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By Thomas Kazakos
The ‘Year of Salvation’ is already upon us. And, in a few weeks,
Last year, upon reviewing 2016 for the shipping sector, the general conclusion was that "Cyprus Shipping during the past five difficult years for our country, managed to remain one of the most important “blood donors” of the Cyprus economy with tangible prospects for further development."
Where does 2017 leave Cyprus Shipping therefore, and what are the challenges and prospects for the New Year ahead?
Reviewing 2017:
The Cyprus Registry ranked as the 11th Largest Merchant Fleet worldwide and the third largest fleet in the European Union (EU). In addition,
The contribution of shipping to the economy of
Furthermore, 200 internationally known and recognised shipowning, shipmanagement and shipping related companies operate from
The Cyprus Register is also considered internationally as one of the most qualitative and safest. The approval by the EU in 2010 of the special “Open Registry” regime strengthened considerably the image of the
The recent unanimous decision of the Parliament for the creation of an independent “Deputy Ministry of Shipping” as of March 1, 2018, will substantially assist towards the further development of Cyprus shipping and, by extension, the economy, as well as the commendable efforts that took place the previous years, to promote Cyprus shipping abroad from the Maritime Administration with the active participation of the shipping industry as well as the Cyprus Investment and Promotion Agency (CIPA) especially in relation with “Brexit”.
The new year which just commenced, carries the following needs and necessary measures for improvement:
1. Immediate Implementation of the Deputy Ministry of Shipping
As abovementioned, the unanimous approval of the relevant Bill for the creation of a Deputy Ministry of Shipping by Parliament, is expected to serve as a convincing mechanism for the existing shipping industry to remain firmly in Cyprus and also will serve in attracting additional quality shipowners and shipping companies in Cyprus, with a positive chain effect on reducing unemployment and strengthening other economic sectors that provide services to the shipping industry, as well as to the close correlation of shipping with the emerging energy sector.
It becomes therefore urgent, to fully utilise the remaining few months until the beginning of March 2018 when the Deputy Ministry will commence operation, as well as the relevant study specifically prepared for the implementation of all the necessary operational conditions so that the "Deputy Ministry of Shipping", this new promising institution, will be in a position to operate fully from the first day, making it operationally, more flexible and efficient in the services it will provide.
2. Promotion – Expansion of the
The approval by the European Commission of the fully upgraded Cyprus Shipping Taxation System in 2010, constitutes perhaps the most important success of Cyprus shipping, as it ensures the viability of the Cyprus Shipping Register and the Cyprus shipping industry, as well as the unhindered continuation of the important contribution of the shipping industry to the Cyprus economy, which was tangibly reconfirmed during the recent economic crisis Cyprus went through and despite the considerable “haircut” to shipping companies, they remained in Cyprus supporting ceaselessly the economy.
It is particularly reported, that during the past five years an important increase over 65% in shipping companies that have registered to the specialised and competitive shipping taxation system of
In this respect, it is necessary that the promotion of the new taxation system abroad be intensified, in order to attract more ships to the Cyprus Register and shipping companies to Cyprus, as well as, the expansion of the system with the inclusion of additional shipping related activities or/and additional taxation incentives regarding shipping, such in ship-finance, commodities and shipyard / repair units.
3. Turkish Embargo on
Since 1987, this constitutes the “Achilles’ Heel” of the
4. Governmental Support of the Maritime Education and “Blue Growth”
Continuous state/governmental support of public and private educational and maritime training institutions, in order to attract youngsters to the marine and shipping related profession, ensuring therefore, the viable manning and development of the shipping/maritime Industry. At the same time, there is a need to promote “Blue Growth” by offering the support needed for the implementation of the “
Conclusion
During 2017, the shipping industry internationally benefited from improved freight rates, after overcoming a long period of low income due to the corresponding situation of the world economy. During the same year, the
“Setting sail” already to the new year, and making 2018 as a true “Year of Salvation” for the
Thomas A. Kazakos is Director General of the Cyprus Shipping Chamber
