Cyprus Shipping Chamber Director General Thomas Kazakos discussed the potential of the shipping sector in Cyprus in a recent interview. Kazakos pointed out that a possible solution of the Cyprus issue, in conjunction with positive developments in the energy sector, could boost the Cyprus shipping industry. He also spoke about future investments in the sector.
According to Kazakos, “The shipping industry in these past three years remained loyal to Cyprus; no company has left the island. On the contrary, we saw some companies establishing offices here and we noted a stabilisation in terms of ship orders and new ship-management”.
He stressed that the shipping industry’s goal is to attract more quality companies that have their base and physical presence in Cyprus, which will in turn create more job positions on the island.
Enhancing the Cyprus maritime administration
Kazakos said the Cyprus maritime administration should reflect on the industry’s performance and called for the drafting of a medium to long-term national maritime policy, noting that the growth of the island`s registry, which has remained stable for approximately 15 years, goes hand-in-hand with the further development of the island’s maritime administration.
He praised the current Transport Minister`s determination to promote the island`s shipping sector, recalling that he authorised a private firm to compare the Cyprus maritime cluster with other competitive jurisdictions, whereas another study concerning the restructuring of the Transport Ministry and the Department of Merchant Shipping (DMS) is underway.
“Both studies point out that the DMS and the broader maritime administration should be modernised further to be able to catch up with the fast-moving developments in global shipping and to reflect the fact that Cyprus has the 10th largest fleet in the world,” he said.
Lifting the Cyprus embargo
The Cypriot registry currently ranks 10th in the world and 3rd in the European Union with 1,763 ships flying the flag, despite the embargo on Cypriot-flagged ships imposed since 1987 by Turkey. Cyprus has a highly developed ship-management sector, the second largest in the world, with 2,500 ships under management by Cypriot-based firms.
After a settlement, these ships could register with the Cypriot registry “overnight,” Kazakos said, “Without a political settlement in place, without the lifting of Turkey’s embargo and without exploiting our natural wealth, we are managing 2,500 ocean-going ships. You can imagine the numbers that we will have to manage (after a settlement),” he added.
Kazakos said a settlement could automatically bring about the end of the embargo, which he calls the Cyprus registry’s “Achilles heel.”
“With the announcement of a settlement to the Cyprus problem, the embargo would be lifted automatically. Just as it was imposed unilaterally and illegally in 1987, it could be unilaterally lifted with one phone call from the Turkish Prime Minister,” he said.
