I have recently come across a table published by Lloyds Registry which shows a ranking of the 15 EU Member States in terms of their strength in commercial shipping. In this list Greece appears to be first with 25.22 million GT. Germany comes second with 8.08 million GT, Italy third with 6.82 million GT, the Netherlands fourth with 4.26 million GT and the UK fifth with 4.09 million GT. Had Cyprus been a full member of the EU it would have come second on the list with 23.7 million GT. This means that Cyprus and Greece taken together would own, manage and control more than 50% of the commercial fleet of the EU.
Cyprus is not yet a full member of the EU but its accession process is going smoothly and hopefully it will become a full member by the year 2003. However, is it likely that Cyprus shipping will be by then as strong as it is today? In answering this question, unfortunately there is no reason for being optimistic. Only a few years ago Cyprus was ranked third amongst all the International Registries. The years passed, and Cyprus found itself sliding gradually into sixth position, where it is today. Moreover, there is a tendency of further decline, and one has to fear, that by the year 2003 Cyprus will have to be deleted altogether from the list of nautical powers.
What are the causes for this course of Cyprus shipping? Are there any ways to correct this course? There are three main reasons for the decline of Cyprus shipping which can be summarised as follows.
The first reason relates to a fallacy which Cypriot Officials have fallen victim to. It is the fallacy that Cyprus cannot joint the EU without sacrificing its maritime sector altogether or at least in its present form. This misconception has translated into certain measures and actions from Government officials, such as exertion of pressure on shipowners whose vessels are flying the Cyprus flag, lack of promotion of the Cyprus Register and issuing of false statements.
The second reason is the absence of any official Government shipping policy. The Government of the Republic of Cyprus through the Minister of Communications and Works should have taken this matter very seriously indeed and should have laid down a detailed policy with short and long term targets as well as a strategic action plan to reverse the current decline of Cyprus shipping. Such a policy could provide for the upgrading of the Cyprus flag, incentives to attract newly built and quality tonnage and for promoting and strengthening the role of Cyprus as a regional shipping centre. Such a policy could also focus on an enhanced role of Cypriot shipowners as there cannot be "Cyprus shipping" and "Cyprus flag" without Cypriot shipowners.
The third reason is the current situation of the Department of Merchant Shipping which prevents it from functioning properly and discharge its duties. This department should be re-organised and set specific targets by the Minister of Communications and Works who for this purpose should spell out his own vision for Cyprus shipping in the years to come. The Department of Merchant Shipping is the mirror of Cyprus shipping and it should reflect a friendly, positive and at the same time objective picture to the public at large.
What should be done? There is no doubt that the accession negotiations with the EU will be lengthy and tough, especially as regards certain sectors of the Cyprus economy, such as the offshore and the shipping industry. Admittedly, there are certain controversial being raised by some countries over these two sectors, which although ultimately unjustified, are understandable. However, no country nowadays can afford to withdraw from lucrative sectors involving international business or shipping activities. Luxembourg for instance, is trying to promote and develop its ship registry and shipping sector although it does not have access to the high seas. What has been said above, I strongly believe gives us ample reason to stand firm and defend our position and rights. We have to do our homework and prepare ourselves on all matters, thoroughly and not only superficially. We shall sit at the negotiating table with the EU ready and willing to enter into constructive discussions but at the same time have to be determined to protect shipping and all the other cornerstones of our economy. Do we have to remind our future partners that Cyprus is an island, which through its long history has always been a major shipping centre in this strategically important area of the world at the crossroads of the continents of Europe, Asia and Africa?
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