Construction of Hungary’s seaport moves one step closer – But with reduced functionality

From September until the end of next year, seabed cleaning will be carried out at the Port of Trieste, where Hungary holds a concession. Once the area has been cleaned, the site, which was originally purchased five years ago, will serve as Hungary’s seaport, functioning as a logistics base for cargo traffic and container management.

According to HVG, citing a statement from the Trieste port authority, the cleaning of the port area where the Hungarian state holds a concession will commence on 2nd September and is expected to continue until 31st December 2025.

Authorities have also approved plans to modify the Hungarian concession area. The new plans involve straightening the quay and removing the pier that accommodates ro-ro (roll-on/roll-off) ships. In practice, this change means that the quay will no longer be able to handle barges and ferries. Additionally, the Hungarian concession area will be reduced from 63,200 square metres to 60,500 square metres.

View of the Trieste seaports. Photo: Wikimedia Commons

No progress on Hungary’s seaport in the last five years

Hungarian Foreign Minister Péter Szijjártó and then-Italian Interior Minister Matteo Salvini announced in 2019 that Hungary would establish a port and logistics base in the Italian city of Trieste. The ‘Hungary’s seaport’ deal was finally concluded at the end of 2020.

At the time, Szijjártó said that Hungary had purchased a 32-hectare plot with a 300-metre shoreline in the Port of Trieste for EUR 31 million, as part of a 60-year concession agreement. He stressed that “the agreement marks the beginning of a new chapter in Hungarian-Italian relations, with cooperation between the two countries never having been so promising.”

Technically, as HVG points out, Hungary did not purchase the port itself, but rather acquired a concession along with the land behind the concession area, valid until 2074.

According to the Italian press, the total value of the investment now stands at EUR 206.4 million, with EUR 48.9 million allocated for the clean-up and development of the site, and EUR 157.5 million earmarked for the development of the adjacent Hungarian state-owned land.

Indeed, the area of Hungary’s seaport and the surrounding industrial zone, which was formerly occupied by an oil refinery, requires significant development and clean-up. However, as HVG notes, no substantial progress has been made in developing the terminal and Hungary’s seaport over the past five years.

The project company has remained tight-lipped. In response to a query from HVG in early August, Adria Port Plc. stated:

“Preparations for the development of the Hungarian terminal are proceeding at a satisfactory pace. The construction of the seawall and dredging works can start this year, for which the work site has already been handed over.”

Hungary's seaport Trieste Italy illustration

View of Trieste ports. Photo: Wikimedia Commons

Ships have yet to dock, but Adria Port Plc. is not on a budget

Last August, Átlátszó reported on the status of Hungary’s seaport and the background of Adria Port Plc. The paper noted that “the state company set up for the project has been burning public money since 2019.”

Átlátszó highlighted that the company had booked substantial losses up until 2023, totalling EUR 2.75 million in the red. Nevertheless, as of 2023, Adria Port was renting offices in both Budapest and Trieste, spending several million forints on furnishing them, and renting cars at EUR 2,500 per month. The company’s CEO reportedly received a monthly salary of approximately EUR 5,000, with the company also paying several consultants undisclosed sums.