The concept of a free port has deep historical roots and represents a significant evolution in the landscape of international trade. Traditionally, a free port is a port area with a special status that allows foreign goods to enter without being immediately subject to customs duties. This system facilitates the handling, transit, and transformation of goods before they are placed on the national market, where they are taxed according to the regulations in force. Over time, the concept has evolved into that of a free zone, including areas dedicated to logistics and manufacturing.
The Free Port of Trieste has a rich and complex history, dating back to the 18th century. Established in 1719, the free port of Trieste was created to transform the city into a major commercial hub. This special status helped Trieste become the most important port of the Austro-Hungarian Empire, attracting merchants and stimulating international trade. After becoming part of Italy in 1918, the port continued to maintain its relevance. Its importance was further cemented after World War II: in 1947, the Paris Peace Treaty and Annex VIII confirmed Trieste’s status as an international free zone, granting the city economic autonomy and a special regime that contributed to regional stability.
In the following years, the London Memorandum of 1954 and the decrees of the Government Commissioner in 1955 and 1959 further consolidated and defined the regulations for the management of the free port. These documents regulated operational conditions and laid the foundations for its administration. With the introduction of the 1994 port law, the Italian port system was updated, but Trieste’s special status essentially remained unchanged.
A significant turning point came in 2017 with the signing of the implementing decree by the Minister of Infrastructure and Transport. This decree officially recognized the Free Port of Trieste as a unique entity in the Italian and European legal framework, giving the Port Authority of the Eastern Adriatic Sea amplified powers. The Authority now has the ability to modify free zone areas, authorize industrial activities, and promote the modernization of port infrastructure, thereby improving the port’s efficiency and competitiveness.
Today, the Free Port of Trieste offers a range of strategic advantages that make it a crucial reference point in the European commercial and logistics landscape. Goods introduced into the Free Port are not subject to customs duties, VAT, or other trade policy measures during their stay. This allows companies to store goods without time limits and to retain their origin even if non-EU. Furthermore, no customs declaration is required for non-EU goods, while for EU goods, it is possible to choose between an export declaration or storage in a customs warehouse. These conditions offer a freer and more advantageous management of goods.
Goods can also undergo simple handling or industrial transformation within the Free Port, acquiring EU origin or “Made in” status as long as the origin rules are respected. This allows value to be added during the logistics process, enhancing market opportunities for businesses.
Moreover, the Free Port allows the use of Trieste’s customs credit, which enables the deferral of duty and VAT payment up to 180 days from the customs operation date. This option optimizes cash flow management for businesses, providing greater financial flexibility.
An interesting aspect is the specific incentives for Turkish transport. Starting in the mid-1980s and into the 1990s, the Italian Ministry of Finance introduced favorable measures for the transport of goods from Turkey, including a tariff reduction on fixed fees for Turkish vehicles and, since 1993, a total exemption from road taxes for vehicles transporting goods to and from the Port of Trieste. These measures have contributed to creating a preferential regime that has further strengthened Trieste’s role as a strategic transit point for Turkish goods destined for Europe, with around 290,000 heavy vehicles per year transiting through the port, a significant portion of which is headed towards central and northern Europe (most by train).
The FREEeste project, launched in 2019, represents a significant evolution of the free zone concept. Located in the industrial area of Bagnoli della Rosandra, FREEeste occupies a vast area of 240,000 square meters and includes facilities dedicated to logistics and production. The initiative aims to revitalize a decommissioned industrial area and foster the economic development of the city and the surrounding region.
FREEeste is designed to host a variety of activities, from storage and packaging to manufacturing and the management of goods in a duty-free regime. Its integration with the railway network and intermodal terminals, as well as its direct connection with the Free Zone of the Port of Trieste, offers an important opportunity for businesses operating internationally.
The President of the Port Authority of the Eastern Adriatic Sea plays a crucial role in the management and development of the Free Port of Trieste. With the 2017 decree, the president was granted broad powers, including the ability to modify free zone areas, authorize industrial activities, and manage port infrastructure. This position is essential to ensure that the Free Port continues to meet global trade needs and maintains its relevance in the international context.
Despite progress, the Free Port of Trieste faces some challenges in gaining full recognition at the European level. Further regulatory recognition from the European Union is needed to align Italian regulations with European ones, ensuring consistency and facilitating commercial operations.
In fact, although the Free Port of Trieste benefits from numerous advantages and a special legal status, it has been the subject of disputes from competing ports and some EU member states. These disputes arise
from the perception that the benefits granted to the port, based on international and Italian regulations, may give it an excessive competitive advantage compared to other European ports. Central to the discussions is also the dynamic interpretation of historical treaties and decrees, such as Annex VIII and the London Memorandum. The European Union has repeatedly expressed doubts about the applicability of the Annex VIII regime to free zones established after the creation of the EEC. These tensions highlight concerns about a potential imbalance in European port trade and the desire to review or limit Trieste’s preferential regime to ensure fairer competition among EU ports.
Nevertheless, the Free Port of Trieste remains a vital strategic resource for Italy in international trade, offering significant benefits to businesses and contributing to the region’s economic development. With initiatives like FREEeste and the continued evolution of its infrastructure, Trieste reaffirms its position as a crucial hub in the European logistics landscape.
Gruber Logistics, leveraging the strategic position of the Port of Trieste and the competitive advantage offered by its historic free zones, has developed a solid network for managing maritime flows based on this port. With an operational office in Trieste and two offices in Turkey, located in the country’s main industrial areas, we offer efficient connecting services between Turkey and European countries.
For more information about our services, contact us at the following addresses: for European customers requesting FTL shipments, trieste@gruber-logistics.com; for LTL shipments related to Turkey, verona@gruber-logistics.com; for Turkish customers, info.tr@gruber-logistics.com.
