The Republic of Cyprus is in contact with neighbouring countries to explore cooperation in the logistics sector, President Nikos Christodoulides ha said, announcing that government plans also include the development of dedicated logistics and storage zones near the airports in Larnaca and Paphos.
Addressing an event in Nicosia, President Christodoulides said geopolitical developments in the Eastern Mediterranean and the wider region highlighted Cyprus' potential to strengthen its position as a regional logistics hub.
He said the crisis in Israel following the 7 October terrorist attack, developments in Gaza, to which the Republic of Cyprus responded by establishing the Amalthea Initiative, a humanitarian maritime corridor, and the ongoing crisis in the Gulf countries and the Strait of Hormuz, had further underscored the role Cyprus could play in regional supply chains.
"We are already in contact with several neighbouring countries to explore how we can create synergies and respond to these developments," he said, adding that the objective is to capitalise on two of Cyprus' main comparative advantages: its geographical location and its excellent political relations with neighbouring countries.
The President stressed that the importance of supply chains for Cyprus extends beyond their economic contribution, as reliable logistics are a necessity for an island nation. He noted that the supply chain and business operations sector is a key pillar of the government's efforts to strengthen Cyprus' connectivity with international markets.
In an environment characterised by multiple challenges and uncertainties, he added, the uninterrupted movement of goods and services, together with businesses' ability to respond quickly and flexibly, is becoming increasingly important. Referring to the government's plans, President Christodoulides said efforts are underway to establish a modern logistics network integrated with the country's ports and airports.
"Our plans include, among other things, the development of dedicated logistics and storage zones near Larnaca and Paphos airports," he said. At the same time, the government is pursuing further improvements to port infrastructure, with the development of Vasiliko Port and the utilisation of Larnaca Port forming part of its broader efforts to upgrade facilities supporting economic and commercial activity.
According to the President, strengthening the logistics sector forms part of the government's wider strategy to build a more outward-looking and competitive economy, while further positioning Cyprus as a reliable business and trading partner and a regional hub in the Eastern Mediterranean. He also highlighted the importance of innovation, technical expertise and the adoption of modern practices in improving efficiency, containing costs and generating greater added value for businesses and consumers. These capabilities, he noted, also support the government's efforts to attract foreign investment.
President Christodoulides linked the contribution of the business community to the performance of the Cypriot economy, saying that despite the impact of two wars, the country is recording economic growth exceeding 3.3%. He also noted that public debt, which stood at approximately 70% of GDP when the current government took office, had fallen below 50%, while unemployment had reached levels not seen since 2008, describing the labour market as operating under conditions of full employment.
The President also referred to Cyprus' return to the 'A' credit rating category by international rating agencies, noting that the country had last held such ratings in 2011. He said these achievements also reflected the contribution of Cypriot businesses, whose role the government recognises and values.
President Christodoulides stressed that recognising entrepreneurial initiative, creativity and professional excellence is a key priority of his administration. Behind the sector's achievements, he said, are professionals, businesses and organisations investing in knowledge, seeking innovative solutions and continuously striving to improve their performance.
Concluding, he reaffirmed the government's commitment to supporting entrepreneurship and creating a more favourable business environment by reducing bureaucracy and removing obstacles, with the aim of strengthening economic growth, international competitiveness and outward-looking business activity.
A strong economy, he added, enables the state to invest in other areas where it has a leading role to play.
(Source: CNA)
