1 ACCESSIBILITY AND GATEWAYS - CYPRUS NATIONAL REPORT

CONTENTS

1 Executive Summary ...... 6 2 The Island of Cyprus...... 11 2.2 Economic Data...... 12 2.3 Population Data...... 13 2.4 Employment...... 14 2.5 Unemployment...... 16 3 The Institutional Framework for Transport Supply and Demand by Mode ...... 17 3.1 Transport Organization ...... 17 3.2 Land Transport...... 18 3.2.1 The Public Works Department...... 19 3.2.2 The Department of Town Planning and Housing ...... 20 3.2.3 The Department of Road Transport ...... 20 3.2.4 District Administrations and Municipalities...... 21 3.2.5 General Remarks...... 21 3.3 Air Transport...... 21 3.3.1 The Department of Civil Aviation ...... 21 3.4 Maritime Transport ...... 21 3.4.1 The Cyprus Ports Authority...... 22 3.4.2 The Cyprus Shipping Association ...... 23 3.4.3 The Cyprus Shipping Council...... 24 4 Analysis of Transport Infrastructure by Transport Mode...... 25 4.1 Road Network (Flows and Links and Categories of Roads)...... 25 4.1.1 The Network Profile (Supply Indicators) ...... 32 4.1.2 The Operational Role (Demand Indicators)...... 34 4.1.3 New Investments (Projects and Plans)...... 40 4.2 Rail Networks (Flows and Links)...... 41 4.3 Air Traffic and Airports (Flows, Hierarchy of Airports, Capacity Building, Efficiency)...... 41 4.3.1 The Network Profile (Supply Indicators) ...... 41 4.3.2 Air Carriers ...... 44 4.3.3 The Operational Role (Demand Indicators)...... 44 4.3.4 New Investments (Projects and Plans)...... 49 4.4 Maritime Shipping and Ports (Flows, Hierarchy of Ports, Capacity Building, Efficiency)...... 49 4.4.1 The Network Profile (Supply Indicators) ...... 49 4.4.2 The Operational Role (Demand Indicators)...... 50 4.4.3 New Investments (Projects and Plans)...... 54 5 Intermodality and Gateways (connectivity, technology levels)...... 56 6 Environmental Pressures and Risks...... 58 7 Analysis of Transport Infrastructure Problems and Prospects (SWOT)...... 60 8. Concluding Remarks on the Structure of Transport Network and Outlining of Policy Priorities...... 61

2 8.1 Prioritization of Transport Projects...... 61 8.2 Public Transport Priorities ...... 62 8.1.1 Prioritised List of Measures to Achieve Objectives ...... 63 8.3 Concluding Remarks...... 67

3

LIST OF FIGURES

Figure 1: Map of Cyprus...... 11 Figure 2: Organizational Chart for the Ministry of Communication and Works ...... 18 Figure 3: Diagrammatic representation of the road hierarchy. Source – Geometric Design Standards, Ministry of Communications and Works, Public Works Department ...... 27 Figure 4: Length of Highways in Cyprus ...... 29 Figure 5: Total Length of Roads...... 29 Figure 6: Map of Cyprus showing Major Road Network, Airports and Ports...... 30 Figure 7: Nicosia Major Road Network taken from Nicosia Local Plan ...... 31 Figure 8: Kilometres of Roads by Type...... 33 Figure 9: Density of Roads by Type...... 34 Figure 10: Road Vehicle Fleet in the Country...... 40 Figure 11: Larnaca Airport Passenger Movements ...... 43 Figure 12: Total Aircraft Movements in Cyprus ...... 48 Figure 13: Total Passenger Movements in Cyprus...... 48 Figure 14: Limassol Port Passenger Arrivals and Departures ...... 51 Figure 15: Larnaca Port Passenger Arrivals and Departures...... 52 Figure 16: Containers Loaded and Unloaded, 2001-2004...... 53 Figure 17: Freight Loaded and Unloaded, 2001-2004...... 54

4

LIST OF TABLES

Table 1: Economic Data...... 12 Table 2: GDP composition by Sector ...... 13 Table 3: Population Data for Cyprus...... 14 Table 4: Employment in Cyprus...... 15 Table 5: Employment by Sector ...... 15 Table 6: Registered Unemployed, Total and By Sex...... 16 Table 7: Unemployed Persons by Sectors Level ...... 16 Table 8: Road Infrastructure in Cyprus by Category...... 19 Table 9: Basic properties of Different Classes of Roads ...... 28 Table 10: Total Length of Roads in Cyprus` ...... 29 Table 11: Density of road network in Cyprus per Road Category ...... 32 Table 12: Length of Public Roads and Annual Expenditure for Road Construction...... 33 Table 13: Density of Roads by Type ...... 33 Table 14: National Road Transport According To Load Capacity of the Vehicle and type of Transport (2005)...... 35 Table 15: Vehicle Kilometres (000’s) Travelled on National Road Transport According to Type of Transport (2005)...... 35 Table 16: International Road Transport According to Gross Vehicle Weight and Type of Transport (2005) ...... 35 Table 17: Vehicle Kilometres (000’s) Travelled on International Road Transport According To Type of Transport (2005) ...... 36 Table 18: International Road Transport By Type Of Transport And Country Of Origin & Destination, 2005 ...... 36 Table 19: Department of Public Works Roads, with Volume of Flows Greater than 8200 Veh/Day (For Each Direction) for the Year 2004 ...... 38 Table 20: Road Vehicle Fleet in the Country ...... 39 Table 21: Larnaca Airport Passenger, Cargo and Aircraft Movements...... 42 Table 22: Paphos Airport Passenger, Cargo and Aircraft Movements...... 44 Table 23: Larnaca and Paphos Scheduled & Charter Passenger Combined Forecasts..... 46 Table 24 Aircraft, Passengers and Freight Movements, 1980-2005...... 47 Table 25: Passenger Arrivals / Departures - Limassol, Larnaca...... 51 Table 26: Containers Loaded and Unloaded, 2001-2004 ...... 53 Table 27: Freight Loaded and Unloaded, 2001-2004 ...... 54 Table 28: Number of intermodal transport units loaded and unloaded in Cyprus...... 57 Table 29: SWOT Analysis of Transport Infrastructure Problems ...... 60 Table 30: Estimated Cost of Completion of Urban Roads for the Programming Period 2007- 2013 ...... 64

5 ACCESSIBILITY and GATEWAYS

CYPRUS NATIONAL REPORT 1. Executive Summary

1.1 Introduction Transport, which is vital to both the economic and social well being of a country, experienced a parallel and related growth over the last 25 years. Transport in Cyprus constitutes an infrastructural sector covering a wide spectrum of different activities such as road, air and sea transport and services allied to transport, mainly provided by travel agencies and shipping offices.

The north part, (40%) of the territory of Cyprus has been under Turkish occupation since the 1974 invasion of the island by Turkey. The current Report refers only to the Government controlled part of the island. The dividing line or the ‘green line’ as it is known which separates the government controlled from the occupied part of the country is shown in Figure 1.

Cyprus has developed a road network which services the transportation needs of industry, agriculture, trade, tourism and the public. According to 2005 statistics, the road network in the free areas of Cyprus consists of about 12.146 km of roads.

The main transport problems in Cyprus include, the lack of adequate public transport both in urban and rural areas, over dependence on private car and land transport causing an increase in environmental problems and big accident and fatalities records.

The Government of Cyprus is concerned with the inadequate public transport service provided and has been trying to remedy the situation. The most comprehensive attempt has been the execution of a study for the public transport enhancement in Nicosia, completed in 2001. In addition, a prioritised list of measures needed to be taken over the next ten years in order to revive and drastically improve the operation of the services that have been established.

1.2 Land Transport

The Department of Public Works of the Ministry of Communications and Works has the responsibility for the design, construction, maintenance and improvement of motorways, the majority of rural and interurban road network and the main urban roads. It is responsible for about 35% of paved roads, which constitute the main road network of Cyprus. The remaining roads come under the jurisdiction of the Municipalities and the District Administrations. The Municipalities are responsible for the secondary and local

6 urban roads while the District Administration Authorities are responsible for the paved and unpaved district (tertiary) roads and village roads.

The road system in Cyprus has been developed over many years. As the population of Cyprus has increased the towns have expanded and the roads have been developed in order to provide for the immediate needs of the local people. The majority of such roads are still therefore dealing with traffic volumes for which they were never intended.

The Turkish invasion of 1974 radically changed the programme of road development and created new priorities in order to cover the augmented needs in the government controlled areas, where 80% of the Cyprus population and the greatest portion of development had concentrated.

The total length of road infrastructure in Cyprus totals 12.146 km for the year 2005 compared with 11.593 km for 2002 and 9.043 km in 1990. For the year 2005 the total road density in Cyprus is 1,313 km/sq.km.

In 2005 a total of 53.706,4 th. tonnes of goods were carried by vehicles, of which, 25.941,0 th. tonnes by hires or reward vehicles and 27.765,0 th. tonnes were carried by vehicles for own accounts. For the same year a total of 19.748 tonnes of goods were moved internationally, to and from Cyprus. 11.877 tonnes of these goods were imported and 7.871 tonnes of goods were exported.

1.3 Air Transport

Air transport and aviation related matters are managed, controlled, and regulated by the Department of Civil Aviation, although the regulation of civil aviation is the responsibility of the Ministry of Communications and Works.

There are two international airports in Cyprus in Larnaca and Paphos, situated at 50 and 150 km respectively from Nicosia. On average, these airports register a weekly traffic of 1,249 flights, shared between 36 international air companies and 81 charter services. The location of the above airports is shown in Figure 6 of the Report.

Air passenger movement through Larnaca is projected to grow under a medium growth scenario by 4.2 percent per annum reaching passenger movements of 8.7 million by the year 2015.

Paphos airport is expected to display faster rates of growth than Larnaca over the forecast period, as a result of the introduction of newly licensed scheduled services at Paphos and the airport's slightly greater convenience for most of Limassol as well as for the Paphos area itself, which has been increasing its share of tourist beds in recent years.

The passenger projections for Paphos Airport are therefore at 6.8 percent per annum under the medium scenario, reaching 3.7 million passenger movements in 2015.

7 Hermes Airports Limited has been awarded the concession to build new passenger terminals and related infrastructure at the two airports, through a Build Operate and Transfer (BOT) scheme, to increase their capacity and to improve the quality of services. It is expected that the Paphos Airport is to be completed and become operational before the end of 2008 and the new Larnaka Airport before the end of 2009.

Civil aircraft landings increased during 2005 and totalled 30.664 compared to 30.146 in 2004. Passenger arrivals through airports increased to 3.390.563 compared to 3.210.658 in 2004.

1.4 Maritime Transport

All port facilities of the island are under the jurisdiction of the Cyprus Ports Authority a public autonomous organization under the supervision of the Minister of Communications and Works responsible for the management and operation of the ports of the country.

Maritime transport is served by a modern national port system composed of the multipurpose ports of Limassol and Larnaca, the new industrial port of Vassiliko, and the three specialized oil terminals at Larnaca, Dhekelia and Moni.

The main ports of Cyprus are Limassol and Larnaca, and they are handling over 3.5 million tonnes of international seaborne cargo per year, and are both situated on the south coast of the island.(See Figure 6 of the Report) There have been about 280 thousand passengers served at the Cypriot ports in 2004. Famagusta, the third port of Cyprus, is situated on the eastern coast of the island, but it is not accessible because it is not located in the government controlled part of Cyprus.

The Limassol Port is situated on the outskirts of the country's second main city in terms of population and economic significance. It is the largest port in Cyprus, serving most of the island's seaborne cargo and passenger traffic. It handles two thirds of the total container traffic locally generated and transhipment as well as the entire volume of grain imports. Similarly, over 90% of the country's passenger traffic is presently served by this port.

The Larnaca Port is a part of the infrastructure of an industrial business and tourist centre of the island and it is the nearest seaport both to Nicosia, the country's capital and to south eastern major agricultural and tourist areas of Cyprus

Transhipment traffic at the ports of Cyprus has been increasing steadily from the 1970’s, however, following the implementation of embargo in 1986 by Turkey the transhipment traffic at the ports of Cyprus has fallen dramatically. The Government of Cyprus is currently continuing efforts for the lifting of embargo.

Cyprus fulfils the role of a hub for a number of key trading areas of world significance and it is a natural transhipment centre for Europe-Far East trade. Equally, Cyprus is a

8 logical hub for other main-line deep sea trades traversing the Mediterranean and for inter- regional maritime traffic.

In 2004, the total passenger arrivals and departures from Cypriot ports were approximately 510.000, down 52.2% from the year 2000. However, comparing Cyprus with other cruise centres in the Eastern Mediterranean, Cyprus continues to play a primary role in sea-borne tourism in the Region.

The Limassol Port is currently being redeveloped and the first phase of its development plan is due to be completed by 2010. The Government of Cyprus is considering the expansion and redevelopment of the Larnaca Port and Marina as a single project to be financed by a BOT method. The expression of interest stage has already been completed and the government is now proceeding with the finalization of tender documents.

1.5 Intermodality

Road transport is the only way of transporting goods and passengers within Cyprus. Air transport plays the largest role in the transport of passengers to and from other countries. Shipping plays a fundamental role in the distribution of goods to and from Cyprus but also worldwide.

The modal split for passenger transport in Cyprus is 98% car and 2% bus compared to 82,5% and 9,5% respectively in EU-25, which has another 6,8% for rail (Stat. pocketbook DG TREN 2004). For freight transport the modal split is 100% by road as there is no rail or inland waterway.

This high reliance on car transport has resulted in the deterioration of the bus services provided, as well as the lack of significant investment in infrastructure. In addition, the bus fleet is on average very old and is in need of renewal. There is therefore a need to improve/review the public transport strategy so that a true alternative to car-only travel is provided.

In Cyprus, intermodal passenger and freight transport occurs only when passengers and freight arrive by air or by sea and are transported to their destinations by road transport, or when tourist arrive by air transport and take short turnaround cruises from Cyprus to nearby destinations (Egypt, Greece etc).

1.6 Environmental Pressures and Risks

The main environmental problems attributed to transport in Cyprus exist in urban areas and are caused by road traffic (mainly private car movements). The lack of public transport and the inadequate road infrastructure coupled with continuously growing traffic demand has caused serious pollution problems mainly in central business districts, due to car emissions. The main urban networks cannot handle efficiently the traffic flows and this creates a lot of through traffic in sensitive residential areas affecting the quality of life in these areas. The only way forward is the promotion of public transport and other

9 environment friendly means of transport like electric/hybrid cars, cycling and walking. The Government has already set the goal of increasing public transport from 2% to 10% by the year 2015.

In 2001, Cyprus published a comprehensive Environmental Law, which was drafted according to EU policies and directives. This Law has been revised and updated and published again in 2005 According to this law, major projects require environmental impact assessment studies in full compliance with the relevant EU Directive. Cyprus has also signed various environmental international conventions (Rio, Kyoto, etc.) for the protection of habitats, fauna and flora, and for the protection of the air quality.

10 2 The Island of Cyprus

2.1 Introduction Cyprus is the third largest island in the Mediterranean after Sicily and Sardinia, but the largest island state with an area of 3.572 sq. miles (9.251 sq.kms). It is located at the north eastern corner of the Mediterranean and commands a "cross-roads" position, linking the east with the west, Europe with Africa and the Middle East.

Turkey's military invasion in 1974 had devastating effects on the island's physical structure and socio-economic sectors. It disrupted the settlement and communications systems that developed in Cyprus through the centuries and has enforced duplication of major infrastructure such as airports, ports, power plants, roads etc. with adverse effects on the environment. The dividing line of the island and the occupied part are shown in Figure 1.

Occupied Area

Area Under Effective Government Control

Figure 1: Map of Cyprus

On the 1st of May 2004, Cyprus together with another 9 candidate countries joined the European Union. This is expected to have considerable benefits for Cyprus in the social, political and economic areas.

As a current member of the European Union, Cyprus has adopted and enforced all the European directives and regulations (through incorporation and transposition into the national legislation) for road, sea and air transport (i.e. the ‘Community acquis’).

This Report and the statistical data and indicators included refer to the Government controlled part of the country.

11 2.2 Economic Data

Despite the 1974 tragic events, the economy of Cyprus flourished and today it is considered as one of the strongest economies in Europe. During the period 2000 – 2004 the Cyprus economy recorded real GDP growth of 3.4%, which compares favourably with the EU average. This was accomplished in an environment of full employment conditions, low inflation and a stable and strong currency. In 2004 Cyprus’ per capita GDP reached about 81% of the EU-25 average.

The Cyprus economy recorded real GDP growth of the order of 4.1% in the period 1999- 2002, compared with an average growth rate of 2.9% in the accession countries and 2.1% in the Euro area. The economy grew a healthy 3.7% per year in 2004 and 2005, well above the EU average. The real GDP growth rate in 2005 was 3.8%.

Furthermore, according to the 2002 annual report of the European Central Bank, Cyprus’s GDP per capita has reached 71% of the corresponding Euro area average, while average GDP per capita in the accession countries is 44% of the Euro area average.

Economic Indicators for the Government controlled part of Cyprus can be seen in Tables 1 & 2.

Year GDP at Gross Gross Domestic Gross Domestic Per capita Per capita current Domestic Product at Product at G.N.P. at GDP at market Product at current market constant market current current prices constant prices for prices of 1995, market market 1995 Transport, for Transport, prices (C£) prices (C£) prices Storage and Storage and (C£mn) Communication Communication (C£mn) (C£mn) 1995 4.148,2 4.148,2 315,8 315,8 6.255 1996 4.299,8 4.222,9 334,3 330,3 6.387 1997 4.522,1 4.320,0 357,7 349,8 6.575 1998 4.862,8 4.534,8 397,7 380,1 7.645 1999 5.214,2 4.752,7 444,3 418,5 7.369 2000 5.679,0 4.992,3 492,6 479,1 7.744 2001 6.103,6 5.197,6 538,1 512,1 8.280 8.703 2002 6.370,3 5.307,3 524,8 527,5 8.600 8.977 2003 6.814,8 5.408,9 527,7 529,9 9.208 9.457 2004* 7.254,9 5.621,1 573,6 587,7 9.406 9.842 2005* 7.739,6 5.831,9 605,6 628,9 9.834 10.225 Sources: The Statistical Service of the Republic of Cyprus and (2) The Central Bank of Cyprus. (* Provisional) Table 1: Economic Data

12 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 GDP in the Primary Sector 210,7 200,4 189,1 213 218,7 215,8 238,8 248,2 243,5 238,5 246,5 £(mn) % GDP in the 5,39 4,91 4,36 4,54 4,33 3,94 4,07 4,08 3,78 3,48 3,38 Primary Sector GDP in the Secondary Sector 882,4 913,8 936,4 975,3 1002,1 1050,2 1115 1185,6 1268,1 1368,9 1455,8 £(mn) % GDP in the 22,57 22,39 21,59 20,79 19,83 19,19 18,99 19,47 19,69 19,95 19,94 Primary Sector GDP in the Tertiary Sector 2816,1 2967,9 3211,4 3503,1 3833 4205,3 4517,7 4656,4 4928,8 5255,1 5599,5 £(mn) % GDP in the 72,04 72,71 74,05 74,67 75,84 76,86 76,94 76,46 76,53 76,58 76,69 Primary Sector GDP in the Transport, storage and 315,8 334,3 357,7 397,7 444,3 492,6 538,1 524,8 527,7 573,6 605,6 communication Sectors £(mn) % GDP in the Transport , Storage and 8,08 8,19 8,25 8,48 8,79 9,00 9,16 8,62 8,19 8,36 8,29 Communication Sectors Total GDP £(mn) 3909,2 4082,1 4336,9 4691,4 5053,8 5471,3 5871,5 6090,2 6440,4 6862,5 7301,8 Source: The Statistical Service of the Republic of Cyprus Table 2: GDP composition by Sector Transport, which is vital to both the economic and social well being of a country, experienced a parallel and related growth over the last 25 years. Transport in Cyprus constitutes an infrastructural sector covering a wide spectrum of different activities such as road, air and sea transport and services allied to transport, mainly provided by travel agencies and shipping offices.

The contribution of the transport storage and communications sector to GDP in Cyprus fluctuates at around 8.3% and plays a significant role in the development effort, particularly in tourism and the export of goods and other services.

The transport and communications sector is registered in 2004 an increase of 9.9% on the gross output (compared to an increase of 1,8% in 2003), at current prices and amounted to £954,0mn in 2004. The value added of the sector increased to £572,3 mn and its share of G.D.P. was 8,4% at current market prices. The major sub-sectors were communications with a share of 39,1% of value added, supporting and auxiliary transport activities 28,1%, air transport with 9,4%, water transport with 15,5% and land transport with 7,9%.

2.3 Population Data The population of Cyprus at the end of 2004 is estimated at 749.200 persons for the Government controlled area of Cyprus and 837.300 for the whole of the island. Since 1974, approximately 37% of the country's territory is occupied by Turkish troops following the invasion of the island by Turkey. It should be noted that the data contained in this paper refer to the Government controlled area of Cyprus and excludes the part occupied by Turkish forces since 1974.

13 The total population of the country grew at an annual rate of 0.8% from 573,6 thousand at the end of 1960 on the establishment of the Republic of Cyprus, to 640,7 thousand in mid-1974 just before the Turkish invasion.

After the Turkish invasion of 1974 the population in the Government controlled area, experienced negative growth up to mid 1977, due to war losses, emigration and fertility decline. In the following years, demographic developments favoured population growth and the population exceeded, in less than ten years by mid 1982, the figure of mid1974. The population has continued to grow since then at a rate which ranges between 0.7% and 2.7%.

In the occupied area the Turkish Cypriot community has been decreasing due to emigration - it is estimated that more than 57.000 Turkish Cypriots have emigrated since 1974 – while at the same time there continues a massive arrival of settlers. The number of the latter is estimated to about 122.000 in 2004.

The population of the Government controlled area is estimated at 749.200 at the end of 2004 compared to 505.700 at the end of 1974, recording an increase of 48,2%. The population of Cyprus for the years 1992-2004 can be seen in Table 3.

Year (end) 1992 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Total Population 710,0 746,9 755,5 763,4 771,1 778,5 785,3 793,1 802,5 818,2 837,3 - (1000’s) Total Population In the Government 615,0 656,3 666,3 675,2 682,9 690,5 697,5 705,5 715,1 730,4 749,2 766,4 Controlled Area (1000’s) Urban Areas 416,1 446,9 454,7 461,8 468,1 474,3 480,2 486,7 494,3 505,9 520,0 - (1000’s) Rural Areas 198,9 209,4 211,6 213,4 214,8 216,2 217,4 218,8 220,8 224,5 229,2 - (1000’s) Males 306,4 324,8 329,2 333,0 336,3 339,7 342,7 346,2 350,6 359,3 369,2 377,8 (1000’s) Females 308,6 331,5 337,1 342,2 346,6 350,8 354,8 359,3 364,5 371,1 380,0 388,6 (1000’s) Source: The Statistical Service of the Republic of Cyprus Table 3: Population Data for Cyprus. The population growth rate, which is the highest in the European Union (2.6% in the Government controlled area in 2004), is explained by a small natural increase and a large net migration balance. The net migration balance has been positive and sizeable for the last 25 years. It consists of returning Cypriot migrants and an increasing number of foreigners coming for temporary employment for more than one year. The influx of foreigners resulted in the increase of their share to the population in the Government controlled area from 4.2% in 1992 to 13.1% in 2004.

2.4 Employment Employment showed a small increase in 2004 reaching 322.500 persons, compared to 316,000 in 2003 and 308,600 in 2001. Employment in the broad Transport, Storage and

14 Communications sector decreased by 1.3% to 21.645 persons in 2003 but increased by 0.9% in 2004 and accounted for 6.8% of the total gainfully employed population. Employment statistics for Cyprus by sex and by sector can be seen in Tables 4 & 5.

1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Gainfully employed 253,4 284,4 285,5 286,2 290,1 295,3 302 308,6 311,9 316 322,5 population (1000’s) Employed in the Transport, Storage - 17,9 18,4 19,1 19,7 20,4 21,4 22,2 21,9 21,6 21,9 and Communication Sector (1000’s) The Transport, Storage and Communications sector as a - 6,3 6,4 6,7 6,8 6,9 7,1 7,2 7,0 6,8 6,8 percentage of the gainfully employed population (%) Males (%) 61 61 60,6 60,4 60,1 59,6 59,1 58,8 58,4 58,3 57,5 Females (%) 39 39 39,4 39,6 39,9 40,4 40,9 41,2 41,6 41,7 42,5 Source: The Statistical Service of the Republic of Cyprus Table 4: Employment in Cyprus

Total Primary Secondary Tertiary Primary Secondary Tertiary Year Gainfully Employed Thousands Percent (%) 1990 253,4 35,5 73,0 144,9 14,0 28,8 57,2 1991 254,2 32,8 73,9 147,5 12,9 29,1 58,0 1992 265,6 33,0 75,0 157,6 12,4 28,2 59,4 1993 265,3 32,2 71,3 161,8 12,1 26,9 61,0 1994 272,8 30,8 70,7 171,3 11,3 25,9 62,8 1995 284,4 30,5 73,1 180,8 10,7 25,7 63,6 1996 285,5 29,3 70,9 185,3 10,3 24,8 64,9 1997 286,2 26,8 69,1 190,3 9,4 24,1 66,5 1998 290,1 26,7 67,2 196,2 9,2 23,2 67,6 1999 295,3 26,2 65,7 203,4 8,9 22,2 68,9 2000 302,0 25,8 64,7 211,5 8,6 21,4 70,0 2001 308,6 25,3 64,7 218,6 8,2 21,0 70,8 2002 311,9 24,9 65,3 221,7 8,0 21,0 71,0 2003 316,0 24,7 66,7 224,6 7,8 21,1 71,1 2004 322,5 24,4 68,9 229,2 7,6 21,4 71,1 Source: The Statistical Service of the Republic of Cyprus Table 5: Employment by Sector

15 2.5 Unemployment The unemployed registered at the District Labour Offices rose by 1.400 persons or 13.3% during 2003, reflecting the slowdown in economic activity. The number of unemployed persons was 11.961, which accounts for 3.5% of the economically active population, compared to 3.2% in 2002 and 3.3% in 1998. The unemployment rate for males increased from 2.3% in 2002 to 2.5% in 2003 and for females it rose from 4.3% in 2002 to 4.9% in 2003. The corresponding rates for 1998 were 2.9% for males and 4.1% for females. Unemployment Statistics for Cyprus can be seen in Tables 6 & 7.

1985 1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004* Registered Unemployed 8,3 5,1 7,9 9,4 10,4 10,4 11,4 10,9 9,5 10,6 12 12,7 (1000’s) Unemployment 3,3 1,8 2,6 3,1 3,4 3,3 3,6 3,4 2,9 3,2 3,5 3,6 rate (%) Males (%) 2,9 1,4 1,9 2,3 2,6 2,9 2,9 2,7 2,3 2,3 2,5 2,6 Females (%) 4,2 2,5 3,7 4,3 4,6 4,1 4,6 4,4 3,8 4,3 4,9 5,1 Source: The Statistical Service of the Republic of Cyprus Table 6: Registered Unemployed, Total and By Sex

Year Primary Secondary Tertiary Newcomers Total Sector Sector Sector Unemployed 1992 135 1117 3241 694 5187 1993 170 2590 4123 755 7638 1994 139 2591 4510 757 7997 1995 111 2492 4615 652 7870 1996 126 3022 5524 754 9426 1997 145 3695 5803 781 10424 1998 152 3901 5679 679 10411 1999 169 4418 6209 579 11375 2000 170 3609 6444 712 10935 2001 108 2304 6329 805 9546 2002 107 2321 7367 768 10563 2003 112 2379 8559 912 11962 2004 112 2378 9239 922 12651 Source: The Statistical Service of the Republic of Cyprus Table 7: Unemployed Persons by Sectors Level

16 3 The Institutional Framework for Transport Supply and Demand by Mode

3.1 Transport Organization Transport infrastructure, operations and maintenance are supervised by the Ministry of Communications and Works. The Minister authorises the Permanent Secretary to act on his account.

Annual plans are proposed by Ministries and/or Departments in the scope of 5-year plans, including priorities. These proposals are discussed in the State Planning Bureau, which is directly under the Ministry of Finance. Final decisions are taken which are forwarded to the Council of Ministers, and then to Parliament, where after approval, they take the form of a Law.

In the Ministry of Communications and Works, there are 11 Departments. Those related to transport are Civil Aviation, Merchant Marine, Road Transport, and Public Works (responsible for road and airport construction).

The Ministry has also the responsibility for the Cyprus Port Authority and the Cyprus Telecommunications Authority. These independent Authorities with their own Board of Directors are owners of their respective infrastructures and manage revenues and expenses. Their profits are re-invested and in case of losses they are not subsidized by the government, instead they have to seek for loans or other ways to cover and manage losses. Their financial operations are controlled by the General Controller and their annual budget is submitted for approval to the Parliament.

The organizational chart of the Ministry of Communications and Works is shown in Figure 2 below:

17

Figure 2: Organizational Chart for the Ministry of Communication and Works

3.2 Land Transport

Cyprus has developed a road network which services the transportation needs of industry, agriculture, trade, tourism and the public. According to 2005 statistics, the road network in the free areas of Cyprus consists of about 12,146 km of roads.

The Department of Public Works of the Ministry of Communications and Works has the responsibility for the design, construction, maintenance and improvement of motorways, the majority of rural and interurban road network and the main urban roads. It is responsible for about 35% of paved roads, which constitute the main road network of Cyprus. The remaining roads come under the jurisdiction of the Municipalities and the District Administrations. The Municipalities are responsible for the secondary and local urban roads while the District Administration Authorities are responsible for the paved and unpaved district (tertiary) roads and village roads.

The length of road infrastructure in Cyprus for the years 2003-2005, for each road category is shown in Table 8 below:

18

Category of Roads 2003 2004 2005 (km) (km) (km) District Offices 2.571 2.641 2.650 Municipalities 3.481 3.577 3.666 Public Works 2.518 2.648 2.692 Department Forestry Department 3.190 3.193 3.138 Table 8: Road Infrastructure in Cyprus by Category The Department of Town Planning and Housing is responsible for the planning and geometric design and has the overall responsibility for the construction of the primary road network in urban areas.

Public Transport in rural and urban areas comes under the jurisdiction of the Department of Road Transport of the Ministry of Communications and Works. This Department is responsible for the fares and the planning of the public transport routes in rural and urban areas. Public Transport in Cyprus involves buses only and is operated by the public sector but fares and routes are controlled by the public sector (The Department of Road Transport).

A good road network for efficient forest management in general and especially for fire protection purposes, is maintained by the Forestry Department. These roads are planned in such a way to give quick access to almost all parts of the forest and to be easily accessible by all types of vehicles. All existing roads are maintained annually and improved wherever needed.

Road transportation for passengers and freight falls under the responsibility of the Department of Road Transport of the Ministry of Communications and Works. Freight transport is carried out by private operators who are owner-driver up to 97% and who prefer to remain separate and not get organized in companies. Control is affected by the State. Own account transport is also licensed.

Road transport laws and regulations have been harmonized with relevant ‘acquis’ communautaire.

Following harmonization with the EU Directive 26/76, the market is liberalized except for special trucks such as diary products, water tanks, and sewage collecting tanks. Passenger transport is done by privately owned buses, which are subsidised by the government for fare carrying passengers. Currently a new law was passed for differentiation of buses operating in urban and intercity routes.

3.2.1 The Public Works Department The Public Works Department of the Ministry of Communications and Works has the responsibility for the maintenance, improvement and construction of motorways, the majority of rural and interurban road network and the main urban roads. The Department has the following main activities within the field of Transport:

19 • Designing and management of designs that are carried out by the private sector, supervision of construction and maintenance of road works, including motorways and other primary and secondary roads.

• Development, improvement, extension and maintenance works of Larnaca and Paphos airports

• Preparation of traffic studies in urban and rural regions in collaboration with other Government Departments, Local Authorities and Consulting Engineers.

• Design, construction and/or supervision of construction of road projects in industrial zones and social housing schemes.

• Examination and resolution of problems / demands of local communities or private individuals resulting from the implementation of road projects.

The Department is also responsible for road improvement in Cyprus and estimates the medium annual circulation for each department of road network. The transport studies sub sector within the studies sector in the Public Works Department also carries out Technical and Economic Studies, Transport Studies and Environment Impact Studies for road related works.

3.2.2 The Department of Town Planning and Housing The Department of Town Planning and Housing has the responsibility for formulating the transport policy mainly in urban areas and for implementing the primary road network in urban areas. These two different tasks (policy formulation and implementation of road schemes) are carried out by the following two different sectors of the Department:

• Sector of Development Plans and Projects. This sector is divided into various sub- sectors one of which is the sub-sector for the transport policy. This sub-sector formulates integrated transport policies of land transport which are then incorporated in the Development Plans of the country which are legal documents regulating development.

• Sector of Development Control and Planning Implementation. This sector is divided into various sub-sectors one of which is the sub-sector for Town Planning Schemes concerning Road Schemes. This sub-sector is responsible for the design and implementation of road schemes which are usually primary roads within Development Plans.

3.2.3 The Department of Road Transport The Department of Road Transport was established in 1975. The Department’s main responsibilities are separated into two broad sectors. The first sector includes the study of the problems in public transport, aiming at improving the services offered to the public. The second sector includes all those activities relating to vehicles, that is, their

20 registration, their inspection for registration and the issue and renewal of driving licenses and circulation fees.

3.2.4 District Administrations and Municipalities District Administrations are responsible for the maintenance of roads mainly in rural areas and Municipalities are responsible for road maintenance, marking etc within their administrative boundaries which are usually urban areas.

3.2.5 General Remarks The main conclusion from the above description and analysis of the institutional framework of land transport in Cyprus is the fragmentation of responsibilities between various authorities. This causes the need for making extra efforts for coordinating activities which do not always work and also causes duplication of work. In order to improve the institutional framework of land transport in the urban areas of Cyprus, new Transport Authorities will have to be established for dealing with the integrated policies and implementation of land transport in each main urban area for which there is a published local plan.

3.3 Air Transport

3.3.1 The Department of Civil Aviation Air transport and aviation related matters are managed, controlled, and regulated by the Department of Civil Aviation, although the regulation of civil aviation is the responsibility of the Ministry of Communications. The Department of Civil Aviation reports to the Ministry and both are government owned, so that in effect the two functions are served by the same body. The Department of Civil Aviation is also responsible for the convergence of relevant legislation in Cyprus with that of EU.

The Department of Civil Aviation is responsible for the provision and regulation of Air Traffic services in the Nicosia Flight Information Region and the control towers at Larnaca and Paphos airports, the development and operation of the country’s airports and the development of air transport services with third countries. Safety and Security Regulation and the implementation of European Law on air transport are also among the main activities of the Department.

With the accession of Cyprus to the European Union, the new Civil Aviation Law N.213 (I) 2002, which is fully harmonized with the acquis communautaire on air transport, entered into force.

3.4 Maritime Transport Seaborne traffic is served in Cyprus by a modern and highly integrated national port system composed of:

• the new multipurpose ports of Limassol and Larnaca • the new industrial port of Vassiliko and

21 • the three specialized oil terminals at Larnaca, Dhekelia and Moni

All port facilities of the island are under the jurisdiction of the Cyprus Ports Authority and their activities and development are centrally planned, coordinated and supervised for efficiency and effectiveness.

3.4.1 The Cyprus Ports Authority The Cyprus Ports Authority (CPA) is a public autonomous organization under the supervision of the Minister of Communications and Works responsible for the management and operation of the ports of the country. It was set up in 1973 within the context of a World Bank port loan to Cyprus, which provided for the establishment of a national port authority, to replace previous port management arrangements which were based on conventional administrative concepts.

The CPA is governed by a nine-member Board (Chairman, Vice-Chairman and seven members) appointed by the Council of Ministers for a three-year term. The Board applies the policies of the Government according to the Authority’s legislation. These policies are conveyed and supervised by the Minister of Communication and Works.

The Authority has a double role:

(a) It exercises public power (b) It provides commercial and financial services

In its public power role, the Authority is the owner of the ports and lighthouses as well as being the regulator of port services rendered. Within the framework of this role, the Authority:

• Plans, develops and manages port infrastructure. • Provides licences for the use of port land, and the provision of services in the ports under its jurisdiction. • Provides licences for the provision of port services and for the construction of works in port areas. • Provides public/non financial activities.

As well as the above role, the Authority provides commercial/financial/port services. The main ones are:

• Ship pilotage • Ship towage and mooring • Use of gantry cranes and large mobile cranes • Reception, storage and delivery of cargo

Within the jurisdiction of the Authority are the commercial ports of Lemesos (Limassol) and Larnaka, the old port of Lemesos (Limassol), the Paphos port, the Latchi and Zyghi

22 fishing harbours and the oil terminals at Vassiliko and Moni. Further, the lighthouses at Cape Greco, Cape Kiti, Cape Gata, Paphos and Akamas also come under its jurisdiction.

The ports of Famagusta and Kyrenia the oil terminal at Karavostassi as well as the lighthouses at Kormakitis and Apostolos Andreas remain under Turkish occupation.

The Authority is the competent entity to administer, operate and develop the ports, as well as to facilitate international shipping aids. Towage and pilotage operations in ports are carried out by the Cyprus Port Authority which is also responsible for the safety, security, and fire protection measures at ports.

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 seaborne trade and passenger traffic exclusively, Cypriot ports became important cargo transhipment and cruise liner hubs.

Within the framework of the Authority’s efforts towards the rationalized development of Cypriot ports, it was decided to draw and implement a Master Plan to improve the port of Lemesos (Limassol). Phase “A” of a new multimillion port development programme to be fully implemented by the year 2010, has recently been completed in Limassol.

The Authority has also sought its incorporation into the international port community as well as its active participation in international shipping issues. As such it is now a member of the International Association of Ports and Harbours (IAPH), of the International Cargo Handling Association (ICHCA) and the International Lighthouses Authorities Association (IALA). As of 1993 the Authority has also become a member of the Mediterranean Cruise Association (MedCruise) as well as in the European Sea Ports Organisation (ESPO).

3.4.2 The Cyprus Shipping Association The Cyprus Shipping Association (CSA) was established in 1945, to provide a professional forum for the Shipping Agents of Cyprus. In 1954, following its registration under the provisions of the local Trade Unions Law, the Association became the official body representing the profession of the Shipping Agent in Cyprus.

The main aims of the Cyprus Shipping Association are:

• The provision of high quality services by the Shipping Agent and his strict adherence to high ethical standards promoted by the Association. • The protection of the professional rights of its members and the promotion of their common business interests. • The prosperity and growth of Cyprus as a maritime centre and a transhipment hub.

23 • The originating and promoting of improvements in the ports of Cyprus and in the laws affecting the profession as well as the shipping and port industry of the island, and • The presentation, promotion and implementation of the views and opinions of the Shipping Agents of Cyprus.

3.4.3 The Cyprus Shipping Council The Cyprus Shipping Council is the trade association of the Shipping Industry in Cyprus. Having witnessed considerable growth since its establishment in 1989 the Council today comprises all the major ship owning, ship management and shipping related companies based in Cyprus, thus making it one of the largest national shipping associations in the world. The Members of the Council own and/or manage from Cyprus, 2000 vessels exceeding 38.8 million gross tons.

Since its formation, the Council has become an influential body in local maritime affairs and has an input in all policy decisions concerning shipping matters. The Council's primary objective is to assist the Government at all levels to adapt existing laws, policies and procedures to the needs of the rapidly growing Cyprus fleet.

24 4 Analysis of Transport Infrastructure by Transport Mode

4.1 Road Network (Flows and Links and Categories of Roads) The road system in Cyprus has been developed over many years and in some areas the streets are narrow and winding. As the population of Cyprus has increased the towns have expanded and the roads have been developed in order to provide for the immediate needs of the local people. The majority of such roads are still therefore dealing with traffic volumes for which they were never intended.

The Turkish invasion of 1974 radically changed the programme of road development and created new priorities in order to cover the augmented needs in the government controlled areas, where 80% of the Cyprus population and the greatest portion of development had concentrated. Under these circumstances New Road Development Schemes were promoted, which were partially financed by foreign Financing Organizations. Under these development projects new 4 lane highways were constructed as follows: Nicosia- Limassol, Nicosia-Larnaka, Larnaka-Kofinou, Nicosia-Anthoupolis-Kokkinotrimithia, Larnaka By-Pass, Limassol-Paphos and Dekeleia-Protaras.

Design standards published by the Public Works Department of the Ministry of Communication and Works, define the categories of urban, inter-urban and rural roads in Cyprus within two publications, one for urban roads and on for inter-urban and rural roads. The urban road hierarchy which is also published in the Local Plans which form development plans for the urban areas of Cyprus, is the following:

• Urban motorways: These roads cater for the national traffic movement to and from the urban areas. They form extensions of the national highways into urban areas. They are usually roads with 4-6 traffic lanes separated by a hard median strip, grade separated junctions and with no or very limited access.

• Primary Distributors: These roads form the principal road network in the urban areas and join up with the island’s strategic highway system. They are usually dual two lane roads with a central reserve, bus stops and footways. They usually have at-grade junctions and limited or controlled access. Of course the standards concerning the frontage access on these roads are more relaxed in central urban areas. These roads the boundaries of the urban environmental areas (the city cells) and cater for the major movements between different parts of the city. The primary road network of the Nicosia Local Plan is shown in Figure 7. The roads shown on this figure include the urban motorways and the primary roads of the city.

• Secondary Distributors: The main function of these roads is to serve the main traffic within the environmental areas. The standard requirement of secondary distributors, vary in accordance with the traffic volumes and areas they serve.

25 They are usually two lane roads with direct frontage access and with footways, bus stops, parking bays if necessary, and extra right turning lanes.

• Local Distributors and Access Roads: They are usually very local roads within environmental areas linking the secondary distributors with individual residential, commercial and other developments.

The Road Category/Hierarchy for inter-urban and rural roads in Cyprus is the following:

o Motorways o Main roads, Class A o District Distributors Class B o Local Distributors Class C o Access Class D

A diagrammatic representation of the inter-urban and rural road hierarchy is shown in Figure 3 and the basic properties of the different classes of roads in Table 9.

The total length of roads and highways in Cyprus are presented in Table 10 and Figures 4 and 5. A map of Cyprus (published by the Public Works Department) showing the major road network of the island can be seen in Figure 6. A figure from the Nicosia local plan showing the major road network in an urban area can be seen in Figure 7.

26

Figure 3: Diagrammatic representation of the road hierarchy. Source – Geometric Design Standards, Ministry of Communications and Works, Public Works Department

27 Motorways Class A Class B Class C Class D

Main Freely moving Reasonably Distributes Distributes Access to Highway traffic flows moving traffic traffic flows trips over a individual Function between flows between across districts local area and properties regions main centres and to Class to Class B low speeds. A. Type of Road Dual Dual or single Single Single Single carriageway carriageway carriageway carriageway carriageway Type of Grade Preferably grade - At - grade As for Class B. Priority Intersections separated separated. At grade types of But the junctions. and Desirable (high capacity) junction. desirable No limit on Minimum spacing greater junctions not Desirable spacing is spacing. Spacing than 5km. excluded. 3.5 km spacing 300 m reduced to 100 between Minimum for dual c/w with m in (Km) 4km. g/s and 0.5 km for single c/w and at - grade junctions. Form of Vehicles. Vehicles and All vehicles. As for Class B No clear Traffic Pedestrians cyclists. Pedestrians with additional preferences Carried cyclists and Pedestrians and use separate pedestrian Only service equestrians cyclists use facilities. activity. deliveries prohibited separate facilities HGV’s limited for HGV’s to through trips Length of Mainly long As for the Medium Mainly local Local trips Journeys distance traffic Motorways some distance trips trips. to access and Probable Business and shorter trips. predominate. Shopping, property Emphasis goods. Tourism in school, to/from scenic areas work etc. Parking Stopping Very limited and Limited and Considerable if Usually prohibited frequently sometimes off road short term prohibited. restricted. parking is not as space provided restricted Design speed 120 kph In range 120 to 85 In range of In range 85 to Usually less on which kph 100 to 50 kph 30 kph than 50 kph geometric properties are based Volume of D3M up to D3AP up to 54,000 10,000 5,000 1,000 traffic in 67,000. D2AP up to 39,000 to to to AADT(1) D2M up to S2 up to 13,000 5,000 1,000 100. 41,000. Accesses for None None Limited to Some Frequent private isolated vehicles properties

Table 9: Basic properties of Different Classes of Roads

28 1990 2001 2002 2003* 2004* 2005* (km) (km) (km) (km) (km) (km)

Total length of roads 9043 11408 11593 11760 12059 12146 Highways - 257 268 268 268 276 Other roads 9043 11151 11325 11492 11791 11870 Sources: Annual Bulletin for Transport Statistics (2005) –European Commission for Europe, *Statistical Service of the Republic of Cyprus Table 10: Total Length of Roads in Cyprus`

Length of Highways 280

275

270

265

260 Kilometres 255

250

245 2001 2002 2003 2004 2005 Year

Figure 4: Length of Highways in Cyprus

Total Length of Roads 12400

12200

12000 11800

11600 Kilometres 11400

11200

11000 2001 2002 2003 2004 2005 Year

Figure 5: Total Length of Roads

29

District Borders

Larnaca Port Larnaca Airport

Paphos Airport Vasiliko Port Limassol Port

Figure 6: Map of Cyprus showing Major Road Network, Airports and Ports

30

Figure 7: Nicosia Major Road Network taken from Nicosia Local Plan

31 Urban Transport The public passenger transport in the urban areas is run mainly by urban buses and to a lesser extent by urban taxis. Most of the urban buses are organised in peripheral bus companies. The urban buses are currently run by private companies, which have for many years been operating at a loss. The Government of Cyprus has regularly financed these losses, a situation which is not tenable in the long term. The same situation is reflected in public transport outside the cities.

Intercity Transport The intercity public passenger transport is conducted by intercity buses and taxis and covers the transport of passengers between the cities. The majority of intercity taxis are organised in a single company, while buses are organised in three companies. Intercity public transport is currently confined to door-to-door service taxis, the usage of which is also falling.

Rural Transport The passengers that come from the countryside to the urban centres are car-ried out massively by rural buses and individually by rural taxis. The services of rural buses cover the transport needs for transportation of passengers and goods (of small cargo) between villages or suburbs with city or village or suburbs. Generally speaking, such services offer transport services from villages to the nearest cities by carrying labour workers. The main characteristics of this sector are the lack of elasticity in the itineraries and schedules.

4.1.1 The Network Profile (Supply Indicators) The total length of road infrastructure in Cyprus based on information from the Statistical Service of Cyprus and the Annual Bulletin of Transport Statistics for Europe and North America (Economic Commission of Europe) totals 12.146km for the year 2005 compared with 11.593km for 2002 and 9.043km in 1990.

The length of the road network by road category can be seen in Table 10.

The density of the road network in Cyprus per road category can be seen in Table 11. For the year 2005 the total road density in Cyprus is 1,313 km/sq.km.

1990 2001 2002 2005* (km/sq.km) (km/sq.km) (km/sq.km) (km/sq.km)

Total length of roads 0,978 1,233 1,253 1,313 Highways 0,028 0,029 0,030 Other roads 0,978 1,205 1,224 1,283 Sources: Annual Bulletin for Transport Statistics (2005) –European Commission for Europe, *Statistical Service of the Republic of Cyprus Table 11: Density of road network in Cyprus per Road Category The length of public roads and the total annual expenditure on road and bridge construction for the years 1990, 1994 and 2000-2005 is presented in Table 12 and Figure 8. The density of roads by type can be seen in Table 13 and Figure 9.

32

Year Kilometres of roads by type Expenditure of roads Bituminous Gravel Forest Total and bridges £(mn) 1990 5.395 1.420 2.228 9.043 33.766 1994 5.546 1.601 2.557 9.704 50.559 2000 6.747 1.485 2.909 11.141 62.507 2001 6.982 1.413 3.013 11.408 64.150 2002 7.206 1.331 3.056 11.593 62.500 2003 7.403 1.259 3.098 11.760 81.316 2004 7.672 1.295 3.092 12.059 81.901 2005 7.845 1.274 3.027 12.146 … Source: Statistical Service of the Republic of Cyprus Note: (1) The data on roads length refer to the end of each year, i.e. the new roads constructed during each year can be derived as the difference from the previous year's figure (2) Since 1975 the data refer to the roads existing in the Government controlled areas Table 12: Length of Public Roads and Annual Expenditure for Road Construction

Kilometres of Roads by Type 14.000 Bituminous Gravel 12.000 Forest Total

10.000

8.000

6.000 Kilometres

4.000

2.000

0 1990 1994 2000 2001 2002 2003 2004 2005 Year

Figure 8: Kilometres of Roads by Type

Year Density of roads by type (km/sq.km) Bituminous Gravel Forest Total 1990 0,583 0,153 0,241 0,978 1994 0,600 0,173 0,276 1,049 2000 0,729 0,161 0,314 1,204 2001 0,755 0,153 0,326 1,233 2002 0,779 0,144 0,330 1,253 2003 0,800 0,136 0,335 1,271 2004 0,829 0,140 0,334 1,304 2005 0,848 0,138 0,327 1,313 Source: Statistical Service of the Republic of Cyprus Table 13: Density of Roads by Type

33 Density of Roads by Type 1,4 Bituminous Gravel 1,2 Forest Total

1

0,8

0,6

Density (km/sq.km) Density 0,4

0,2

0 1990 1994 2000 2001 2002 2003 2004 2005 Year

Figure 9: Density of Roads by Type The density of the road network per population can be calculated for the year 2002 which is the year of the most recent population census. This density is calculated as 15.5 km/000 inhabitants

4.1.2 The Operational Role (Demand Indicators) The following information on land transport refers mainly to the transport of goods by road the traffic flows on major roads. The information is derived from the publication "Transport Statistics 2005" issued by the Statistical Service of the Cyprus Government and from traffic flow statistics of the Public Works Department, published on their web page (www.mcw.gov.cy/pwd)

National Transport of Goods In 2005 a total of 53.706,4 th. tonnes of goods were carried by vehicles, of which, 25.941,0 th. tonnes by hires or reward vehicles and 27.765,0 th. tonnes were carried by vehicles for own accounts.

The total kilometres travelled by vehicles in 2005 were 199.875,6 th. kilometres, 101.124,4 th. kilometres were covered by loaded vehicles and 98.751,2 th. kilometres by empty vehicles. The main goods transported on national level, were 21.425,8 th. tonnes of crude and manufactured minerals, 17.169,8 th. tonnes of manufactured building materials, 3.889,3 tonnes of petroleum products and 3.122,3 th. tonnes of foodstuff.

National road transport statistics can be seen in Tables 14 and 15.

34 Vehicle load Hired or reward Own account Total capacity Tonnes TKMS* Tonnes TKMS* Tonnes TKMS* (th) (mn) (th) (mn) (th) (mn) Road tractor 13.743,0 606,9 6.300,8 279,9 9.246.9 437.8 Rigid 3,0-9,9 723,6 13,5 6.179,4 116,6 229.2 8 tonnes " 10,0-14,9 " 1.081,4 17,4 3.935,9 42,0 1.281.6 32.9 " 15,0 tonnes+ " 10.393,0 127,9 11.348,9 169,6 10.891.9 213.1 TOTAL 25.941,0 765,7 27.765,0 608,1 53.706,0 1.373,8 Source: Statistical Service of the Republic of Cyprus. *TKMS = tonne-kilometres Table 14: National Road Transport According To Load Capacity of the Vehicle and type of Transport (2005)

Type of transport Loaded Empty Total (000’s km’s) (000’s km’s) (000’s km’s) Hire of reward 38.236,0 39.294,0 77,530,0 Own account 62.888,4 59.457,2 122.345,6 Total 101.124,4 98.751,2 199.875,6 Source: Statistical Service of the Republic of Cyprus Table 15: Vehicle Kilometres (000’s) Travelled on National Road Transport According to Type of Transport (2005)

International Transport of Goods The following statistics cover all the carriage of goods by Cypriot vehicles transported to and from Cyprus for the year 2005.

In 2005 a total of 19.748 tonnes of goods were moved internationally, to and from Cyprus. 11.877 tonnes of these goods were imported and 7.871 tonnes of goods were exported.

The main goods imported by road, in 2005 were 4.612 tonnes of foodstuff, 3.801 tonnes of foodstuff, 1.393 tonnes of textile articles, raw animal and vegetable materials and 1.294 tonnes of textile, clothing, paper and leather materials.

The main goods exported by road, in 2005, were 3.773 tonnes of foodstuff, 3.131 tonnes of potatoes, fruit and vegetables, 349 tonnes of live animals and 292 tonnes of live clothing, paper and leather materials.

International road transport statistics can be seen in Tables 16 and 17.

Gross vehicle weight Hire on reward Own account Total Tonnes TKMS Tonnes TKMS Tonnes TKMS (mn) (th) (mn) (th) (mn) (th) 25 tonnes and over 19.729 18.757,6 19 1,9 19.748 18.759,5 TOTAL 19.729 18.757,6 19 1,9 19.748 18.759,5 Source: Statistical Service of the Republic of Cyprus. *TKMS = tonne-kilometres Table 16: International Road Transport According to Gross Vehicle Weight and Type of Transport (2005)

35

Type of transport Loaded Empty Total (000’s km’s) (000’s km’s) (000’s km’s) Hire of reward 1.548,7 262,5 1.811,2 Own account 0,3 3,5 3,8 Total 1.549,0 266,0 1.815,0 Source: Statistical Service of the Republic of Cyprus Table 17: Vehicle Kilometres (000’s) Travelled on International Road Transport According To Type of Transport (2005)

The main countries of loading and unloading of international carriage of goods were Greece, Holland, United Kingdom and Germany. The total international road transport for each country by origin and destination can be seen in Table 18.

Country of origin or Total by Origin Total by Destination destination Tonnes (No.) TKMS (Th.) Tonnes (No.) TKMS (Th.) Germany 153 348,0 383 878,5 Greece 8.222 2.489,4 5.532 1.895,8 Netherlands 1.413 4.229,1 290 854,2 Austria 242 398,3 60 85,0 United Kingdom 683 2.264,9 1.171 3.584,5 Other countries 1164 1140,4 286 591.4 Total 11.877 10.870.1 7.871 7.889,4 Source: Statistical Service of the Republic of Cyprus. *TKMS = tonne-kilometres Table 18: International Road Transport By Type Of Transport And Country Of Origin & Destination, 2005

Traffic Flows The traffic flows per day on major links of the road network of the country are counted by the Public Works Department and are given in the table below for the year 2004 (Table 19).

36 AVERAGE DAILY PRIVATE Road Section Name (Road) Name (Section) DIRECTION LORRIES BUSES CIRCULATION Vehicles

Passenger Car Mixed Daily LIGHT MEDIUM HEAVY Units Circulation ATHALASAS-STROVOLOS INDUSTRY A0001 010 NICOSIA-LIMASSOL TO LIMASSOL 33761 27141 19433 4397 1791 1194 325 AREA ATHALASAS-STROVOLOS INDUSTRY A0001 010 NICOSIA-LIMASSOL TO NICOSIA 31380 25390 17798 4596 1903 787 305 AREA STROVOLOS INDUSTRY AREA A0001 020 NICOSIA-LIMASSOL TO LIMASSOL 36481 29324 20996 4750 1935 1291 352 LATSIA STROVOLOS INDUSTRY AREA A0001 020 NICOSIA-LIMASSOL TO NICOSIA 32501 26296 18434 4760 1972 815 315 LATSIA A0001 030 NICOSIA-LIMASSOL LATSIA-AGIA VARVARA TO LIMASSOL 33451 26890 19254 4356 1775 1183 322 A0001 030 NICOSIA-LIMASSOL LATSIA-AGIA VARVARA TO NICOSIA 30558 24724 17332 4475 1854 766 297 A0001 040 NICOSIA-LIMASSOL AGIA VARVARA -KOFINOU TO LIMASSOL 12487 8970 5059 2153 735 933 90 A0001 040 NICOSIA-LIMASSOL AGIA VARVARA -KOFINOU TO NICOSIA 12472 9143 5431 2048 631 932 101 A0001 050 NICOSIA-LIMASSOL KOFINOU-PAREKLISIA TO LIMASSOL 20681 14751 9204 2581 1505 1283 177 A0001 050 NICOSIA-LIMASSOL KOFINOU-PAREKLISIA TO NICOSIA 21057 15106 9411 2719 1314 1466 196 A0001 060 NICOSIA-LIMASSOL PAREKLISIA-GERMASOGIA TO LIMASSOL 28595 20394 12726 3568 2081 1775 245 A0001 060 NICOSIA-LIMASSOL PAREKLISIA-GERMASOGIA TO NICOSIA 28572 20497 12770 3689 1783 1988 267 A0001 070 NICOSIA-LIMASSOL GERMASOGIA-MESA GEITONIA TO LIMASSOL 27257 19441 12131 3402 1983 1691 234 A0001 070 NICOSIA-LIMASSOL GERMASOGIA-MESA GEITONIA TO NICOSIA 27567 19776 12321 3560 1720 1918 258 A0001 080 NICOSIA-LIMASSOL MESA GEITONIA -POLEMIDIA TO LIMASSOL 30866 22016 13738 3853 2245 1916 264 A0001 080 NICOSIA-LIMASSOL MESA GEITONIA -POLEMIDIA TO NICOSIA 31158 22351 13925 4023 1945 2168 290 A0002 010 NICOSIA-LARNACA AGIA VARVARA-RIZOELIA TO LARNACA 18962 15170 10619 2654 1213 546 137 A0002 010 NICOSIA-LARNACA AGIA VARVARA-RIZOELIA TO NICOSIA 17808 13869 9555 2344 1442 416 111 A0002 020 NICOSIA-LARNACA RIZOELIA-LARNACA TO LARNACA 15368 11894 7208 2950 1332 214 191 A0002 020 NICOSIA-LARNACA RIZOELIA-LARNACA TO NICOSIA 18600 14395 8723 3570 1612 260 231 LARNACA AIRPORT A0003 010 LARNACA AIRPORT – KALO XORIO TO PARALIMNI 11627 8916 6767 793 517 589 249 PARALIMNI LARNACA AIRPORT TO LARNACA A0003 010 LARNACA AIRPORT – KALO XORIO 11253 8630 6551 768 501 569 242 PARALIMNI AIRPORT LARNACA AIRPORT A0003 030 RIZOELIA-PYLA TO PARALIMNI 13649 10126 6055 2309 922 567 273 PARALIMNI LARNACA AIRPORT TO LARNACA A0003 030 RIZOELIA-PYLA 14102 10462 6256 2385 952 586 282 PARALIMNI AIRPORT LARNACA AIRPORT A0003 040 PYLA-XSILOTYMPOU TO PARALIMNI 11936 8854 5294 2019 805 496 239 PARALIMNI LARNACA AIRPORT TO LARNACA A0003 040 PYLA-XSILOTYMPOU 11936 8854 5294 2019 805 496 239 PARALIMNI AIRPORT LARNACA AIRPORT A0003 050 XSILOTYMPOU-ORMIDIA TO PARALIMNI 11470 8961 5583 2124 583 358 313 PARALIMNI LARNACA AIRPORT TO LARNACA 358 A0003 050 XSILOTYMPOU-ORMIDIA 11470 8961 5583 2124 583 313 PARALIMNI AIRPORT continued…

37 AVERAGE DAILY PRIVATE Road Section Name (Road) Name (Section) DIRECTION LORRIES BUSES CIRCULATION Vehicles

Passenger Car Mixed Daily LIGHT MEDIUM HEAVY Units Circulation Α0005 20 LIMASSOL-LARNACA KALO XORIO-LARNACA TO LARNACA 10172 7960 4904 1950 534 374 199 Α0005 20 LIMASSOL-LARNACA KALO XORIO-LARNACA TO LIMASSOL 10172 7960 4904 1950 534 374 199 A0006 010 LIMASSOL-PAPHOS POLEMIDIA-ERIMI TO PAPHOS 19033 13443 8939 1708 1115 1411 269 A0006 010 LIMASSOL-PAPHOS POLEMIDIA-ERIMI TO LIMASSOL 17543 13189 8692 2322 1029 911 237 A0009 010 NICOSIA-TROODOS STROVOLOS-ANTHOUPOLI TO TROODOS 21195 18116 13823 2753 725 489 325 A0009 010 NICOSIA-TROODOS STROVOLOS-ANTHOUPOLI TO NICOSIA 23571 20785 15777 3616 665 394 333 A0009 020 NICOSIA-TROODOS ANTHOUPOLI-KOKKINOTRIMITHIA TO TROODOS 13051 11154 8510 1695 446 301 202 A0009 020 NICOSIA-TROODOS ANTHOUPOLI-KOKKINOTRIMITHIA TO NICOSIA 12243 10796 8195 1879 345 205 173 B0001 010 NICOSIA-LIMASSOL STROVOLOS- LATSIA TWO DIRECTIONS 27351 18210 10326 3315 2367 1985 218 B0001 090 NICOSIA-LIMASSOL PAREKLISIA-GERMASOGIA TWO DIRECTIONS 36395 31484 17788 11240 1323 472 661 B0003 010 LARNACA-DEKELIA LARNACA-LIVADIA TWO DIRECTIONS 43478 36823 27888 5606 1231 832 1265 B0003 020 LARNACA-DEKELIA LIVADIA-CTO TWO DIRECTIONS 30871 24666 15753 5811 1166 968 968 TO LARNACA B0004 010 LARNACA-KITI LARNACA AIRPORT 12618 10308 7813 1341 491 327 337 AIRPORT B0004 010 LARNACA-KITI LARNACA AIRPORT TO LARNACA 12618 10308 7813 1341 491 327 337 B0006 110 LIMASSOL-PAPHOS GEROSKIPOY-PAPHOS TWO DIRECTIONS 33584 24500 16227 3731 1968 2115 459 Β0007 10 PAPHOS-POLIS PAPHOS-MESOGI TWO DIRECTIONS 21696 16113 8308 5014 1998 342 451 B0008 010 LIMASSOL-TROODOS LIMASSOL - POLEMIDIA TWO DIRECTIONS 30794 24035 17479 3177 2000 903 476 B0008 020 LIMASSOL-TROODOS POLEMIDIA-LIMNATI ROAD TWO DIRECTIONS 27069 21122 15357 2791 1759 794 420 B0008 030 LIMASSOL-TROODOS LIMNATI ROAD - POLEMIDIA TWO DIRECTIONS 26408 20607 14982 2724 1716 777 408 SOUTH BY PASS Β0022 020 HOSPITAL A1 TWO DIRECTIONS 32000 25000 17000 4500 500 2825 175 NICOSIA SOUTH BY PASS Β0022 030 A1-IOSIF XATZIOSIF TWO DIRECTIONS 47360 37000 25160 6660 740 4181 259 NICOSIA SOUTH BY PASS Β0022 040 IOSIF XATZIOSIF - TSERIOU TWO DIRECTIONS 40960 32000 21760 5760 640 3616 224 NICOSIA SOUTH BY PASS Β0022 050 TSERIOU-STROVOLOU TWO DIRECTIONS 46080 36000 24480 6480 720 4068 252 NICOSIA SOUTH BY PASS Β0022 060 STROVOLOU-A9 TWO DIRECTIONS 25600 20000 13600 3600 400 2260 140 NICOSIA E0901 010 STROVOLOS-TSERI STROVOLOU-TSERI TWO DIRECTIONS 23908 19576 15054 2356 1353 687 Table 19: Department of Public Works Roads, with Volume of Flows Greater than 8200 Veh/Day (For Each Direction) for the Year 2004

38 Motor Vehicles in Cyprus

According to the Statistical Service of the Republic of Cyprus, the total number of motor vehicles in Cyprus was 644.403 at the end of 2005.

Private salon cars constituted the biggest category with 405.311 cars or 62.9% of all vehicles. Goods conveyance vehicles (vans, pick-ups, etc) numbered 141.966 and mechanised cycles amounted to 61.738. The other types of vehicles numbered 9.486 self drive cars, 3.727 buses, 1.961 taxis, 14.976 tractors and 5.238 other vehicles (road rollers, cranes, heavy locomotives, etc) In relation to the population the corresponding ratio in 2004 was 2,3 persons per private saloon car\compared to 3,4 in 1990 and 5,7 in 1980.

The road vehicle fleet in the country based on information from the Annual Bulletin of Transport Statistics for Europe and North America, (Economic Commission for Europe) for the years 1990, 2001 and 2002 can be seen in Table 20 and Figure 10.

Category 1990* 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Passenger 178.602 255.527 268.174 283.673 292.238 300.356 312.905 329.617 352.482 380.371 414.797 cars Taxis - 1.787 1.771 1.764 1.741 1.740 1.736 1.729 1.859 1.883 1.961 Buses 2.308 3.113 3.177 3.184 3.190 3.315 3.374 3.405 3.712 3.704 3.727 Goods conveyance - 116.398 120.277 124.181 126.490 129.339 132.815 135.642 139.957 138.914 141.966 vehicles Mechanised 50.953 68.851 63.264 65.010 60.751 59.326 57.857 54.866 57.402 56.598 61.738 cycles Tractors - 12.122 12.460 12.438 13.298 13594 13.886 14.226 14.645 14.691 14.976 Other - 2.895 3.009 3.136 3.198 3.304 3.465 3.730 4.410 4.781 5.238 vehicles TOTAL 305.881 457.693 472.132 493.386 500.906 510.974 526.038 543.215 574.467 600.942 644.403 Sources: *Annual Bulletin for Transport Statistics (2005) –European Commission for Europe, Statistical Service of the Republic of Cyprus Table 20: Road Vehicle Fleet in the Country

39

Road Vehicle Fleet in Cyprus 700.000 Passenger Cars Goods Conv ey ance Vehicles Motorcy cles Tractors Buses Taxis Other 600.000

500.000

400.000

Number 300.000

200.000

100.000

0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year

Figure 10: Road Vehicle Fleet in the Country

4.1.3 New Investments (Projects and Plans) The highway network is continuously developed. The first section of the Kokkinotrimithia-Astromeritis Highway between Kokkinotrimithia and Deneia is currently under construction, where the rest is under design. Also the upgrading of the Limassol By-Pass interchanges have started, while a new Larnaka airport connecting road is under construction too.

Transport studies have been undertaken for the 4 major cities of Cyprus, by external consultants. The Public Works Department is promoting the suggestions and conclusions of these studies.

Nicosia: A transport study on the decongestion of Nicosia and the growth of the public transport system was prepared by G.C. Hadjicostas Consultancies in collaboration with overseas consultants Axis. From The evaluation and viability on the use of new technology of vehicles for public transport (hybrid public transport vehicles) in the Nicosia area has also been carried out by the same consultants.

40 Limassol: A transport study of the wider Limassol urban region was prepared by the consortium of overseas experts Colin Buchanan and Partners and Hughes Economic Planning.

Larnaka: A transport study of the wider Larnaka urban region was prepared by overseas consultants Colin Buchanan and Partners.

Paphos: A transport study of the wider Paphos urban region was prepared by the consortium of overseas experts Colin Buchanan and Partners and Hughes Economic Planning.

The main road projects and studies planned for the year 2005-2006 are as follows:

1. Upgrading of the existing Nicosia-Limassol Highway to a 6 lane road between the Strovolos and Alambra Interchanges. 2. Limassol port connecting road 3. The Nicosia orbital motorway 4. The Paphos-Polis motorway 5. Preliminary Study, Technical and Economic Study and Environmental Impact Study of the Limassol-Saittas Road 6. New 4 lane road from Nicosia to Palechori 7. New Road from the Ezousas River to the Paphos Airport 8. Limassol-Agros Road a) Road from Kalo Xorio to Zoopigi b) Connection with the Lemesos-Saittas Road c) Section Kato Mylos - Agros 9. Avdimou – Paxna Road 10. Limnati – Agiou Mamas Triklinis Road 11. Platres – Prodromos Road 12. Kellaki – Eptagonia Road 13. Environmental Impact Study and Technical and Economic Study of Saittas – Karvounas Road 14. Environmental Impact Study of Germasogia – Akrountas – Dieronas Road

4.2 Rail Networks (Flows and Links) There are no Rail Networks in Cyprus.

4.3 Air Traffic and Airports (Flows, Hierarchy of Airports, Capacity Building, Efficiency)

4.3.1 The Network Profile (Supply Indicators) Before 1974, Cyprus had only one international airport, in the capital Nicosia. The airport has since been closed because it lies in the buffer zone between the Government controlled and the occupied parts of the country. Since 1974, two international airports

41 have been developed, in Larnaca and Paphos (see Figure 6), situated at 50 and 150 km respectively from Nicosia. On average, these airports register a weekly traffic of 1,249 flights, shared between 36 international air companies and 81 charter services.

Larnaca International Airport is located in the southeast of the island and receives a lot of air traffic in the summer months, mainly from the UK, Scandinavia and Germany. Larnaca Airport has one terminal and is busiest from May to November. Intercity buses provide public transport to Larnaca and other towns and cities in Cyprus, while there are also taxis operating from outside the terminal. Larnaca airport, currently handles approximately 5 million passengers annually.

The airport has 30 international airlines and 30 charter airlines using it at present. One of the major operators is Cyprus Airways who have a significant stake in the duty free and retail operations at the airport.

Paphos International Airport is located in the west of the island and serves the nearby resorts of Limassol and Coral Bay. Paphos Airport is a small facility with minimal services, but it receives about 1.5-million passengers per year who mainly arrive on flights operated by charter airlines. Situated just east of the city, buses provide access to Paphos and other nearby resorts, while taxis will take you anywhere you want to go.

Hermes Airports Limited has been awarded the concession to build new passenger terminals and related infrastructure at the two airports, through a Build Operate and Transfer (BOT) scheme, to increase their capacity and to improve the quality of services. It is expected that the Paphos Airport is to be completed and become operational before the end of 2008 and the new Larnaka Airport before the end of 2009.

Details for both Larnaca and Paphos airports can be seen below and in Tables 20 and 21 and 10.

LARNACA AIRPORT Traffic 1999 2000 2001 2002 2003 2004 2005 Passenger throughput 4.369.716 4.896.333 5.309.356 4.984.982 4.814.457 5.093.629 5.001.057 (arrivals and departures) Cargo handled 31.091 32.193 30.899 29.558 30.739 36.125 - (tonnes) Cargo handled 68.543 70.972 68.119 65.163 67.767 79.641 - (1000s lbs) Aircraft 3.996 42.802 46.770 46.105 45.853 47.222 47.430 movements Table 21: Larnaca Airport Passenger, Cargo and Aircraft Movements

42 Larnaca Airport Passenger Movements 6.000.000

5.000.000

4.000.000

3.000.000 Number 2.000.000

1.000.000

0 1999 2000 2001 2002 2003 2004 2005 Year

Figure 11: Larnaca Airport Passenger Movements

Airlines Serving Airport include: Aeroflot, Air Malta, Air Slovakia, AJet (previously Helios Airlines), Alitalia, Austrian Airlines, British Airways, Cyprus Airways, Czech Airlines, Egyptair, El Al, Emirates, Finnair, First Choice Airways, Gulf Air, Hemus Air, Iran Air, Jat Airways, Kuwait Airways, LTU Int´l, Lufthansa, MEA, Malev, Olympic, Royal Jordanian, Syrian Arab, TAROM-Romanian

Cargo Facilities: Capacity 40.000tonnes (88.184,000lbs), Warehouse 9.000m² (96,875sq ft), Bonded Warehouse, Mechanical Handling, Refrigerated Storage, Animal Quarantine, Fresh Meat Inspection, Livestock Handling, Health Officials, X-Ray Equipment, Decompression Chamber, Security for Valuables, Dangerous Goods, Radioactive Goods, Very Large/Heavy Cargo, Express/Courier Centre, Handling Equipment: Forklifts Gross output of the air transport sub-sector increased by 16,8% in 2001.

Passenger Facilities: Annual Capacity 4.500,000, 48 check-in desks, 9 gates, 3 baggage claim belts, 500 short term parking spaces, Post Office, Bank, Bureau de Change, Auto Exchange Machine, Restaurants, Cafeterias, Bars, VIP Lounge, Duty Free Shop, Newsagent/Tobacconist, Chemist Shop, Gift Shop, Travel Agent, Tourist Help Desk, Car Rental, Taxi Service/Rank, First Aid, Baby/Parent Room, Disabled Access/Facilities, Business Centre

43 PAPHOS AIRPORT

Traffic 1998 2005 Passenger throughput (arrivals 1.190.343 1.780.586 and departures) Cargo handled (tonnes) 5.731 - Cargo handled (1000s lbs) 12.634 - Aircraft movements 10.421 13.879 Table 22: Paphos Airport Passenger, Cargo and Aircraft Movements Airlines Serving Airport Include: Aero Lloyd, Aeroflot, Air Holland, Britannia Cargo, Caledonian, Cyprus Airways, Eurocypria Airlines, Finnair, First Choice Airways, Germania Fluggesellschaft, Monarch, MyTravel

Passenger Facilities: Annual Capacity 1,500,000, 16 check-in desks, 5 gates, 150 short term parking spaces, Bank, Restaurants, Cafeterias, Bars, Duty Free Shop, Gift Shop, Tourist Help Desk, Car Rental, First Aid, Baby/Parent Room, Disabled Access/Facilities

4.3.2 Air Carriers Cyprus Airways is 69% State owned. The remaining 31% is privately owned through share floating in Cyprus Stock Exchange. It owns its own catering affiliate, Eurocypria, an affiliate for charter flights and it owns and operates the Cyprus Duty Free. There is one more catering company (Eurorest) and a private regular and charter flights company (AJet, previously Helios Airlines). As of 1 May 2004, the market has been fully liberalised according to EU Directives. The output of air carriers (Cyprus Airways, Eurocypria and AJet) in 2004 reached £222.4 mn in terms of gross output as against £218.9 mn in 2003.

4.3.3 The Operational Role (Demand Indicators) Traffic growth through Cyprus airports over the last 20 years has been robust, averaging 10 percent per annum in 2000, 4.8 million movements occurred at Larnaca, and 1.3 million at Paphos. Some 85 percent of the total were leisure travellers, mostly foreign tourists.

Air passenger movement through Larnaca is projected to grow under the medium scenario by 4.2 percent per annum form 4.8million in 2000 to 5.8 million in 2005 and 8.7 million in 2015. Under the low growth scenario at 2.7 percent per annum movements will reach 5.3 million in 2005 and 7.0 million in 2015, whilst under the 5.6 percent per annum high growth scenario Larnaca passenger movements will reach 6.2 million in 2005 and 10.7 million in 2015.

Paphos airport is expected to display faster rates of growth than Larnaca over the forecast period, as a result of the introduction of newly licensed scheduled services at Paphos and the airport's slightly greater convenience for most of Limassol as well as for the Paphos area itself, which has been increasing its share of tourist beds in recent years.

44 The passenger projections for Paphos Airport are therefore at 6.8 percent per annum under the medium scenario, from 1.4 million in 2000 to 1.9 million in 2005 and 3.7 million in 2015. Under the low growth scenario at 5.2 percent, passenger throughput will be 1.7 million in 2005 and 2.9 million in 2015, whilst with 8.2 percent per annum growth under the high scenario number will reach 2.1 million in 2005 and 4.5 million in 2015.

The combined all Cyprus forecast of Larnaca and Paphos air passenger growth is 4.9 percent per annum, which compares with the IATA 2000/2004 forecast of 5.3 percent, the Airbus 1999/2019 forecast of 5.3 percent within Europe as a whole, and that of Boeing for 1999/2019 of 5.1 percent.

In a high growth scenario, Cyprus Airways would establish itself within a major global alliance and develop a regional hub at Larnaca for the Eastern Mediterranean. Additionally, EU Airline deregulation would increase the number of airlines and services at both airports.

Table 23 presents the annual passenger traffic forecast for Larnaca and Paphos airports. There figures are derived from the "Traffic Study and Development Plan" report prepared in August 2001 by "EC Haris" for the Department of Civil Aviation of the Cyprus Government.

45

Larnaka Airport Paphos Airport Total Total Transer/ Transer/ Year Total Transit Total Transit 2000 4.774.718 135.095 1.397.835 4.593 2001 5.082.120 143.939 1.495.100 4.914 2002 5.363.326 103.464 1.578.085 5.188 2003 5.596.579 108.051 1.645.061 5.408 2004 5.844.520 112.874 1.714.492 5.636 2005 6.095.237 117.741 1.786.693 5.874 2006 6.349.961 122.655 1.861.936 6.121 2007 6.615.379 127.776 1.940.349 6.379 2008 6.891.941 133.112 2.022.065 6.647 2009 7.180.118 138.672 2.107.226 6.927 2010 7.480.400 144.465 2.195.973 7.219 2011 7.781.660 150.223 2.288.460 7.523 2012 8.095.069 156,211 2.384.844 7.840 2013 8.421.119 162,438 2.485.289 8.170 2014 8.760.321 168.913 2.589.969 8.514 2015 9.113.202 175.647 2.699.061 8.872 2016 9.463.715 182.422 2.809.619 9.236 2017 9.827.739 189.460 2.924.715 9.615 2018 10.205.795 196.769 3.044.533 10.010 2019 10.598.422 204.362 3.169.271 10.421 2020 11.006.185 212.248 3.299.131 10.848 2021 11.422.178 220.260 3.433.202 11.290 2022 11.853.901 228.574 3.572.736 11.750 2023 12.301.948 237.202 3.717.958 12.228 2024 12.766.937 246.156 3.869.100 12.726 2025 13.249.510 255.449 4.026.405 13.245 Source: Department of Civil Aviation of the Cyprus Government Table 23: Larnaca and Paphos Scheduled & Charter Passenger Combined Forecasts Airport competition in the region concerns principally the sub-regional hub function. At the full regional hub level, Cyprus is dominated by Athens and Istanbul to the Northwest, and by Dubai and Bahrain to the Southeast. Sub-regionally, Larnaca competes with Tel Aviv and Cairo at around double its passenger throughout, and Amman and Beirut at lower throughput than Larnaca. Movements at Larnaca are also dominated by tourist travellers, who do not offer great interlining potential.

Favourable hub factors include Cyprus strategic location, user friendly facilities, stable environment and a successful national carrier in relation to market size. There may therefore be some potential for limited subregional hub operations to develop at Larnaca airport, particularly under an aggressive new commercial management.

Air freight volumes are modest: a total of 33.000 tonnes in 2000, approximately equal inbound and outbound. Against some 50.000 air transport movements this equates to 1.3 tonnes per scheduled aircraft. Inbound freight has increased steadily since 1985, at an average of 7.1 percent per annum whilst outbound has been more volatile around a flat line trend.

Value added of air transport activities at current market prices decreased to £53,7 mn in 2004 as against to £61,99 mn in the previous year i.e. it increased by 13,2%.

46 Civil aircraft landings increased during 2005 and totalled 30.664 compared to 30.146 in 2004. Passenger arrivals through airports increased to 3.390.563 compared to 3.210.658 in 2004. Table 24 and Figures 12 & 13 show the aircraft, passenger and freight movements for the years 1980-2005.

Year Aircraft movements Passengers Freight (tons) Landings Take Total Arrivals Departures Total Unloaded Loaded Offs 1980 7.527 7.523 15.050 457.499 454.564 912.063 5.213 19.154 1981 8.131 8.140 16.271 536.291 533.677 1.069.968 4.401 19.316 1982 9.235 9.129 18.364 613.494 608.835 1.222.329 9.819 18.453 1983 10.402 10.377 20.779 675.569 695.066 1.370.635 10.118 20.922 1984 11.943 11.952 23.895 771.860 772.141 1.544.001 7.190 21.127 1985 14.193 14.108 28.301 881.096 870.902 1.751.998 6.264 20.820 1986 13.383 13.202 26.585 956.946 946.936 1.903.882 6.146 18.598 1987 14.199 14.197 28.396 1.094.043 1.096.323 2.190.366 7.690 19.112 1988 15.349 15.348 30.697 1.292.284 1.288.228 2.580.512 8.083 18.828 1989 16.879 16.875 33.754 1.489.092 1.509.343 2.998.435 9.317 19.757 1990 18.713 18.710 37.423 1.695.473 1.697.063 3.392.536 9.212 17.564 1991 15.878 15.867 31.745 1.483.654 1.465.789 2.949.443 9.659 28.705 1992 19.236 19.219 38.455 2.066.385 2.047.857 4.114.242 10.683 15.758 1993 19.843 19.834 39.677 1.964.967 1.970.963 3.935.930 9.861 14.824 1994 21.047 21.049 42.096 2.199.545 2.191.872 4.391.417 12.524 21.863 1995 22.134 22.137 44.271 2.333.693 2.331.585 4.665.278 13.249 26.452 1996 21.756 21.762 43.518 2.207.884 2.204.549 4.412.433 14.722 19.653 1997 22.840 22.829 45.669 2.337.695 2.335.038 4.672.733 14.685 17.431 1998 23.590 23.585 47.175 2.547.860 2.544.130 5.091.990 15.775 19.839 1999 24.860 24.845 49.705 2.776.360 2.777.379 5.553.739 16.101 16.878 2000 26.540 26.544 53.084 3.066.077 3.059.134 6.125.211 17.544 15.933 2001 29.195 29.189 58.384 3.267.903 3.271.628 6.539.531 16.834 15.384 2002 28.810 28.786 57.596 3.105.818 3.099.451 6.205.269 16.561 14.389 2003 29.177 29.181 58.358 3.041.409 3.032.114 6.073.523 16.631 15.091 2004 30.146 30.153 60.299 3.210.658 3.210.734 6.421.392 19.800 17.382 2005 30.664 30.645 61.309 3.390.563 3.391.080 6.781.643 20.300 18.945 Source: Statistical Service of Cyprus Table 24 Aircraft, Passengers and Freight Movements, 1980-2005

47

Total Aircraft Movements 70.000

60.000

50.000

40.000

30.000

Total AIrcraftTotal (number) 20.000

10.000

0

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year

Figure 12: Total Aircraft Movements in Cyprus

Total Passenger Movements

7.000.000

6.000.000

5.000.000

4.000.000

3.000.000

2.000.000 Total Passengers (number) 1.000.000

0

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year

Figure 13: Total Passenger Movements in Cyprus

48 4.3.4 New Investments (Projects and Plans) A private consortium, Hermes Airports, has taken over the development and operation of both Larnaka and Paphos Airports under a B.O.T project (Build, Operate, Transfer) for a period of 25 years. In the meantime the consortium will also operate the existing facilities, which have already undergone improvements, until construction of the new airports are completed. New infrastructure will increase the capacity of the airports and improve the quality of services. It is expected that the Paphos Airport is to be completed and become operational before the end of 2008 and the new Larnaka Airport before the end of 2009.

4.4 Maritime Shipping and Ports (Flows, Hierarchy of Ports, Capacity Building, Efficiency)

4.4.1 The Network Profile (Supply Indicators) The main ports of Cyprus are Limassol and Larnaca (Figure 6) both situated on the south coast of the island. Famagusta, the third port of Cyprus, is situated on the eastern coast of the island, but it is not accessible because it is not located in the government controlled part of Cyprus.

Transhipment traffic at the ports of Cyprus has been increasing steadily from the 1970’s, however, following the implementation of embargo in 1986 by Turkey the transhipment traffic at the ports of Cyprus has fallen dramatically. The Government of Cyprus is currently continuing efforts for the lifting of embargo.

The Limassol Port The Limassol Port is situated on the outskirts of the country's second main city in terms of population and economic significance. It is the largest port in Cyprus, serving most of the island's seaborne cargo and passenger traffic. It handles two thirds of the total container traffic locally generated and transhipment as well as the entire volume of grain imports. Similarly, over 90% of the country's passenger traffic is presently served by this port.

Limassol port serves the country's external trade and sea-borne passenger traffic, acting also as transshipment centre for the region. With a quay length of 2030 metres and dredged depth to 14 metres, it is equipped with post panamax cranes to serve even 4th generation container vessels. It offers the full complement of services required during a ship's call in port which include ship repair, container repair, bunkering, ship-chandling etc.

As a container port, Limassol provides two terminals with six gantry cranes and a total annual capacity of 600.000 TEUs. In addition to being a major container transhipment centre in the Eastern Mediterranean, Limassol is also an important cruise liner hub for mini excursions in the region as well as a main stopover point for international liners cruising in the area.

49 The Larnaca Port The Larnaca Port is a part of the infrastructure of an industrial business and tourist centre of the island and it is the nearest seaport both to Nicosia, the country's capital and to south eastern major agricultural and tourist areas of Cyprus. The Port serves both cargo and passengers and is the country's main service port for the exports of potatoes, carrots and other agricultural products. Transhipment of containers and cars is also a major business of the port. Great strides have been made in developing facilities at Larnaca Port with the most recent the dredging of the north quay to 12 meters, which is mainly used for container handling, the strengthening of container handling equipment with two 40 ton panamax plus gantry cranes, which raised the annual handling capacity of the port to some 250.000 TEUs.

Larnaca port, with a quay length of 666 metres and dredged depth to 12 metres, serves some specialised trade and is scheduled for redevelopment into a specialised state of the art passenger/leisure port.

4.4.2 The Operational Role (Demand Indicators) Cyprus fulfils the role of a hub for a number of key trading areas of world significance and it is a natural transhipment centre for Europe-Far East trade. The various shipping markets situated along the coasts of the Levant, North Adriatic and Black Sea can easily accessed from Cyprus and with minimum diversion from the main arterial route. Equally, Cyprus is a logical hub for other main-line deep sea trades traversing the Mediterranean and for inter-regional maritime traffic.

Totally there were around 5243 calls by ships in Cyprus ports in the year 2001. Out of these calls, 2714 calls were made by shipping lines. However it is not known how many are regular lines and how many belong to conferences. The rest are non-regular calls.

Sea-borne traffic is served in Cyprus by a modern and highly integrated national port system composed of the multipurpose ports of Limassol and Larnaca, the industrial port of Vasiliko and four specialised oil terminals at Larnaca, Dhekelia, Moni and Vasiliko.

Limassol port serves the country's external trade and sea-borne passenger traffic, acting also as transshipment centre for the region. With a quay length of 2030 metres and dredged depth to 14 metres, it is equipped with post panamax cranes to serve even 4th generation container vessels. It offers the full complement of services required during a ship's call in port which include ship repair, container repair, bunkering, ship-chandling etc.

In 2004, the total passenger arrivals and departures from Cypriot ports were approximately 510.000, down 52.2% from the year 2000. However, comparing Cyprus with other cruise centres in the Eastern Mediterranean, Cyprus continues to play a primary role in sea-borne tourism in the Region.

The figures of passenger arrivals and departures form Cypriot ports for the years 1994 and 2000-2004 are shown in Table 25 and Figures 14 and 15.

50

Limassol Larnaca Year Arrivals Departures Total Arrivals Departures Total 1994 417576 411486 829062 13540 12635 26175 2000 496600 495300 991900 24610 26090 50700 2001 335800 334790 670590 9910 10360 20270 2002 214440 214950 429390 18470 18510 36980 2003 230199 230301 460500 16896 16468 33364 2004 228379 226602 454981 27066 27092 54158 Source: Statistical Service of the Republic of Cyprus Table 25: Passenger Arrivals / Departures - Limassol, Larnaca

Limassol Port Passenger Arrivals/Departures

1200000 Limassol Arrivals Limassol Departures

1000000 Limassol Total Throughput

800000

ers

ng 600000

sse

Pa 400000

200000

0

1994 2000 2001 2002 2003 2004

Year Figure 14: Limassol Port Passenger Arrivals and Departures

51

Larnaca Port Passenger Arrivals/Departures 70000 Larnaca Arrivals Larnaca Departures 60000 Larnaca Total Throughput

50000

40000

30000 Passengers 20000

10000

0 1994 2000 2001 2002 2003 2004 Year

Figure 15: Larnaca Port Passenger Arrivals and Departures

Cyprus' main port, Limassol, currently handles 3.5 million tonnes of freight and 0.8 million passengers annually. Larnaca handles 0.4 million tonnes of freight (excluding traffic through a separate oil terminal) and 29.400 passengers annually.

Cyprus ports handle imported and exported cargo to and from the island, the transshipment of container traffic and passenger traffic either as a port of call within a Mediterranean cruise or as a specialist 'mini-cruise' for tourists visiting Cyprus.

Cyprus is more successful against its competitors for cruise passenger business. Domestic mini cruise lines use Limassol as a base port in significant numbers, and Cyprus is also included in the regional itineraries of a number of international passenger cruise operators. Limassol and Piraeus are Europe's two busiest cruise ports with other major competitors being Rhodes, Kusadasi, Santorini and Mykonos.

The gross output of Maritime transport activities increased by 33,0% over 2003 and amounted to £149,1 mn in 2004. This is mainly attributed to the increase of passenger mobility, especially with regards to cruises.

Value added of the sub-sector at current market prices increased by 45,2% and reached £88,7 mn in 2004 from £61,1 mn in 2003.

52 During 2004, 4.297 vessels arrived at the various ports of Cyprus. Of these 3.357 or 78,1% arrived at Limassol port, 712 or 16,6% called at Larnaca port and 228 at other ports.

At the end of 2004, 1.913 ships were on the Cyprus Register with a total of 23.059.919 gross registered tonnage.

The number of containers and freight (in tonnes) loaded and unloaded for Larnaca and Limassol ports for the years 2001-2004 can be seen in the Tables 25 and 26 and Figures 16 and 17.

Cyprus trade Transit trade Empty Containers Total Containers Unloaded Loaded Total Unloaded Loaded Total Unloaded Loaded Total Unloaded Loaded Total Year (number) (number) (number) (number) (number) (number) (number) (number) (number) (number) (number) (number) 2001 97.180 35.400 132.580 14.980 10.490 25.470 7.790 70.700 78.490 119.950 116.590 236.540 2002 105.220 35.440 140.660 5.340 3.650 8.990 6.500 77.740 84.240 117.060 116.830 233.890 2003 114.040 34.810 148.850 9.225 8.325 17.550 6.510 82.620 89.130 129.775 125.755 255.530 2004 131.390 35.860 167.250 16.810 16.300 33.110 6.760 98.010 104.770 154.960 150.170 305.130 Source: Cyprus Ports Authority Table 26: Containers Loaded and Unloaded, 2001-2004

Containers Loaded and Unloaded 350.000 Cyprus Trade Transit Trade 300.000 Empty Containers Total Containers 250.000

200.000

150.000

Number of Containers of Number 100.000

50.000

0 2001 2002 2003 2004 Year

Figure 16: Containers Loaded and Unloaded, 2001-2004

53 Cyprus trade Transit trade Total Freight Year Unloaded Loaded Total Unloaded Loaded Total Unloaded Loaded Total (tonnes) (tonnes) (tonnes) (tonnes) (tonnes) (tonnes) (tonnes) (tonnes) (tonnes) 2001 892.630 347.130 1.239.760 151.960 120.340 272.300 1.044.590 467.470 1.512.060 2002 959.400 373.000 1.332.400 56.200 41.600 97.800 1.015.600 414.600 1.430.200 2003 1.053.120 373.300 1.426.420 103.960 97.330 201.290 1.157.080 470.630 1.627.710 2004 1.227.630 410.990 1.638.620 215.160 403.810 618.970 1.442.790 814.800 2.257.590 Source: Cyprus Ports Authority Table 27: Freight Loaded and Unloaded, 2001-2004

Freight Loaded and Unloaded 2.500.000 Cyprus Trade Transit Trade 2.000.000 Total Freight

1.500.000

1.000.000 Freight (tonnes)

500.000

0 2001 2002 2003 2004 Year

Figure 17: Freight Loaded and Unloaded, 2001-2004 There are no space, time or regulatory constrains to the use of the island's port facilities. Vessel turnaround time is optimised. 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.

4.4.3 New Investments (Projects and Plans) The island is a pioneer in the development of purpose built container terminals in the Eastern Mediterranean and one of the first countries in the region to use specialised container gantry cranes. The latest major addition to the island's container port operational assets is a 1995 built fourth generation terminal (Development Phase A). At Limassol port a further half billion of US Dollars will have been spent on container port development by the year 2010.

Improvements in the provision of port infrastructure and equipment in Cyprus go hand- in-hand with advancements in operational methods and information systems used for the

54 handling of vessels and cargo. Computer applications include CyPOS, an integrated port community information system, covering all areas of port operations on a real time basis.

Limassol Port The port's new container terminal with a draft of 14 meters along the quay is a part of the first phase of the Limassol Port's development plan scheduled to be completed by the year 2010. Limassol Port has acquired recently two new tug boats in order to assist the handling of increasing number of bigger vessels. Additional improvements of facilities at Limassol Port include the expansion of the storage capacity of its grain silo, the construction of a significant number of dolphin berths on the south part of the basin, the upgrading of the western multi-purpose quay into a post panamax vessel facility as well as the extension of the passenger terminal.

Larnaca Port and Marina

The Government of Cyprus is considering the expansion and redevelopment of the Larnaca Port and Marina as a single project to be financed by a BOT method. The expression of interest stage has already been completed with three consortiums prequalifiying. The successful bidder will be required to undertake the new port, marina and real estate development and to manage and operate passenger and commercial port and marina operations. The government is now proceeding with the finalization of tender documents.

55 5 Intermodality and Gateways (connectivity, technology levels)

The European Commission has advocated intermodal transport solutions in its White Paper “European transport policy for 2010: time to decide”. Intermodal transport networks should allow for seamless intermodal passenger transportation to provide attractive alternatives to ‘car-only’ travel by comprising a number of transport modes including walking, public transport, cycling and car use.

In the case of Cyprus, road transport is the only way of transporting goods and passengers within the island. Air transport plays the largest role in the transport of passengers to and from other countries. Shipping plays a fundamental role in the distribution of goods to and from Cyprus but also worldwide.

The modal split for passenger transport in Cyprus is 98% car and 2% bus compared to 82,5% and 9,5% respectively in EU-25, which has another 6,8% for rail (Stat. pocketbook DG TREN 2004).

For freight transport the modal split is 100% by road as there is no rail or inland waterway compared to 72,2% for EU-25 which has also 16,3% for rail, 6% for inland waterways and 5,6% for pipeline.

These above statistics show an over reliance on the use of car transport for passenger transport and a complete reliance on road transport for freight transport within Cyprus. This high reliance on car transport has resulted in the deterioration of the bus services provided, as well as the lack of significant investment in infrastructure. In addition, the bus fleet is on average very old and is in need of renewal. There is therefore a need to improve/review the public transport strategy so that a true alternative to car-only travel is provided.

A study to develop a Public Transport strategy is planned for 2007. It is expected that this study will tackle issues such as the renewal of bus fleet, bus priority schemes, parking strategies for the urban centres and pedestrian infrastructure investment. Implementation of the recommended measures will begin in 2008 and financing will be sought from EU funds, such as the Cohesion Fund.

In Cyprus, intermodal passenger and freight transport occurs only when passengers and freight arrive by air or by sea and are transported to their destinations by road transport.

Table 28 shows intermodality (number of units forwarded by intermodal means) defined as the movement of goods in one and the same loading unit or a vehicle by successive modes of transport without handling of the goods themselves when changing modes.

56

Number of intermodal transport units forwarded 1990 2001 2002 Goods Road Vehicles 5.848 -Loaded on Ships 3.072 -Unloaded on ships 2.776 Containers 375.608 236.540 233.890 Containers with Goods 241.149 158.050 149.650 -Loaded on Ships 104.620 45.890 39.090 -Unloaded on Ships 136.529 112.160 110.560 Empty Containers 134.459 78.490 84.240 -Loaded on Ships 82.944 70.700 77.740 -Unloaded on Ships 51.515 7.790 6.500 Goods carried in intermodal transport unit (1000 tonnes) In goods road vehicles 63.8 23 -Loaded on ships 55.6 11.5 -Unloaded on ships 8.2 11.9 In containers 2459.6 1512.1 1430.2 -Loaded on ships 1071.8 467.5 414.6 -Unloaded on ships 1387.8 1044.6 1015.6 Source: Annual Bulletin for Transport Statistics (2005) –European Commission for Europe Table 28: Number of intermodal transport units loaded and unloaded in Cyprus. With regards to intermodality, the following points have to be underlined:

• The lack of adequate motorway connections to ports. The motorway connections to airports are of adequate standard and will be further improved with the BOT development of the two airports (Larnaca and Paphos). • Land transport still has the problem of the lack of adequate bypasses for inhabited areas. • The high ratio of maritime containerisation (around 70%) is balanced by low transhipment levels (around 10%). • The high cost of port related services, especially for handling. • Regional intermodal and ship-to-ship transhipment capabilities are limited due to Turkish embargo on vessels originating in Cyprus.

57 6 Environmental Pressures and Risks Transport is a key element to the socio-economic development of Cyprus. The main transport policy of the government of Cyprus for the next few years is the upgrading of the main transport infrastructure (airports, ports, and roads) of the country so as to effectively link it with the Trans-European Networks and to ensure that the free flow of passenger and goods is safeguarded. In the framework of this general transport strategy, the Cypriot government will consider the establishment of a regulator for the transport sector.

Transport, however, has also been identified internationally as a major contributor to environmental pollution. Road transport, air traffic, and the movement of hazardous goods pose great dangers to the environment. Growing transport volumes are leading to increased pressure on the environment especially in relation to climate change and biodiversity loss.

Land, air and marine transport exert significant pressures on the physical and biological environment in Cyprus. Impacts of the transport sector begin with the construction of new road infrastructure, harbours, and airports, which can causes significant and sometimes irreversible impacts on the landscape, the ecosystems, and the natural resources. As a shift towards greater use of cars and planes continues, passenger and freight transport is growing at a faster rate than the economy as a whole, bringing increasing threats to the environment and human health.

Pressure on the environment caused by transport, especially rapidly-growing road and air transport, is continuing to increase despite efforts by policymakers and the transport sector itself to take greater account of environmental concerns.

For this reason, at a European but also at a national level there are continuous discussions and strategies which when implemented will provide for the effective transport of passengers and goods using all available means of transport.

The main environmental problems attributed to transport in Cyprus exist in urban areas and are caused by road traffic (mainly private car movements). The lack of public transport and the inadequate road infrastructure coupled with continuously growing traffic demand has caused serious pollution problems mainly in central business districts, due to car emissions. The main urban networks cannot handle efficiently the traffic flows and this creates a lot of through traffic in sensitive residential areas affecting the quality of life in these areas. The only way forward is the promotion of public transport and other environment friendly means of transport like electric/hybrid cars, cycling and walking. The Government has already set the goal of increasing public transport from 2% to 10% by the year 2015.

The main strategy of the government in the field of transport works to ensure that transport continues to fulfil its socio-economic role while safeguarding the freedom of choice of the user. The main Transport Goal of the Government, aims at an integrated transport strategy which coordinates efficiently and in a sustainable way all transport

58 modes and policies. Another dimension of the Government Transport Strategy is the integration of the principle of sustainable mobility and transport in the overall framework of sustainable development, seeking to meet the needs of the present without compromising the ability of future generations to meet their own needs.

In 2001, Cyprus published a comprehensive Environmental Law, which was drafted according to EU policies and directives. This Law has been revised and updated and published again in 2005 According to this law, major projects require environmental impact assessment studies in full compliance with the relevant EU Directive. Cyprus has also signed various environmental international conventions (Rio, Kyoto, etc.) for the protection of habitats, fauna and flora, and for the protection of the air quality.

59 7 Analysis of Transport Infrastructure Problems and Prospects (SWOT)

The main transport problems in Cyprus are summarized in the SWOT table below (Table 29) and include, inadequate public transport, over dependence on private car and land transport causing an increase in environmental problems and big accident and fatalities records

The total number of road accidents reported to the police during 2005 was 2.548 compared to 3.824 in 2004, showing a decrease of 27.1%.The number of casualties was 2.398 in 2005 and 3.293 in 2004. There were 102 fatalities and 2.296 (741 seriously) injured compared to 117 deaths and 3.176 persons injured (seriously) in 2004.

Strengths Weaknesses • Interurban road network mostly completed, there is • Expansion of cities (after Turkish invasion) without maturity for the remaining projects driving to full a plan has resulted to limited space for road completion network and pedestrians • Area traffic management systems are implemented • Expansion of cities with low density encourages for traffic controlled junctions use of private car. • Small distances between cities and associated • Government Budgets favour the construction of small costs of projects compared to other countries road infrastructure instead of the implementation of • Geographical location in SE Med. appropriate for public transport measures. development of transport hub • Limited funds of local authorities • Well organised public administration • Less than 2% by public transport • Ageing fleet of buses • Many authorities responsible for road network and public transport • Total dependence of fossil fuels for transport • Big accident / fatalities record • No land connection to EU • Embargo from Turkey Opportunities Threats • Opportunity for funding of transport infrastructure • Continuous urban sprawling limits available space projects from EU funds growing for the development of transport infrastructures • Sensitivity of government and inhabitants to • Increasing cost for battling accidents and traffic environmental issues and energy saving congestion • Implementation of ITS to fight congestion and • Big cost for upgrading public transportation and accidents obtaining increased share in modal split • Saving funds with appropriate training and • Difficulty to change the mentality of the public reduction of accidents towards public transport use and road safety • PPP for airports and ports • Development of competing hubs in the region • Toll roads • Increasing car ownership Table 29: SWOT Analysis of Transport Infrastructure Problems

60 8. Concluding Remarks on the Structure of Transport Network and Outlining of Policy Priorities Cyprus has a very good motorway infrastructure connecting main urban areas and is currently upgrading the national and regional roads in the mountain areas. The airport and sae port infrastructure is being upgraded mainly through the PFI (Private Funding Initiative) system. The main problem that Cyprus faces is the lack of adequate public transport both in urban and rural areas. The greatest problem is in urban areas. Very recently, the EU declined a request from the Government for funding a motorway project and offered instead funding for enhancing public transport.

The Government of Cyprus is concerned with the inadequate public transport service provided and has been trying to remedy the situation. The most comprehensive attempt has been the execution of a study for the public transport enhancement in Nicosia, completed in 2001. A recent decision of the Council of Ministers calls for the implementation of a number of short and medium term measures proposed in this study.

In addition to these, the Government of Cyprus is exploring the possibility of securing additional financing for a package of measures, relating to the enhancement of public transport, throughout the country, from the Cohesion Fund and other European Union funds and/ or programmes, during the Programming Period 2007- 2013.

To this end, the whole situation, regarding public transport, was evaluated and a costed prioritised list of measures needed to be taken over the next ten years in order to revive and drastically improve the operation of the services has been established.

8.1 Prioritization of Transport Projects Cyprus is currently preparing for the new programming period, 2007–2013. More specifically the “Outline of the Development Policy”, 2007-2013 has been prepared and approved by the Council of Ministers. The Outline contains the development vision for the period, the global objectives and the development axes through which the objectives will be achieved.

Following its approval, the Outline has been sent to the relevant partners (i.e. government and semi-government organisations, the economic and social partners, other interested parties) for comments and recommendations. In order to give priorities for transport projects the government is based on priority axes of the developments strategy which follows the EU guidelines for Cohesion and the National needs.

A first Draft of the “Framework for a Development Strategy” of Cyprus as approved by the Council of Ministers was made available to the Planning Bureau, in addition to a document outlining the priority actions for the period 2007 - 2013 in the transport sector and the priorities which could be funded by the Cohesion Fund. In this document the following measures and actions are included:

61 • Basic strategy in transport sector is to improve and develop the transport infrastructure of airports, ports, roads and connect it to the Trans-European Transport Networks (TEN-T).

• Indicative Actions for land transport for 2007-2013 include: (1) Upgrading the motorway Lefkosia - Ag. Varvara (28 M€) (2) Road connecting Limassol ports with the Limassol - Paphos motorway (28M€) (3) Nicosia orbital (ring) motorway (155M€) (4) New motorway connecting Paphos and Polis Chrysochous with PPP(Private- Public-Partneship) (5) New motorway Kokkinotrimithia - Astromeritis (70M£) (6) Road (dual carriageway) Lefkosia -Palaichori (30M£) (7) Motorway Limassol - Platres (Saitas) 70M£ (8) Roads Lefkosia - Palaiohori, Limassol - Platres (9) Implementation of Road Safety Plan 2005-2010

• Indicative actions for Air transport: (1) Upgrading of Larnaca and Paphos airports with PPP (500 M€)

• Indicative actions for Maritime transport: (1) New passenger terminal for Limassol port (10M£, already 1,8M€ has been secured by TEN-T funds) (2) Transform Larnaca port to a tourist port for cruise vessels with PPP (3) Additional investments for the Limassol port to turn it to a freight transhipment hub and inclusion in SSS and motorways of the sea initiatives

• There are also various actions for the development of Public Transport in Nicosia in order to relieve congestion which include necessary road works, park and ride facilities, renewal of bus fleet, bus terminal, etc. (at least 200 M€)

8.2 Public Transport Priorities The overall goal based on information based on information from the Public Works Department is to increase the usage of public transport from its current level of approximately 2% to about 10% by 2015.

The objectives are:

• To reduce the bus journey times by an average of at least 20% • To reduce the average passenger journey time and cost by at least 30% • To increase the number of bus lines and bus stops so that the maxi-mum walking distance to a bus stop is 500m • To increase the frequency of operation of the buses to a maximum of 20 minutes during daytime and 10 minutes at peak periods • To increase the hours of operation of the buses to at least 16 hours per day

62 • To significantly improve the comfort and ease of the bus passengers while walking to the bus stop, waiting for the bus, entering and exiting the bus and in the vehicle • To facilitate the use of public transport by people with impediments, or reduced mobility • To reduce the average level of emissions of buses by at least 40% • To restructure road user charges so that they reflect the real cost of travel

8.1.1 Prioritised List of Measures to Achieve Objectives The following is a list of measures identified by the Public Works Department, needed to be taken to achieve the stated goal and objectives with regards to public transport:

1. Setting up a project management team to oversee the implementation of the measures proposed

2. Changing the proprietary status of the bus operators: New contracts must be drafted for the bus operators that will specify in detail the level of service that is to be provided by them.

3. Introduction of bus lanes in primary arteries in the cities: A traffic impact study for selecting the specific roads and stretches of roads where this measure is to be introduced needs to be undertaken at a cost of approximately £100.000. Already a number of roads have been identified for introducing this measure in the four main cities at a total cost of approximately £3 million, but depending on the results of the study, this cost may eventually reach £10 million.

4. Introduction of bus only streets: The measure must be part of a wider traffic management plan for each area. The cost of this measure is estimated at approximately £1,3 million.

5. Bus priority measures at traffic signals: This measure provides for the identification of buses in urban areas, when approaching a signalised junction and either extending the green time until after the bus has passed the junction, or changing to green to accommodate the approaching bus. To implement this measure it is necessary to fit all buses and signalised junctions with suitable equipment that enables the recognition of buses and the alteration of the signal timings through a central processor. The measure will be implemented after the completion of a study for the introduction of intelligent transport systems in Cyprus that will be executed between early 2007 and mid 2008.

6. Placement of modern bus shelters on almost all bus stops combined with an increase in the number of bus stops which must also be easily visible. The objective is for walking distances to be confined to a maximum of 500m. It is estimated that the cost of each shelter will be on average £3000 and that

63 approximately 6000 such shelters will be needed for a total cost of about £18 million.

7. Erection of electronic and printed traveller information with bus scheduling and bus routes maps. This measure calls for the placement of printed bus schedules and maps regarding bus routes on all bus stops (around 6000 in total) and also the placement of electronic message signs to provide information of the expected time of arrival (ETA) of buses to deliver real-time information (at bus stops and possibly around buses). For this measure, buses must be equipped with the appropriate tracking equipment and a data management system is also required for manipulating data via the control centre of the Intelligent Transport Systems. It is estimated to cost around £1.4 million.

8. Completion of Primary Urban Road Network: The primary urban road network as planned in the local plans of cities must be completed. The urban roads to be constructed together with estimated cost are as follows:

Nicosia (Lefkosia) Archangelos Avenue £9 million Strovolos Northern and Southern Tangential Roads £50 million (Akademias, Ifigenias, Kykkou and Stavrou Avenues), University Primary Road Network £10 million Limassol (Lemesos) Link Road between the Limassol Port and Limassol- £14 million Paphos Highway Leoforos Ev. Laniti, Leoforos Synergatismou (Northern £6 million Urban By-pass) Paphos Demokratias Avenue £4 million Tombs of the Kings Avenue £16,5 million Airport Link, £14 million Paralimni Paralimni-Dherynia Road £3,5 million Kennedy Avenue £11 million. Table 30: Estimated Cost of Completion of Urban Roads for the Programming Period 2007- 2013

9. Construction of pedestrian sidewalks along bus corridors and other distributor roads including measures such as ramps for the impaired in accordance with the standards of the Public Works Department The cost is estimated at around £125 million, over a ten year period.

10. Construction of Central Bus Stations at central locations at each city serving the urban, rural and inter-urban buses. Each station will include sufficient area for

64 stopping for all bus routes which serve the bus station, as well as amenities for passenger information, passenger waiting and alighting and a cafeteria. The cost is estimated at around £2 million for each central station which is around £10 million in total for all cities.

11. Traffic Management Measures involving upgrading of existing-junctions and implementation of one-way systems. In order to improve mobility especially for buses it is important to design and implement improvements at major intersections and possibly also implement one-way systems. By implementing one-way systems, additional space for implementing bus lanes is provided. The implementation period of the measure is 3-4 years at an estimated cost of £12 million.

12. Park and Ride facilities need to be introduced at the fringes of large urban centres. Such areas are planned for implementation within the next 10 years in Nicosia, Limassol and Larnaca at a cost of about £10.0 million (including land acquisition).

13. Bus Schedules: The operation of buses should be extended until late at night so that the bus service is available for at least 16 hours per day. This will necessitate an in-crease in the number of buses by approximately 20% and a 50% increase in the number of drivers.

14. Bus Routes: Existing bus routes will be redesigned and new routes will be implemented including combined bus routes in order to service more passengers and increase the bus frequency. The implementation of this measure is estimated to require an increase in the number of buses and drivers of about 10-20%. In addition, new tangential and cyclical (orbital) bus routes need to be designed and implemented. These services will provide the opportunity to passengers to change buses in order to complete their journey, or in the case that such a route is combined to continue their journey uninterrupted. For implementing this measure, the number of buses and drivers need to increase approximately by another 10- 15%.

15. Bus Frequencies: The bus frequency of 10-15 minutes during peak hours and 15- 20 minutes during the rest of the day is targeted. For implementing such a measure an increase of 60-80% of the number of buses and 100% in the number of drivers is needed bearing in mind that existing frequencies are 30-45 minutes.

16. Bus Ticketing: Automated ticketing and auditing machines should be furnished onboard buses, at major bus stops and at bus stations. A selection of ticket types will be available (daily, monthly, weekly) and possibly smart cards will also be used. Estimated cost for the system is £500,000.

65 17. Renewal of bus fleet: Modern, versatile, environmentally friendly low floor buses with amenities for the impaired with air-conditioned facilities and onboard passenger information messaging shall replace the existing old buses.

18. The new buses be environmentally friendly using energy sources with zero or low emissions of pollutants (e.g. electric, bio-diesel, natural gas). It is expected, bearing in mind the improved bus frequencies, that about 720 new urban buses will be needed at a total cost of £86.4 million.

With regard to intercity public transport, it is estimated that initially 30 new buses at a cost of £100.000 each will be needed (total £3 million). Emphasis will be placed in providing a satisfactory service to the airports.

With regards to rural buses, a study needs to be carried out to determine the bus corridors, itineraries, frequencies and mode of operation of the bus companies. It is estimated that, at first, 50 new buses will need to be acquired and provided to the bus operators. The cost of each new bus is estimated at £80.000 for a total cost of £4 million.

19. School Buses: School bus services have successfully been implemented initially as a pilot scheme at 3 schools and the measure is now extended to 7 schools. The implementation of this measure on a wider scale requires the supply of about 100 new modern buses for servicing single or multiple schools at an approximate cost of £10.0 million.

20. Policy Measures for Parking and for Entering City Centres: All off street car parks in the urban centres will need to be regulated with licenses for their usage, issued by the local authorities. The policing of the parking shall be carried out by the local authorities directly or indirectly through contracted agencies. The violators will not only have to pay an off the court fine, higher than the current fines, but may also have their vehicles towed away or clamped.

21. Congestion charging, involving Intelligent Transport Systems: A pre-condition for this measure is the implementation of the control centre for the Intelligent Transport Systems (ITS), based on the findings of the relevant study for ITS in Cyprus funded by the transition facility. Implementation of the system is likely to cost approximately £300.000.

22. Study for the introduction of mass transit (public transport) sys-tem (e.g. Nicosia Light Rail/Tram, Paphos Trams/Trolley Buses). The study duration will be 6-8 months at a cost of £250,000.

23. Publicity Measures and Public Awareness: A sustained campaign to inform people on the benefits of using public transport, as well as the details of the measures being implemented will be carried out.

66 8.3 Concluding Remarks

As there are no railways or inland-waterways in Cyprus, all inland-traffic is served by the road network.

The density of motorways (30km/1,000km²) is the highest among the new member states and twice as high as the EU-25 average. The main roads are in a fairly good condition.

As Cyprus has a dense road network, there’s almost no need for new national or regional roads. However, the primary road network in urban areas including town bypasses needs upgrading and completing. It is also necessary to make the roads in the residential areas more pedestrian and cycle friendly.

The public transport system in Cyprus has deteriorated and there is an over reliance in the public car. There is an immediate need to improve the public transport system and increase public awareness so that other methods of road transport (buses, trams) could be seen as a viable alternative.

The main airports in Cyprus are Larnaka and Paphos which had 5.0 and 1.8 million passengers respectively in 2005. These airports are currently in the process of being redeveloped to be able to handle the projected volume of passengers. Passenger air- transport is very important for Cyprus as an island state and especially for the tourism- sector. Therefore the expansion and modernisation of the two main airports of Cyprus, currently underway is an essential step.

Cyprus has one of the biggest merchant fleets within the EU. Maritime transport is served by a modern national port system composed of the multipurpose ports of Limassol and Larnaca, the new industrial port of Vassiliko, and the three specialized oil terminals at Larnaca, Dhekelia and Moni. Limassol and Larnaca ports are the island’s main sea gateways handling over 3.5 million tonnes of international seaborne cargo per year. There have been about 280 thousand passengers served at the Cypriot ports in 2004.

Cyprus ports are well developed and well equipped but the upgrading of Limassol port and the proposed joint redevelopment of Larnaka port and marina will further enhance Cyprus’ role as a hub for a number of key trading areas of world significance and a natural transhipment centre for Europe-Far East trade. The upgrading of the two ports will also assist in improving intermodality for passenger and freight coming into Cyprus.

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