In recent decades, Cyprus has evolved into a modern, integrated, and efficient shipping centre and a global shipping power.
Shipping is one of the most important pillars of the Cypriot economy, consistently contributing – despite the COVID-19 situation – 7% to the national GDP (around €1.2 billion). Shipping also supports the country’s employment sector, with approximately 3% of the active workforce in Cyprus providing services to the broader shipping industry. In particular, more than 55,000 seafarers are employed on Cypriot ships, and around 9,000 people are employed by shipping companies based in Cyprus. In addition, the Cyprus Registry is classified as the 11th largest merchant fleet globally and the 3rd largest fleet in the European Union. Finally, Cyprus is one of the three largest ship management centres globally and the largest in Europe.
The factors that have contributed to the development of this major economic sector and the ranking of the Cyprus flag among the highest quality and most competitive flags worldwide are the following:
the geographical-strategic position of the country (it is located at the crossroads of three continents), its long maritime tradition, the continuous development of its shipping and ports infrastructure, its status as a Member State of the European Union, its specialised and knowledge- able human capital, its favourable tax regime, the existence of a robust maritime cluster committed to the provision of high-quality services, as well as its nexus of strategic regional and international agreements with other countries.
However, to maintain and further strengthen the competitiveness of Cyprus Shipping, proximity and access to advanced research and innovation (R&I) is absolutely essential. This is an additional determinant of attracting shipping companies to a country. Unfortunately, in the R&I field, Cyprus scores low (it is a “Moderate Innovator” according to the European Innovation Scoreboard 2017, and it is slightly below the European Union average). The country has a small but growing R&I ecosystem, which is contributing to developing products and solutions to improve the ecological footprint of shipping and facilitate its compliance with new, stricter regulations and targets promoted at the European and international levels.
Currently, the Shipping Industry is facing two critical challenges, known as the “twin transition”. These concern the green transformation (decarbonisation) and the digital transformation (gradual automation of functions and processes, Internet of Things/IoT, Big Data, Artificial Intelligence/AI, autonomy of ships). In a series of institutional texts, the European Union has incorporated the twin transition into the core of its policies and objectives. It has also highlighted the importance
of practical-vocational education and training, which are integral for supplying the workforce with the necessary skills, including adaptability to the rapidly changing technological developments, in the context of lifelong learning.
Given the challenges associated with the “twin transition”, we realise that this transition is occurring gradually, concurrently with the achievements of the 4th Industrial Revolution. It is also important to
emphasise the following: The pressure of international organisations stimulates solution-driven research. At the same time, progress in this area conduces to developing more innovative tools, raising the bar of demands even higher for the maritime companies that are pursuing to be at the forefront of an industry that is predominantly competitive. In this context, the Cyprus Marine and Maritime Institute (CMMI) considers that the close cooperation between academic and research institutions and the Shipping Industry is a sine qua non for effective, applied research and innovation that will also have a commercial value. R&I is a prerequisite for securing a sustainable future for the Shipping Industry - especially at a time when conventional/traditional “constants” are being dismantled and benchmarks are being replaced by a new, dynamically changing reality.
In these challenging and exciting times, CMMI’s vision is to drive sustainable Blue Growth by undertaking R&I activities that will address the needs of the marine and maritime industry and society. The Institute has ten Research and Innovation Centres dealing with marine observation, maritime surveillance, underwater and seabed technologies, marine robotics, maritime digital transformation, marine engineering, marine and coastal ecosystems, the human element, marine cultural heritage, as well as marine and maritime policies and regional cooperation. In addition, CMMI aims to bridge the gap between available training options in the maritime sector and real labour market needs. To achieve this, the Institute will develop innovative educational / training programs which combine in-person activities with digital technologies, thus enabling professionals and students to acquire new skills and diversify and expand their existing skills and competencies
* Policy Officer-Project Administrator at CMMI - Cyprus Marine and Maritime Institute