Polys V. Hadjioannou: “If the maritime industry wants to remain competitive and survive, we all need to adapt”

Polys V. Hajioannou, CEO of Safe Bulkers, Inc., Vice-President of the Cyprus Union of Shipowners (CUS) and President of The Propeller Club of the United States, Port of Limassol, talks about the challenge of meeting IMO environmental targets, the role of technology and efforts to encourage young Cypriots to consider the shipping industry’s potential for an attractive career.

How is strict environmental regulation affecting the financial investment involved in the purchase of new ships?

Speaking in my capacity as CEO of Safe Bulkers Inc., I can say that we have made timely investments to build a resilient, sustainable and growing company. We believe that making the right long-term investments to meet the future climate targets of our industry will allow us to secure a stronger position in the years to come and to maintain the trust of our investors and all stakeholders. Ahead of the increasingly stringent environmental regulations, which include the IMO greenhouse gas emissions (GHG) reduction targets for international shipping, we have been working actively to reduce the environmental footprint of our fleet, carefully monitoring developments while extensively evaluating the use of technologies leading to net-zero GHG emissions. In 2022, we made significant progress in improving our fleet’s emissions profile, achieving a 5.8% annual reduction in its carbon intensity based on the Annual Efficiency Ratio (AER) compared to 2021. Safe Bulkers will continue to invest in its environmental agenda, making sustainable long-term investment decisions that will help us ensure our business resilience and competitiveness for decades to come. To deliver on this, we are focusing on two strategic priorities: (i) a comprehensive fleet renewal programme, which involves ordering new, modern vessels while acquiring younger second-hand vessels and selling some older ones and (ii) our ongoing programme for the environmental upgrading of existing vessels with newer eco-efficient technologies during their dry-docking. From a position of stability with low leverage, substantial liquidity and hands-on operational efficiency, we are prepared even for uncertain market conditions, ready not only to address future challenges but to try and capitalize on new opportunities that may arise.

What technological trends – from AI and IoT to autonomous ships and renewable energy – do you expect to have the most significant impact on the maritime industry by the end of the decade?

Today, there is a lot of talk around these potential game-changing technologies and, if we want to remain competitive and survive, we all need to adapt. But it is important to gain a better understanding of where we stand now in order to know where we are heading. In this context, we must consider the necessity of innovation and the opportunities that it can present but also the potential risks that come with it. In these transformative times, we, at Safe Bulkers, have always been focused on how to evolve through incorporating innovative solutions and technologies into our daily operations and practices. Taking the pulse of global shipping trends in the context of the industry’s digital transformation, we have been working actively to scale up the efficiency and effectiveness of our operations while enhancing our competitiveness and resilience for the future. We stay informed about emerging technologies while continuously assessing, testing and implementing tech solutions for better operations, more efficient decision-making and increased cost-efficiency within our company. Our ongoing installation of data collection and analysis systems is a significant asset in our company’s digital transition. However, to successfully implement these digital tools, we recognize that cybersecurity is essential to safeguard and secure our operations and data. We have placed control systems on board our ships and in our offices to ensure the safety, efficiency and continuity of our businesses and we are continuously alert and educating crew members and shore personnel through continuous training to ensure that cyber risks are properly identified, assessed, monitored and reported.

What can be done to encourage more young Cypriots to consider shipping as a good career choice?

At Safe Bulkers, we recognize that cultivating highly educated young talents, equipped with the academic skills necessary to join the country’s future workforce, is a strategic priority that will further attract international shipping business to Cyprus and expand the country’s maritime cluster. To this end, in 2021 we introduced our annual scholarship programme for Cypriot or Greek students in Cyprus wishing to pursue a professional career in the maritime industry. For the 2023-2024 academic year, we awarded 10 scholarships of €10,000 each to undergraduate and postgraduate students undertaking studies relevant to the maritime industry’s needs and we have extended the same number of scholarships for the 2024-2025 academic year.

We have also launched Safe Bulkers Annual Cadet Scholarship Programme, which grants five annual scholarships of €5,000 to Cypriot or Greek students enrolled in the four-year Nautical Science programme at the Cyprus Maritime Academy. The scholarships will be renewed annually subject to the recipients’ satisfactory academic progress and successful promotion to the next year. Safe Bulkers will provide them with sea-service training onboard its modern, energy-efficient, Cyprus-flagged vessels and, upon graduation, full employment leading to a career as Deck Officers up to Captain Class A and prospective placement as Port Captains or fleet operators in the marine department of its Cyprus-based offices.

What is the mission and purpose of The Propeller Club of the United States, Port of Limassol, and how does it align with the larger goals of the international organisation?

The Propeller Club of the United States, Port of Limassol, was founded last year. It is part of the International Propeller Club of the United States, the largest network of individuals dedicated to the enhancement and wellbeing of all interests of the maritime community on a national and international basis. It is a non-profit organisation collectively controlled by a Board of nine volunteer Governors, elected by members every two years. The objectives and aspirations of our Club include the encouragement of cooperation between the United States and Cyprus in the maritime sector, the promotion of the entrepreneurial, cultural and social interests of members of the Propeller Club, the exchange of views between the two countries and the liaison with the US Embassy and the US Coast Guard on maritime matters. In this context, our utmost appreciation goes to US Ambassador Julie Davis Fisher, who agreed to serve as Honorary President of our Club.

How does the Club aim to engage with the local community and maritime professionals to promote networking and professional development?

The Club aims to build a strong sense of community within Cyprus’ maritime and allied industries, providing members with opportunities to collaborate, build relationships, exchange views and develop knowledge and skills. It’s about bringing the Cyprus maritime community together by providing networking opportunities among professionals active in the island’s industry through various initiatives, meetings and events. At the same time, in accordance with social responsibility that extends beyond the maritime industry, we will proactively work towards making a positive contribution and giving back to the local community through the promotion of maritime, philanthropic and cultural activities, as well as seminars, lecturers and educational programmes. In the coming year, our goal is to further enhance our Club’s profile and amplify its impact. To build on this, our primary focus is on increasing membership by attracting and engaging new members. We are hoping that, with active and dedicated members, we will achieve the Club’s vision and aspirations. Looking ahead, we eagerly anticipate seeing our Club flourish and inspire worthwhile projects as we expand our presence within Cyprus’ maritime community.

This interview first appeared in the May edition of GOLD magazine. Click here to view it.