1st Naftemporiki Shipping Forum 

The leading role of Greek Shipping in world trade
and its contribution to Greek Economy

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REPORT AND CONCLUDING REMARKS

Launching NAFTEMPORIKI/conferences, the 1st Naftemporiki Shipping Forum, entitled The leading role of Greek Shipping in world trade and its contribution to Greek Economy, took place with great success, on January 22, 2015, at Divani Apollon Palace & Thalasso, in Vouliagmeni. The Forum was organized under the auspices of the Ministry of Shipping and Aegean, the European Community Shipowners’ Association (E.C.S.A.) and the Hellenic Chamber of Shipping.

More than 500 delegates, mainly senior executives of shipping companies, major Greek shipowners, ambassadors, Government representatives, members of the Hellenic Parliament, international analysts and experts, representatives of financial organizations, and consultants attended the Forum.

Greek Shipping is at the top of world placement, greatly contributing to the Greek economy and society. Thus, acknowledging its manifold active presence and role we all must ensure that not only is based here in Greece, but, also, that its special weigh played to our national economy widens.” Concisely put, this is the outcome conclusion.

The workings of the Forum were an exceptional occasion for an informed and erudite dialogue pertaining to the issues that Greek Shipping is concerned, including its longtime leading role in world trade, as well as its undisputed contribution to national economy. Moreover, the emerging new trends and perspectives of the shipping industry were discussed, given the crisis situation faced along with world economy.

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The General Manager of NAFTEMPORIKI, Yannis Perlepes, welcomed the delegates and set the tone of the forum by saying that we often declare, correctly and proudly, that Greek shipping is world first. What we need to emphasize is that this leading role is not the result of circumstances, but the result of the continuous effort of all members of the Greek shipping community. And thanks to this continuous effort this primacy is durable in time.

In her conference opening speech Irini Athanassiadou, Chairwoman and CEO of the daily “NAFTEMPORIKI” marked that the newspaper is inseparably attached with the shipping industry since its foundation nine decades ago. She, also, underlined that the 1st Maritime Forum inaugurates a set of upcoming conferences that will be organized by “NAFTEMPORIKI / conferences”.

In his Forum speech the President of the Union of Greek Shipowners Theodore E. Veniamis stressed that the Greek owned shipping will remain based here in Greece and that is above and beyond political party affiliations. It greatly contributes to the Greek economy and will continue to do so under one non negotiable condition:  respect to the existing framework of operation from all parties concerned, given the fact that it allows Greek shipping to stay competitive on a world scale.

Session 1

The continual contribution of greek shipping to the greek economy and society – Assessing the past, anticipating the future

In his Forum speech the Minister of Finance Gikas Hardouvelis commented on the need of the completion of the final programme evaluation until the deadline of February 28, in order the installment of 7, 2 billion of Euros to be released, while at the same time he, particularly, stressed the necessity of the continuation of reform programme.

The President of the European Community Shipowners' Associations (ECSA) Thomas Rehder portrayed the present European shipping industry situation, highlighting that the European fleet consist of 40% of world’s merchant fleet, creating, directly or indirectly, to more than 2, 3 million jobs, with a contribution of over 145 billion Euros to European GDP.

Leonidas Dimitriadis-Eugenides President & Managing Director, Eugenides Group of Companies, President, Eugenides Foundation, underlined, among other, that the Greek shipping throughout time has supported economy in all respects, overcoming all obstacles, respectively, faced by every businessman that wishes to invest in Greece.

Miltiadis Varvitsiotis, The Minister of Shipping and the Aegean, referred to the work done by the Ministry, underlying that he himself strived to build a relation of trust with the shipping community, while at the same time he aimed to the formation of new perspectives for shipping industry and the notable rise in the number of young people being employed in the Greek owned shipping.

Panos Laskaridis, Managing Director, Laskaridis Shipping Co. Ltd., in reference to the attempts made by the Greek shipping to support economic activity through various sectors, mentioned the contribution to GDP (approximately 8% in 2014), the amelioration of current balance of payments, the employment opportunities, contribution to various social works, and finally to investments on land.

Panel Discussion

VIDEO


Coordinator: Yannis Perlepes, General Manager, NAFTEMPORIKI


Charalampos Simantonis, Managing Director, Silvermar Management & Trading Co, President, Hellenic Shortsea Shipowners Association (EENMA) stressed the fact that the shipping industry plays a significant and determining role for Europe and as much as for Greece, given that it is inseparably linked to national economy. He added that it carries exclusively national cargoes, whether imports or exports, while at the same time forms the link of Hellenism with the wider Mediterranean and Southern European area.

Captain Panayotis Tsakos, founder of Tsakos Group, pointed out that existing relative framework needs changes and it is the obstacle that prevents Greek ship owners wishing to increase the percentage of Greek mariners employed in their ships.

Session 2

Financing – From merchant bankers Rally Brothers to contemporary bank shipping finance and from Wall Street to private equity funds

Introduction, George Xiradakis,
CEO, XRTC Business Consultants Ltd

Chief Market Economist of Eurobank Group Platon Monokroussos mentioned that shipping industry is a high tech sector with a yearly contribution to GDP of 7% approximately. He, also, underlined that the perspectives of this sector seem to be positive, if the trend of economy globalization continues.

Meyer "Sandy" Frucher, Vice Chairman of Nasdaq in his remarks said that Nasdaq is not merely an exchange market, but, also, a high tech company. He added that Nasdaq has “faith” in Greece and the shipping industry. He underlined emphatically that “We trust the world interconnection that you in Greece are offering.”

Panel Discussion

VIDEO


Coordinator: George Xiradakis, CEO, XRTC Business Consultants Ltd.


Konstantinos Vassiliou, General Manager Group Corporate & Investment Banking, Eurobank Group said that Greek banks, according to his view, will continue to support Greek shipping industry.

Harry Vafias, President and CEO, Stealthgas Inc. underlined that the increasing borrowing cost for public companies is becoming a restraint, however, he added that banks have began to close deals with small and medium size shipping companies that have not gone public.

Spyros Capralos, Chairman, Star Bulk Carriers Corp. in his speech touched upon the relation between private equities and shipping companies, and said that his company’s experience has been positive, adding that recently there had been a warm response to Star Bulk’s call for increase of equity capital, amounting to 250 million USD.

Dr. John Coustas, President & CEO, Danaos Corp., said that Greek banks must overcome some intrinsic to their nature problems in order to be able to continue financing Greek shipping.

Dimitris Konstantinou, Global Head of EY’s shipping network, noted that shipping is capital intensive. Companies must be prepared to be able to secure the necessary funding when needed. And since investors’ main concern is the reduction of risk, shipping companies should have the appropriate corporate structure and increased transparency in order to be attractive to investors. Greek shipping has made a lot of progress towards this direction since 1990.

In his remarks, Ted Petropoulos, Head of Petrofin Research PSMI, Greece, said that in the last years there have been rearrangements regarding the ways of banks financing shipping industry. He added that there is a continuous decline in financing lion-share hold by the European banks, against that of rising by their counterparts in the Far East.

Panel Discussion

VIDEO


Coordinator: George Xiradakis, CEO, XRTC Business Consultants Ltd.


Adam Kostyal, Senior Vice President of Global Corporate Client Group Listings and Capital Market NASDAQ OMX, marked that US stock markets present a special dynamism despite the world scale crisis, adding that in 2014 there have been 300 new IPO’s, 25% of which were from abroad.

Session 3

Greece as an international shipping centre and the role of shipping’s supporting services

Coordinator:

Antonis Tsimplakis, Journalist, NAFTEMPORIKI

Yiorgos Anomeritis, President & Managing Director, Piraeus Port Authority SA, referred to strategic moves that must be adopted, within the framework of a new developmental port policy. Particularly, he advocated that state monopoly cannot be substituted with a private one, adding that the transformation of the Greek port system must be based onto a European paradigm, where 97% of ports belong to state, to municipalities, to chambers and users, while their operation is provided through concession contracts by private sector.

Dr. Ioannis Mertzanis, Executive Vice President of Space Hellas, talked about innovative technological solutions that are being currently used by the shipping industry. He announced a new strategic partnership with Microsoft, underlining that Space Hellas could provide integrated cost effective and use-as-you-go solutions.

Dorothea Ioannou, Managing Director, SCB Hellas & Representative of the American Club, said that 10 out of 13 P&I Club Members have office in Greece and 75% of their employees are Greeks. P&I Clubs are willing to invest in Greece and in the sector, signalling, thus, their trust and support to the Greek shipping industry.

Ilias Tsakiris, CEO, Hellenic Hull Management (HMA) Limited, referred to the future of shipping industry and P&I market, stressing that only the 0, 2% of Greek ship owner insurance cost is directed to Greek insurance market. He underlined the need for a change of this situation, adding that the Greek ship owning is capable of changing the future of shipping industry on a worldwide scale.

Eleni Polychronopoulou, President, HEMEXPO, talked about the Greek industry of maritime equipment, the existing industry situation and future perspectives. Particularly, she mentioned that the target was set in achieving of getting a notable share of the world market pertaining to maritime equipment.

Athina Vezyri, Chairwoman & CEO, SRH Marine Greece, Director, Comité International Radio-Maritime (CIRM), talked about satellite and other related communication technologies, future trends and perspectives into coming decades and their impact to the shipping industry.

Panel Discussion

VIDEO


Coordinator: Antonis Tsimplakis, Journalist, NAFTEMPORIKI


Q&A

Session 4

Freight markets and new sea routes – Barriers, challenges and prospects

Professor of Finance and candidate MP with SYRIZA Giorgos Stathakis underlined that there will be no surprise changes to the existing framework of operation when SYRIZA comes to power. Responding to an audience question, he added that whatever perspective changes will be the outcome of a consultation procedure.

Dr. Martin Stopford, President, Clarkson Research, analyzed the international trade and future trends on shipping, stressing that the future lies in smart shipping and innovative technology applications.

Panel Discussion

VIDEO


Coordinator: Lambros Karageorgos, Journalist, NAFTEMPORIKI


Mr. Lambros Karageorgos, coordinator of the panel discussion.

Anthony Argyropoulos, CEO, Seaborne Capital Advisors Ltd., concluded that despite temporary difficulties, capital markets provide financing solutions for shipping companies.

Ion Varouxakis, Chairman & Managing Director, FreeSeas Inc., mentioned that the course of global economy, undoubtedly, affects the course of insurance market and he particularly underlined that within the present year China will achieve the lowest development rate in the last 24 years, a matter of fact that remains open as to how shipping industry will be affected.

John Dragnis, Chief Executive Officer, Goldenport Group, focused his analysis to the relation between offer and capacity demand, underlying that this equation affects the rates of dry bulk cargo market.

John Cotzias, Sales and Purchase Director, Intermodal Shipbrokers, President, Hellenic Shipbrokers Association, referred to the role of new financial powers entering shipping industry, such as BRICS and African countries, stressing that they affect equally product offer and demand with the ensuing benefits for the transporters, which is the shipping industry.

Michael Bodouroglou, Chairman and CEO, Paragon Shipping Inc. and Box Ships Inc., focused on the effects to the shipping industry by the fuel price fall, noting that this development means the fall of production cost, thus the rise of demand and trade. Particularly, however, all add to the fall of ship management and operation cost.

Cocktail reception offered by FreeSeas Inc.

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