Why Trieste Holds The Key To Europe’s Economic Future
The Italian port is emerging as the key link between India, the Middle East, and Central and Eastern Europe, integrating various economic corridors into a unified commercial network.
The Italian port of Trieste boasts a glorious history as one of Europe’s most significant maritime hubs, once serving as the endpoint of the ancient Silk Road and a rival to Venice. During the Cold War, its geographic position made it an important meeting point between the East and the West. Today, despite the disappearance of internal European borders, it remains a strategic harbor for linking the continent with Asia and Africa. That role could soon take on even greater significance given the advent of the New Golden Road, more formally known as the India-Middle East-Europe Economic Corridor (IMEC)
Announced at the G20 Summit in New Delhi in September 2023, IMEC is an ambitious rail and shipping network linking India and Europe via Haifa while bypassing the Suez Canal and Bab-el-Mandeb. Though its progress has been delayed due to the Hamas terrorist attack on Israel on October 7, 2023, interest in establishing a strong EU entrepôt for IMEC remains. And while Greece has advocated for Piraeus or Thessaloniki and France for Marseille, Trieste stands out as the natural endpoint of this modern trade route, echoing the historical significance of the ancient Golden Road from India.
The city already plays a vital role in European logistics. Its marine terminal already facilitates cargo transportation by rail to Austria, Germany, the Czech Republic, Hungary, Slovakia, and Italy’s own industrial centers. Likewise, its road connections to Slovenia and Croatia offer unmatched logistical advantages over Greek and French ports. Additionally, Trieste is a crucial energy hub, serving as a key entry point for oil supplies into Central and Eastern Europe through its strategic pipeline connections. Moreover, Italy’s excellent diplomatic ties with its neighbors and those further afield, such as Israel, further strengthen its position, allowing Trieste to serve as the crucial northern segment of IMEC, leveraging infrastructure that is already in place.
These considerations come as India expands its diplomatic and economic engagement with Central and Eastern Europe. New Delhi has opened resident embassies in Estonia (2021), Lithuania (2023), and Latvia (2023) in the Baltic region while deepening relations with long-standing partners such as Hungary, Poland, and the Czech Republic.
Indian prime minister Narendra Modi’s 2024 visit to Poland and Ukraine—marking the first visit by an Indian leader to Warsaw in forty-five years and the first-ever to Kyiv—underscores this growing diplomatic and economic footprint.
It is in the context of this evolving geopolitical landscape that Trieste is positioned to become a key hub for Indian trade into the region, reinforcing IMEC’s significance and further embedding India within Europe’s economic networks. This is because the city’s connectivity can link IMEC to the Three Seas Initiative (3SI)—a bloc of European nations stretching from the Baltic Sea to the Adriatic and Black Seas—via rail. Greece, already a 3SI participant, has connected Thessaloniki to Klaipėda in Lithuania via the Via Carpathia transnational highway network, with plans for expanded rail connectivity. Meanwhile, Ukraine, both a 3SI partner and a notable trade partner for India, plays a pivotal role. New Delhi has carefully balanced its relationships with both Ukraine and Russia throughout the ongoing conflict, and a potential diplomatic breakthrough—especially under a second Trump administration—would likely be welcomed by Prime Minister Modi. Italy, one of Ukraine’s strongest supporters in the EU, is expected to lead reconstruction efforts once the conflict ends.
The 3SI naturally extends to Ukraine, where Odessa—the country’s primary Black Sea port—is among the largest in the region and is strategically vital for grain and other trade flows between Europe, the Middle East, and India. The port’s operator, HHLA, also manages facilities in Trieste, Hamburg, and Muuga (Estonia), creating a direct link between these strategic locations.
A stronger Odessa-Trieste connection would further integrate 3SI and IMEC, establishing a seamless trade corridor spanning the Mediterranean, Adriatic, Black, and Baltic Seas. In fact, one could go as far as to argue that Odessa’s revival is inextricably tied to Trieste’s resurgence. As the latter reasserts itself as a vital European gateway, it strengthens a broader trade network that benefits India, the Middle East, and Europe alike. This effort is further bolstered by the Mediterranean Shipping Company’s (MSC) subsidiary, Terminal Investment Limited, which recently committed to a major investment in India’s forthcoming Vadhavan port—set to be the country’s largest cargo facility and the cornerstone of IMEC’s future expansion.
Overall, Trieste is more than just a port—it is the natural gateway for a new era of trade and connectivity linking India, the Middle East, and Central and Eastern Europe. By integrating seamlessly with the India-Middle East-Europe Economic Corridor, the Three Seas Initiative, and Odessa’s Black Sea trade routes, it has the potential to reshape the flow of goods across continents. Strengthening Trieste’s role will not only bolster Europe’s economic future but also create a more resilient, efficient, and diversified trade network that benefits partners from the Baltic to the Mediterranean and beyond. The moment is ripe for Italy and its allies to recognize Trieste’s strategic value and position it at the heart of this New Golden Road.
Giulio Terzi di Sant’Agata is a Senator of the Italian Republic and President of the Senate’s Permanent Commission on EU Affairs.
Vas Shenoy is the Chief Representative for Italy for the Indian Chamber of Commerce.
Image: Antonio Truzzi / Shutterstock.com.