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A NEW WAVE OF MARITIME BUSINESS


Interview with DP World Limassol CEO Nawaf Abdulla

Limassol is changing, growing and evolving, and trying to put the island’s
maritime industry on the pedestal it deserves. Nawaf Abdulla, CEO of DP WORLD
LIMASSOL, highlights the advancements in the sector and addresses the challenges
and opportunities of the industry in the new post-COVID-19, war-battered world
order.

 

How does Cyprus compare with the rest of Europe as regards the volume of
maritime-related investment?

Today, Cyprus boasts the 11th biggest merchant fleet in the world and the third
biggest in the EU. It is also the biggest third-party ship management centre in
Europe and among the top three globally, with more than 20% of the world’s
third-party management fleet controlled by companies based here. When it comes
to maritime-related investment, Cyprus has seen several large projects in the
past 10 years, such as Limassol Marina, Larnaca Marina, Ayia Napa Marina, and
soon Paphos Marina, as well as the Vassiliko LNG Terminal. Cyprus has also
commercialised the ports of Limassol and Larnaca, allowing them to be operated
by private investors. In terms of investment value, it may seem lower compared
with what is happening in Europe but the investments and privatisations that
have taken place in Cyprus have radically changed its overall maritime
infrastructure and created new opportunities.

 

What is the value of sustainability in shipping and how does it translate into
issues of cost? How has DP World responded to the challenge of the ‘green
transition’?

DP World is strongly committed to being a world leader in sustainability. It is
as important to us commercially as it is to the societies we operate in. We do
this by using new smart technologies to make our operations more sustainable. In
doing so, we cut energy and resource use, and create a fairer and more connected
planet. The Group’s ‘Our World, Our Future’ strategy is designed to deliver
responsible operations and, at the same time, it is preparing us for a radical
shift in how business in general, and logistics in particular, responds to the
great challenges of climate change, education and social inequality. The
company’s environmental strategy has three focus areas: to reduce carbon
emissions and energy use; to promote renewable energy and the responsible use of
natural resources; and waste management. DP World took the lead in global
sustainability, launching changes across the board in a bid to meet global
objectives by 2030 or 2050. Today, DP World Antwerp is one of the greenest
container terminals in the world, as it runs exclusively on green energy.

 

What makes Limassol such an attractive shipping hub?

Limassol is home to the island’s biggest port and, as such, it is the heart of
Cyprus’ maritime operations. It is a modern, developed city with the necessary
communications and transport infrastructure and skilled labour force. It also
sits in between the airport cities of Paphos and Larnaca, which are only half an
hour’s drive away. Limassol hosts the majority of more than 200 companies that
provide maritime services from ship ownership and management to shipping
insurance, finance, brokerage, bunkering, ballast water system production,
marine training, and maritime technology in satellite and radio systems, among
others. Some of the largest ship management companies in the world have their
headquarters and conduct their operations from Limassol. It is estimated that
approximately 4% of the world’s fleet is managed from Cyprus. Among the ship
owning and ship management companies established and operating from Cyprus, 90%
are controlled by the EU, including those with Cypriot interests.

 

Has there been progress on the long-term problem of attracting top talent to the
shipping sector? What strategy does DP World use to discover and retain
employees with the necessary skills?

There are several initiatives undertaken by local authorities, private companies
and other organisations to promote the maritime and shipping sector. WISTA
(Women’s International Shipping & Trading Association) is a great example of an
organisation that tries to attract and support women in the maritime and
logistics sectors. DP World Limassol’s talent acquisition process is based on DP
World’s global practices, which ensure that we recruit the right people to help
us achieve our business objectives. Our vacancies are available both externally
and internally, giving all DP World employees the opportunity to apply. We look
for people who are experts in their field such as finance, IT, engineering, and
so on. We do our best to identify those people whose attitude fits our culture
and principles. People who can create growth, drive results, adapt and evolve,
and motivate others to excel. It is indeed a challenge to attract and recruit
skilled technical staff in Cyprus, as most positions at DP World Limassol
require prior general experience in the port industry. Hence, we focus on
recruiting people with the right attitude, who are willing to learn and grow in
our company.

 

Now that the digitalisation of the broader shipping sector is well under way, do
you envisage a large number of jobs eventually becoming obsolete? Will a bigger
number of new ones be created? How have you responded to this challenge?

Digital transformation does not necessarily mean a reduction in human resources.
It means that we are redeploying our resources to other activities and
value-adding services. Digitalisation aims to remove a lot of time-consuming
administrative processes, such as data entry, data review, data validation, etc.
which take a lot of manhours during a workday. This process will also create new
functions and roles. In December 2021, DP World Limassol became the first DP
World port to complete the implementation of CARGOES TOS+, an integrated
platform encompassing all IT and operational systems under one umbrella,
providing users with real-time information on vessel, gate and yard movements.
As part of this upgrade, we removed the cash collection counter that used to
cause queues throughout the day as people tried to clear their cargo. Now, this
process is done through a simple online payment platform, which is available
24/7. In March 2022, DP World Limassol introduced Automatic Number Plate
Recognition software, which captures the licence plates of trucks entering
Limassol port via a camera. The software can read the plates and confirm through
the Government’s Ariadne portal and the Road Transport Department if they have
valid registration certificates. Moreover, in July 2022, DP World Limassol will
launch its automated Gate Access Control System, granting access to port users
via a pre-registered Radio Frequency Identification, a wireless system comprised
of two components: tags and readers. This system will allow port visitors,
customers and staff to scan their approval Port Access Pass through a reader,
allowing the Gate Barrier to then open for their entry.

 

How have the war in Ukraine and the resulting trade tensions between the EU and
Russia affected the ports operated by DP World across the globe, including
Limassol?

The EU closed its ports to Russia’s merchant fleet vessels with a few exceptions
relating to ships carrying energy, pharmaceutical, medical, agricultural and
food products and humanitarian aid. The ban also applies to vessels that try to
evade sanctions by changing their flag or registration. The sanctions have
impacted all shipping-related sectors, including commodity traders, tankers,
containers, dry bulk and gas, which causes further disruptions to the supply
chain, including DP World’s portfolio and activities. Inevitably, DP World
Limassol was also directly impacted by the ban, seeing fewer arrivals at
Limassol and Cyprus Ports. It should be noted that DP World operates a container
terminal in the Port of Yuzhny in Ukraine, which was impacted by the sanctions.
In addition, P&O Maritime Logistics a subsidiary of DP World, has several
services and activities in Ukraine that were affected. Also, the majority of
vessel calls and services connecting European ports are directly or indirectly
linked with ports on the Black Sea, including Ukraine, and this has created
cargo-flow inefficiencies and loss of connectivity.


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