Alexandros Demetriades: Significant changes in the container management and port services sector

Significant trends and changes in the container handling and port services sector are expected in 2025, according to the Chief Operation Officer of Eurogate Container Terminal Limassol, Alexandros Demetriades.

In an interview with InBusinessNews, as part of the IN Business Forecasting 2025 series, Demetriades suggests that the container management sector is closely linked to the country's economic development and therefore the positive prospects of the Cypriot economy for 2025 are expected to create further growth in the volume of containers the country manage on an annual basis.

Characterising foreign investments as extremely important for a relatively small economy, such as the Cypriot one, Alexandros Demetriades noted that Eurogate's investment in the container terminal at the port of Limassol created 200 new jobs for the local community and greatly contributed to improving productivity and service to terminal users through know-how and modern container management techniques.

Regarding the company's development strategy, Demetriades notes that for 2025 it is focused on further improving the services it offers and the efficiency of container management through innovation and technological investments.

“The goal,” he emphasises, “is to gradually further automate specific container management processes and storage processes, in order to reduce operating costs and increase service speed.”

How do you think the Cypriot economy will perform in the new year? How optimistic are you about its prospects?

The Cypriot economy has shown resilience in recent years despite significant challenges, such as the pandemic and the international economic turmoil caused by the geopolitical developments of recent years.

The new year brings opportunities, but also uncertainty, due to political instability in the region and military conflicts, as well as the effects caused by the continued increase in inflation.

Despite the challenges, I am, however, optimistic that in 2025 the Cypriot economy will continue to grow in key sectors, such as tourism, services, as well as the green transition, sectors which will have a leading role.

Who do you see as the biggest risks to our country's economy? What should be considered in order to ensure its growth trajectory?

Undoubtedly, the Cypriot economy is particularly exposed to international developments due to its dependence on tourism and services, which makes it more vulnerable to potential external shocks from ongoing geopolitical tensions and possible economic instability in the markets.

Furthermore, increases in energy and raw material prices constitute an additional pressure factor, both for businesses and households, burdening operating costs and purchasing power.

Continuing to develop new business sectors, such as technology, innovation and the green economy, will contribute to strengthening the country's economic resilience.

Reducing bureaucracy to facilitate investment and economic activity, as well as developing alternative/renewable energy sources to reduce energy costs, are also crucial to ensuring economic growth in the future.

Foreign investments are extremely important

What should Cyprus do to become an even more attractive destination for foreign investments? And how important, in your opinion, are they for its economy?

I believe that Cyprus already has several advantages as a destination for foreign investment, such as its strategic location, favourable tax system, specialised workforce and its status as an EU member state.

Simplifying bureaucracy to facilitate procedures for operating businesses is crucial for attracting investment.

In addition, there should be a strengthening of existing infrastructure and a strengthening of the legal and regulatory framework to enhance the confidence of investors investing in Cyprus.

Foreign investments are extremely important for a relatively small economy like Cyprus.

Indicatively, I would like to mention that EUROGATE's investment in the container terminal at the port of Limassol created 200 new jobs for the local community and contributed greatly to improving productivity and service to terminal users through know-how and modern container management techniques.

The container management sector

Regarding the Eurogate Container Terminal Limassol sector of activity, how do you estimate it will develop in 2025? Are there any issues that concern you?

The container handling sector is closely linked to the economic development of the country and therefore the positive prospects of the Cypriot economy for 2025 are expected to create further growth in the volume of containers we handle on an annual basis.

However, there are issues that require attention, such as possible supply chain disruptions due to ongoing geopolitical tensions, increased energy prices, the lack of specialized personnel to work in technical and technological fields, as well as new regulations for the green transition that may require additional investments and procedures for the company's operation.

Important trends and changes in 2025

What are the biggest trends/changes you expect to occur in your sector and what are the most significant challenges?

In the field of container handling and port services, we expect significant trends and changes in 2025.

In the first phase, we expect to see how the reorganisations that have taken place or will take place in early 2025 regarding the alliances of major shipping lines (such as MSC, Maersk, Hapaq Lloyd) will affect the existing routes served by the port of Limassol.

Furthermore, due to the increasing investments in ports around the world in digitalisation and automation of processes, it is necessary to intensify our own efforts for further improvement in this area.

In addition, increasing obligations due to regulations to reduce carbon emissions and the introduction of new tariffs on fuels combined with the lack of experienced personnel for technical professions in the labor market remain significant challenges.

With proper preparation and strategic investments, we are confident that we will meet the challenges of 2025, thus ensuring the competitiveness of the port of Limassol, as well as maintaining the services provided at excellent levels of service to the terminal's users.

A strong trend that seems to be taking hold in Cypriot business is that of acquisitions and mergers. Will we see it strongly in your sector as well?

Due to the specificities of the terminal and the management agreement with the Republic of Cyprus, we believe that this trend will not extend to our sector, at least at this stage.

What we expect is a possible readjustment of shipping lines arriving at the terminal due to changes in global alliances/collaborations between them.

The company's strategic development

What can we expect in terms of your organisation's plans and development strategy in 2025? What moves do you intend to make in this direction?

For 2025, our company's strategic development focuses on further improving the services we offer and the efficiency of container management through innovation and technological investments.

The goal is to further gradually automate specific container management and storage processes, in order to reduce our operating costs and increase service speed.

For example, we are planning, among other things, the installation of OCR (Optical Character Recognition) cameras with the ability to identify damage and containers to further improve control and transparency towards port users.

In addition, we are planning a strategic reorganisation of the terminal facilities and areas with the aim of optimising container stacking methods. This is expected to further improve the service offered by the terminal and reduce our operating costs.

We are planning investments in renewable energy sources for our facilities and replacing old machinery to reduce energy costs and the energy footprint of our operations, in order to meet international environmental requirements.

Finally, we will continue to invest in the training and development of our employees to ensure that our staff is fully prepared for the new challenges of 2025.

(Source: InBusinessNews)