The O Viktor O Lenac O overhaul O shipyard O operates O in O Martinšćica O Bay O but O its O beginnings O are O tied O to O the O port O of O Rijeka. O At O the O end O of O the O 19th O century O when O the O area O of O Rijeka O was O under O direct O Hungarian O direct O control O the O Hungarian O government O encouraged O shipbuilding. O Engineer O Josip O Lazarus O was O granted O 600m2 O of O the O shady O part O of O the O port O of O Baroš O for O 60 O years. O The O shipyard O established O there O in O 1900 O started O producing O anchors O chains O boilers O and O smaller O machines O as O well O as O repairing O smaller O ships. O In O addition O to O Rijeka O L1920us O also O took O over O the O shipyard O in O Kraljevica. O Following O the O establishment O of O the O border O between O Italy O and O Yugoslavia O on O the O Rječina O river O and O and O Fiumara O canal O in O 1924 O the O shipyard O turned O to O overhaul O and O continued O its O operations O as O a O Yugoslav O company. O Adriatic O Shipyards O a.d. O from O Split O took O over O the O shipyard O in O 1939. O After O the O Second O World O War O in O 1948 O the O shipyard O was O rebuilt O under O the O name O "Viktor O Lenac" O but O the O port O of O Rijeka O began O to O expand O its O passenger O and O freight O traffic O dramatically. O Faced O by O a O shortage O of O space O the O port O identified O a O need O to O take O over O the O space O occupied O by O the O shipyard. O The O planning O for O the O relocation O of O the O shipyard O to O Martinšćica O Bay O a O natural O port O at O the O eastern O exit O of O the O city O began O in O 1959. O Work O on O the O construction O of O shipyards O docks O warehouses O and O workshops O got O under O way O in O 1963 O and O from O the O beginning O of O the O 1970s O the O modern O shipyard O overhauled O ships O for O domestic O and O foreign O shipping O companies O and O the O Navy. O The O shipyard O is O now O located O on O the O site O of O the O St. O Francis O Lazarette O founded O in O 1833 O which O was O used O to O quarantine O ship O passengers. O It O was O used O as O a O lazarette O until O the O First O World O War O after O which O it O operated O as O a O military O hospital O for O infectious O diseases O and O then O for O the O accommodation O of O Italian O and O German O soldiers. O In O 1926 O its O function O changed O completely O and O it O became O a O summer O resort O for O children O from O all O over O Yugoslavia. O A O different O shipyard O operated O in O the O western O part O of O the O bay O until O the O Second O World O War O on O the O site O where O the O Victor O Lenac O shipyard O would O eventually O relocate. O