU. Cyprus is also a major ship management centre worldwide, with approximately 60 ship management companies operating on the island. The government has taken a number of measures to further strengthen and promote the shipping industry.
Another tool to promote the island’s shipping prowess is the Maritime Cyprus Conference. “The Maritime Cyprus Conference certainly puts Cyprus in the limelight in the world of shipping and is a great advert for our island. People come from all corners of the world to attend,” Mouskas noted. The main focus at this year’s conference will be on policy and regulatory matters affecting the shipping industry as well as economic and environmental matters and their interaction with technology, geopolitical and energy developments as well as forecasting for the recovery of the economy and freight markets. “I believe 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,” Mouskas concluded.
Smooth sailing with Baker Tilly The trusted advisor for Shipping Companies
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ow more than ever, international shipping companies need to show readiness and versatility in their operations, so as to effectively adjust to the changing environment of the shipping industry worldwide. Baker Tilly is the trusted, reliable and experienced advisor which can guide companies operating in the maritime industry through turbulent and calm waters alike. Baker Tilly operates in Cyprus, Greece, Romania, Bulgaria and Moldova under a central senior management team, and serves a number of clients of various sizes operating in the shipping and shipping-related inOur dedicated team dustries. of specialists offers Our clients include shipping owntailored services to ers, managers and charterers, major ports and companies offering ancileach of our shipping lary services in the maritime indusclients try. Our dedicated team of specialists offers tailored services to each of our shipping clients including: • Audit and Accounting • Tax compliance and advisory services • Consulting services • HR Consulting Services • Performance Management Consulting Services • Relocation services for shipping companies and their staff Having built our foundations in Cyprus, and with clear vision and direction,we surpassed geographical boundaries, dropped anchor in four countries and created one of the largest audit and accounting firmsin the region providing a complete range of services to clients of various types and sizes operating across all industries. 20 directors and more than 350 people offer services of the highest standard to more than 6.000 businesses operating both nationally and internationally.
The strength of the Baker Tilly International family, the eighth largest accounting network in the world, enhances our in-house expertise
Our strength lies in our people: teams of experts based in all our countries of operation, share their knowledge and experience with the single aim of offering excellent service to our clients. The strength of the Baker Tilly International family, the 8th largest accounting network in the world, enhances our in-house expertise. Every day, 27,000 people in 133 countries help businesses to face challenges, capitalise on opportunities and maintain their competitiveness. Professionalism, coherence, synergy and determination are integral parts of our local and international identity. With our offices in Cyprus, an island with a long-established reputation as a Centre of Excellence in the shipping industry, we are at the heart of the maritime world,
and in the ideal position to keep abreast of developments in the shipping industry and to proactively cater to all our clients’ needs. Baker Tilly Corner C Hatzopoulou & 30 Griva Digheni Αvenue Nicosia 1066, Cyprus T: +357 22 458500 info@bakertillyklitou.com www.bakertillyklitou.com
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Lavar Shipping’s 50th year An innovative shipping company with half a century of experience
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elebrating its golden 50-year 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 strengthening Cyprus’ position as a shipping hub in the Eastern Mediterranean region. Indeed one might say that the vision of its foundPantelis Tsanos Lavar Shipping is one of er has come to fruithe top three shipping tion. One of the agencies in Cyprus, with pioneers of ship an employee base of over management in CyTsanos’ career 30 Cypriot professionals prus, evolved from his trading activities in the late 1950s, and the chartering of vessels for the export of local Cyprus produce. After the first shipping law for Cyprus-owned vessels was passed in 1963, Tsanos and his partners founded Lavar Shipping in 1965. Today, under the stewardship of his son Reginos, Lavar Shipping is one of the top three shipping agencies in Cyprus, with an employee base of over 30 Cypriot professionals. A multi-faceted organisation, offer-
A multifaceted organisation, offering traditional and specialised maritime services to the local and international industry
ing traditional and specialised maritime services to the local and international industry, Lavar Shipping’s experienced Agency Team provides a vast range of services including Port Agency, Forwarding, Husbandry, and Technical Support. The company 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 difficulties, there is a promising future for the industry and for Cyprus.
Leading economic recovery “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”, he added. The flagship company of the Limas-
sol-based RPT Group, Lavar Shipping has also played an important role in diversifying the group’s services and activities, which has specialised in the onshore and offshore logistics of oil and gas, working with energy giants Halliburton to develop supportive warehousing and office facilities in Cyprus. This has led to the licensing of the largest private Oil Terminal at Vasiliko, an investment of over €250 million. Moreover, another member of the RPT Group -- VTS Vasiliko Terminal Services -- has been assigned to provide marine services to the Terminal including pilotage, towage, mooring and sludge collection services. Both Lavar Shipping and the RPT Group operate under a uniform set of policies and procedures, confirming 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. Looking forward to another 50 years of excellent and innovation, Lavar Shipping remains abreast of global developments, aiming to build strategic partnerships that will maximise Cyprus and the region’s potential.
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Offshore natural gas has boosted sector Offshore oil and gas activities have already been good for shipping in Cyprus but there are more opportunities to come. Shipping benefits because the hydrocarbons sector in the Eastern Mediterranean region is all based offshore. Drilling platforms have to be towed by sea while other vessels are used throughout the process. This means that all kinds of vessels are required to support exploration, drilling and production activities. Hydrocarbons business consultant Charles Ellinas says that there are also opportunities in the long term: “If the export option involves
compressed natural gas (CNG) or liquefied natural gas (LNG), [the Cyprus shipping sector] provide the ships and undertake transportation,” he said. “Maintenance and servicing of foreign vessels involved at all stages of exploration and production” is another benefit, he says. Adam Lomas, Managing Director of Castor and Partners, notes that the interim gas deal, by which Cyprus will import gas until it can utilise its own resources, will also be a boon for shipping. “It is very likely that the interim gas deal will in the short term lead to an increased need for all forms
27 Noble’s gas platform offshore Israel: using vessels to support gas activity
of supply vessels in the region,” he said. One option for interim gas supplies is via an offshore regasification unit. He is also optimistic for the longer term. “Cyprus as a safe base for international oil companies doing business in the region is a dream becoming reality fast. “Longer term, the fact that the island is becoming a gas economy can have far greater benefits, as Cyprus becomes a centre for oil services for the region. The recent discoveries make this all the more likely,” he said.
Shipping across the divide Greek and Turkish Cypriot Famagustans join forces By Sarah Ktisti
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wo Cypriot men plan to unite the business interests of their shipyards on either side of the buffer
zone. In a deal signed on August 26, Limassol-based FAMA Group Ltd will cooperate with Famagusta-based Shipyard Famagusta Ltd. The agreement will see the two share profits through servicing ships, sharing clients and adopting the same marketing and “The deal is not pricing policies. The plan is a comillegal, since we are bination of economic not involved in any shrewdness and nostrading. We are just talgia. Chairman of Liservicing ships” massol-based FAMA Group Ltd, Tomis Tzortzis, Famagusta-born and bred, said the idea came to him when the crossing points opened in 2003. As a stark reminder of the island’s complicated past, Shipyard Famagusta operates out of FAMA Group’s original headquarters, which the company had to abandon during the 1974 conflict. “The idea for this cooperation began when the checkpoints opened and we had a chance to talk to the current operators in Famagusta,” Tzortzis told the Cyprus Weekly. “We had to choose: take legal action and get reparations for the use of our business, which is expensive and time-
FAMA Group relocated from Famagusta to Limassol after the 1974 Turkish invasion
consuming, or something else. “We realised that this person had also put in a lot of time, effort and money into the business, so we thought ‘why not find a way to cooperate?’” The deal was brokered under the umbrella of Hong Kong-based company Ocean Well, under which the two organisations will operate. Questions still remain over how the two companies can overcome the legal obstacles in place due to the long-standing division of the island. Ports in the northern part of Cyprus are still officially closed to international shipping because of the division of the island and a 1987 Turkish embargo bans Cyprus flag ships
visiting Turkish ports. Under the current legal system, ships moving from a port in the north to a port in in the south can be stopped and the captain arrested, fined or even imprisoned. “The deal is not illegal, since we are not involved in any trading. We are just servicing ships,” Tzortzis stressed. “If it’s illegal, why don’t authorities seize the ship rather than arresting and fining the captain - which the company can easily provision for in its budget? The government was fully aware of our plans. “They didn’t encourage us, but neither did they discourage us,” Tzortzis added.
“We are not sure how such a cooperation will work. It’s a private agreement, and as such the Cyprus Ports Authority (CPA) was not informed,” Alekos Michaelides, CPA chairman and undersecretary at the Transport Ministry of told the Cyprus Weekly. The questions now being raised in response to this agreement could be the momentum needed for authorities to implement regulation to normalise business cooperation between the two communities. “I’m sure that after this deal … we will have to look into the matter with our legal adviser,” Michaelides said. Business chambers on either side of the Green Line are optimistic. “The Cyprus Chamber of Commerce encourages cooperation between the two communities, as long as it falls within the legal boundaries,” said senior director of Cyprus Chamber of Commerce and Industry (CCCI) Leonidas Paschalides, alluding to the EU Green Line Regulation on trade in goods and services. Fikri Toros, president of the Turkish Cypriot Chamber of Commerce (KTTO) also applauded the initiative. “This is precisely what the Turkish Cypriot Chamber of Commerce and Cyprus Chamber of Commerce and Industry is trying to pursue during the peace process - bringing communities together through economic cooperation and to abandon mistrust,” Toros told the Cyprus Weekly.
The Cyprus settlement bonus Research suggests transport would gain €1.4bn post-solution
Nicos Anastasiades (L) and Mustafa Akinci clinking glasses in old Nicosia
In the Peace Dividend Revisited report by Fiona Mullen, Alexander Apostolides and Mustafa Besim, the authors estimated that a solution of the Cyprus problem would bring the all-island transport and storage sector (dominated by shipping), to €2.3bn by 2035, compared with €955 million without a solution. In other words, a solution would bring a bonus to the sector of €1.4bn. There are a number of reasons why. First, and best known, is the fact the Cyprus-flagged ships cannot call at Turkish ports.
This limits Cyprus’ capacity to be the true shipping hub of the Eastern Mediterranean, especially with the new oil terminal. But there are also other benefits. The whole island would open up to 6 million middle class Turks who travel every year. Business people who gave feedback on the initial findings of the report pointed out the potential for Greece-TurkeyCyprus cruise tourism. Unlike other Mediterranean cruises, Cyprus can offer three different cultures
in one trip, they said. Finally, good relations with Turkey will open up more opportunities for gas exploration and exploitation, which, in turn, benefits shipping. Six offshore blocks which Turkey claims lie within its continental shelf have never been licensed. Thomas Kazakos, Director General of the Cyprus Shipping Chamber, said that a viable solution would help Cyprus and the region and that shipping “would be the first cousins of the energy industry”.
maritime 2015
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A clear vision for the future
BSM offers one of the largest global pools of experts to help with all aspects of ship management
B By Arthur McWhinnie Managing Director of BSM Cyprus
ernhard Schulte Shipmanagement (BSM) embraces more than 130 years of experience in the shipping industry. Managing a fleet of over 600 vessels, our 20,000 employees across the globe enable us to deliver safe, reliable and efficient ship management services through a network of nine ship management, 23 crew service and five wholly-owned maritime training centres across the world.
BSM at a local glance Established in 1972, BSM’s Limassol office has been instrumental in helping shape the island as a leading ship management hub both regionally and globally. BSM Cyprus also has a branch in Caracas, Venezuela, that provides support and collaboration to our seafarers and fleet in South America and the Caribbean. While BSM’s global expertise lies within BSM is an integrated the management of various vessel types – maritime solutions container, bulk, tanker, gas, offshore – Cyprus office specialises in tankers, which leader: it offers core make up over 75% of the Cyprus fleet. Our and comprehensive relationship with major oil companies is a ship management vital key element to our success, sustainservices as well ability and in meeting owners’ and charterers’ requirements. Our tanker vessels as a suite of include chemical, product and oil tankers complementary, that are managed by the most experienced integrated maritime superintendents, who are highly competent within this industry. Additionally, all solutions tankers under our management are crewed with our growing pool of skilled and experienced seafarers. BSM at a global glance BSM is an integrated maritime solutions leader: it offers core and comprehensive ship management services - Crew, Technical and Commercial Management – as well as a suite of complementary, integrated maritime solutions - New-
and Poland, providing the opportunity for our seafarers to experience a land-based training that replicates the on-board environment they will encounter.
BSM has seen an increase of 20% in the number of managed vessels over the last year in Cyprus
building & Conversion, Hospitality Services, Seafarer & Corporate Travel, Corporate & Financial Management and Software Application Solutions. These solutions are tailored specifically to customer specific requirements to help increase our client’s business competitiveness. Crewing and training With over 12,000 qualified seafarers on board our managed vessels at any given time, BSM maintains of the largest pools of seafarers, who are able to meet the demanding requirements of their roles on board our fleet. Our wholly owned network of 23 Crew Service Centres globally allows BSM to maintain close contact with seafarers and efficiently manage the recruitment process. Further, BSM maintains five state-of-the-art Maritime Training Centres in China, Cyprus, India, the Philippines
Business growth BSM has seen an increase of 20% in the number of managed vessels over the last year in Cyprus, which comes as no surprise against the backdrop of a fast growing economy that Cyprus has been demonstrating over the last six months, in which the country has attracted many private equity firms and shipping companies. With increasingly strong governmental support and the solid commitment from ship managers, shipping is giving Cyprus a leading position as a ship management centre among Europe, Asia and Africa. Trusted by customers globally for reliable and efficient ship management solutions, BSM’s highly trained crew and reliable shore-based staff are equally noteworthy assets that have propelled the company forward in this highly competitive industry. Meet with BSM’s executives at stand No. 2 at Maritime Cyprus, where you will learn more about BSM’s projects and explore future opportunities with the company that has held a strong foothold in Cyprus and the global maritime community. Bernhard Schulte Shipmanagement (Cyprus) Ltd Hanseatic House 111 Spyrou Araouzou Str. 3036 Limassol cy-smc-man@bs-shipmanagement.com www.bs-shipmanagement.com
Columbia Shipmanagement
A company with over three decades’ experience in surpassing the expectations for quality management of vessel assets
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olumbia Ship Management (CSM) was established in Limassol in 1978 by Heinrich Schoeller, who had set up Cyprus’ first ship management company six years earlier. In the three decades since, it has risen to become a leading force by adhering to an unequivocal commitThe full management ment to quality and efficiency. Today, after expanding its services service includes to cover a wide range of vessels belongevery operational ing to clients worldwide, it has over 370 aspect from qualified ships under management contracts. Headquartered in Cyprus, with offices technical support in Germany, Singapore, and Greece, to an unparalleled CSM continues to develop vigorously crew management with the opening of a Shanghai ofpackage designed to fice following a joint venture with local crewing specialist Singhai Marine relieve owners of the Services. workload related to Columbia Ship Management is the the manning of their name you can depend on for meeting vessels and surpassing the expectations for quality management of vessel assets. The company provides services which include technical, crew and commercial management, crew training, insurance & claims services, new building supervision, consulting, cruise vessel management, vessel sale & purchase, lay-up services, vessel recycling, and pre-purchase vessel inspections. The full management service includes every operational aspect from qualified technical support to an unparalleled crew management package designed to relieve owners of the workload related to the man-
Columbia maintains its own crewing offices and a pool of 14,500 seafarers, in more than ten countries worldwide for its diverse fleet of vessels and clients
ning of their vessels. For crew management, Columbia maintains its own crewing offices and a pool of 14,500 seafarers, in more than 10 countries worldwide for its diverse fleet of vessels and clients. For Columbia, staff quality and commitment are core principles. Its employees at sea and ashore are seen as its most valuable assets, with a major emphasis on high retention and training initiatives to ensure the quality and performance standards required by its clients Upholding a global presence in the Cruise Industry since 1985, and thanks to CSM teams providing premium cruise and hotel services, its cruise vessel management teams have been strengthened further with the establishment of Columbia Cruise Services (CCS) operating out of Hamburg. This is an extension of Colum-
bia’s already strong established cruise management services in order to meet the future demands of the cruise industry and enhance its services to its clients. The group’s high level of competence incorporates the management of passenger vessels, expedition vessels and luxury yachts with over 25 years’ experience. In today’s highly competitive shipping world, many shipowners – realising the great advantages of utilising efficient full management services - are turning to Columbia. Why? Quite simply because we offer high quality ship management services in a transparent and costeffective manner. Through our purchasing power, proven expertise and the high service levels, we aim to add value to the assets of our clients, and in turn give our clients competitive advantage in the markets they compete. This approach allows us to retain satisfied and loyal clients and further grow our business and client portfolios. Columbia Ship Management has achieved its current position as a world leading ship Management Company by being true to the mandate of our founder, Heinrich Schoeller - to provide our clients with the highest standard of professional management.
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Dedicated to excellence in maritime legal service Polakis Sarris & Co LLC: a comprehensive, international-standard firm
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olakis Sarris & Co LLC is a Nicosiabased law firm aimed at offering a full-service practice; we offer a full range of consulting to international and local clients. The lawyers and the administrative staff of the firm are allocated in the three main sectors of the firm namely: Corporate & Commercial, Shipping & Admiralty and Litigation & Dispute Resolution. In the above departments a variety of legal services is being performed: • Registration of Companies & Administration • Banking & Finance • Mergers & Acquisitions • Vessel Registration, Purchase & Sale of Ships • Trade Marks & Passing off • Real Estate • Corporate & Individual Migration • Employment • All areas of Litigation & Dispute Resolution Established in 1970, Polakis Sarris & Co LLC has grown over the years into a sizeable and versatile law firm. The company started off as a “oneman show”, run by the founder Polakis K. Sarris, the current Managing Partner of the firm. Today, the company consists of over 30 employees, including lawyers, accountPolakis Sarris & Co ants, corporate managLLC offers a complete ers, paralegal secretaries, assistants and supporting range of shipping staff. Polakis Sarris & Co services to a LLC has become one of Cyrespectable clientele prus’ leading firms in the corporate, tax, trust and of ship owners, shipping industry as well ship managers and as litigation. ship charterers from Polakis Sarris & Co LLC around the world was presented in 1997 with the First Prize for Business Performance, Financial Achievement and Quality and for Service by the President of the Republic of Cyprus on behalf of the Employers’ Federation and Industry. The firm was also presented by the President of the Republic of Cyprus with the 1999 Cyprus Export Award for Services (First Prize) by the Ministry of Commerce, Tourism and Industry and
Testimonials
Polakis Sarris & Co specializes in company registration and accompanying matters Legal 500, 2004 Polakis Sarris & Co has a solid reputation for litigation Legal 500, 2007 Polakis Sarris & Co is particularly visible in ship registration work and also handles ship finance and admiralty claims. Legal 500, 2012
Managing Partner, Mr Polakis Sarris
by the Cyprus Chamber of Commerce. The firm is also the winner of the 2014 Corporate Intl Magazine Global Award in the category “Tax Investigations Law Firm of the Year in Cyprus”. The success of the office, its rapid expansion and the awards won are the direct result of the personal attention, quick response and high standards of excellence reflected in the services carried out. Corporate & Commercial The Department consists of a highly qualified team of lawyers and administrators of a solid academic background and international experience. The proficiency and commitment of the team have been appreciated by local and international bodies which have praised the firm with accolades in the Commercial, Corporate and Tax field. The members of our team are also members of recognised international associations. We provide an across-the-spectrum company law and administration services, including: the formation and administration of private, public, European and/or non-for-profit companies, branches and associations and/or other legal entities; provision of administration and banking services; conversion of private companies to the stock exchange in Cyprus and /or abroad; creation of Societas European (SE); joint ventures,
Polakis Sarris & Co LLC
36, Byron Avenue, Nicosia Tower Centre, 8th floor, Nicosia, 1096 P.O.Box 21341, 1506 Nicosia-Cyprus Tel: +357 22 456000
local and cross border; mergers and acquisitions; due diligence and risk identification as well as corporate governance issues. Polakis Sarris & Co LLC provides a complete range of tax law related services. We are also highly qualified and experienced in relation to the establishment, registration and administration of local and international trusts. Shipping & Admiralty An established international maritime centre for nearly half a century, Cyprus is getting all the more attractive over the years. Effective administration, robust infrastructure and an unambiguous legislative framework lay the foundations for the island to become one of the world’s leading countries in registered merchant fleet and a global magnet for renowned ship management companies. Of course, no factor is more decisive to this success story than the know-how of the people in the industry. We take pride in the fact that our firm has a long tradition and a lasting experience in this domain. Polakis Sarris & Co LLC offers a complete range of shipping services to a respectable clientele of ship owners, ship managers and ship charterers from around the world. Our firm has been - for the past 40 years - continuously engaged in an all-embracing maritime activity; from incorporating shipping companies Fax: +357 22 675605 General email: info@polakissarris.com Shipping email: e.kyriakou@polakissarris.com
to registry transactions and from ship financing to admiralty-related disputes. Coupling the thorough knowledge of the domestic tax system with the clear grasp of the local shipping environment we are fit to advise, assist and deliver on matters both of vital substance and of inevitable formalities. Litigation & Alternative Dispute Resolution Our firm confides in the strength of an experienced and enthusiastic litigation team which is handling court and arbitration cases quite dissimilar in scope and scale; from high-value, multi-jurisdictional, cross-border conflicts to lesser, yet personal and delicate, disputes. We counsel and advocate on all major fields of litigation, mediation and arbitration and, when necessary, we pull together and supervise teams of experts. Whereas the importance of negotiation and mediation is never neglected, sometimes the call for an emergency remedy is imperative; in fact, it could be the only real remedy. Our commercial litigators liaise regularly and thoroughly with the corporate and shipping lawyers of our firm so as to ensure that clients are been given an all-around and meticulous assessment that fits their needs and serves their purposes. Recognised by intrastate and international sources as a pro-active and handson firm, the litigation department of Polakis Sarris & Co LLC maintains a heavyweight fighting spirit along with a levelheaded approach and is always determined to deliver good results.
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An industry powered by people This is an industry in perpetual motion; to stand still is to go backwards
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hen Limassol hosts the biannual Maritime Cyprus Conference with the title Shipping: “Game Change” on September 13-16, 2015, the spotlight will shine once again on Limassol, a successful sea port town and its thriving shipping community which is a beacon for the Maritime Industry. Delegates, speakers, ministers, captains of industry, all the human Our firm was one of the components of this essential global business machine will converge to first Cypriot companies discuss topical, legal, political and to participate in the commercial issues and policy. international Ship The single common denominator is that every issue and topic Arrested Network, an international alliance of being discussed namely Shipping & Economics”, the New top-practising maritime “Politics Shipping “Environment”, Shipping lawyers offering all the “New World Order” and “Chalnecessary information to lenge” the Leadership Process within the framework of the Conference handle a ship arrest or will undoubtedly encompass the inrelease evitable and continuing changes to the shipping industry. This is an industry in perpetual motion; to stand still is to go backwards. Maritime law involves a labyrinth of linked areas of different aspects of law which, for obvious reasons, cannot be separated. The conference will cover a highly debated topic of whether shipping people influence decisions and what the challenges are in the leadership
From right to left: Louise Zambartas, George Zambartas and Sonia Ajini
process. The shipping industry needs decision makers at the highest levels to make the right decisions at the right time by the right people. We are witnessing the development of equality between the genders within the leadership process taking a different and positive turn on the horizon which will greatly benefit the shipping industry and help maintain the industry on an even keel. Our firm was one of the first Cypriot companies to participate in the international Ship Arrested Network (www.shiparrested.com), an international alliance of top-practising maritime lawyers offering all the necessary information to handle a ship arrest or release. The
organisation is spread across 99 countries, with top legal experts from the industry who understand the commercial realities of the ship arrest business, working together. The 12th annual Shiparrested.com conference which we attended was held this May in Dubai. Our law firm together with its six associated international law offices will also be hosting our own maritime seminar at the Londa Hotel, Limassol on September 14; presentations will cover a number of topics including a practical approach on Italian bunker arrests, a case study of the leading English authority (the Global Santosh) which has laid down some key principles regarding the detention of vessels and a discussion of Cyprus Arbitration as “the way forward”. The following day, the associated offices will be co-hosting a drinks and food reception which will be punctuated by a lively programme of entertainment, the highlight of which will be a performance by the internationally acclaimed classical crossover soprano, Aliki Chrysochou. We very much look forward to proudly taking our place at the Maritime Cyprus Conference 2015 and equally proud that our two international events will bring people together from all over the world to share their maritime experiences and ideas within social and educational frameworks joining together in perfect harmony. George Zambartas, Senior Partner & Head of Shipping & Corporate Law at L. G. Zambartas LLC, Law Offices
Meet your team of experts Michael Kyprianou & Co. LLC offers a wide range of professional advice for all your maritime business needs
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ichael Kyprianou & Co. LLC has strong ties with the shipping industry. The company’s shipping links date back to the first years of the firm’s establishment. Their offices in Cyprus, Greece and Malta have been assisting individuals and corporations from around the globe, providing legal advice and assistance on a The calibre of the wide range of firm’s lawyers and services. their dedication to The mariproviding clients with time and admiralty team of practical and costKyprieffective legal advice is Michael anou & Co. LLC the cornerstone of the acts for various firm’s success shipowners, 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
Michael Kyprianou – Founding and Senior Partner, Nicosia
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 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. Lam-
bros Soteriou deals with the Ship Registration and Tax Planning for vessels, yachts and crew. Lambros is described as a “notable practitioner” in the area of Tax by ‘Chambers and Partners’. Tonia Antoniou focuses on Ship Finance, advising owners and banking institutions. Tonia has 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-decade presence 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 advantages to the 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 shipowners and ship managers. Locations: Nicosia: 2 Ayias Elenis Street, 6th & 7th Floor, 1060 Nicosia, Cyprus. Tel.: +357 22 447777 Email: info@kyprianou.com. cy Limassol: Michael Kyprianou House, 116 Gladstonos Street, 3032 Limassol, Cyprus Tel.: +357 25 363685 Email: limassol@kyprianou. com.cy Paphos: Michael Kyprianou
Limassol offices
House, 19 Kinira Street, 8011 Paphos, Cyprus Tel.: +357 26 930800 Email: paphos@kyprianou. com.cy Athens Tel.: +30 210 3387060 Email: info@kyprianou.gr Thessaloniki Tel.: +30 2310 222267 Email: thessaloniki@kyprianou.gr Birkirkara Tel.: +356 21 331810 Email: info@kyprianou.com. mt