2022-2023 Cyprus Country Report

CYPRUSCOUNTRY REPORT 2022
PORTS AND SHIPPING
The 2017 commercialisation of the country’s largest port in Limassol marked a new
era for Cyprus as a commercial hub. The port privatisation came in the context of
the first discovery of natural gas in 2011, the launch of the €300 million VTTV oil trading
terminal in 2014, and a dedicated Shipping Deputy Minister in 2018. The privatisation
deal with Eurogate International GmbH and leading Emirati logistics giant DP World
Limited is expected to boost state coffers with €2 billion over the next 25 years, while
the new port operators have injected millions in upgrading services and infrastructure.
The more recent contract for the Larnaca
port and marina was signed with
a Cypriot-Israeli consortium, Eldeman
Holding BV and Alexandrou Corporate
Services Ltd, in late 2020 and is expected
to attract around €1.2 billion in construction
and real estate development – making
it one of the biggest infrastructure investments
to date in Cyprus.
One of Cyprus’ most successful export
services has been the maritime industry.
The growth of Cyprus’ resident shipping
sector over the past 50 years has developed
IThere has been a fivefold
increase in the number of
shipping companies that have
registered with Cyprus’
specialised shipping
taxation system
boosting the sector’s
revenue by around 25%
a strong maritime cluster that caters to the
needs of Cyprus-based companies, including banking, professional services, insurance
and IT. The cluster is consistently attracting more quality tonnage and shipping-related
companies to its shores. Between 2010 – when the Cyprus tonnage tax system was
approved by the European Commission – and 2021, there has been a fivefold increase
in the number of shipping companies that have registered with Cyprus’ specialised
shipping taxation system, boosting the sector’s revenue by around 25%.
34