Will the plan of the Hungarian seaport shatter?

At the end of 2020, a year and a half after the announcement, the Hungarian state-owned company finally bought the Trieste port area and a concession for EUR 25 million (HUF 8.6 billion). The firm closed the year in the red due to attorney fees.

As we reported, it was huge news that Hungary would have a seaport again after 100 years, even if it was not directly connected to the country. However, according to HVG’s most recent report, the situation has become uncertain.

Adria Port Ltd., a state-owned project company established for the Trieste port investment, closed 2020 with a loss of EUR 1 m (~HUF 346 million), according to the company’s report. The loss-making operation is not surprising since the company currently has no revenue but does have expenses, as it already rents an office in Trieste, has employees, and uses various services.

At the end of 2020, Hungary managed to finalise the main transaction.

The company thus became richer with a plot worth EUR 23.6 million. The company also acquired a 100% stake (worth EUR 1.9 m) in an Italian company called Aquila, which owns the purchased port operation concession.

Adria Port also recorded furniture, computer technology, and machinery worth EUR 85,000, as well as 1.4 thousand euros worth of Microsoft programs.

Nevertheless, Adria Port still has a bank deposit of EUR 16 million. This, of course, required a state capital increase of EUR 15 million (~HUF 5.5 billion), also implemented in December.

Although the port area and the concession (which will last until 2074), have finally become the property of the Hungarian state, a functioning port and logistics centre will not be there for a long time.

In January, the Ministry of Foreign Affairs acknowledged to HVG that the development of the area had yet to be agreed upon with the Italian authorities, only after which could construction begin.

Source: www.hvg.hu