A Year of Maritime Excellence: Achievements and Ambitions of the Cyprus Shipping Deputy Ministry

As the maritime world evolves, Cyprus stands firm as a beacon of excellence in maritime affairs. With a flourishing ship registry and a dynamic maritime cluster, Cyprus has cemented its status as a fully-fledged maritime centre.

Over the past year, the Shipping Deputy Ministry has spearheaded numerous strategic initiatives, showcasing an unwavering commitment to excellence and innovation. At the core of Cyprus’s maritime success story lies a dedication to providing top-tier services coupled with an unyielding commitment to maritime safety and security. Strengthened by bilateral agreements and a wealth of expertise within its workforce, Cyprus has earned recognition as one of the world’s most reliable and competitive flags.

In the past six months alone, Cyprus has experienced a noteworthy increase in tonnage registered under its flag—a testament to the enduring support of shipowners from all over the world and the growing interest among new collaborators. This surge, coupled with a growing attraction to register vessels with the Cyprus Ship Registry, signals a promising trajectory for Cyprus’s maritime sector. With a renewed emphasis on enhancing quality and safety standards, Cyprus is poised to further expand its fleet and bolster its global standing.

The Cyprus Tonnage Tax System remains a cornerstone of growth, attracting an increasing number of companies. With 420 companies now under the tonnage tax system—a 14% increase over the past year—shipping continues to play a pivotal role in Cyprus’s economy. The overarching goal remains steadfast: to continually strengthen and enhance the competitiveness of the Cyprus flag and the maritime sector.

To further fortify its competitiveness, Cyprus has recently established two advisory committees dedicated to enhancing the quality and competitiveness of its flag and maritime cluster. These committees are poised to play a crucial role in providing consultation and fostering collaboration within the maritime community.

Embracing the green transition, Cyprus is on track to fully digitize the Shipping Deputy Ministry by 2024 increasing efficiency and aiming to support the shipping industry and the competitiveness of the sector. In a world of constant evolution and innovation, technology serves as a powerful tool in offering innovative solutions to pressing challenges. Cyprus has made significant progress to simplify all procedures, reduce bureaucracy and to have a paperless Maritime Administration.

The One-Stop Shipping Centre has commenced its operations providing services and accommodating requests of shipping companies and shipping related companies for matters which are under the purview of other Government Authorities in an effort to assist the Shipping Deputy Ministry’s collaborators. This is the beginning of a comprehensive plan that will include all shipping related services provided from other governmental departments and Ministries with the target of providing full service to all requests in a more quick and efficient way.

Cyprus also recognizes the importance of the quality of its fleet. Τhe Cyprus flag is consistently classified in the “White List” of the Paris and Tokyo MoUs on Port State Control, illustrating the commitment to excellence of service and effective implementation of international safety, security and environmental protection standards. The nation’s top priority is to maintain and improve the exceptionally high quality for which the Cyprus flag is renowned. Cyprus’s rise in the Paris MoU’s White List ranking from the 13th place to the 8th last year, reflects its unwavering focus on maritime safety and security standards. With the adoption of a legislative framework to further enhance these standards and protect the marine environment, Cyprus stands as a beacon of global maritime governance.

Cyprus, acknowledges that the marine ecosystem is a valuable resource and an integral part of every economy and identity. Thus, issues such as the protection of the environment are of paramount importance and given great attention. The recent approval of the ad hoc Committee on Marine Pollution Prevention and Response underscores Cyprus’s unwavering commitment to safeguarding its seas.

Global challenges such as climate change can only be mitigated if all nations act together, accelerating the Green Transformation of all the sectors of the Blue economy.

Decarbonizing shipping is also one of the most significant challenges faced by the shipping sector. The urgent need to address climate change has placed a spotlight on the maritime industry’s carbon footprint. As a leading advocate for sustainable shipping, Cyprus believes that comprehensive and diverse measures are necessary at both global and regional levels to achieve emissions reduction targets and ensure a sustainable future for the industry. Cyprus actively participates in the IMO and EU deliberations to formulate a broad and diverse set of actions to achieve emissions reduction targets. However, it is crucial to incentivize shipowners for their investments in sustainable practices to accelerate widespread adoption. Thus Cyprus supports the shipping industry to achieve its decarbonization goals and in this respect provides green tax incentives to shipowners and operators, encouraging and supporting ships registered under the Cyprus flag to use alternative fuels. Whilst such incentives were introduced from the fiscal year 2021, these have recently been revised and new incentives have been approved to reward vessels demonstrating effective emission reductions with a 30% reduction in annual tonnage taxes for compliant vessels.

As Cyprus celebrates the 60th anniversary of its Ship Registry, the nation looks back on an impressive journey of maritime excellence while setting its sights on even higher paths for the future. With a clear vision, significant experience and unwavering commitment, Cyprus aims to lead its shipping industry towards greater success and prominence on the global maritime map.

In conclusion, Cyprus’s maritime achievements and aspirations stand as a testament to its dedication, innovation, and resilience in the face of evolving challenges and opportunities. As the nation continues to navigate the seas of progress, its commitment to excellence and sustainability ensures a promising voyage ahead.

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