Cyprus, one of Europe’s biggest ship management and shipowning hubs, has unveiled a new strategy to modernize and boost its ship registry.
The plan, called “Sea Change 2030”, consists of 35 separate initiatives to be gradually rolled out over the coming months and years.
Notable among them is a plan to fully digitalise by the end of 2023 all services provided by the country's maritime administration.
Furthermore, the Mediterranean nation expects to set up within 2022 a Cyprus Open Maritime Exchange (COME).
Meant to operate as an "online communication and engagement channel", the COME will host ad-hoc virtual meetings in which industry stakeholders, from shipping companies to non-governmental organisations, exchange views on maritime policy and issues.
Cyprus has been hugely successful as a ship management hub, hosting hundreds of companies that have helped propel shipping’s contribution to the country’s gross domestic product (GDP) to about 7%.
Its flag, however, hasn't been doing quite as well, losing ground to competitors such as Malta.
Stuck in rankings as the world's 11th biggest jurisdiction by tonnage for six consecutive years, the share of the Cyprus flag in the global commercial fleet has been declining since 2013 and dropped to 1.6% last year, from a record 5.7% in 1994.
As part of efforts to revive the flag, Cyprus’s deputy minister in charge of shipping Vassilios Demetriades has already taken initiatives that have met with positive industry comment.
Earlier this year, the country announced a wide-ranging anti-Covid-19 vaccination programme for seafarers, as well as tonnage tax cuts for Cyprus-flagged ships with good climate performance.
The tax cuts, which apply from next year and are linked to vessels’ energy efficiency design index (EEDI), are to range between 5% and 25%.
'What is green these days?'
“We’re ready to upgrade and update them [the cuts],” Demetriades said on Tuesday, speaking at an online presentation of Sea Change 2030 in Nicosia.
In an attempt to add a little stardust to the dry tax incentives, Cyprus plans to reward good environmental performers with a Green Achievement Award, to be presented in the third quarter of each year.
Banks can make their life easier by incorporating Cyprus’s environmental benchmarks into their loan eligibility criteria said Demetriades, a former European Union official.
“Banks ask what is green these days? I invite them to make wide use of what we have as green tax incentives,” he said.
Cyprus entices clients with other goodies as well. Shipowners and managers who see their vessels arrested over deficiencies will have the option to atone by providing training to seafarers, en lieu of, or supplementary to monetary fines.
Other plans include the establishment by the middle of next year of a user-friendly e-Maritime Library to host the country's maritime-related legislation, information, notices.
An e-Helpdesk working around the clock is to be up and running by the end of 2023. The same goes for IMoSS, an integrated database dealing with all issues pertaining to seafarers on board Cyprus-flagged ships, such as training, certification and position or service.
SeaChange 2030 was announced after nine months of consultations with industry stakeholders.
