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Cyprus-Greece Ferry Secured Through 2027 As Government Weighs Future Subsidy

Cyprus’ passenger ferry service to Greece will continue through 2027, but the government will decide next year whether state support should continue from 2028, according to Deputy Shipping Ministry Director Kyriakos Aliouris.

The current contract, which began in 2022 and was initially agreed for three years with an option for another three, has been extended through 2027. Aliouris said the operator remains obliged to provide the service under the existing terms.

“There is no issue at the moment,” he said, stressing that the sea connection between Cyprus and Greece will operate normally next year.

Demand Remains A Challenge

The route’s longer-term future remains uncertain. Scandro Holding Ltd Chief Executive Charalambos Manoli has warned that 2027 could be its final year without continued state support if passenger demand does not increase enough to make the service financially sustainable.

Operating from late May to early September, the ferry carries around 100 passengers per sailing in June and 200-250 in July, while most sailings are full only in August.

“You can’t run a sustainable line for three months,” Manoli said, pointing to the need for the vessel to generate revenue beyond the peak season.

Government To Review The Route

Aliouris said the subsidy was initially introduced because there was no reliable data on demand. After five years of operation, the ministry now has enough information to assess the route’s performance.

Passenger traffic has increased year on year, while the service also caters to people unable or unwilling to fly, as well as travellers taking vehicles or pets to Greece.

Bookings in 2026 reached around 8,900 passengers, 2,700 vehicles and 371 pets, compared with 8,238 passengers, 2,660 vehicles and 379 pets in 2025.

Fuel costs and future EU carbon charges will also factor into any decision on further support. Aliouris said any new subsidy would need to reflect market and regional conditions at the time. The final sailing of the 2026 season is scheduled for September 1 from Piraeus.

Limassol Port Electrification Awaits Grid Connection And EU Funding

Plans to equip Limassol port with shore-side electricity are advancing at the technical level, but unresolved administrative procedures, a pending grid connection and the need to secure European funding continue to delay implementation.

The proposed shore-power system, also known as cold ironing, would allow vessels to connect to electricity while berthed, reducing reliance on onboard engines and cutting emissions and noise in the surrounding area.

Technical Studies Near Completion

Transport Minister Evi Tsolaki said work is progressing through the EU-backed DecarbonLim programme, which is preparing the technical assessment and feasibility study required before construction can begin. The ministry is seeking regular updates from the Cyprus Ports Authority on the studies’ completion timetable.

The initiative also involves Frederick University, Eurogate Container Terminal Limassol, DP World Limassol, the Electricity Authority of Cyprus, the Cyprus Transmission System Operator and Limassol Municipality.

Grid Connection Remains A Key Hurdle

Despite progress on the studies, construction cannot proceed until the project secures a connection to the national transmission network.

Tsolaki said the ministry has requested land from the Department of Lands and Surveys for an electricity substation. Once the site is allocated, the relevant applications can be submitted to the Cyprus Transmission System Operator to advance the grid-connection process.

Until these steps are completed, the project will remain in the preparatory phase, even if the technical studies are finalised.

European Funding Adds Urgency

The feasibility work under DecarbonLim will support an application for construction financing, Tsolaki said. A competitive European funding call is currently open, and the ministry intends to submit an application within the required timeframe.

The funding window has raised concerns in parliament. MP Fotini Tsiridou warned that further delays could undermine Cyprus’ chances of securing EU support, noting that similar port electrification projects elsewhere in the bloc have already received funding.

Speaking to Entrepreneurial Limassol, published by the Limassol Chamber of Commerce and Industry, Tsiridou said she had observed some progress but had yet to receive a formal response to her parliamentary question.

Environmental And Commercial Benefits

Tsiridou argued that shore-side electricity would deliver benefits beyond emissions reductions, including less noise and air pollution for residents near the port.

“Our port should not be disconnected from the rest of the city,” she said, describing shore-power infrastructure as both a necessity and a European obligation.

Across Europe, port electrification is increasingly linked to environmental performance and competitiveness. By allowing compatible vessels to switch off auxiliary engines while docked, shore-power systems can reduce local emissions and noise while supporting wider decarbonisation goals.

Construction Timetable Still Unclear

The Cyprus Ports Authority signed a contract with DBA S.p.A. in July 2025 for a comprehensive study of the system’s technical, economic and environmental requirements. The work was intended to establish the basis for installation and identify any necessary port infrastructure upgrades.

More than a year later, key steps concerning land allocation, grid connection and financing remain unresolved. No timetable has been announced for completing these procedures or submitting the final funding application.

Limassol’s shore-power project therefore remains between planning and implementation. Its next milestones are securing the substation site, progressing the transmission-network application and obtaining construction financing. Until these are in place, the port’s transition to shore-side electricity cannot move into the construction phase.

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