The pandemic shock wave, which started in 2020 and continues still today, brought one of the most difficult years in the modern history of our country and consequently to Cyprus Shipping Industry, as it came across with economic casualties, unprecedented disruptions in its operations and uncertainty.
Being an ever-evolving Industry though, which continually changes to adapt to the needs of the current times, was able to respond quickly to this unprecedented situation and thus proving its robustness. Due to its vital role, which is to transport 90% of world trade, continuing providing its services was a one-way road. Most importantly, it continued to tangibly support the Cyprus economy during the crisis and the lockdown periods and without a doubt,
it will remain at the forefront of the gradual economic recovery of the country in the years to come.
The existing competitive Shipping taxation framework in Cyprus remained intact and as such, the Cyprus Shipping Industry is ready to attract more quality ships and Shipping companies in the future, which will contribute in the recovery plan set by the Cyprus Government and offering job opportunities to the local human capital. Shipping in Cyprus constitutes one of the few active and profitable sectors of the Economy. With its contribution at 7% of the GDP, it remains an industry with substantial prospects, should a number of important challenges be addressed. The resilient performance of the Shipping Industry, coupled with the fast pace the National Vaccination Program is progressing in Cyprus, provide much optimism for both the short and medium term.
It is though expected, that the Cyprus Maritime Administration accelerates its efforts to digitalise/automate its operations and services offered to Shipping companies, thus making it ready to respond to the emerging demands of the World Economy and global competition. Equally necessary, is to urgently finalise the ongoing effort to adequately structure and staff the Shipping Ministry, as well as to headquarter the Ministry in a building which is able to accommodate its needs and reflect the modern Maritime Administration established in Cyprus.
While tackling the consequences of the pandemic in the future ahead, Cyprus Shipping is also expected to be at the forefront with regard to decarbonisation and digitalisation and continue or even intensify its efforts to fight climate change, for energy conservation and absolute emissions reduction in shipping.
The unexpected course of events in the past year, could form a driving force for Shipping Industry to achieve its environmental goals and become even greener, if provided with targeted incentives for research and development in the field of marine technologies and alternative fuels, to ensure the technological innovation necessary to make the required zero-carbon transition within the IMO 2050 timeline. The Cyprus Shipping Chamber fully supports the global efforts to reduce Green House Gas emissions to achieve the 2015 Paris Climate Agreement, but this should
be achieved in a way that is technologically safe and sound and economically viable, otherwise it will have a very negative impact on Shipping.
The ever-changing climate, the need for decarbonising the industry by 2050, the increased scrutiny and the enhanced pressure from the investors, the lenders, and all other financial stakeholders to improve sustainability performance and implement transparent reporting, the labour and human rights risks and last but not least, the stringent corporate governance required, are the challenges the Shipping Industry entered with, this new decade.
In addition, areas such as digitalisation, innovation and blockchain has become one of the new directions for the future sustainable development of the Shipping Industry. Although this is a process that has long begun in Cyprus Shipping, the technology is expect- ed to be fully embraced and adopted by the Industry the following years, in order to emerge even more competitive and efficient from this crisis.
Taking into account the tangible prospects for a substantial growth of Cyprus Shipping, it is expected that the Cyprus Govern- ment and the Shipping Deputy Ministry in close cooperation with the Shipping Chamber, facilitate practical financial support and immediate resolvent of the multiple operational issues affecting Shipping Companies in Cyprus. In this respect the Cyprus road map to Recovery in response to the pandemic, should also be aligned with the country’s environmental and climate goals. We, therefore, urge our Government to consider the idea proposed by the Cyprus Shipping Chamber, to establish a Financial institution for the Shipping and Transport sector, which shall allocate funding aligned with the Green Deal and/or, provide competitive ship finance to resident Shipping companies in close cooperation and active involvement of European Financial bodies.
Finally, an important development in the year ahead, is that Cyprus will be taking the lead among European shipowners, with the Presidency of the European Community Shipowners’ Associations. In combination with the recent election of the CSC President, Mr. Themis Papadopoulos, at the Vice-Presidency of the International Chamber of Shipping, it creates an excellent opportunity for Cyprus to have an even stronger voice at an International and
EU level and be at the forefront of efforts towards a sustainable recovery for global Shipping, which will have a very positive effect on Cyprus Shipping as well.
Looking therefore into the future, proper planning and hard work are indispensable in our mission to preserve Cyprus’ leading edge. The Cyprus Shipping Industry is also more than ready to cooperate with the Cyprus State, offering its expert technical knowhow and specific suggestions providing a road map to a sustainable future and further growth of Cyprus Shipping, through new and innovative measures, supporting at the same time, the Cyprus Economy.
* Immediate Past President / Board Member, Cyprus Shipping Chamber