WHY CYPRUS? An Optimal Business Base

WISTA MED 2012

Le Meridien Hotel, Limassol

23 June 2012

• President of WISTA Cyprus,

• President of WISTA International,

• Distinguished Guests,

• Ladies and Gentlemen!

On behalf of the Cyprus Shipping Chamber, it is with great pleasure that I address the WISTA

MED 2012 Conference. I wish to extend a warm welcome to everyone who have come from

abroad especially to be here with us today and also express our appreciation and special thanks

to WISTA Cyprus, for the organisation of this Conference. We feel proud to mention that WISTA

Cyprus is a Member of the Cyprus Shipping Chamber, and an example of an organisation that

strives for success.

WISTA Cyprus and WISTA International are both key players in attracting more women to the

Shipping Industry, in order to enhance their competence and empower their career success.

For this reason, we acknowledge WISTA as a true professional and highly reputable shipping

organization, which may be described as the “Voice of Women in Shipping”. We urge you to

continue your mission and the excellent work that you carry out!

Turning now to the overall theme of the Conference, I will provide a brief outline of the Cyprus

Shipping Chamber’s Activities and I will also try to give you the Shipping Forecast.

The Chamber’s main aim and objective is to continue to focus towards the continuous

improvement of the shipping infrastructure of Cyprus, the enhancement of the reputation of the

Cyprus flag and the safeguarding of the interests of our Member-companies locally as well as

internationally. The Chamber’s ultimate aim is to make the Cyprus flag, even more competitive,

and retaining and enhancing further the attractiveness of Cyprus as a major location for carrying

out Shipping activities.

The new Cyprus Shipping Taxation System represents a great tool for expansion and further

stability, and as such, the Cyprus Shipping Chamber will make sure that it will be fully exploited,

maintained, and even extended to more shipping activities. The Shipping Chamber, in close

cooperation with the Cyprus Maritime Administration and the Cyprus Investment Promotion

Agency, will continue to advertise the advantages and benefits of this new Tonnage Taxation

System around the world and especially in Europe, in order to attract more quality ships to the

Cyprus Register and convince more Shipping Companies to establish their offices in Cyprus.

The combination of the new competitive Tonnage Taxation System, the possibility of an

upgraded Maritime Administration Structure, and with the potential lifting of the Turkish

Embargo on Cyprus ships, the future of Cyprus Shipping is looking very positive indeed.

It will be a great omission on our part, if we did not mention that Cyprus has now in place a

pioneering and detailed legislative framework for lawfully using armed escorts by specially

trained and certified guards onboard Cyprus flag ships. As such, Cyprus is the first country in

the European Union, and possibly internationally, which regulates in such detail this burning

issue for International Shipping. Cyprus is also one of the first 28 countries that have ratified the

Maritime Labour Convention (MLC) 2006, and as such, it fulfils the Flag State commitments

under the Convention with respect to ships and seafarers under its jurisdiction.

There is no doubt that, Cyprus has been transformed into one of the largest, “all-embracing”

Shipping Centres within the European Union and globally. But at the same time, the World

Financial Crisis continues to influence negatively the Shipping Industry worldwide, as well as the

Cyprus Economy.

The current oversupply of ships has plagued the freight markets during these past few

months, and with worse things on the horizon, from the point of view of tonnage supply, new-

building ordering activity should be put on a stand-still, at least until demand picks up in the

markets.

And as if this is not enough, Banks, and especially those dedicated to ship finance and

operations, have completely stopped or severely cut down the volume of ship finance made

available to the Industry. They are unwilling to issue letters of credit, thus adversely crippling

the ability of shipping companies to cover their daily operational needs. Banks therefore, need

to understand that they must continue offering these necessary financial services to their long-

standing shipping clients, in order not to force their clients to go under, and avoid exposing

themselves to further major write-downs.

Whilst the World Financial Crisis continues to influence negatively the Shipping Industry

worldwide, as well as the Cyprus Economy, it is a paradox that the circumstances for Cyprus

are very favourable. And in these difficult times, opportunities must not be missed!

Cyprus is now also on the verge of yet another major breakthrough!

The recent discovery of Natural Gas in the Exclusive Economic Zone of Cyprus creates even

greater prospects for the country as a whole, and there is no doubt, that the Shipping Industry

will play a key role in the need of gas and oil transportation by sea. Cyprus can develop into an

important Energy Centre in the Mediterranean. Strategic partnerships with careful management

and well-prepared development plans can create new and vibrant Shipping and Energy projects

with great financial benefits for the Cyprus Economy. At the same time, this important business

development will offer Cyprus and by extension, Europe, even greater political influence on a

regional and global level, in matters concerning Energy and Shipping.

Cyprus has reached a critical point and it is about time to get new insights into dealing with top

priorities in the most effective way. With the increasing financial burdens clouding Europe’s

future, it is crucial for Cyprus now to ascertain how to explore and manipulate new

opportunities to navigate with these new discoveries out of the economic crisis.

In this journey, the Cyprus Shipping Chamber is committed to assist and support the Cyprus

Government to forming new business alliances and important strategic relations and of course

determine how the new energy era will bring about a wealth of positive change in these stormy

waters.

Concluding, on behalf of the Cyprus Shipping Chamber, I would like to express the Chamber’s

appreciation to WISTA Cyprus for their continuous support and cooperation. We wish WISTA

every success for the future and to all of you who have come from abroad a productive and

enjoyable stay in Cyprus.

Thank you.