According to a leading shipowner shipping companies in Cyprus, whose merchant fleet is the third biggest in the EU and eleventh in the world, are ready for the challenge of the new sulphur cap on emissions coming into force from January 2020, says an article published in the Financial Mirror
Ready for Change?
George Mouskas, chairman of the Cyprus Union of Shipowners and Managing Director Zela Shipping, said: “Cyprus shipping companies are ready for the change, many have chosen to install scrubbers and some are in the final stage which may take one or two more months, while others are ready to use the new fuel with lower sulphur as this is introduced to the market.”
His enthusiasm was echoed by Deputy Shipping Minister Natasa Pilides, who said on the sidelines of the press launch for the 16th Maritime Cyprus Conference next month that “as a state, we are ready for the change. What we will do is increase the inspections to ensure ships conform with the new emission levels.”
“It is not for us to decide how the measure is introduced. The [shipping] companies have taken their own decisions, whether to install scrubbers or to adopt the new compatible fuels. The biggest question for them is what is the cost of this change and how this will impact their competitiveness.”
Tax Reform To Aid It
Pilides said a new tax reform package, that has been discussed for nearly a year and a half and has reached the final stage of consultations with the European Commission, should also boost the competitiveness of the Cyprus Register.
She said that Cyprus has to go the extra mile with incentives as other rival registries are not hampered by the ongoing embargo on Cyprus-flag vessels imposed by Ankara on ships entering Turkish ports.
“The tax package should be ready by the end of the year,” she said, adding that initial changes, such as abolishing the registration fee of up to €5,000 per cargo vessel and higher in the case of passenger ships, has already attracted interest in the Cyprus flag.
So far, the Cyprus-flag fleet has grown by 3.5% to date this year, with encouraging factors being insecurities surrounding Brexit and other incentives.
Cyprus-based shipping companies currently number 215, while revenues from shipmanagement grew by 9% last year, maintaining the maritime cluster’s contribution to the national output at a steady 7% of GDP.
Incentives for Eco-friendly Vessels
Pilides said new incentives for eco-friendly vessels, whether adopting LNG as a fuel or driven by hybrid or all-electric engines, are being studied and will be considered in the renewed tax regime that will be introduced “within 2-3 months.”
Thomas Kazakos, Director General of the Cyprus Chamber of Shipping, that has been around for 30 years when the first Maritime Cyprus conference was held in 1989, said that environmental issues, emissions and incentives have been at the heart of the industry’s evolution.
Shipping Expects Steady Growth
“Shipping accounts for nearly 90% of all commerce transported and is the least polluting mode of transport. For many years, our industry has been at the forefront of introducing efficient and environment-friendly systems in collaboration with operators and regulators.”
Regarding the reformed tax package and other incentives, Kazakos said: “We do not expect a surge in registrations overnight, but we expect to have a steady and continuous growth.”
He said the conference, to be held on October 6-9 will see the industry taking decisions “as the heart of international shipping will be beating in Limassol.”
The 800 or so delegates at the conference, with the theme “Sea Change”, will be discussing and debating a wide range of issues, such as regulation, the new landscape for shipowners, competitiveness and environmental protection, the blue economy, technological advancement, trends in chartering, ship finance, as well as a dedicated workshop for young professionals in the maritime industry.
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Source: Financial Mirror
