Taranto is an important commercial and military port. It has well-developed steel and iron foundries, oil refineries, chemical works, some shipyards for building warships, and food-processing factories.

Taranto's pre-history dates back to the 8th century BC when it was founded as a Greek colony. The ancient city was situated on a peninsula, protected by a helm; the modern city has been built over the ancient Greek necropolis.

The islets of S. Pietro and S. Paolo (St. Peter and St. Paul) protect the bay, called Mar Grande (Big Sea), where the commercial port is located. Another bay, called Mar Piccolo (Little Sea), is formed by the old city, and there fishing is flourishing; Mar Piccolo is a military port with a strategic importance.

At the end of the 19th century, a channel was excavated to allow the military ships to enter Mar Piccolo harbour, and the ancient Greek city become an island. In addition, the islets and the coast are strongly fortified. Because of the presence of these two bays, Taranto is also called "the city of the two seas".

The Greek colonists from Sparta called the city Taras (Τάρας), after the mythical hero Taras, while the Romans, who connected the city to Rome with an extension of the Appian way, called it Tarentum.

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