It gives me great pleasure to address the “Maritime Cluster of Eastern Mediterranean Conference” which is organised by the Maritime Institute of Eastern Mediterranean. I would like to welcome all of you and especially those who came from abroad.

It is well known that Cyprus ranks among the largest international ship registries in the world. But unlike other open registries, Cyprus is also a major base for international shipping operations and for other activities related to shipping. Actually, a maritime cluster has been developed, a large part of which was established with foreign investment. The nucleus of this cluster comprises shipowning and shipmanagement companies which own or manage more than 2000 ships of 30 million Gross Tonnage which amount to more than 5 percent of the world’s merchant fleet. Around them, more than 100 companies have been established with shipping related activities ranging from marine insurance, ship chartering, ship broking, financial services, equipment suppliers and telecommunications, to port services, transhipment operations, shipping agents, ship chandlers and ship bunkering. This combination makes Cyprus unique among open registries and offers business opportunities beyond mere ship registration.

Merchant shipping is a business sector for which Cyprus is proud of. It represents an invaluable asset for Cyprus with significant political and economic advantages. At the same time, Cyprus has established itself as a quality registry. The Government’s maritime policy is based on three pillars: quality, competitiveness and reliability. Cyprus maintains a high quality fleet and the effective implementation of the internationally applicable safety, security and environmental protection standards, is the foundation on which it builds its reputation as a respectful maritime flag and as a base for international operations. The implementation of a series of legislative and administrative measures for the enhancement of maritime safety and security which are in line with the European legislative framework and the objectives of the local shipping industry, are the factors enabling Cyprus to maintain the “White List”-status in the flag assessment systems on port state control.

Cyprus, in its effort to adapt continuously to the rapid international developments and to the stiff international competition, needs to follow modern approaches, which the shipping environment dictates and that are essential for its uninterrupted growth. The Ministry of Communications and Works through the Department of Merchant Shipping, continuously improves and updates the incentives offered to shipping entrepreneurs, and explores new ones, ensuring that Cyprus’ attractiveness and competitiveness as an international shipping centre are safeguarded.

The new tonnage tax system for Cyprus shipping adopted in 2010 and now fully deployed, extends the benefits applicable to owners of Cyprus flag vessels and ship managers, to owners of foreign flag vessels and charterers.

The system provides Cyprus with a competitive advantage and is expected to improve the already strong position of the country in the shipping world and to promote it both as an international ships registry and a high quality maritime centre. At the same time, it secures a long term stable fiscal environment for Cyprus shipping. This, in fact, provides new impetus for the whole shipping industry of the island and creates great prospects for future growth.

It is with great concern, however, that we have been witnessing a rapidly deteriorating situation with pirate activity in the high risk areas of the Indian Ocean and the West of Africa. In this respect, the Department of Merchant Shipping has prepared a comprehensive new legislation to help counteract unlawful acts against Cyprus flag ships. The enacted law is a pioneering legislation establishing the required legislative framework allowing the use of armed personnel on board Cyprus flagged vessels, in a regulated manner, when these vessels are sailing through high risk areas.

Cyprus strongly supports the further development of the EU Integrated Maritime Policy (IMP) in an effective way. To this effect, Cyprus has decided to place IMP as part of the strategic priorities of the Cyprus Presidency to the Council of the EU. This priority will be highlighted through an Informal Ministerial Meeting on EU-IMP to be organised in Cyprus in October.

This Meeting will be a follow up to the one organized by the Portuguese Presidency in Lisbon, in October 2007, and it will be addressed by the President of the Republic of Cyprus, Mr. Demetris Christofias, the President of the European Commission, Mr. Jose Manuel Barroso, and the Commissioner for Maritime Affairs and Fisheries, Mrs. Maria Damanaki.

The said Meeting will highlight the importance of the Integrated Maritime Policy by attempting to “re-energize” this policy through the examination and adoption of a political Declaration in order to create the framework for a new drive for the further development and implementation of this innovative cross-cutting policy.

The “Limassol Declaration” which we aim to make the milestone for the future development of EU-IMP will focus on the "Blue Growth” initiative that aims to stimulate growth, jobs and competitiveness from marine and maritime sectors, which represent a source of untapped economic potential that is vital for Europe’s future and its economic recovery. It will also emphasize the importance of EU member states to enhance sectoral and cross-sectoral cooperation with third countries sharing a sea basin with the EU, in line with the legal framework set out by the United Nations Convention on the Law of the Sea (UNCLOS), thus increasing the potential for sustainable growth perspectives from the oceans, seas and coasts. The “Limassol Declaration” will be submitted to the Council for further examination and adoption of formal Council Conclusions, in view of the General Affairs Council in December 2012.

Ladies and Gentlemen,

Our aim is not just to maintain Cyprus´ leading role in the world shipping, but to further develop and upgrade Cyprus shipping. Our ambition is to be a step ahead of competition at any time, both as an international registry and as a base for international shipping operations.

Concluding, I would like to wish you all a very productive Conference and a pleasant stay in Cyprus.

Thank you.