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The President of the Republic of Cyprus, Mr. Nicos Christodoulides, in his letters to the heads of these organisations, as he said yesterday evening during a dinner hosted in his honour by the Cyprus Shipowners' Association in Athens.
In his address, the President of the Republic said: "It is with great pleasure that I participate in tonight's event organised by the Cyprus Shipowners' Association. I would like to warmly thank the President Mr. Andreas Hatzigiannis and the Board of Directors of the Association for the opportunity to address the Greek shipping community at a meeting that has become an institution within the framework of the Annual General Assembly of the Cyprus Shipowners' Association.
An Association which has contributed greatly to the development of Cypriot shipping and has consistently and consistently supported the Cypriot Register, and on the occasion of my presence here tonight I would like to express the sincere appreciation and gratitude of the Cypriot state, of all the Cypriot governments over the years, and of myself personally.
The shipping sector is a key contributor to the growth of Cyprus' economy, contributing 7% to the country's GDP, while its contribution to the social and political development of our country is equally important.
As the new Government, I would like to assure you tonight that we remain firmly committed and dedicated to further developing and strengthening the sector and to safeguarding the competitiveness of European shipping. I would like to assure you that we will continue to work tirelessly for a sustainable shipping industry, actively supporting shipowners.
Shipping, as an international industry, is a changing industry with many specificities and is inextricably linked to global political and economic developments. In this very context, the challenges it faces over time are both complex and unpredictable. Green and digital transformation, the war in Ukraine following the Russian invasion, cybersecurity and the lack of trained staff are just some of the current challenges, in addition to the difficulties for almost three years, which emerged during the unprecedented coronavirus pandemic.
At the same time, it has been established that Greek shipping, in particular, has the know-how, has the data to successfully deal with the challenges that arise and adapt to the prevailing conditions, and that Greek shipowners have been trained and learned over time to sail in the most turbulent waters. Without a doubt, this perception is a fact, and I would even add that as Greeks we have learned, and have proven over time, to turn challenges and crises into opportunities.
However, it is my strong belief that global challenges such as those experienced by shipping, and I have mentioned some of them, require collective approaches and international solutions. Cyprus has over time sought and believes in close cooperation between the public and private sectors, in synergies that can be achieved either through research programmes or the exchange of know-how and many other joint actions and initiatives between the executive, the state and all of you. It is precisely in this way, from this perspective, that we approach the relationship with you, and we are confident that with your decisive contribution we will be able to formulate those policies and those actions which, this time too, will successfully address the challenges we face and, by extension, ensure the sustainable development of shipping.
A topical issue that concerns all of you, the maritime community at large, is undoubtedly the carbonisation of shipping and the measures that are being discussed at European and international level to achieve it.
Climate change and the protection of the marine environment are particularly sensitive issues that concern not only Cyprus and Greece, especially Cyprus, which is an island nation with a tradition in shipping. We feel very strongly the duty and responsibility to contribute constructively, effectively and responsibly to the collective efforts being made for the transition to a green shipping. I should note, however, that while any ambitious aspirations are welcome and we generally welcome them, they must at the same time be realistic and feasible, bearing in mind of course that safety must be a non-negotiable condition in whatever is decided.
It is also equally important to ensure a level playing field by establishing and uniformly applying regulations and the legislative framework for the operation of the shipping industry in general. For this reason, as Cyprus we strongly support the work of the International Maritime Organisation, as the competent body for all regulatory issues related to international shipping and we fully support its role as the main international forum for maritime issues affecting the industry at an international level.
Cyprus has been a member of the International Maritime Organisation since 1973 and has been consistently elected to its Council since 1987, an indication and recognition of our role and importance, not only within the Organisation but also in the international maritime community. Remaining firmly committed to achieving the objectives of maritime safety and environmental protection, as well as to improving the living conditions of seafarers on board ships, we as the Republic of Cyprus will continue to contribute actively and effectively to the work of the Organisation in order to effectively fulfil its mission.
I would also like tonight to address the issue of maritime education, another important dimension of the maritime industry, as seafarers are undoubtedly one of the main pillars of the maritime industry. The role of the seafarer has always been decisive and at the same time particularly difficult and demanding, and I am sure that all of you are clearly aware that the ship is a special and peculiar place of work.
Nevertheless, Greek seamanship, a word that encompasses several skills, with a centuries-old tradition that has contributed decisively to the development of Greek shipping, is currently experiencing problems, since, as it turns out, despite the fact that both the Greek-owned and the world fleet is growing, the number of Greek seafarers is, unfortunately, decreasing.
It is my strong belief that it is imperative and we have the obligation and the debt, and from a historical point of view if you like, to work together and invest in education, proper training and the cultivation of education and culture, which are necessary conditions for the sustainable development of this sector that we all want to see progress. The promotion of the maritime profession and the development of maritime culture is also one of our priorities in Cyprus and in this regard the Deputy Ministry of Shipping has drawn up a specific plan of actions and initiatives.
It is quite often pointed out as a common reference, the key role that shipping plays in the supply chain, being an industry that transports almost 90% of global trade, but ignoring or taking for granted the smooth operation of the supply chain until the delivery of the product to the citizen. The recent examples of the pandemic, but also the incident involving the sinking of the Evergreen ship in the Suez Canal, prove exactly the opposite.
In view of this, I believe it is imperative that the geostrategic role and geostrategic importance of shipping be recognised and given the required dimension, especially, I would say, in the context of the European Union. We know that maritime trade is an important pillar in terms of imports and exports from the Member States of the European Union. Typically, 75% of the European Union's external trade is transported by sea and about 40% of the world fleet is controlled by European shipowners.
Because we recognise this importance, the specificity, the geostrategic importance of shipping for the EU itself, I would like to inform you tonight that I recently sent a letter to the President of the European Commission, highlighting the need to strengthen European shipping. In particular, in my letter I highlighted the importance of shipping for global trade and the economy, the sector's huge contribution to the European Union's GDP, and the fact that shipping in general supports millions of families of European citizens.
I also pointed out that, despite its fundamental importance, the European maritime transport sector faces significant challenges, including international competition, protectionism, third country measures, sanctions and many others.
At the same time, in my letter I pointed out that at the level of the European Union, and in particular the European Commission, there is a fragmentation of competences between different services dealing with shipping, which has serious consequences for timely decision-making, competitiveness, the role and size of the European fleet. I concluded that this can be achieved through the creation of a centralised structure at European Commission level, either a specialised Commissioner for Shipping and Maritime Transport or a Vice-President of the Commission with responsibility for coordinating the various Union policies on shipping. A strong Cyprus Registry strengthens the voice of Cyprus, making it a leading player in the formulation of policies related to shipping, with positions and approaches based on timeless values and principles. At the same time, the further strengthening of the Cypriot register will also send a clear message that illegal restrictive measures and violations of international law, as experienced by Turkey since 1987, apart from being unacceptable, do not achieve the results expected by some. In this context, and to refer to something recent, I have written to the Secretary-General of the United Nations, Mr Guterres, asking him, in the event of the resumption of the Black Sea Grain Initiative, to act accordingly in order to ensure that all ships involved in the transport of grain in the region are treated equally and to put an end to Turkey's practice.
I would like to inform you that in his reply to my letter yesterday, the UN Secretary-General states that efforts are continuing to revive the Initiative and that the readiness of Cypriot ships to participate will be brought to the attention of the parties concerned on the part of the International Organization.
The framework of services and advantages provided by the Cyprus Register of Shipping, such as the stable and competitive tonnage tax system, zero registration fees, 24-hour service seven days a week, the specialised knowledge and experience of the human resources, high safety standards, efficiency and flexibility, as well as the reputation of a sovereign flag state member of the European Union, fully meet the needs and operating framework of a modern shipping company. However, the enemy of the good is the best and in this context further simplification and improvement of the services offered is a high priority and is included in my governance programme. In this direction, the development of the One-Stop-Shipping Centre, through the implementation of the legal framework of the Limited Liability Shipping Company, as well as the digitalisation of all services of the Ministry of State with a completion date of 2024, are underway with a specific implementation schedule.
I would therefore like to assure you that we will continue to work tirelessly for the further development and modernisation of Cypriot shipping. I also want you to know that the practical support of the Cyprus Government to the shipowning industry of Cyprus and Greece should be taken for granted, aiming to create the framework and conditions for its further development. And the fact that we have a compatriot of ours at the head of the competent Ministry in Greece is an assurance that the close cooperation in this area will be further strengthened.I am absolutely convinced that with your cooperation and contribution we will be able to achieve the goal of strengthening the Cypriot registry.
Before I conclude, allow me to refer very briefly to the bilateral relations between Cyprus and Greece, two maritime states with a long tradition, which are linked by long-standing historical and fraternal ties based on common values and principles. The close and constructive cooperation that has been established between our countries is a strong guarantee for the achievement of our common goals and it is no coincidence that the first official visit of the Deputy Minister of Shipping, Mrs Marina Hadjimanoli, took place in Athens for a meeting and consultations with the leadership of the Ministry of Shipping and Insular Policy of Greece.
Shipping will be one of the issues to be discussed at the first Cyprus-Greece High Council to be held in Greece on 11 and 12 October, an intergovernmental cooperation body established last March by the Prime Minister of Greece, Mr. Kyriakos Mitsotakis, in the context of our joint efforts to further strengthen our bilateral relations.
Your further support, particularly with regard to the strengthening of the Cypriot registry, is very important for us, considering that it comes from the largest shipowning community in the world and I am glad that lately we have been receiving very encouraging messages in this direction.
I look forward to inviting you to Cyprus next month in the context of the Cyprus Shipping Conference, where we will be pleased to host, among other international shipping personalities, the Secretary General of the International Maritime Organization and the Secretary General-elect, a good friend, who will take up his duties in the new year."
For her part, the President of the Hellenic Republic referred, among other things, to the close relationship between Cyprus and Greece with shipping over time and its importance to the economy and society. I would like to think that this is something that will become a lesson, that we as a society should be concerned about certain behaviours and that it will be completely isolated. She also said that recently Greece was hit by floods and fires, and that she visited both Evros and Thessaly and saw the enormity of the problems, which fortunately in terms of loss of life were few, she said, but for the future of these people, for the country's economy and the environment above all, difficult days await us, she said.
Finally, President Sakellaropoulou appealed to everyone to help the country as much as they can at this time and congratulated the support of the Hellenic Shipowners' Association, while expressing confidence that everyone will help Greece in this difficult time.
Speaking at the event, the President of the Cyprus Shipowners' Association Mr. Andreas Hatzigiannis said: "Tonight's event, dedicated to national shipping, with the particularly honourable presence of the Presidents of Cyprus and Greece, has a historic dimension.
On behalf of the Cyprus Shipowners' Association, with all the leading guardians of shipping, the President of the Union of Greek Shipowners, Mrs Traylou, and the promising young generation present, we welcome you and thank you from the bottom of our hearts.
Your personal journey with the distinct value imprint in public life before you were elevated to the highest office and the prestige enhanced by the prudent exercise of your duties are a valuable asset for Greece and Cyprus. I believe also for the national shipping industry, whose history and role you know well.
We are overwhelmed by the pain of human loss in a tragic way. With a sense of duty towards our fellow human beings and society as a whole, the Union of Greek Shipowners took action so that the shipping family could contribute the sum of 50 million dollars to the victims.
Allow me to borrow the words of Odysseus Elytis. A word that defines us.
"If you dismantle Greece in the end you will find that you will be left with an olive tree, a vineyard and a ship. Which means: with so much more you can rebuild it."
This speech depicts the journey of our nation so far and the future. It is therefore not only a historical speech but also a prophetic one, which highlights a human work, such as shipping, in the orbit of natural creation. This miracle is not of nature, nor was it bequeathed to the Greeks by some fate, but was born by man himself. As if he is reading the identity elements of the pioneers of national shipping who made it a fundamental law of a global operation. Let me mention a fourth T: excellence. With this "near perfection in competition" that the Greeks imposed, they led humanity into a new chapter of its history. Indeed, the pluralistic Greek shipping with about a thousand companies annihilated distances and costs and became the successful model of globalization.
Nevertheless, perhaps because the activity of shipping evolves far from people's everyday experience, its contribution in the analogous dimension has never been evaluated. Perhaps it even remains the great unknown for many who cannot imagine how much their standard of living is interwoven with shipping!
It is enough to consider that more than 90% of everything visible or invisible in our everyday life, or at least the raw material for it, has been transported at least once by ship to reach us! Every person at very little cost is a link in a global chain through which all products, wherever they exist or are produced, can be supplied at the most competitive price to anyone who needs them at any port on the planet. As a result of this, maritime transport has exceeded 13 trillion ton-miles, a volume corresponding to an annual transport of 1,632 ton-miles per person, thus reflecting the dependence of modern man on shipping.
Today, while new leaps are required for shipping, unfortunately, there is an increasing trend towards the subversion of the genetic component of modern shipping. That is, the model of the leading European shipping, with Greek shipping at its core, in the unhindered service of all without exception.
The European fleet is shrinking. Characteristics: of the 10 ships sold, only 3 are bought by Europeans. Major Western banks, already aware of the decline in the competitiveness of European shipping, are withdrawing from financing it. Start-up shipping companies in Europe are an endangered species. The national shipping industry of 1000 companies is already down to less than 600 and has lost the first place it has held since the 1950s. On the contrary, it is thanks to their own ability that shipping is still standing. It is the product of the EU's short-sighted, bordering on unfriendly, policy towards its shipping industry. One example is the unfavourable taxation of shipping with billions under the pretext of emissions trading for relatively negligible greenhouse gas emissions. To get an idea of the magnitude: Based on the results of studies by the EU and the UN itself, the environmental burden of shipping would be completely offset if every person replaced animal protein with plant-based protein just once a quarter.
For this footprint, the EU is imposing an elimination method, the cost of which for shipping, over a horizon of about twenty-five years, is estimated to be between 2.5 and 3.5, I repeat 3.5 trillion dollars. (Einstein). The EU with a pro-environmental objective - I emphasise that we agree with such objectives and have proposed sensible and effective solutions - is, due to a wrong approach, undermining one of its main pillars.
It is treating its shipping industry in a way that leads to it becoming less competitive. Unlike its competitors, the EU, apart from its lack of a 'European conscience' in transport, does not effectively protect its shipping when it suffers and needs its intervention. This is the case when a European ship is in inhospitable environments without democratic guarantees, for example in Iran and elsewhere. A similar top European omission - and I am being lenient - is the continuing ban on Cypriot ships docking in Turkish ports.
Essentially, by ignoring the fact that shipping is inelastic, it leads to its shrinkage and thus its control is transferred to third powers, which, within the framework of a centralised state economy, strengthen their shipping in every way. If the EU does not change its orientation, we are heading for a time when other powers, alien to European competitive standards and democratic ideals, will control shipping, leading Europe, America and the rest of the world into an uneasy relationship of dependence.
Today, European shipping needs "a leap faster than wear and tear" (Elytis). For our part, we continue to take initiatives and intensify our action. Our motto is that "we prefer optimistic actions to pessimistic thoughts". We therefore proceed with optimism, based on the interest already shown by the Presidents Excellencies of Greece and Cyprus. The alliance of such prestigious personalities makes us stronger."
The President of the Cyprus Shipowners' Association presented the President of the Republic and President Sakellaropoulou with faithful copies of the King's sealing ring from the Bronze Age, explaining that "with this ring, the King in 1500 BC validated state agreements. It depicts a religious scene with a manned ship of the period. The driving force of ancient Greek civilization was the ship, which crossed the seas, carrying goods, people and ideas. The Greeks knew no boundaries in their travels, just as they knew no boundaries in their thinking. Cyprus for over 3000 years dominated the seas, says the historian Pliny. In the middle of the 9th century it was a sea queen for the time fleet."
At the event, the President of the Republic was accompanied by his wife Mrs. Philippa Karsera Christodoulides, while the members of the Cypriot delegation included, among others, the Minister of Foreign Affairs Mr. Constantinos Kompos, the Government Spokesman Mr. Constantinos Letibiotis, the Deputy Minister of Shipping Ms Marina Hadjimanoli and the Director of the Office of the President of the Republic Mr. Charalambos Charalambous. Christos Stylianides.
(PM/MB)
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