Shipping has proved resilient amidst the Covid pandemic

The Cypriot shipping industry has proved resilient amidst the Covid pandemic, Deputy Minister for Shipping Vassilis Demetriades has said.

Presenting the Deputy Ministry’s budget for 2022 to the parliamentary committee of Finance and Budgetary Affairs Demetriades said both the shipping registry and the shipping companies registered in Cyprus have registered growth during the pandemic.

He noted that the Cypriot registry numbers more than 1,000 ocean-going vessels out of 1,750 ships with total tonnage close to 25 million, for the first time since Cyprus’ entry to the EU.

Demetriades also noted that shipping companies registered under the tonnage tax system have almost tripled in the last decade, from approximately 100 in 2012 to 172 in 2017 and 275 today.

“The shipping sector has prospects for Cyprus,” the Deputy Minister said, stating that there is no complacency.

“On the contrary 15 days ago, we adopted the National Strategy for Shipping which includes 35 targeted actions which are absolutely feasible with an implementation deadline,” he said, noting that the strategy also covers a new approach model in the operation of the Deputy Ministry.

He said that the Deputy Ministry’s budget for 2022 provides for expenditure amounting to €17.2 million compared to €14.6 million in 2021 and revenue amounting to €15.4 million, which mark an increase of 91% due to the rise of shipping companies registered in the tonnage tax system.

He also said that the increased spending is associated with the Deputy Ministry’s digital transformation, the state subsidy for the maritime connection of Cyprus with Greece, as well as training and education scholarships for maritime professions.

Responding to a question on the Turkish embargo imposed on ships carrying the Cypriot flag, Demetriades said the lifting of the embargo is not up to Cyprus, but noted that the Deputy Ministry is focusing its actions to expose Turkey through regional programmes which could bring Cypriot and Turkish shipping closer.

“Such programmes under the EU umbrella that favour cooperation on the challenges facing shipping, I believe could expose Turkey on a political level and we seek programmes with partners both from Turkey and Cyprus which could highlight that both Turkish and Cypriot shipping, in the absence of the embargo, could have a different prospect,” he said.

Cyprus has been divided since 1974, when Turkish troops invaded and occupied its northern third. Since 1983, the Turkish authorities have banned ships under the Cypriot flag from approaching Turkish ports.