NE ITALY'S TRANSPORT INFRASTRUCTURE:

1. SUMMARY: THE NORTHEASTERN ITALIAN TRANSPORTATION
CENTERS IN VENICE AND TRIESTE HAVE RELIED PRIMARILY ON
INCREASED INTERMODALITY AND INFRASTRUCTURE INVESTMENT
FOR ECONOMIC GROWTH. THE PORT OF TRIESTE, IN
PARTICULAR, HAS STRONG LINKS TO THE ITALIAN RAILWAYS AND
IS AGGRESSIVELY SEEKING INTERNATIONAL PARTNERSHIPS TO
BEAT ITS COMPETITION IN NORTHERN EUROPE. WHILE SECURITY
AT ALL SITES VISITED REMAINS A CONCERN, OFFICIALS
REPORTED THAT EVERY PRECAUTION IS BEING TAKEN TO PROTECT
TRANSPORTATION INFRASTRUCTURE. WE SEE GROWING MARKET
OPPORTUNITIES FOR U.S. FIRMS, INCLUDING THOSE RELATED TO
INCREASING THE EFFICIENCY OF INTERMODAL TRANSPORTATION
LINKS AND ENHANCING SECURITY THROUGH INFORMATION
TECHNOLOGY (IT). END SUMMARY.



--------------------------


BACKGROUND


--------------------------




2. AS PART OF AN ONGOING EFFORT TO GATHER INFORMATION ON
ITALY'S TRANSPORTATION INFRASTRUCTURE, ECONOFF VISITED
MAJOR NORTHEAST ITALY TRANSPORTATION HUBS IN VENICE AND
TRIESTE. TO DETERMINE THE LEVEL OF INTERMODALITY IN THE
AREA, WE MET WITH OFFICIALS AT THE VENICE AIRPORT, THE
TRIESTE AIRPORT, THE TRIESTE RAILWAY STATION, AND THE
PORT OF TRIESTE.
UNCLASSIFIED

PAGE 03 ROME 03641 01 OF 04 270634Z



3. WE FOUND THAT LEVELS OF INTERMODALITY VARIED GREATLY.
WHILE THE PORT OF TRIESTE (WITH EXCELLENT LINKS TO RAIL
AND ROAD LINES) IS A VIRTUAL CASE STUDY IN
INTERMODALITY, THE TRIESTE AIRPORT COULD NOT BE MORE
ISOLATED. THE VENICE AIRPORT (WITH A NEWLY INAUGURATED
AIR TERMINAL) IS WELL SUITED TO HANDLE THE MANY TOURISTS
IT RECEIVES AND AIRPORT AUTHORITIES ARE HOPING TO
ENHANCE ITS LEVEL OF SERVICE FOR THE BUSINESS COMMUNITY.
WHILE ALMOST NINE MONTHS HAD PAST BETWEEN THE SEPTEMBER
11 TERRORIST ATTACKS AND OUR TRIP, REASSURANCES OF
ENHANCED SECURITY (AND CONDOLENCES) WERE OFFERED IN MANY
OF OUR CONVERSATIONS.



--------------------------


THE AIRPORTS


--------------------------



THE VENICE AIRPORT


--------------------------




4. AIRPORT DIRECTOR VALERIO BONATO (RESPONSIBLE FOR BOTH
VENICE AND TRIESTE AIRPORTS) HOSTED A ROUND-TABLE
MEETING WITH ROBERTO COIN, DIRECTOR OF SAVE S.P.A. (THE
VENICE AIRPORT HANDLING COMPANY); SALVATORE FORTE,
AIRPORT SECURITY MANAGER; PAOLO FURLAN, POLICE CHIEF OF
THE AIRPORT AND PORT OF VENICE; AND DOMENICO MARIA
TEDESCHI OF THE CUSTOMS AGENCY. MUCH OF THE
CONVERSATION FOCUSED ON THE OVER 250 MILLION DOLLARS IN
INVESTMENTS SINCE 1996 TO IMPROVE THE AIRPORT'S
INFRASTRUCTURE.

UNCLASSIFIED

PAGE 04 ROME 03641 01 OF 04 270634Z


5. LOCATED ON A STRIP OF LAND BETWEEN THE PO RIVER AND
THE VENICE LAGOON, VENICE'S MARCO POLO AIRPORT HANDLED
APPROXIMATELY 4.4 MILLION PASSENGERS IN 2001, UP FROM
THREE MILLION IN 1997. THE VAST MAJORITY OF ARRIVING
PASSENGERS VISIT VENICE FOR TOURISM, WITH ABOUT TWO
MILLION ALSO EMBARKING ON CRUISES ORIGINATING IN THE
CITY (SIXTY-FIVE PERCENT OF THE AIRPORTS SCHEDULED
TRAFFIC IS INTERNATIONAL). (NOTE: VENICE IS ALSO THE
FIRST ITALIAN REGIONAL AIRPORT WHERE A U.S. COMPANY
(DELTA) IS OPERATING, WITH DAILY FLIGHTS TO NEW YORK IN
THE SUMMER SEASON AND FIVE WEEKLY FLIGHTS IN THE WINTER
SEASON. THE COMMERCIAL MANAGER FOR DELTA TOLD US THAT,
IN CONTRAST TO MILAN'S TROUBLED MALPENSA AIRPORT,
SERVICES PROVIDED BY MARCO POLO AIRPORT ARE EXCELLENT.
END NOTE.) BONATO POINTED OUT THAT THE AIRPORTS' TWO
RUNWAYS SERVE THE OVER HALF MILLION COMPANIES IN THE
AREA. TO BETTER SERVE THE BUSINESS COMMUNITY,
AUTHORITIES INSTALLED A NEW CARGO AREA IN 2001, WHICH
INCLUDES A 6,000 SQUARE METER WAREHOUSE. OFFICIALS HOPE
THIS WILL ACCOMMODATE FUTURE CARGO, SIMILAR TO THE OVER
23,000 TONS OF CARGO TRANSITING THE AIRPORT IN 2001 (UP
FROM ONLY 13,000 IN 1996).



6. TO SERVICE THE 6.5 MILLION PASSENGERS THAT
AUTHORITIES EXPECT TO RECEIVE ANNUALLY WITHIN THE NEXT
FEW YEARS, A NEW 60,000 SQUARE METER PASSENGER TERMINAL

UNCLASSIFIED

UNCLASSIFIED PTQ5894

PAGE 01 ROME 03641 02 OF 04 270635Z
ACTION EUR-00

INFO LOG-00 AID-00 CIAE-00 CTME-00 DODE-00 ITCE-00 DOTE-00
EB-00 EXME-00 E-00 UTED-00 VC-00 FRB-00 H-01
TEDE-00 INR-00 ITC-01 VCE-00 AC-01 NSAE-00 OES-01
OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 STR-00 TEST-00
TRSE-00 USIE-00 G-00 SAS-00 /006W


--------------------------

D0FB4E 270635Z /25
R 240540Z JUL 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC 5044
INFO AMCONSUL MILAN
AMCONSUL FLORENCE
AMCONSUL NAPLES
EU MEMBER STATES COLLECTIVE
AMEMBASSY LJUBLJANA
DEPT OF TRANSPORTATION WASHDC
DEPT OF COMMERCE WASHDC

UNCLAS SECTION 02 OF 04 ROME 003641

SIPDIS

C O R R E C T E D C O P Y - PARA'S 12.,13.,14., AND 15.

TRANSPORTATION FOR FAA AND TSA

COMMERCE FOR DAVID DEFALCO, ITA/MAC

E.O. 12958: N/A
UNCLASSIFIED

PAGE 02 ROME 03641 02 OF 04 270635Z
TAGS: KCIP EAIR ELTN EWWT EAIR ELTN EWWT EAIR ELTN EWWT EAIR ELTN EWWT IT ITKCIP ITKCIP ITKCIP
SUBJECT: NE ITALY'S TRANSPORT INFRASTRUCTURE:
IMPRESSIVELY INTERMODAL

WAS INAUGURATED IN JULY 2002. THE PROJECT COST
APPROXIMATELY 75 MILLION EURO AND WAS ACCOMPANIED BY THE
42 MILLION EURO CONSTRUCTION OF A NEW CONTROL TOWER (THE
OLD TERMINAL WILL STILL BE USED, BUT SOLELY FOR CHARTER
TRAFFIC AND REGIONAL AIR COMPANIES). THE IMPRESSIVE NEW
TERMINAL INCLUDES A DOUBLE-LEVEL ROAD SYSTEM AND A
MULTI-STORY CAR PARK. THE AIRPORT SECURITY MANAGER TOLD
US THAT THE TERMINAL IS ALREADY EQUIPPED TO SCREEN ONE
HUNDRED PERCENT OF CHECKED BAGGAGE.



7. SITUATED ABOUT TWELVE KILOMETERS FROM VENICE, THE
AIRPORT IS WELL CONNECTED VIA FERRIES AND BUSES TO THE
CITY, ITS TWO RAILWAY STATIONS (MESTRE AND THE MORE-
CENTRALIZED SANTA LUCIA STATION), AND OTHER AREA TOWNS.
THE NEW TERMINAL, ABOUT 300 YARDS AWAY FROM THE OLD ONE,
IS CONNECTED BY BUS TO THE OLD STATION AND SOON WILL
ALSO BE CONNECTED BY A MECHANIZED PEDESTRIAN WALKWAY.



8. POLICE CHIEF FURLAN EXPLAINED THAT ALL INVOLVED IN
THE AIRPORT'S SECURITY MEET MONTHLY TO COORDINATE THEIR
EFFORTS AND TO DECIDE UPON NEW SECURITY PROCEDURES. ONE
IDEA HE IS HOPING TO IMPLEMENT IS THE PHOTOGRAPHING OF
PILOTS AND CREWS THE NIGHT BEFORE A FLIGHT. THE PHOTOS
WILL THEN BE MATCHED AGAINST CREWS BEFORE BOARDING AN
AIRCRAFT. FURLAN STATED THAT ALMOST ALL PILOTS WITH
WHOM HE HAS SPOKEN APPROVE OF THIS PROCEDURE.

UNCLASSIFIED

PAGE 03 ROME 03641 02 OF 04 270635Z
THE TRIESTE AIRPORT


--------------------------




9. IN CONTRAST TO VENICE'S AIRPORT WHICH IS LARGE,
GROWING, AND WELL CONNECTED TO OTHER FORMS OF TRANSPORT,
TRIESTE'S RONCHI DEI LEGIONARI AIRPORT (ABOUT 145
KILOMETERS AWAY) LIES ABOUT THIRTY-FIVE KILOMETERS FROM
THE MUCH SMALLER CITY'S LIMITS AND THEREFORE IS LESS
PASSENGER-FRIENDLY (AND LESS UTILIZED). DEPUTY AIRPORT
DIRECTOR ENRICO MARTUCCI STATED THAT, WHILE THE AIRPORT
WAS BUILT TO HANDLE AN ANNUAL CAPACITY OF TWO MILLION
PASSENGERS, LESS THAN ONE MILLION ACTUALLY TRANSIT THE
AIRPORT. WHILE BUS LINES DO CONNECT THE AIRPORT TO THE
CITY, FREQUENT TRAFFIC PROBLEMS OFTEN MAKE THE TRIP AN
HOUR LONG. NO TRAINS RUN FROM TRIESTE RAIL STATION TO
THE AIRPORT. AIRPORT HANDLING COMPANY DIRECTOR PAOLO
STRADI ASSURED US THAT NEW SECURITY EQUIPMENT WOULD SOON
BE PURCHASED IN ORDER TO MEET THE EU-IMPOSED DEADLINE
FOR ONE HUNDRED PERCENT CHECKED BAGGAGE SCREENING.



--------------------------


THE PORTS


--------------------------



THE PORT OF VENICE


--------------------------




10. VENICE AIRPORT POLICE CHIEF FURLAN IS ALSO IN CHARGE
OF SECURITY AT VENICE'S HARBOR. HE STATED THAT ILLEGAL
STOWAWAYS ARE OFTEN FOUND HIDDEN IN CONTAINERS COMING
FROM ABROAD. HE ALLEGED THAT, IN ORDER TO BETTER DETECT
THESE INTENDING IMMIGRANTS, A NEW INSTRUMENT THAT PICKS-
UP A STOWAWAY'S HEARTBEAT INSIDE A CONTAINER IS IN USE.
UNCLASSIFIED

PAGE 04 ROME 03641 02 OF 04 270635Z
(NOTE: NEITHER ECON NOR POST'S CUSTOMS OFFICE HAS
KNOWLEDGE OF ANY SUCH DEVICES BUT ARE SEEKING
INFORMATION ON THEM. WE WILL REPORT SEPTEL ANY RELEVANT
INFORMATION WE FIND. END NOTE.)

THE PORT OF TRIESTE -- GATEWAY TO CENTRAL AND EASTERN
EUROPE


--------------------------



--------------------------




11. MAURIZIO MARESCA, PRESIDENT OF THE TRIESTE PORT
AUTHORITY, AND HIS STAFF EXPLAINED HOW THE PORT OF
TRIESTE CONSIDERS ITS HOME NOT ONLY ITALY, BUT ALSO THE
WHOLE OF CENTRAL EUROPE. THE ORIGIN OR FINAL
DESTINATION OF MOST OF THE GOODS PASSING THROUGH THE
PORT LIE IN NORTHERN ITALY, SWITZERLAND, AUSTRIA,
GERMANY, THE CZECH REPUBLIC, SLOVAKIA, SLOVENIA,
HUNGARY, AND THE BALKANS. SHIPPING LINES SAILING
THROUGH THE PORT OF TRIESTE MAKE THEIR WAY TO PORTS ALL
OVER AFRICA, ASIA, AND THE AMERICAS (NOTE: THERE ARE NO
DIRECT ROUTES FROM TRIESTE TO THE U.S. AS ALL SHIPS
DESTINED TO THE US MAKE STOPS AT OTHER PORTS PRIOR TO
ARRIVAL. END NOTE).



12. THE PORT OF TRIESTE HAS OVER TWO MILLION SQUARE
METERS OF PORT AREA, 1.7 MILLION OF WHICH ARE FREE ZONES
(925,000 OF WHICH ARE WAREHOUSES AND STORAGE AREAS). IT
HAS FORTY-SEVEN OPERATIONAL BERTHS AND TWENTY-SIX

UNCLASSIFIED

UNCLASSIFIED PTQ5895

PAGE 01 ROME 03641 03 OF 04 270635Z
ACTION EUR-00

INFO LOG-00 AID-00 CIAE-00 CTME-00 DODE-00 ITCE-00 DOTE-00
EB-00 EXME-00 E-00 UTED-00 VC-00 FRB-00 H-01
TEDE-00 INR-00 ITC-01 VCE-00 AC-01 NSAE-00 OES-01
OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 STR-00 TEST-00
TRSE-00 USIE-00 G-00 SAS-00 /006W


--------------------------

D0FB4F 270635Z /25
R 240540Z JUL 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC 5045
INFO AMCONSUL MILAN
AMCONSUL FLORENCE
AMCONSUL NAPLES
EU MEMBER STATES COLLECTIVE
AMEMBASSY LJUBLJANA
DEPT OF TRANSPORTATION WASHDC
DEPT OF COMMERCE WASHDC

UNCLAS SECTION 03 OF 04 ROME 003641

SIPDIS

C O R R E C T E D C O P Y - PARA'S 12.,13.,14., AND 15.

TRANSPORTATION FOR FAA AND TSA
COMMERCE FOR DAVID DEFALCO, ITA/MAC

E.O. 12958: N/A
TAGS: KCIP EAIR ELTN EWWT EAIR ELTN EWWT EAIR ELTN EWWT EAIR ELTN EWWT IT ITKCIP ITKCIP ITKCIP
SUBJECT: NE ITALY'S TRANSPORT INFRASTRUCTURE:
UNCLASSIFIED

PAGE 02 ROME 03641 03 OF 04 270635Z
IMPRESSIVELY INTERMODAL

TERMINALS, MANY OF WHICH SPECIALIZE IN A CERTAIN TYPE OF
MERCHANDISE (TIMBER, STEEL, OILS, CEMENT, CHEMICALS,
ETC.) OVER TWENTY MILLION TONS OF GOODS WERE OFF-LOADED
AT THE PORT (AND SENT ONWARD OVER LAND) IN THE FIRST
HALF OF 2002, SEVENTEEN MILLION OF WHICH WERE CLASSIFIED
AS EITHER OIL OR MINERALS. OVER THE SAME TIME PERIOD,
ALMOST THREE MILLION TONS OF GOODS DEPARTED FROM THE
PORT. PRIVATE SECURITY AND LOCAL POLICE PATROL THE PORT
OR MAINTAIN CHECKPOINTS TWENTY-FOUR HOURS A DAY, SEVEN
DAYS A WEEK. MOST OF THE PORT OF TRIESTE IS A FREE PORT
AREA, EXEMPTED FROM EU CUSTOMS REGULATIONS AND OFFERING
NUMEROUS FINANCIAL ADVANTAGES INCLUDING:
- GOODS ARE EXEMPT FROM DUTY AS LONG AS THEY REMAIN IN
THE PORT AREA,
- GOODS CAN BE STORED WITHIN FREE PORT ZONES WITHOUT
TIME LIMIT,
- ACTIVITIES SUCH AS PACKING AND LABELING CAN BE FREELY
CARRIED OUT ON FOREIGN GOODS,
- FOR GOODS IMPORTED INTO THE EU THROUGH THE FREE PORT,
PAYMENT OF RELEVANT CUSTOMS DUTIES AND FISCAL BORDER
DUTIES CAN BE DEFERRED BY UP TO SIX MONTHS AT A LOW
INTEREST RATE, AND
- INDUSTRIAL VEHICLES LEAVING OR ARRIVING TO THE PORT
BENEFIT FROM FACILITATED TRANSIT ACROSS THE BORDERS WITH
AUSTRIA AND SLOVENIA.



13. MARESCA EXPLAINED THAT HIS BUSINESS VISION FOR THE
PORT INCLUDES GREAT ECONOMIC GROWTH THROUGH NEW AND
EXPANDED SEA-BORN TRAFFIC FLOWS, DUE TO ECONOMIC GROWTH
UNCLASSIFIED

PAGE 03 ROME 03641 03 OF 04 270635Z
IN EASTERN EUROPE, AND AN ACCOMPANYING LACK OF DIRECT
ACCESS TO THE MEDITERRANEAN FOR COUNTRIES LIKE AUSTRIA,
SWITZERLAND, AND GERMANY. THE PORT'S COMPETITION, HE
EXPLAINED, DOES NOT COME FROM OTHER PORTS IN ITALY, BUT
RATHER FROM NORTHERN EUROPEAN PORTS LIKE HAMBURG,
GERMANY. HE NOTED WITH PRIDE THAT TRIESTE IS 7,760
NAUTICAL MILES FROM HONG KONG WHILE THE PORT OF HAMBURG
IS ALMOST 10,000 NAUTICAL MILES DISTANT.



14. TO FULFILL THIS VISION, THE PORT AUTHORITY HAS
(APPARENTLY EFFECTIVELY) ESTABLISHED A FULLY INTERMODAL
STRATEGY TO COORDINATE ROAD, RAIL, AND MARITIME
TRANSPORT. LOCATED IN NORTHEAST ITALY, TRIESTE IS
WITHIN 450 KILOMETERS OF IMPORTANT URBAN CENTERS LIKE
VIENNA, BUDAPEST, PRAGUE, MUNICH, STUTTGART, ZURICH, AND
MILAN. INLAND CONNECTIONS TO ALL OF THESE LOCATIONS
INCLUDE NUMEROUS TUNNELS THROUGH THE ALPS (THE BRENNER,
TARVISIO, AND FERNETTI PASSES). TRIESTE'S PORT IS THE
LARGEST RAIL-PORT IN SOUTHERN EUROPE, WITH SEVENTY-FIVE
KILOMETERS OF TRACK WITHIN THE PORT ITSELF (SERVING ALL
OF ITS DOCKS) AND LINKED TO THE EUROPEAN RAIL STATION
THROUGH THE AREAS RAIL STATIONS. THE CERVIGNANO
INTERMODAL CENTER (A FEW KILOMETERS OUTSIDE OF TRIESTE)
FACILITATES THE MOVEMENT OF GOODS BETWEEN RAILCARS AND
TRUCKS, AND IN TURN THE MOVEMENT OF THE PORT'S CARGO.
IN ANOTHER STRATEGIC MOVE, PORT OFFICIALS HAVE ENTERED
INTO AN AGREEMENT WITH A RAILWAY TRANSPORT COMPANY IN
ORDER TO ASSURE THE TRANSPORT OF GOODS TO MUNICH.



15. PORT AUTHORITY OFFICIALS RECOGNIZE THAT THEIR
GREATEST CHALLENGES INCLUDE A LACK OF PHYSICAL
UNCLASSIFIED

PAGE 04 ROME 03641 03 OF 04 270635Z
INFRASTRUCTURE AND INFORMATION TECHNOLOGY (IT). TO
OVERCOME THESE SHORTCOMINGS, MARESCA IS FOCUSING ON THE
POSSIBILITY OF INTEGRATING WITH OTHER NORTHERN ADRIATIC
PORTS, IN PARTICULAR WITH THE PORT OF KOPER, SLOVENIA.
THIS INITIATIVE WOULD REQUIRE INCREASED TRANSPORTATION
INFRASTRUCTURE (TO INCLUDE ROAD AND RAIL) ORDER TO
FACILITATE TRAFFIC FLOWS BETWEEN THE TWO PORTS AND TO
ONWARD DESTINATIONS. MARESCA IS ALSO PUSHING FOR
ACTIONS FAVORABLE TO THE PORT LIKE THE CREATION OF
INTERMODAL LOGISTICS FACILITIES ALONG THE ROUTES TO
AUSTRIA AND GERMANY AND A HIGH-SPEED RAIL LINE TO
LJUBLJANA, BUDAPEST, AND KIEV. HE IS ALSO SEEKING A
REDUCTION IN RAIL TARIFFS FOR TRANSPORT ALONG ROUTES TO
MUNICH AND VIENNA TO LEVELS ON PAR WITH THOSE APPLIED BY
GERMAN RAILWAYS TO THE PORT OF HAMBURG. MARESCA HOPES
THIS WILL BE ACHIEVED BY SETTING UP A PRIVATE RAIL
COMPANY WHOSE SHAREHOLDERS WOULD INCLUDE AUSTRIAN,
SLOVENIAN, AND ITALIAN RAILWAYS AND LOCAL BUSINESSES.



16. THE PORT AUTHORITY IS ALSO EMBARKING ON AN AMBITIOUS
INFRASTRUCTURE DEVELOPMENT PROJECT THAT INCLUDES THE
REDEVELOPMENT OF THE HISTORIC PORT (AND PART OF ITS
WATERFRONT) IN AN EFFORT TO CREATE A TOURIST/VISITOR-
FRIENDLY COMMERCIAL AND CULTURAL AREA WITH RESTAURANTS,

UNCLASSIFIED

UNCLASSIFIED PTQ5925

PAGE 01 ROME 03641 04 OF 04 270658Z
ACTION EUR-00

INFO LOG-00 AID-00 CIAE-00 CTME-00 DODE-00 ITCE-00 DOTE-00
EB-00 EXME-00 E-00 UTED-00 VC-00 FRB-00 H-01
TEDE-00 INR-00 ITC-01 VCE-00 AC-01 NSAE-00 OES-01
OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 STR-00 TEST-00
TRSE-00 USIE-00 G-00 SAS-00 /006W


--------------------------

D0FC42 270659Z /25
R 240540Z JUL 02
FM AMEMBASSY ROME
TO SECSTATE WASHDC 5046
INFO AMCONSUL MILAN
AMCONSUL FLORENCE
AMCONSUL NAPLES
EU MEMBER STATES COLLECTIVE
AMEMBASSY LJUBLJANA
DEPT OF TRANSPORTATION WASHDC
DEPT OF COMMERCE WASHDC

UNCLAS SECTION 04 OF 04 ROME 003641

SIPDIS

TRANSPORTATION FOR FAA AND TSA

COMMERCE FOR DAVID DEFALCO, ITA/MAC

E.O. 12958: N/A
TAGS: KCIP EAIR ELTN EWWT EAIR ELTN EWWT EAIR ELTN EWWT EAIR ELTN EWWT IT ITKCIP ITKCIP ITKCIP
SUBJECT: NE ITALY'S TRANSPORT INFRASTRUCTURE:
UNCLASSIFIED

PAGE 02 ROME 03641 04 OF 04 270658Z
IMPRESSIVELY INTERMODAL

BARS, CLUBS, AND SHOPS. IT ENVISIONS A BOULEVARD LINED
WITH TREES, A SERIES OF PARKING AREAS, A PEDESTRIAN
AREA, AND AN UNDERGROUND ROAD AND RAILWAY NETWORK TO
BETTER TO THE AREA'S TRANSPORTATION INFRASTRUCTURE.
WHILE THE PROJECT IS VERY MUCH IN THE PLANNING STAGES
WITH THE PROJECT PROPOSAL APPROVED IN ONLY JANUARY, THE
PORT AUTHORITY AND ITS PARTNERS HAVE SET A SUBSIDIARY
COMPANY RESPONSIBLE FOR ATTRACTING INVESTMENT.



--------------------------


COMMENT


--------------------------




17. ENLIGHTENED MANAGEMENT AT THE PORT OF TRIESTE AND
THE VENICE AIRPORT, THROUGH GOOD STRATEGIC PLANNING AND
AMBITIOUS INVESTMENT, HAS WELL POSITIONED BOTH LOCATIONS
FOR ECONOMIC GROWTH. WE CAN EXPECT TO SEE THE PORT OF
TRIESTE (IN PARTICULAR) BECOMING EVEN MORE OF A PLAYER
ON THE EUROPEAN TRANSPORTATION SCENE, ESPECIALLY IF IT
IMPLEMENTS ITS STRATEGY OF FORMING EVER-INCREASING
INTERMODAL AND CROSS-BORDER NETWORKS. AS WE HAVE
REPORTED, OUR TRIESTE CONTACTS CONCUR THAT THERE ARE
MARKET OPPORTUNITIES FOR U.S. FIRMS IN THE CARGO
TRANSPORT INDUSTRY, ESPECIALLY THAT OF RAIL CARGO
(REFTELS). BOTH TRIESTE AND VENICE OFFICIALS ALSO CITE
A NEED FOR IMPROVED TRANSPORTATION-RELATED SECURITY AND
LOGISTICS CONTROLLING INFORMATION TECHNOLOGY (IT)
SYSTEMS. THESE TOO ARE OPPORTUNITIES FOR U.S.
SUPPLIERS.

UNCLASSIFIED

PAGE 03 ROME 03641 04 OF 04 270658Z


18. WHILE THE IMPACT OF SEPTEMBER 11 STILL WEIGHS HEAVY
ON MANY ITALIAN HEARTS, THE INITIAL SHOCK TO THE
TRANSPORTATION SECTOR SEEMS TO HAVE WORN OFF. ALL
SECURITY OFFICIALS WITH WHOM WE SPOKE HAVE TAKEN (OR ARE
TAKING) ALL MANDATED OR OTHERWISE NECESSARY SECURITY
MEASURES TO PROTECT THEIR INFRASTRUCTURE. THE SENSE OF
GREAT CONCERN THAT WE SAW THROUGH EARLY 2002 HAS GIVEN
WAY TO A COMMITMENT TO IMPROVE SECURITY.

SEMBLER

UNCLASSIFIED

>
2002ROME03641 - Classification: UNCLASSIFIED