On Thursday, July 3, the Ministry of Transport of Cyprus announced that the European Union will finance the expansion of the Vasilikos port.
Through the Connecting Europe Facility (CEF) program — a key EU mechanism that supports infrastructure projects promoting the integration of Europe's transport, energy, and digital networks — €18,781,957 was allocated to the project.
The ministry emphasized that this project plays a crucial role in the transition to cleaner energy sources in the maritime sector, accelerates the decarbonization of maritime transport, and contributes to the sustainable development of Cypriot ports in general.
According to ministry officials, modernizing the port of Vasilikos will transform it into a vital infrastructure hub for Cyprus and the Eastern Mediterranean region. The port will perform commercial, energy, military, and environmental functions, ensuring strategic interaction between various sectors of the economy and public infrastructure. A previous study on the project's sustainability and feasibility confirmed the importance of expansion to ensure the port's long-term viability and competitiveness.
The project is being implemented under the name IMPACT (Integrated Modernization Plan for the Advancement of Cyprus Terminal) and includes the following:
- construction of new breakwaters;
- development of 2,355 linear meters of berths;
- deepening of the approach channel;
The project also involves the efficient use of existing land for logistics and energy needs.
Once completed, the port will be able to accommodate 1,772 ships per year, establishing Vasilikos as a major maritime hub in the Eastern Mediterranean.
Vasilikos Port became one of four port projects approved for funding by the European Union following the Council of Ministers' decision to establish a new industrial port in the Mari (Larnaca) area. In January 2025, the Cyprus Port Authority applied for €38.5 million in co-financing, but the project ultimately received nearly €19 million, reflecting the high level of competition within the CEF program.
According to the Ministry of Transport, the competition was intense, with applications exceeding five times the available €1.6 billion in this category submitted.
The total cost of the project is estimated at €350 million.
The budget for the first phase is €85 million. The Cyprus Port Authority will manage and operate the modernized port, ensuring centralized control and development of the facility in accordance with international standards.
The Port of Vasilikos has already established itself as a strategically important location in Cyprus's energy and industrial infrastructure. Implementing the IMPACT project will significantly expand its capabilities, including
- servicing large-tonnage vessels,
- developing energy exports and imports,
- supporting maritime logistics and security in the region.
The port expansion aligns with Cyprus's national green transition strategy, helping the country meet its climate and sustainable development commitments, including EU targets for reducing carbon emissions in the transport sector.