At the end of June 2025, the Port Authority of the Bay of Algeciras approved the new Plan de Empresa 2026, a strategic document outlining public investments of €583 million over the five-year period from 2025 to 2029. Including contributions from the private sector, the overall plan exceeds the one-billion-euro threshold. It marks the most ambitious development programme ever launched for the Andalusian port, aimed at enhancing operational efficiency, reducing environmental impact and redefining the port’s relationship with the city.
The plan encompasses a wide range of initiatives. Public resources will focus on four main areas: port infrastructure, energy sustainability, rail connections and urban integration. Among the most significant projects is Última Milla, a rail development that has been named “European Project of the Month”. It includes the installation of auxiliary infrastructure in the Botafuegos area to accommodate freight trains up to 750 metres long, as well as the expansion of the Isla Verde Exterior rail terminal, which will double its current capacity.
The private sector is also playing a key role in the port’s growth. TTI Algeciras, owned by shipping groups HMM and CMA CGM, has unveiled a €150 million expansion plan for Phase B of the Isla Verde Exterior terminal. The project involves the construction of 160,000 square metres of operational space, allowing the terminal to increase its handling capacity to 2.1 million TEUs per year. The terminal, the Mediterranean’s first semi-automated facility since 2010, has already handled more than 18 million TEUs and is now entering a new phase of expansion, supported by an extension of the operating concession until 2065.
One of the key innovations in the plan is the electrification of quays through the implementation of an Onshore Power Supply system, which will enable docked ships to switch off auxiliary engines and draw power from shore, thereby cutting emissions and noise pollution. The €80 million project will involve both the ports of Algeciras and Tarifa and will provide power outputs of up to 790 kW.
Ongoing infrastructure works also include the connection between the Galera and Isla Verde docks, already awarded for €18 million. The construction of a new quay and platform will improve logistics links between Algeciras and Ceuta and facilitate the movement of trailers and lorries across the Strait of Gibraltar. A second phase of the project will add new passenger boarding tunnels and two ro-ro berths adapted to the latest generation of ferries.
The relationship between the port and the city is the focus of another investment area, with €73 million allocated for urban redevelopment. The Lago Marítimo project, whose second phase has just gone to tender, will transform the Llano Amarillo area into a new seafront urban space, complete with green areas, promenades and a multifunctional building that will house the Port Museum. This initiative clearly reflects the commitment to creating an infrastructure that is integrated with its urban surroundings and accessible to the public.
Forecasts for 2029 suggest the port will handle 122 million tonnes of total traffic and 5.8 million TEUs annually, representing growth of 18% and 23.4% respectively compared to 2024. Much of this development will be made possible through support from the European Union, particularly via the Recovery and Resilience Facility and the ERDF programme.
