Gold Magazine March - April 2013, Issue 24 | Page 26

SHIPPING

correct these things and improve the image
of Cyprus. The Department of Merchant
Shipping was computerized, new inspectors were appointed, we adopted a zero
tolerance policy to substandard shipping
and we raised standards. Then for another
ten years we worked on what is now one
of our biggest achievements: the negotiation and approval of our tonnage taxation
system. Since March 2010 we have had
perhaps the most competitive taxation
system for shipping in Europe. When I
say competitive I don’t mean zero tax.
Our system is truly transparent and legally
approved by the strictest standards of the

European Commission. This ensures the
viability of the Cyprus Shipping Registry
and the shipping industry, as well as the
unhindered continuation of the important
contribution of the industry to the island’s
economy.
Gold: So after two major 10-year projects, what’s next for the Chamber?
T.K.: Now we are ready to take the next
steps to give the industry the boost it
deserves. It is imperative that the efforts
of the maritime administration and the
Cyprus Investment Promotion Agency
(CIPA), made in close cooperation with

the CSC, to advertise the advantages and
benefits of this new taxation system, be intensified and further expanded. In this way, Cyprus will attract more ships to the Cyprus Registry and more shipping companies to establish
their offices in Cyprus, which will have a positive impact on the economy. Moreover, now
that we have a commitment from President
Anastasiades to appoint an Under-Secretary
for Shipping, the Chamber is committed to
developing strategies and providing practical
assistance to the government in this important
endeavour, through our members’ specialised
knowledge in the field. There is no shortage of
work to be done!

FULL STEAM AHEAD!
THE NEW GOVERNMENT HAS PROMISED TO GIVE THE SHIPPING SECTOR ALL THE SUPPORT AND
IMPORTANCE IT DESERVES

F

or a sector that contributes
an estimated 7%-8% of
Cyprus’ Gross Domestic
Product and controls the
10th largest fleet in the
world, shipping has always
maintained a surprisingly low profile. That is
due to change, with newly-elected President
Nicos Anastasiades committed to appointing an Under-Secretary to the President for
Shipping whose role will include drafting the
country’s shipping policy and attracting new
companies. Capt. Eugen Adami, President
of the Cyprus Shipping Chamber, sees this
as a major step forward for the industry.

CYPRUS HAS THE

POTENTIAL

TO BECOME ONE
OF THE LARGEST,
ALL-EMBRACING

SHIPPING
CENTRES IN THE

EUROPEAN UNION
AND THE WORLD

Gold: How important to the industry is
the appointment of an Under-Secretary
for Shipping?
E.A.: There is an immediate need to upgrade and restructure the maritime administration and, in this respect, the appointment
of an Under-Secretary to the President for
Shipping will contribute to a faster and more
accurate development of government shipping policy in accordance with international
conventions, and more effective communication with other state authorities or agencies. Merchant shipping is perhaps the only
sector in Cyprus that operates on a global
scale; its size and international importance
go far beyond the island’s borders and the
European Union pays more attention to
merchant shipping than to any other sector
of the island’s economy.
Gold: Another major change for Cyprus
has been the discovery of natural gas. Do
you see this as having a positive effect on
Cyprus shipping too?
E.A.: Yes. Cyprus can develop into an
important Energy Centre in the Mediterranean. Strategic partnerships with careful
management and well-prepared development plans can create new and vibrant shipping and energy projects with great financial
benefits for the economy. At the same time,
this important development will give Cyprus

and, by extension, the rest of
Europe, greater political
influence on a regional
and global level, in
matters concerning
both energy and
shipping.
Gold: So you
are optimistic
about the
future of the
industry
E.A.: I am in no
doubt that the discovery of natural gas in
Cyprus’ Exclusive Economic
Zone, in combination with the new competitive Tonnage Tax, the upgrading of the
maritime administration structure and the
potential lifting of the Turkish embargo on
Cyprus ships, means that the Cyprus shipping industry has a very promising future.
Cyprus has the potential to become one of
the largest, all-embracing shipping centres
in the European Union and the world. The
development and diversification of almost
all shipping activities in Cyprus is a must. It
will enable its Maritime Cluster dynamics to
grow and, at the same time, it will enhance
the substantial contribution of the shipping
industry to the economy.

26 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

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07/03/2013 12:25