Cyprus Shipping

Cyprus registry sails through Covid shoals

The Cyprus shipping industry, and the Cyprus Registry in particular, has negotiated the global Covid-19 pandemic remarkably well, says CSC Director-General Thomas Kazakos. The sector’s health also supported other national sectors, which bodes well for the future. Turkish political intransigence, however, remains a so-far insoluble problem.

What is the state of the Cypriot economy at present? How much was it affected by the Covid-19 crisis?

Cyprus had the advantage of having built a very strong economy when it entered the Covid-19 crisis and with the prompt Government supportive actions towards Shipping and businesses in general, it managed to contain as much as possible the economic impact and at the same time the spread of the pandemic to a bearable extent. Cyprus Shipping played an important role in supporting the economy, as it continued operating despite the lockdowns and operational challenges and therefore it acted as a very reliable “blood donor” for the Cyprus Economy during this crisis. The Shipping Industry is known to be among the most important and productive sectors of the Cyprus Economy with a steady 7% of GDP (around € 1.2 billion) and the longest-running source of foreign exchange inflows from abroad, without any government investment in it.

How did the Cypriot state handle the crisis in the shipping sector? What actions did it undertake to support the ship registry? Did it participate in the repatriation and vaccination of crew members?

The Cyprus Government and all the relevant State authorities, as well as the medical staff and the scientists have done overall an excellent work in stemming the pandemic. The Government, through the Shipping Ministry, substantially assisted in maintaining the Shipping Industry’s leadership throughout the pandemic crisis by facilitating early in the pandemic crew changes and repatriation of seafarers, whilst other governments maintained restrictive measures and later by including the whole Cyprus Shipping Sector in the very limited list of “Essential Services” following the Chamber’s request on same. Another supportive measure by the Shipping Ministry for Shipping companies and owners of Cyprus ships, was the extension of the deadline for payment of the Tonnage Tax and the Cyprus Registry Maintenance Annual Fee for the year 2020.

Cyprus Shipping Ministry again prioritised seafarers’ wellbeing during the vaccination rollout by proposing a global approach to delivering COVID-19 vaccinations to seafarers, which was later adopted by the by the International Labour Organisation (ILO). At local level, the Shipping Ministry stepped up again and provided COVID-19 vaccinations to all seafarers on Cyprus-flagged and Cyprus-managed vessels.

What is the state of the Cyprus registry today compared with the pre-Covid-19 period?

In the aftermath of the pandemic and financial challenges it caused to the Industry, the Shipping operational and taxation infrastructure in Cyprus and the Cyprus flag remained intact and very competitive. It is most gratifying to see that Cyprus flag users remain loyal, supporting at the same time, the efforts to safeguard Cyprus Shipping in order to continue its significant contribution to the Cyprus Economy.

An important factor, which ensured the viability of the Cyprus Register during this crisis, was the official approval by the European Commission of the upgraded Cyprus Shipping Taxation System, on December 2019 as well as the approval of the relative Bill for Shipping Taxation System unanimously by the Plenary of the House of Representatives in April 2020.

Nevertheless, Cyprus Shipping can become even more competitive and attractive to new Shipping companies with the

development and implementation of the long awaited “One Stop Shipping Shop” model by the Shipping Deputy Ministry, which will further upgrade of the services offered to Shipping companies.

How is non-state maritime education faring in Cyprus? Do you have many students from outside Cyprus? Are there many from Greece?

The interest in maritime studies remains strong from young Cypriots and there is a growing interest as well for the maritime courses offered, from students abroad. The Shipping Chamber has been an advocate for many years through its educational activities, such as the “Adopt a Ship” Programme, initiated by the Chamber in 2006, which brings together elementary school students with seafarers, as well as through numerous promotional campaigns with presentations in high schools and participation in career fairs across Cyprus, advising students about career prospects onboard and ashore.

How do you think the Cyprus issue will evolve? Is the Cyprus ship registry affected by changes in the Turkish Cypriot and Turkish positions after the failure to re-elect Akinci?

The developments of the Cyprus issue are monitored closely by the Chamber, as it is well known that the Turkish Embargo is the main problem faced by the Cyprus flag / Register since 1987 in terms of further growth. This is a long-standing serious issue with can be overcome with the solution of the Cyprus problem, which of course becomes even more challenging if the Turkish side presents an uncompromising behavior at the negotiating table. Thus, the smooth development and operation of Cyprus Shipping is still prevented by the Turkish Embargo, namely the prohibition of ships which are related in any way with Cyprus to call at Turkish ports. A high number of ships could have been registered in the Cyprus Register, if free access of their vessels were provided in Turkish ports. In addition, with Cyprus being a Member-State to the European Union, these restrictive measures demonstrate that this illegal and discriminatory practice followed by Turkey, not only has implications on Cyprus Shipping, but also on the financial interests of the European Shipping. It is most gratifying moval of passports from Turkish Cypriot politicians the start to see that Cyprus flag of new developments? How much is this constantly supusers remain loyal, plied liquidity affecting the Cypriot economy and shipping? supporting at the same As this is a highly political question, we shall not be able to protime, the efforts to vide a reply thereon. safeguard Cyprus What are the key issues affecting shipping in Cyprus,

which you would like to bring

Shipping in order to wider attention? Cyprus Shipping is called to face to continue its signifi- as main priority the pandemic impact and continue its efforts in cant contribution order for the Shipping Industry to remain operationally viable and to the Cyprus Economy Cyprus a leading maritime center, which will also have substantial benefit to Cyprus economy. Shipping will also continue its significant efforts to grow, to become even “greener” as well as to proceed with its digital transformation. Shipping is also facing significant environmental challenges with the rapidly evolving environmental regulations by the International Maritime Organisation (IMO) aiming to decarbonise maritime transport, with a target of reducing total emissions from international shipping by at least 50% by 2050 compared to 2008 and the European Union under the European Emissions Trading System (EU ETS). The Cyprus Shipping Chamber, due to its wide membership and active participation at various regional and international shipping associations and organisations, such as the International Chamber of Shipping (ICS) and the European Community Shipowners’ Associations (ECSA) is able to follow and contribute substantially to discussions held at high level, on a number of critical environmental regulatory issues that will have a profound impact on the future structure of the global Shipping Industry.

How do you see matters developing with the Cyprus problem? Is Turkey's stance on the Famagusta issue and the reaction of the Cypriot government to the re-

CYMEPA: Restrictions for Covid do not apply to new ideas and projects!

Contributed by Michael Ierides, Secretary General of CYMEPA

The Covid -19 Pandemic inevitably took its toll on our outdoor and public activities which were largely restrained since March 2020. However, contact with Members and stakeholders was efficiently maintained through electronic means and since the summer of 2020 there is a return to a new normality allowing limited social functions such as award ceremonies for the various Programmes.

In cooperation with HELMEPA and DYNAMARINe, CYMEPA runs the project titled “Enhancing the Understanding of New and Enduring Challenges in Maritime Safety Culture in the Eastern Mediterranean” that the Lloyd’s Register Foundation is kindly financing. The project aims to reduce the number of marine incidents and accidents as well as protect human life at sea in Greece, Cyprus, and the wider Eastern Mediterranean by strengthening maritime safety culture among seafarers and other marine professionals such as fishermen, boat owners and crews as well as leisure and sea tourism and recreational boaters.

In the framework of the project, we organized several seminars. The first took place on the 25th of November 2019 in Limassol and was under the auspices of the Deputy Minister of Shipping to the President, Ms Natasa Pilides. Subsequent seminars took place electronically and employees from Cyprusbased shipping companies participated in high numbers.

As part of the project, we undertook to set up a network of Safety Ambassadors. These will be persons that will voluntarily sign, complete, and return the attached form to the Secretariat. A Safety Ambassador will commit to strictly adhere to regulations and guidelines on Safety at Sea and encourage colleagues to do so, thus strengthening the Maritime Safety Culture in the local community and wider area in which he/she operates. A kit with various promotion and information items is offered to each Safety Ambassador.

CYMEPA heads the Educational Activities Committee of the Cyprus Shipping Chamber (CSC) and within this framework implements the Adopt-a-Ship Program. This year 89 classes of primary schools participated. This is the highest number of school classes participating since the beginning of the Programme. Unfortunately, again, due to covid 19 pandemic, the traditional visits to companies and the annual closing ceremony held at Columbia Shipmanagement’s premises were cancelled.

CYMEPA represented by its Secretary General has been elected to the Executive Board of Cyprus Foundation of the Sea CY-FOS which aims to become a cluster of marine and maritime activities in Cyprus.

With sponsorship from the Stelios Philanthropic Foundation, CYMEPA and the Representation of the European Commission in Cyprus organized on the occasion of World Maritime Day, the 23th of September 2020, a Beach Cleaning of Akti Olympion B in Limassol. The event was under the auspices of the Environment Commissioner Ms Klelia Vasiliou and was supported by the Municipality of Limassol. CYMEPA, Cyprus Shipping Chamber (CSC), WISTA Cyprus, YOUNGSHIP Cyprus, Master Mariners Association, Limassol Marina, DP World Limassol and many other associations took part.

A very interesting development for CYMEPA is the award of a new project SocioCoast “Supporting the Promotion of Beaches and Coastal Areas and Problem Reporting using Crowdsourcing” which is funded under Interreg V-A Greece –Cyprus. Besides CYMEPA the partners are the University of Cyprus and three partners from Greece, namely the Institute of Technology and Research, the Hellenic Society for the Protection and the Hellenic Centre of Marine Research. The project has a duration of 2 years and a total budget of 686.419€.

The project aims to offer complementary information and IT tools to the Blue Flag for organized beaches and marinas. Data and information will be collected during the project for selected beaches in Crete and Cyprus and offered to the public regarding: a) biodiversity, and more specifically information on species interesting for divers, dangerous species or alien species, b) oceanographic and meteorological data for leisure activities (nautical sports, nautical tourism, leisure fishing). The selected locations will be preferably part of the Natura 2000 network and at the same time they will need to satisfy some other criteria (e.g. accessibility for people with disabilities). The ICT tools that will be developed during the project will offer updated and enriched information for the visitors and will also offer them the opportunity to interactively contribute to the updating of such information through crowd-sourcing (e.g. tourists will be able to submit information about pollution events, appearance of new species and existing local facilities).