.
Now that the dust has settled after the removal of sanctions on Iran, it is clear that those who have maintained good and sincere relations with Tehran throughout the economic embargo, are the ones who will benefit most and immediately from new commercial deals.
Already, as regards tanker business and transport of crude oil and LNG, Iran has signed a trio of contracts with important clients in Japan, Russia and Greece.
This clearly shows that despite the initial enthusiasm, Cyprus companies need to join forces, either among themselves or with their international peers, if they ever want to get a slice of the action.
Despite several companies being active in northern Africa and in the Gulf, by international standards there are no ‘construction giants’ in Cyprus – that is why the biggest of the biggest developers and civil engineering companies have already failed to gain any contracts in the Iranian 5-Year Plans sectors that included major infrastructure projects, such as building complete new towns.
They were certainly given the opportunity to bid, having participated at special “road show” events and meetings in Tehran over the past four years, but have been regarded as being “just too small” to cope with the job sizes. For example, the new town projects start with the smallest requiring 5,000 dwelling units, going up to 50,000. Even the biggest Cyprus companies do not have the resources for builds of that scale, despite the likes of J&P, Cybarco, Medcon and others undertaking infrastructure projects, and in many cases as venture partners with others.
Cyprus company executives, as well as state officials visiting Tehran, have been told bluntly that they must stop thinking parochially and team up with larger consortia with at least one ‘big name’ in it, preferably northern European; then they will be taken seriously in Iran.
On the maritime side, Cyprus-flag vessels still suffer from the Turkish embargo that denies them entry to any of the ports, despite the so-called willingness of Ankara to open up on this aspect, in exchange for a more favourable stance when it comes to opening up negotiation chapters with the EU. Ironically, Germany’s foreign policy and excessive tolerance has mostly hurt the German-owned shipping and ship management companies in Cyprus that would have liked to trade with Turkey, forcing many to register under other flags.
Perhaps, then, it is time that the Cyprus shipping industry also looked to joining forces with other giants in the sector, a development that would boost the island’s flag and status as a maritime centre.
