2023 Doing Business in Cyprus (India Edition)
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DOING BUSINESS C YPRUS<br />
28<br />
INDIA EDITION<br />
PORTS AND SHIPPING<br />
The 2017 commercialisation of the country’s largest port <strong>in</strong> Limassol marked a<br />
new era for <strong>Cyprus</strong> as a commercial hub. The port privatisation came amidst the<br />
first discovery of natural gas <strong>in</strong> 2011, the launch of the €300 million VTTV oil trad<strong>in</strong>g<br />
term<strong>in</strong>al <strong>in</strong> 2014, and a dedicated Shipp<strong>in</strong>g Deputy M<strong>in</strong>ister <strong>in</strong> 2018. The privatisation<br />
deal with Eurogate International GmbH and lead<strong>in</strong>g Emirati logistics giant DP World<br />
Limited is projected to boost state coffers with €2 billion over the next 25 years, while<br />
the new port operators have <strong>in</strong>jected millions <strong>in</strong> upgrad<strong>in</strong>g services and <strong>in</strong>frastructure.<br />
Larnaca port is expected to have a new term<strong>in</strong>al by 2027. The contract for the Larnaca<br />
IThe growth of <strong>Cyprus</strong>’ resident<br />
port and mar<strong>in</strong>a was awarded to Kition<br />
Ocean Hold<strong>in</strong>gs Ltd, a Cypriot-Israeli<br />
consortium compris<strong>in</strong>g Eldeman Hold<strong>in</strong>g shipp<strong>in</strong>g sector over the<br />
BV and Alexandrou Corporate Services<br />
past 50 years has developed<br />
Ltd, <strong>in</strong> late 2020 and Phase 1 works will<br />
beg<strong>in</strong> <strong>in</strong> 2024. The mar<strong>in</strong>a is expected to a strong maritime cluster<br />
attract around €1.2 billion <strong>in</strong> construction<br />
that caters to the needs of<br />
and real estate development – mak<strong>in</strong>g<br />
it one of the biggest <strong>in</strong>frastructure <strong>Cyprus</strong>-based companies,<br />
<strong>in</strong>vestments to date <strong>in</strong> <strong>Cyprus</strong>.<br />
<strong>in</strong>clud<strong>in</strong>g bank<strong>in</strong>g, professional<br />
One of <strong>Cyprus</strong>’ most successful export<br />
services has been the maritime <strong>in</strong>dustry, services, <strong>in</strong>surance, and IT.<br />
which now has a dedicated Deputy<br />
M<strong>in</strong>istry of Shipp<strong>in</strong>g. The growth of <strong>Cyprus</strong>’ resident shipp<strong>in</strong>g sector over the past 50<br />
years has developed a strong maritime cluster that caters to the needs of <strong>Cyprus</strong>-based<br />
companies, <strong>in</strong>clud<strong>in</strong>g bank<strong>in</strong>g, professional services, <strong>in</strong>surance, and IT. The cluster<br />
is consistently attract<strong>in</strong>g more quality tonnage and shipp<strong>in</strong>g-related companies to<br />
its shores. Between 2010 – when the <strong>Cyprus</strong> tonnage tax system was approved by the<br />
European Commission – and 2021, there has been more than a fivefold <strong>in</strong>crease <strong>in</strong> the<br />
number of shipp<strong>in</strong>g companies that have registered with <strong>Cyprus</strong>’ specialised shipp<strong>in</strong>g<br />
taxation system, boost<strong>in</strong>g the sector’s revenue by around 25%. Also, a new limited
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