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The annual meeting of the Cyprus Chamber of Shipping was, as expected, a platform for the government to declare its commitment to the maritime sector and the usual promises of reforms and pledges of continued support.
Only this year, the government seems to mean it and work is already underway to plan the future of shipping, probably the only stabilising factor of the economy in recent years and one that continues to generate revenues for the state and jobs.
In his address, President Anastasiades referred to the study that will determine the future role of shipping and the direction the maritime sector will take.
A lot has been said by so many government officials and departments that it is hard to swallow such a radical change to the sector that has stagnated in recent years and is no different from the maritime model of the 1970s. Two decades ago, the Cyprus flag had more vessels and a bigger capacity than it does today, but the numbers have been hurt by the Turkish embargo (hence, the need for a solution), competition from rival jurisdictions that are more flexible (Malta, Bahamas, etc.) and various cycles that have actually been to our benefit, such as getting rid of the rusty old boats over a decade ago and alignment with stricter international safety regulations.
This time, the government means business and this slow process seems to be reviving hopes among the ship-owners and managers of shipping companies that change is coming. This change will start showing its face by the end of summer and in time for some announcements at the Maritime Cyprus conference in September.
The key word at the Chamber meeting was “sustainable” shipping. This is not just a cliché, but one that will make or break the future of the Cyprus flag.
In order for Cyprus to return to the boom days of when shipping was the main driver of the services sector (and the lifeline of Limassol), we also need to see some commitments from other sectors as well.
A damning report by the Cyprus Investments Promotion Agency last week collected the complaints by foreign executives and leaders of major international companies based on the island. It’s no good saying that the ‘one stop shop’ concept is working, when it is not. Red tape still rules and delays in ordinary functions are making Cyprus look like the turtle of the international business world.
What Cyprus needs is a mentality change, a lobotomy even, because we cannot go forward if we have people in the government machine not willing to embrace change.
Otherwise, all the plans and studies will have been in vain.
