Before Pesident of the Republic of Cyprus Tassos Papadopoulos pay a state visit to China on Dec. 4-8, Mr. Harris Thrassou, the Minister of Communications and Works of Cyprus received an interview from reporters of People's Daily and Global Times at his office in Nicosia. Below is an edited transcript of the interview.
Mr. Harris Thrassou (R) and Liu Shuiming
Question: What efforts have been made by your government to develop the communications industry in the last few years?
Answer: We are very proud in Cyprus for succeeding in maintaining an excellent telecommunication infrastructure. The fixed and mobile infrastructures are constantly being upgraded and developed to ensure that coverage and quality are optimized. According to Leaders Magazine Cyprus ranks third in the world in terms of modern telecommunications facilities. Beside this, Cyprus exploits successfully its strategic location, since it is located at the crossroads of Europe, Asia and Africa, through its excellent satellite and submarine cable infrastructure.
Moreover the electronic communications environment in Cyprus is fully liberalized and fully harmonized with the regulatory framework of the European Union. Competition is nowadays a reality, there is a second mobile operator (GSM/UMTS) providing services, various broadband and multimedia services are available, and private companies are activated in the field of fixed and international telephony. Further measures are considered in the framework of EU plans to boost competition among telecom operators and to build a single market for electronic communication services. Specifically, we are taking steps to remove all unnecessary regulatory restrictions in order to facilitate investment, support entrepreneurial initiatives and encourage innovation in all types of infrastructure and services. We seek to provide a complete range of services so as to further enhance the reputation of Cyprus as a centre of excellence for e-commerce and telecommunications.
Furthermore special emphasis is being placed on the establishment of various broadband and multimedia services, which promise to be a dominant business activity in the next decade and facilitate the creation of high paying jobs, through the promotion of investments by local and international companies. Cyprus has developed a program for the introduction of new technologies and the establishment of an information society for all. For this purpose, we have started the process for authorizing wireless access systems (WAS) and terrestrial digital TV networks (DVB-T). We believe that, the integration of new technologies into the fabric of economic activity and the creation of the required climate will enable the establishment of new businesses, offering high quality services at affordable prices.
Question: Are there any project or plans for cooperation on the industry of communications, electricity, irrigation or any other infrastructures between Cyprus and China?
Answer: The relations between Cyprus and the China are already very strong, taking into account imports, exports but also tourism. We would like to extent this relation and into matters concerning technology and communications. The China is a pioneer in electronic communications and in the field of technology and we have a lot to gain by a possible cooperation between our countries. We can take advantage of your expertise in the field of technology and electronic communications, especially now that we are trying to introduce emerging technologies into Cyprus. Also we would like to encourage China investors to get involved with the Cyprus telecommunication market. A possible investment by big China companies will be very beneficial for the telecom sector in Cyprus.
As it was mentioned before special emphasis is being placed on the establishment of various broadband and multimedia services, which promise to be a dominant business activity in the next decade and facilitate the creation of high paying jobs, through the promotion of investments by local and international companies. International companies, including Chinese investors, will have the opportunity to invest in emerging markets like wireless access systems (WAS) and digital terrestrial television (DVB-T) offering this way better and new services to the people of the wider region and strengthening the position of the country in the global economy.
Furthermore since the electronic communication environment in Cyprus is fully liberalized all the telecom companies in the private and semi-governmental sector have the right to cooperate with any foreign company they wish, including companies from China. The government encourages and supports any initiative that will lead to any cooperation between Cypriot and foreign companies and we are taking steps to remove all unnecessary regulatory restrictions in order to further facilitate investment and entrepreneurial initiatives in all types of infrastructure and services.
Question: The shipping industry in Cyprus is highly developed. What progress have you made in recent years? How is the cooperation with China going on?
Answer:
Port Industry
Cyprus, as a small island state with an important geographical position in the southeast corner of Europe, has developed a dependence on maritime transport in order to maintain links with Europe and other countries as well as serve the Asia-Europe maritime trade, including the increasing traffic from China.
The important role of China in world trade and specifically the increasing traffic of containerized cargo from China to Europe through the Mediterranean region, creates on the one hand opportunities for Cyprus ports in the field of expanding the number of cargo, especially the transhipment trade that is handled and on the other hand it creates the need for new development programs aiming towards satisfying the ever demanding needs of the industry and towards improving and modernizing the ports' infrastructure.
To this end, Ministry of Communications and Works initiated a port infrastructural development program in order to provide effective and reliable services that will assist the organization in regaining its role as an important regional hub centre for large shipping companies that operate in the East Mediterranean region.
Since the establishment of the Cyprus Ports Authority, the port sector of Cyprus experienced a substantial increase in size, acquired specialised facilities for the handling of the various types of traffic and improved its services considerably. From being conventional handlers of the country's sea borne trade and passenger traffic exclusively, Cypriot ports became important cargo transhipment and cruise liner hubs.
Cyprus ports have adapted perfectly to modern needs and demands relative to international container trade and have the technical means to accommodate and serve the new generation of containerships. During the last decade important infrastructure projects were completed such as the extension of the quays and the creation of a new specialised container terminal at Lemesos port. Developments are also planned to be pursued in the future and these include dredging of the sea area and an installation of an extra crane on the west quay. Furthermore and pending the results of a feasibility study that is needing completion, the Authority is expected to proceed with the expansion of the western quay wall by 500m as well as the purchase of additional equipment, such as super post panamax cranes and a new tug boat.
Moreover, Cyprus ports hold pole position on the technology grid and have kept up a consistent investment programme in developing telecommunications and data treatment in order to improve their management systems and serve as strategic back-up in exchanges with the port community.
Improvements in the provision of port infrastructure and equipment in Cyprus ports go hand-in-hand with advancements in operational methods and information systems used for the handling of vessels and cargo. 'CyPOS', is an integrated port community information system that operates in Cyprus ports and covers all areas of port operations on a real time basis.
Finally, Cyprus ports are fully compliant with all the provisions of the International Ship and Port Facility Security Code (ISPS) as well as with the relevant Security Regulation and Directive of the European Union.
There is no doubt that the pace of development in the Asian emerging economies, and especially the increasing role of China in the world trade, requires accelerated structural changes in many other countries, especially those that are cooperating with these economies. Within this context the increasing growth of trade between Cyprus and China is expected to growth further.
The increasing traffic needs of containerised cargo originated from China to the European markets and vice versa, transported through the Suez canal, can be fully satisfied by Cyprus ports acting as regional hub centres. We are confident that our plans for developing and improving our port facilities can meet the expectations and needs of the Chinese shipping lines that are operating in the region.
The following advantages are offered to the shipping lines that use or intend to use Cyprus ports for their transhipment operations:
There is no draught, space, time or regulatory constrains to the use of the port facilities. Vessel turnaround time is minimised. Handling rates are of the order of 30 containers per crane per hour in the case of mother vessels, matching those provided at major international container terminals.
Other standard elements of the service package offered to regular and large-scale transhipment operators include berthing of vessels on arrival and immediate
commencement of operations on an "all times guarantee" basis, allocation of storage space for exclusive long term use as well as related discounts, rebates and other performance geared financial incentives.
Foreign property is fully protected in the port areas not only as a matter of practice but also by law, with the safe keeping and handling of cargo being the legal responsibility of port authorities, from receipt to delivery.
The progressive spirit in which the island conducts its business affairs are also reflected in the port law applied. It is unique in its liberalism, treating foreign shipping and trading operations as an entirely offshore activity for the purposes of customs regulations and procedures, while port documentation requirements are kept to the absolute minimum. Pro-customer orientation is present in all the provisions of port legislation, including its liability clauses.
Cyprus ports represent highly competitive and cost effective ports of call. While the standard of port service provided is markedly above the regional average, the charges levied for its provision compare most favourably with market rates prevailing in the area. In particular, the general port dues applied on vessels and cargo are the lowest in the Mediterranean region.
Merchant Shipping
During the last few years we have worked hard to upgrade the safety standards of the fleet under the Cyprus flag, to update our maritime legislation and to bring it in line with European Standards. The Department of Merchant Shipping has been strengthened with professional, administrative and clerical personnel enabling it to establish monitoring mechanisms of the safety standards of Cyprus ships. Cyprus has recognised and authorised those classification societies which are approved by the European Commission, mainly IACS members in order to establish appropriate controls and inspections of the Cyprus flag ships. In addition it has established a network of flag inspectors in 29 ports in 17 countries. These inspectors have been authorised to carry out inspections on Cyprus ships calling at the port where they have been appointed as a part of a monitoring program of the Government on the safety standards of the ships flying Cyprus flag. The policy followed led to the desired results, the Cyprus fleet has been modernised with newer and safer ships and subsequently the reputation of Cyprus flag in international shipping has been improved worldwide. Cyprus flag moved from the black to the white list of the Paris MOU and also is on the white list of the Tokyo MOU. Furthermore the Department of Merchant Shipping has recently successfully undergone an audit under the voluntary IMO member state audit scheme.
The foundations for cooperation between Cyprus and the People's Republic of China were laid back in 1990 with the signing of the Agreement on Maritime Transport. A protocol amending the existing Agreement was signed in Nicosia, on 2.12.2003.The Agreement was concluded primarily to further strengthen the friendly relations existing between the Republic of Cyprus and the Republic of China and also to facilitate and promote cooperation between the two countries in the field of merchant shipping.
The Agreement contains provisions promoting the employment of Chinese seafarers on Cyprus flag ships, the use of ships of the two countries in the seaborne trade between their ports and between their ports and ports of third countries, the establishment of offices of shipping companies of one state in the territory of the other as well as cooperation in casualty investigation and other matters related to merchant shipping. Cyprus has, also, recognized and authorized the China classification society to survey and issue statutory certificates on its behalf to Cyprus flag ships. The Cooperation between the two countries is extended to fiscal issues as well. A treaty on the avoidance of double taxation between the Republic of Cyprus and the People's Republic of China exists since October 1991.
We believe that there are opportunities for a closer cooperation between China and Cyprus in the field of shipping. As it is well known Cyprus is an important centre for many international firms and provides favourable conditions for Chinese international shipping companies to invest in the island. It's key geographical location, the modern legal system, the availability of wide ranging professional services, the excellent infrastructural facilities, the advance telecommunications networks, the advance road, air and sea communications, the highly educated personnel, are factors that constitute an ideal business environment for Chinese international companies to establish their offices in the island.
Question: Does Cyprus have a highly develop public transportation system? Which part of the system are you most proud of? Do you also have any dissatisfaction?
Answer: Public transport usage in Cyprus has been steadily declining for a number of years. In Nicosia, for example, urban bus usage has fallen from approximately 13 million passenger trips per year in the early 80��s to 3.5 million by the year 2004. The modal split for buses is about 2% and the average daily seat utilization/occupancy is about 18% against a European utilization of 66%.
The reasons for the decline in the use of public transport can be traced mainly to the poor quality of the service in combination with the steady increase in the standard of living and hence in private car ownership and use. The registered number of private vehicles has increased from 200,000 in the early 80��s to 520,000 by the year 2004.
In Cyprus public transport is run by the private sector under a licensing system controlled by a state Authority. At the same time the Government controls the transport charges applicable and it finances the companies who operate in the field in order to become viable and continue to provide services to the public.
The Government is encouraging the formation of rural and urban peripheral bus companies per region of per road axis through the provision of a number of incentives. The main targets and objectives of this scheme are:
The continuation of transportation services in non-viable itineraries.
The increase of medium completeness of buses, with the reduction of their number (withdrawal of redundant buses),
The improvement of provided services (e.g. increase of itineraries, replacement of overage buses)
In practice the scheme has proved to the ineffective despite the reduction of the buses the majority of bus companies have been operating for many years at a loss which is covered by the Government of Cyprus.
Despite the measures taken so far, the public sector continues to face very serious problems, the most predominant of which is the deterioration of the quality of services and buses.
A set of objectives should be promoted in an attempt to increase the public road transport from 2% to 10% by year 2015. More specifically, the Government aims at the:
Upgrading the public transportation system, based on European Transport Policy
Improvement of environmental conditions
Reduction of the environmental emissions
Safeguarding the citizens right to public transportation especially for the physically vulnerable (elderly, disabled)
Energy savings
Indicatively the measures that are essential in order to achieve these goals are the following:
Revaluate the ownership status of public transport operators and the financing structure
Upgrade/Renew the bus fleet
Reschedule the bus routes and frequencies
Introduce new bus lines (tangential, combined routes)
Bus Priority Measures
Post route maps and bus schedules at bus stops
Establish peripheral parking system for private cars and the transportation of passengers into the city with urban buses (park and ride)
Support infrastructure (e.g. bus stations/terminals/depos/, bus stops, pedestrian footway access to the bus stops)
Assess the fares structure as part of an overall transport pricing policy
Usage of environmentally friendly-hybrid buses
Extension of operating hours.
By Shuiming Liu from People's Daily and Xueqing Jiang from Global Times
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