Albania's maritime sector is undergoing a historic transformation that goes beyond merely modernising existing port infrastructure. It is an ambitious redefinition of the country's role in Mediterranean logistics and tourism, which is also increasingly attracting the interest of foreign investors. Port and shipbuilding activities form the core of the country's future economic development. Albania, thanks to the Strait of Otranto, is considered the guardian of the Adriatic Sea.
"With around 440 kilometres of coastline, Albania has favourable natural conditions and significant resources for the development of all maritime activities – including transport, tourism and fisheries," says Eli Vyshka, vice-dean of the Faculty of Professional Studies at Aleksandër Moisiu University in Durrës. Maritime transport and seaports are key sectors not only for the development of the national transport system, but also for the country's overall economic progress, particularly for the tourism industry.
Tirana has therefore taken a strategic decision to spatially separate freight traffic from urban centres. In doing so, it seeks to achieve a dual goal: to catch up with established yachting destinations such as Croatia and Montenegro, while at the same time assuming logistical primacy in the southern Balkans. Maritime transport in Albania is carried out through four main seaports: Durrës, Vlorë, Shëngjin and Saranda. In addition, there are two dedicated fuel terminals: Romano-Port and the Petrolifera terminal.
The Port of Durrës is undeniably the core of this strategy. As Osman Metalla, dean of the Faculty of Vocational Studies at Aleksandër Moisiu University in Durrës, points out, it is the largest seaport in the country and the main gateway for Albanian maritime trade, handling more than 94 per cent of Albania's total seaborne cargo. Its container terminal plays a central role, accounting for approximately 35–40 per cent of the port's total throughput. "Albania is entering a phase of rapid development. It is modernising its ports, attracting investment and remaining cost competitive. NATO membership gives it strategic security, which is important for an industry that needs stability. But one key difference remains: Albania is not part of the European industrial and financial architecture," says professor of economics Rok Spruk of the Faculty of Economics in Ljubljana.
Urban transformation and limitations of the old port
One of the largest urban and economic experiments in the region is unfolding in Durrës. The historical cargo port, which cuts deep into the urban fabric, is making way for the Durrës Yachts & Marina project. The investment by Dubai real estate giant Eagle Hills, estimated at €2.1 billion, is set to replace the industrial quays with an upmarket marina and high-end residential units next year.
Albania's two main ports, Durrës and Vlorë, are currently operating at high capacity and require significant infrastructure upgrades to meet the growing demands of trade and maritime traffic. Because of ageing infrastructure and limited capacity, the ability to efficiently handle the increasing volume of cargo and passengers is impaired.
Metalla points to structural limitations that directly affect the port's capacity. The maximum water depth in the current port is only 8.5 metres, which restricts access for larger vessels that increasingly dominate global shipping. This constraint prevents economies of scale and leads to delays for shipping companies. "Building new terminals for cargo and passenger traffic to reduce congestion and optimise port operations is crucial for the further development of the Port of Durrës as well as all other ports," Vyshka explains.
Billion-euro investments and the search for funding
The move to new locations and their modernisation require capital investments that will weigh on the Albanian budget in the years ahead. While private investors are financing the tourism-related components, the burden of logistics infrastructure is another story. Vyshka estimates that the investments needed to increase port capacities and develop strategic ports range between €1 billion and €1.5 billion, depending on the scope of development and upgrades to existing infrastructure.
As fiscal constraints may limit the government's ability to cover all related costs, there will be no way forward without private investors. International support, including EU infrastructure development funds, will also be crucial. Vyshka underlines the importance of privatisation and private investment in ports in order to increase efficiency and introduce advanced technologies.
A technological leap into the future
To prevent a collapse of the local economy resulting from the cessation of cargo operations, construction of a new port in Porto Romano is proceeding in parallel. This is not just about moving the cranes, but about building a modern deep-sea hub.
Metalla explains that the new terminal in Porto Romano will be designed for a depth of 14 metres, which will allow container ships with a capacity of up to 8,000 TEU to dock. Unlike the old port, the new terminal will use gantry cranes and modern automation. This technological leap is crucial, as Metalla critically describes the current backwardness: "Port operations currently remain largely manual or semi-automated, far from the highly automated systems found in leading European container terminals."
Enter Fincantieri
The sector is currently almost exclusively focused on MRO (maintenance, repair and overhaul) activities, as the country lacks the capacity to build large cargo vessels. Albania's merchant fleet is small; according to UNCTAD data, it totals around 100,000 deadweight tonnes (DWT), or roughly 69 vessels.
A strategic partnership with Fincantieri represents a turning point for the sector. A strategic agreement concluded in April 2025 between the state-owned company KAYO and the Italian shipbuilding giant Fincantieri envisages the establishment of a joint venture to revitalise the Pasha Liman shipyard in Vlorë, where a naval base is also located. KAYO will provide and upgrade the shipyard in Vlorë, while Fincantieri will contribute to production modernisation, training and technical know-how.
In November 2025, Fincantieri and KAYO signed a memorandum of understanding to establish a joint venture for the construction and maintenance of military vessels in Albania. The joint venture will act as the prime contractor for shipbuilding projects in Albania and, for export, will be able to build vessels up to 80 metres in length and 800 tonnes in displacement, with Fincantieri as the leading partner. The shipyard will operate on a dual-use basis, which is expected to ensure the project's commercial viability.
The economic imperative and social effects
Economic data confirm the urgency of these investments. According to Albania's Institute of Statistics (INSTAT), traffic is rising sharply: in 2024 container throughput exceeded 196,000 TEU, representing annual growth of 5.8 per cent. Without the relocation to Porto Romano, the Albanian economy will soon hit the upper limit of its logistics capacity.
However, Vyshka stresses that the positive effects go beyond cargo handling alone. The expansion of port capacity will improve connectivity with international markets and increase opportunities for trade and investment, she notes. Improved maritime transport will directly help reduce logistics costs and enable more efficient, sustainable movement of goods and passengers. The development of the tourism and industrial sectors will in turn contribute to overall economic growth and regional development.
Despite the optimism surrounding the plans, risks remain. Delays in project implementation could hinder short-term economic benefits and perpetuate existing inefficiencies and competitiveness challenges, experts warn. Difficulties with financing and coordination could also slow infrastructure development and postpone the commissioning of new port capacities.
Technological modernisation will also be a considerable challenge, as Albanian ports lag behind their northern Adriatic competitors, such as Luka Koper in Slovenia and the Port of Trieste in Italy, in introducing advanced logistics technologies such as artificial intelligence, predictive analytics and digital twins.
The key to long-term success and to strengthening the country's regional role as a transport hub of the southern Balkans lies not only at sea, but on land. The current state of rail connections is critical, as Metalla explicitly emphasises: "The existing rail infrastructure is outdated and poorly maintained." The Port of Durrës has no efficient rail links, and the only international connection, towards Montenegro, is largely non-operational, the expert explains.
"Today, the Adriatic is not a player of scale, but a player of quality. In a global environment where China and South Korea dominate mass production, Adriatic shipyards are establishing themselves in areas that demand complexity and engineering precision. We are talking about cruise ships, luxury vessels, specialised service vessels and advanced MRO services. This is a segment in which know-how and the ability to adapt are significantly more important than size," economist Spruk says of the regional context, adding: "The region's greatest advantages are its knowledge, engineering tradition, capacity to manage complex projects and high flexibility in modular construction, as well as its exceptional logistical position and access to EU markets."