articles | 29 April 2023

Cyprus shipping will continue improving, minister says, as revenues continue recovery

Deputy Minister of Shipping Marina Hadjimanoli this week said that as a leading maritime nation, Cyprus has a duty to accelerate the shipping sector’s transition into a low-carbon and resilient industry.

Hadjimanoli noted that the objective is to further grow and strengthen the maritime complex in Cyprus while emphasising the government’s clear strategy for the future development of the maritime sector. “Our vision is to further develop the shipping complex, so that all companies belonging to the Cyprus shipping industry can enjoy a full range of quality services, both from the public and private sectors,” Hadjimanoli said.

Hadjimanoli underlined that, at the same time, the goal is to strengthen the shipping industry in every way, not only for the benefit of the local economy, but, above all, to ensure that all companies operating in Cyprus feel part of an advanced industry that covers their every need. “High quality and expertise in specialised services are values that interest us more than anything else,” she said, before adding that, from a public sector perspective, “we aim to follow the standards of the private sector in providing services, both in terms of speed and quality, listening to our customers and ensuring we can change and adapt in ways that add value to the industry.” At the same time, the Deputy Minister noted that Cyprus has made significant progress regarding the simplification of all procedures, the reduction of bureaucracy and the implementation of a paperless maritime administration, in order to maximise the efficiency of the maritime administration.

She also recalled the creation of the one-stop shipping centre framework of the Deputy Ministry, as well as the ongoing effort for the digitisation of all its services, which is expected to be completed by May 2024. “These are steps that aim to help simplify all procedures with a very positive effect on the competitiveness of the offered services,” she said.

Referring to the challenges of transitioning to green and digital shipping, the minister said that Cyprus recognises that its marine ecosystem is a valuable resource and therefore environmental protection is vital. “As a leading shipping nation, we believe we have a duty to accelerate shipping’s transition to an environmentally friendly, low-carbon industry,” she stated. “We fully recognise that the shipping sector must contribute its share with its decarbonisation and energy transition and that, at the same time, it must ensure its competitiveness,” she added, while stressing that, as a member of the EU, “we are actively involved in shaping the Fit for 55 legislative package”.

Meanwhile, ship management revenues showed further recovery in the second half of 2022, reaching €648 million, an increase of 25.6 per cent on an annual basis, according to the latest ship management report published by the Central Bank of Cyprus (CBC). According to the report, for the entirety of 2022, revenue from ship management stood at €1.22 billion. The report shows that the industry continues to recover after the disruption of the Covid-19 pandemic, with revenue in the second half of 2022 increasing by 12.9 per cent compared to the first half of the year. Moreover, the CBC reported that this is the fourth consecutive increase in total industry revenue, following the recovery of global trade from the Covid-19 pandemic and the related slowdown in economic activity. What is more, the survey also highlights the fact that Germany holds the largest share of revenue by payment country, accounting for 41 per cent of revenue, followed by Greece with 16 per cent, Malta and Switzerland with 5 per cent each, and the USA and Singapore with 4 per cent each.

In terms of the type of ship management, crew management remained in first place at 49 per cent, followed by full management at 47.1 per cent, and technical management at 3.9 per cent. Elsewhere, the report showed that industry expenses stood at €629 million, reflecting an increase of 18.2 per cent on a six-month basis and almost 38 per cent compared to the second half of 2021. “However, the industry shows a relatively stable expense structure,” the CBC said. Furthermore, the majority of expenses, 64 per cent, was paid to crew expenses, followed by ship management expenses at 31 per cent and administrative expenses at 5 per cent. The largest share of expenditure on crews, 47 per cent, was paid to non-EU crews, while 17 per cent was paid to crews from EU countries.

Overall, the ship management industry is showing signs of recovery, with revenue increasing steadily in the second half of 2022. The data highlights the importance of the industry to the global economy, with revenue coming from a diverse range of countries and crew members.

 Source: Cyprus Mail

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