"Our vision is clear: to further strengthen Cyprus as a leading, sustainable and future-ready maritime hub," Shipping Deputy Minister Marina Hadjimanolis notes, outlining the pillars the government is focusing on to maintain this positive trajectory- competitiveness, quality and compliance and maintaining a strong voice in international shipping fora.
In a recent interview with GOLD magazine, Hadjimanolis also discusses the challenges facing the local maritime community, the global need for ‘‘safe harbours’’ like Cyprus, and the challenges of upskilling and keeping pace with technological advancements.
Among other things, the Deputy Minister notes, "Digital transformation is no longer optional in shipping. It is essential. The sector is becoming increasingly data-driven, interconnected and technology-dependent, and Cyprus is determined to remain at the forefront of this transition."
Cyprus has registered some major achievements in shipping recently, having been re-elected to the IMO Council last November and experiencing 20% growth of its ship registry in just two years. What can be done to maintain this trajectory?
Cyprus’ re-election to the IMO Council and the strong growth of our registry are clear indicators of the international confidence placed in Cyprus as a quality maritime centre. These achievements are not accidental; they are the result of a long-term strategy based on stability, credibility and continuous reform.
To maintain this positive trajectory, we are focusing on three key pillars. First, competitiveness. Cyprus offers one of the most attractive and transparent shipping frameworks in Europe, supported by our approved Tonnage Tax System, a strong legal framework and a highly specialised maritime services cluster. We are continuously reviewing our policies to ensure that they remain responsive to the needs of shipowners and investors.
Second, quality and compliance. Our priority is not only growth in numbers but sustainable growth with quality tonnage. We remain fully committed to high safety, environmental and governance standards, while actively supporting the industry’s transition toward decarbonisation and greener operations.
Third, Cyprus has a strong voice in international shipping fora, particularly at IMO and within the EU. Our active participation allows us to contribute to policy shaping and to ensure that the interests of both Cyprus and global shipping are represented effectively. Also, we continue to invest in human capital, maritime education and innovation, because the future of shipping depends not only on ships but on people and knowledge. Our vision is clear: to further strengthen Cyprus as a leading, sustainable and future-ready maritime hub.
How has Cyprus aligned its strategies with the latest EU regulations on greener shipping, while remaining a competitive market?
I would say that Cyprus approaches the green transition in shipping with both ambition and realism. The EU Emissions Trading System (EU ETS), FuelEU Maritime and Alternative Fuels Infrastructure Regulation (AFIR) are now shaping the operating environment for European shipping. For us, the key point is that both EU ETS and FuelEU Maritime are flag-neutral. They apply to ships calling at European ports, regardless of the flag they fly, so this is not a question of the Cyprus flag being treated differently. It is a wider European and international competitiveness issue. However, in general we prefer global measures to be taken at IMO level instead of applying regional measures. Our role as Cyprus is, therefore, to ensure that our shipping sector is fully prepared, while at the same time safeguarding its competitiveness. This means modern legislation, efficient administration, digital services and close cooperation with shipowners, managers, ports and the wider maritime cluster.
As I have said in previous interviews, Cyprus is a quality shipping centre. We want to remain attractive, not by lowering standards but by offering reliability, expertise, compliance and practical support to the industry. At the same time, we strongly believe that the green transition cannot be achieved only through obligations and additional costs. It must also be supported by investment. That is why the provisions under EU ETS and FuelEU Maritime for revenues and penalties to support decarbonisation through EU investment funds are very important. These funds must help close the cost gap for alternative fuels, new technologies, energy-efficiency solutions and port infrastructure.
AFIR is equally relevant, because ships cannot become greener if ports do not have the necessary infrastructure, including shore-side electricity and alternative fuel availability. So, Cyprus’ strategy is balanced: we implement EU rules, we support innovation and sustainability but we also continue to argue for a realistic, technology-neutral and globally competitive framework for European shipping.
Digitalisation, cybersecurity and technological advancements, including the launch of the CYSh1P digital portal, have become key in the sector. How do you view these developments? Is Cyprus on track to keep pace and are their more tech advancements on the horizon?
Digital transformation is no longer optional in shipping. It is essential. The sector is becoming increasingly data-driven, interconnected and technology-dependent, and Cyprus is determined to remain at the forefront of this transition. The launch of the CYSh1P digital portal is a major step in this direction. It reflects our commitment to simplifying procedures, improving efficiency, reducing administrative burdens and enhancing transparency for shipowners, managers and all maritime stakeholders. It is part of our broader vision to build a smarter and more responsive maritime administration.
Cybersecurity is equally critical. As vessels and port operations become more digitally integrated, cyber resilience becomes a matter of operational continuity and safety. We are working closely with industry stakeholders, European institutions and international partners to strengthen preparedness and awareness in this area. Cyprus is on the right track but digitalisation is a continuous process. We are already looking ahead at further advancements, including the enhanced automation of registry services, better use of data analytics and stronger integration with European maritime digital systems. Our goal is simple: to ensure that Cyprus remains not only a competitive flag and maritime centre but also a modern and technologically advanced one.
Globally, a need for upskilling has been observed in shipping. How is Cyprus investing in maritime education and skills development?
The need for upskilling in global shipping has never been more evident. Shipping today is at a defining moment, shaped by the green and digital transitions, growing operational complexity and heightened geopolitical uncertainty. These challenges make one fact unmistakably clear: the future of shipping depends, above all, on the people who operate and sustain it.
Cyprus has long recognised investment in maritime education and skills development as a strategic priority. At a national level, we are continuously strengthening maritime education and training frameworks, as well as promoting lifelong learning, ensuring that seafarers and maritime professionals are equipped with the skills required for a technologically advanced, safe and sustainable industry. Our objective is not only to respond to today’s needs but to anticipate tomorrow’s demands, while keeping maritime careers attractive to younger generations.
These national efforts are strongly reflected at a European level through the priorities of the Cyprus Presidency of the Council of the European Union. One of our key goals is to reinforce the human dimension of maritime policy, placing people and skills at the heart of Europe’s maritime competitiveness, resilience and strategic autonomy. In this context, the Nicosia Declaration, endorsed and signed by EU Ministers responsible for Maritime Affairs during the Informal Ministerial Council held on April 29, sends a clear and unified political message. It places people at the centre of maritime policy and commits to strengthening seafarers’ education and training, promoting reskilling and upskilling in view of the green and digital transitions, encouraging maritime professions and advancing the equal participation of women in the sector.
Complementing this political commitment, the High‑Level Ministerial Stakeholders Conference on Seafarers, held under the Cyprus Presidency on 28 April, provided a platform for meaningful dialogue between policymakers, industry leaders, social partners and international organisations. The conference highlighted that investing in education, training and wellbeing is not simply a policy choice but a strategic necessity for a resilient and sustainable global shipping sector. Our message is clear: supporting, training and empowering seafarers means investing in the future of shipping itself. Through coordinated national action and strong European cooperation, Cyprus is working to ensure that the maritime workforce of tomorrow is skilled, resilient and ready to navigate the challenges ahead.
Given Cyprus’ strategic location in the Eastern Mediterranean, how do you see its role evolving in global trade routes? How have recent geopolitical tensions impacted shipping activity and strategy?
Cyprus has always been of strategic importance due to its geographic location. In today’s global environment, this is becoming even more significant. As supply chains evolve and global trade routes face increasing disruption, reliability and regional stability become critical factors. Cyprus offers both. Our location, combined with our EU membership, strong maritime infrastructure and high-quality professional services, makes us a natural hub for shipping operations, shipmanagement and regional maritime support. Recent geopolitical tensions in the Eastern Mediterranean, the Red Sea and the wider region have undoubtedly created uncertainty for global shipping. Route diversions, security concerns, increased insurance costs and operational risks have all affected the industry.
In this context, Cyprus plays an important role as a stable and trusted partner. We work closely with international organisations, the EU and industry stakeholders to support safe navigation, freedom of trade and maritime security. At a strategic level, these developments have reinforced the need for resilience, diversification and preparedness. Cyprus is adapting by strengthening its institutional capacity, supporting shipowners facing operational challenges, and ensuring that our maritime policy remains flexible and responsive. Rather than diminishing Cyprus’ relevance, these global challenges highlight the importance of having dependable maritime centres that can provide certainty in uncertain times. Cyprus is definitely one of them.
The Greece–Cyprus ferry service has now entered another season under state support. At what point do you expect the route to become commercially viable without subsidies?
The passenger maritime link between Cyprus and Greece constitutes a particularly important piece of strategic infrastructure, with a strong social and economic dimension, as it offers a meaningful alternative to air travel. However, in order to become sustainable, commercially viable and permanent, it cannot rely indefinitely on annual state subsidies alone, so it requires a comprehensive, multi-dimensional approach and a strategic redesign. First and foremost, strengthening demand is crucial. The route should be more actively integrated into the tourism offering through targeted promotion in markets such as Cyprus, Greece and other international markets. The development of thematic forms of tourism – medical, religious, sports, etc. – as well as road trips and family packages, along with partnerships with tour operators, can significantly increase occupancy rates.
At the same time, strengthening the freight component of the route is equally critical. The transport of vehicles and cargo can ensure stable revenue throughout the year, reducing seasonality and enhancing the route’s sustainability. In addition, regional networking through connections with neighbouring countries, such as Israel and Egypt, as well as the inclusion of intermediate stops – for example on Aegean islands – could attract passengers from the wider region, significantly increasing occupancy rates. At the same time, maintaining competitive fares and investing in service quality will help establish the route in the public’s mind. Furthermore, the use of more efficient vessels and the adoption of green technologies can reduce operating costs in the long term, while potentially securing European funding. Ultimately, commercial viability and sustainability will depend on the route’s ability to build a loyal customer base that can justify its operation under free-market conditions, effectively transforming a socially supported service into a profitable tourism and transport activity.
This interview first appeared in the May edition of GOLD magazine. Click here to view it.
