Published: July 25 2023
After years of planning and investment, the Hungarian government is one step closer to realizing its dream of having its own seaport. The Port Authority of Trieste has approved the technical and economic feasibility plans for the Hungarian-owned seaport. However, there are still significant hurdles to overcome before the port is fully functional. This development has the potential to greatly benefit Hungary and strengthen its trade relations with China.
The approval and construction process
The Port Authority of Trieste has given its approval for the loading and unloading Hungarian State-owned port station. However, the selection of a contractor is still pending. The construction of the port is estimated to cost around EUR 45 million. Before the port can be used, the canal needs to be made navigable through dredging, and the first phase of construction also includes building connections to the road network. PricewaterhouseCoopers Magyarország Ltd has been commissioned to conduct a development plan for the project.
The long-awaited seaport
The Hungarian government has been working towards having its own seaport for many years. In 2021, it finalized the deal on the terminal in Trieste, which had previously been used by Aquila for oil refining. The terminal had been abandoned and unused for decades. Hungarian companies are expected to be able to use the terminal by 2026. Italy's recent funding of EUR 45 million for the development of the seaport, particularly the dredging of the sea bed, is favorable for the Hungarian project. The seaport will also enhance trade relations between Hungary and China.
Italy's involvement in the Silk Road project
Italy initially joined the Silk Road economic and development programme in 2019, aiming to boost its economy. However, Italy did not see the expected economic growth, and China reaped the benefits of the agreement. As a result, Italy may choose to back out of the agreement when it expires in 2024. The current Prime Minister, Giorgia Meloni, must notify China three months before the expiry date if Italy decides to leave the agreement. If no action is taken, the agreement will be automatically renewed without any changes.
Questions & Answers
=== What is the Hungarian government working on? The Hungarian government is working on creating a Hungarian seaport.
Is the Hungarian seaport close to becoming a reality? Yes, the Hungarian seaport is one step closer to becoming a reality.
Who approved the plans for the Hungarian-owned seaport? The competent port authority approved the plans for the Hungarian-owned seaport.
What needs to be done before Hungarian companies can use the seaport for their export activities? Before Hungarian companies can use the seaport for export activities, the canal needs to be made navigable through dredging, and connections to the road network need to be built.
How much will the construction of the seaport cost? The expected cost of the seaport construction is around EUR 45 million.
Who will conduct the business and technical feasibility study for the seaport project? PricewaterhouseCoopers Magyarország Ltd will conduct the business and technical feasibility study for the seaport project.
When will Hungarian companies be able to use the seaport? According to FM Szijjártó, Hungarian companies will be able to use the seaport in 2026.
How much did the Hungarian government spend on Adria Port Ltd in 2019? The Hungarian government spent around EUR 30 million on Adria Port Ltd in 2019.
Who is funding the development of the seaport? Italy has recently allocated EUR 45 million to develop the seaport.
What will the seaport development funding cover? The funding will cover the dredging of the sea bed, which is beneficial for the Hungarian project.
How will the seaport further strengthen Chinese-Hungarian trade relations? The seaport will further strengthen Chinese-Hungarian trade relations by providing a new transportation route and opportunity for trade.
What is Italy's involvement in the New Silk Road project? Italy joined the New Silk Road economic and development program in 2019. However, it did not see the expected economic growth and may want to back out in 2024 when the contract expires.
