Marina Hadjimanolis: Our highest priority is to continue to promote the advantages of the Cyprus Ship Registry

Cyprus continues to cement its position as a global maritime hub and one of the world’s leading shipping centres.

Through strategic initiatives, a competitive regulatory framework and its advantageous geographical location, Cyprus has built a strong reputation for quality, reliability and innovation in the maritime sector.

Here, Marina Hadjimanolis, Shipping Deputy Minister, talks about the efforts being made to expand the Cyprus Ship Registry, embrace digital transformation and align with global standards, so as to ensure a sustainable and competitive future for the maritime sector.

What initiatives is the Shipping Deputy Ministry undertaking to expand the Cyprus Ship Registry and maintain its reputation for quality and reliability?

Cyprus is recognised as a global maritime nation and is one of the largest and most renowned shipping centres worldwide. Over the years, the Cyprus fleet has experienced significant growth, with 161 new vessels added to the Cyprus Register of Ships by early 2024, with a gross tonnage over 4 million, and a total increase of 14%, since September 2023.

The Cyprus Ship Registry is highly regarded for its numerous advantages, including high maritime safety and security standards and a strong focus on the protection of the marine environment. Its consistent inclusion in the Paris and Tokyo MoU White Lists highlights its compliance with international shipping standards. Efforts to enhance inspection and control practices have further bolstered its reputation.

Additionally, Cyprus has ratified all major international maritime conventions related to seafarer welfare, safety and pollution control. The Registry offers customer-oriented services, such as a streamlined registration process, no ship registration or mortgage fees, and round-the-clock assistance from skilled maritime professionals. Its EU-approved tonnage tax system provides substantial tax incentives, enhancing its appeal to shipowners and operators.

The Shipping Deputy Ministry (SDM) has led various initiatives, including visits to shipping companies and participation in international events to promote the Cyprus flag and maritime cluster. These efforts aim to solidify Cyprus’ reputation as a stable, business-friendly hub for the shipping sector. Our highest priority is to continue to promote the advantages of the Cyprus Ship Registry and, to this end, we have drawn up a focused action plan to highlight the benefits of our maritime cluster, both domestically and internationally.

How is Cyprus leveraging its strategic geographic location to attract more maritime business and investment?

Thanks to its location at the crossroads of Europe, Asia and Africa, Cyprus is in a pivotal position on the global maritime map. Acting as a natural maritime gateway, it facilitates trade between Europe, the Middle East and beyond, and has established itself as a world-renowned shipping centre. Its unique geographic location, combined with a favourable regulatory environment and robust infrastructure, makes Cyprus a prime destination for maritime business and investments.

The Government, in collaboration with private stakeholders, has leveraged this strategic position to develop a highly competitive legal and tax framework for the maritime industry. The tonnage tax system, celebrated for its simplicity and efficiency, offers predictability and a stable fiscal environment, while aligning with EU standards. The SDM enhances Cyprus’ standing by improving maritime education, fostering innovation and promoting global partnerships. High-quality flag administration, safety standards and bilateral agreements further solidify Cyprus shipping as a key economic pillar.

How do you evaluate the outcomes of COP29 and what highlights do you consider particularly significant or impactful for Cyprus?

International shipping plays a crucial role in the global economy and is essential for achieving the UN Sustainable Development Goals (SDGs) and supporting the global energy transition. The decarbonisation of international maritime transport is driven by the 2023 IMO Strategy on the reduction of GHG emissions from ships, which aligns with broader frameworks such as the Paris Agreement and the United Nations 2030 Agenda for Sustainable Development.

Consequently, the outcomes of COP29 indirectly influence developments within the IMO, aiming to introduce legislative measures that will lead to net zero GHG emissions by 2050. Recognising the unique nature of international shipping, we believe that the outcomes of COP29, despite mixed reactions, provide a foundation on which we can build. This is contingent on global cooperation to achieve the upper end of the new climate finance goal of $300 billion annually, with a target of reaching $1.3 trillion by 2035. Overall, while the outcomes of COP29 are a step forward, their effectiveness will depend on their implementation and the commitment of all parties involved.

For Cyprus, particularly in the shipping sector, these developments present both challenges and opportunities to lead in sustainable maritime practices.

What role does digital transformation play in the SDM's vision for the future of Cyprus’ shipping sector?

Digital transformation plays a pivotal role in our vision. With the full digitalisation of the SDM scheduled to be completed in 2025, we aim to improve its efficiency, competitiveness and sustainability. The SDM focuses on leveraging technology to enhance its operational efficiency and deliver faster services.

The Shipping Deputy Ministry,is also expanding its online services for ship registration and certification, which will enhance the user experience and attract even more shipping stakeholders to choose the Cyprus flag for the registration of their vessels.

Digital transformation will strengthen the global reputation of Cyprus shipping and will be key for the island to maintain its competitive edge in the fast-evolving global maritime landscape. Digital transformation also aligns with the SDM’s environmental goal to reduce its environmental footprint. Our vision is for a sustainable, innovative and resilient Cyprus maritime industry and its digital transformation will help us accomplish our goal.

How is Cyprus aligning its maritime policies with EU initiatives, such as the ‘Fit for 55’ package of proposals, while ensuring the competitiveness of its shipping industry?

Cyprus is actively aligning its maritime policies with the EU's ‘Fit for 55’ package, which aims to reduce greenhouse gas emissions by 55% by 2030 and achieve net zero emissions by 2050.

The Government has introduced environmental incentives which offer an up to 30% reduction of the annual tonnage tax for vessels that significantly reduce their greenhouse gas emissions and adopt cleaner technologies.

These incentives are designed to encourage shipowners to invest in environmentally friendly practices, aligning with the EU's ‘Fit for 55’ goals. The related legislation is crafted to be neutral regarding the flag of the ship, meaning that the regulations apply equally to all ships, regardless of their flag.

This neutrality ensures a level playing field and encourages all shipowners to adopt sustainable practices without bias or favouritism, fostering a fair competitive environment. These steps are crucial for ensuring that our shipping industry remains competitive while contributing to the EU's climate goals.

How do you assess the outcomes of the recent Hong Kong Global Maritime Trade Summit? In your view, how significant is Cyprus' presence at such events and what is the importance of maintaining a strong voice in global maritime forums?

I recently had the privilege of attending the Hong Kong Global Maritime Trade Summit, jointly organised by the International Chamber of Shipping (ICS), the Hong Kong Government’s Transport and Logistics Bureau, and the Hong Kong Shipowners Association, following an invitation from the President of the International Chamber of Shipping, Mr. Emanuele Grimaldi.

The summit brought together leading industry figures to discuss the evolving global shipping landscape in an era of rapid change and disruption. During the summit, I participated in a panel discussion titled Risk and Resilience in an Age of Disruption, sharing insights on critical challenges and emerging opportunities in the maritime sector. I emphasised the importance of adaptability and collaboration between nations and the private sector to ensure resilience and sustainability in global shipping operations.

Distinguished panelists from around the world enriched the dialogue, offering diverse perspectives to an international audience. As a leading maritime nation, Cyprus’ active engagement in global forums like this ensures that the unique challenges faced by smaller but strategically significant maritime nations are addressed in policymaking. Being present in such settings allows Cyprus to shape international regulations, promote green shipping initiatives and foster ties with key players in the Asia-Pacific region, enhancing its position as a progressive maritime nation.

Cyprus can leverage these platforms to highlight its initiatives in promoting green shipping and compliance with international environmental standards, again enhancing its reputation as a progressive maritime nation. Having a strong voice in such forums positions Cyprus not just as a regulatory follower but as a thought leader, capable of driving forward key industry transformations.

Moreover, our active participation helps safeguard the interests of our shipowners and operators, ensuring their competitiveness in an evolving global landscape.

Lastly, these forums offer an invaluable opportunity to present Cyprus as a premier international business hub within the EU and a key global maritime centre. Sharing our success story helps attract further business and reinforces our competitive position.

This interview first appeared in the December 2024 edition of GOLD magazine. Click here to view it.