Genoa has been a port for centuries, being on the main route by which traders in northern Italy ship goods around the Mediterranean. The opening of the Suez Canal in 1869 boosted trade with Asia and the Middle East, and Genoa became Italy's busiest port. In the post-war period it has also become an important link to oil suppliers in Libya and Algeria.

The amount of cargo handled rose dramatically between the 1950s and 1970s, and employment rose correspondingly. Genoa's own industrial work expanded; but more importantly, the industrial area to the north - the triangle formed by Milan, Turin and Genoa - came to dominate the Italian manufacturing industry.

Decline in the 1980s and 1990s

Iron and steel plants, shipyards, locomotive works and many other engineering concerns have closed or reduced capacity since the 1970s. This is partly because the hinterland - the industrial triangle - has lost ground to other regions of Italy. It also reflects a recession hitting the Western world as a whole, with cheaper produce appearing from South-East Asia, for example. There is a general move in developed countries away from manufacturing and into high-tech and service industries.

Social changes in ports

Ports generally have a more varied racial and cultural mix than most cities - because of their transport links with many parts of the world, and because many immigrants see no reason to travel on beyond the port at which they arrive.

Genoa has traditionally received many immigrants from southern Italy, and from Morocco and elsewhere in North Africa. Recently, migrants fleeing wars have arrived from former Yugoslavia and from Albania. The recession has meant unemployment in traditional manufacturing jobs, and racial tension has risen, despite the fact that newcomers and old-established families have all contributed to the city's expansion and all have to suffer its decline.

At the last count, 15% of Genoa's two million citizens were listed as foreign-born.

Regeneration

Fortunately, Genoa has good transport links, and the city also benefits from EU initiatives. Twenty-five years ago, at the height of Italy's motorway-building boom, Genoa proved to be one of the most expensive locations to connect to the national network. A succession of tunnels and viaducts was the only way to negotiate the steep hills that rise up within a short distance of the sea. Yet to complete these links was crucial. Italy now has one of the best motorway networks in the EU.

Such have been the obstacles in the way of Genoa's modernisation that it has qualified for special development funds from the EU. The same goes for many other EU cities that are trying to change their industrial structure.

In Genoa the EU money is helping to renovate the old industrial areas - such as the Campi district. Where huge steel presses once flattened metal for the production of locomotives, smaller, less labour-intensive high-tech industries are moving in. Even some large multinational retailers are here. In a reclaimed factory, The Business Innovation Centre, partly funded by the EU, offers small businesses a helping hand with cheap rents and business advice. Enrico Secchi moved his CD-ROM company here two years ago and conducts his enterprise in a very modern way - marketing and selling most of his products over the Internet.

Tourism

The other possible way forward for many cities is urban tourism, and Genoa is well placed for this. Genoa is a historic city, and within about 20 kilometres east and west of the city is some of the finest coastal scenery in Italy, with attractive resorts. During the long summer holiday season, there is a huge demand for day trips to nearby cities.

Inside Genoa itself, one of the most promising features for tourist development is the waterfront around the old port. As in many other European port cities, Genoa is discovering the fact that the renovation of quaysides, historic buildings and an old town centre creates the sort of setting that attracts large numbers of visitors. The Government has decided to encourage Genoa to move towards service industries and away from heavy industry. An aquarium has been constructed in the old port, which cost many millions of pounds to build and is the largest of its kind in Europe. In the two years since it was built, it has become Italy's most popular tourist attraction, overtaking the ancient ruins of Pompeii - a remarkable feat in a country with such a strong established tourist industry.

With the aquarium as the main trigger for development, the knock-on effects are already apparent: the old port area has become a favourite spot for the locals to stroll around, and the nearby shopping district in the old town has seen a major regeneration. After years of decline and neglect it has become a bustling commercial district again.