Cyprus is ideally positioned to develop into a regional logistics hub

At a time when companies around the world are redesigning their supply chains, Cyprus, located at the crossroads of three continents, is ideally positioned to develop into a regional logistics hub.

Transport and logistics infrastructures are among Cyprus’ most important comparative advantages as an investment destination, according to the Danos Cyprus Real Estate Market Report for the 2nd Semester of 2022.

“The drastic changes brought about by innovation and technology, with the catalytic impact of the pandemic, has directly affected business models, the production chains that support them, as well as logistics, which are a fundamental element of these processes,” says the report. “In recent years, supply chains have experienced the greatest disruption in their operation since World War II. In order to maintain and develop its competitiveness, the industry must respond by optimising time and resources and making significant investments in innovation.”

As an island nation, Cyprus relies heavily on its transport links via extensive air connections and its sophisticated multipurpose ports, which are crucial to export and import activities.

“Conveniently located, Cyprus is easily accessed with minimum diversion from the main arterial routes,” the report explains. “This coupled with the country’s good infrastructure and pro-business stance has boosted its status as a prominent regional base for cost-effective cargo transport and processing.”

Cyprus’ potential as a transhipment hub is also becoming evident, as manufacturers and distributors are starting to realise that while the island’s economy itself may be small, “it is only an hour’s flight from 200 million potential customers and a four-hour flight from over 2 billion people”, says Danos.

And following the discovery natural gas reserves in its waters, the island has attracted some major global players; “including ExxonMobil, ENI, Shell and Total who have chosen the island as the natural service centre for their regional operations, taking advantage of Cyprus’ specialised logistics and port services for this growing industry”.