Matej Zakonjšek, director of the Permanent Secretariat of the Transport Community - Serbia is given a strategic role as a key link between the north and the south of Europe

As part of the Trans-European transport network, Serbia is given a strategic role as a key link between the north and south of Europe, Matej Zakonjšek, director of the Permanent Secretariat of the Transport Community, which was opened in 2019 in Belgrade, said in an interview for eKapija.

According to him, the key achievement of the work of the Transport Community is improved regional cooperation in the field of transport. Efforts are being made to further reduce the problem of waiting at the borders, and as Zakonjšek says, all the main border crossings between Serbia and all its neighbors in the EU - Croatia, Hungary, Romania and Bulgaria - are on the priority list.

He notes that there are significant improvements in Serbia, and one of the key developments is the construction of the Novi Sad-Subotica railway section. However, he adds, there is a visible lack of terminals in the Western Balkans, which will be partly remedied by the opening of a new terminal in Batajnica, which is co-financed by the EU.

He also states that Serbia is undertaking four major railway infrastructure projects within the Trans-European transport network, with a joint budget of EUR 1.409 billion. These projects include the upgrading of the railway section with a total length of 269 km.

He estimates that there is still much to do in terms of legislative reforms, as 70.9% of relevant EU legislation has yet to be transposed across the region.

eKapija: The Permanent Secretariat of the South-East Europe Transport Community was opened in 2019 in Belgrade. What have you achieved so far?

- First and foremost, the key achievement of the Transport Community's work is enhanced regional cooperation in transport. This is visible across the region, the Western Balkans partners, and the EU.

The Transport Community works on two parallel tracks. One is assisting the regional partners in transposing the relevant EU transport legislation, representing almost a quarter of the entire EU legislation. The other is monitoring the implementation of infrastructure projects that connect the region from within but also with the EU, expanding the Trans- European Transport Network (TEN-T). These two parallel tracks lead to integrating transport markets of the Western Balkans into the EU.

To give you some concrete examples, we can talk about creating the Regional Infrastructure Manager Network, which involves bringing together all railway and road infrastructure managers from across the region. These two groups facilitate regular communication among their members, promote a unified approach to addressing challenges, and collaborate on regional projects, such as those focused on level crossings or establishing a Regional Centre of Excellence for Railways.

Another example is the electronic tolling interoperability between Serbia and North Macedonia. This example is expected to be extended to other regional partners such as Albania, and Bosnia and Herzegovina. Discussions are ongoing with EU Member States such as Croatia, Bulgaria, and Greece.

Progress has been made across the region regarding the legislative reforms. However, there is much more to do – as 70,90% of the relevant EU legislation is still to be transposed across the region.

Here, we can also give positive examples. Five out of six regional partners have opened their rail markets in the rail sector in recent years, largely due to implementing the Transport Community Treaty. Currently, Serbia has ten private railway companies that account for 35% of the market share.

Regarding the deployment of intelligent transportation systems (ITS), all regional partners are in the process of adopting or have already adopted the strategies. This would allow a harmonised approach to this topic, in line with EU standards. In other words, interoperability for the different intelligent transportation systems to be deployed across the region...

One of the highlights is that the EU High-Level Group on Road Safety approved our proposal to invite Serbia to join the Community database on Accidents on the Roads in Europe (CARE). Thus, Serbia became the first regional partner in the Western Balkans to be approved to participate in the European Union CARE expert group for traffic safety. This accomplishment follows a thorough feasibility study, started in early 2021 and driven by the Transport Community in collaboration with European partners.

Transport connectivity is also a backbone of regional integration and economic growth. That is why we should also mention the European Commission's Economic and Investment Plan (EIP) for the Western Balkans. With its Flagship Projects, EIP aims to create a more cohesive transport network within the Western Balkans and with the EU. These projects support the EU's broader Global Gateway initiative, highlighting the importance of cross-border links in a geopolitical landscape that requires stability, cooperation, and resilience.

The flagship projects are ongoing and in different phases. These project are versatile and include demining the right bank of the Sava River, Pristina-Merdare road section, North Macedonia-Bulgaria rail interconnection (Kriva Palanka-border with Bulgaria section), Serbia-Bulgaria rail interconnection (Niš-Dimitrovgrad railway line, and Niš Bypass), works on the Corridor X (Belgrade-Niš railway line, Stalać-Đunis section), removal of Sunken WWII German Vessels from the Danube on the Rhine-Danube Corridor (Prahovo Sector), Belgrade-Niš railway line (Paraćin-Međurovo section), works on the Corridor Vc (Šamac-Doboj-Rječica railway section), Montenegro-Serbia Rail interconnection (Bar-Vrbnica section), Albania-Montenegro rail interconnection (Vorë- Hani i Hotit section), Blue Highway (Tirana Bypass), Johovac–Vukosavlje motorway section, Medakovo-Ozimice motorway subsection, Mostar South-Kvanj tunnel motorway subsection, Kvanj Tunnel-Buna motorway subsection, Ozimice-Poprikuše motorway subsection, Mostar North-Mostar South motorway section, works on the Corridor VIII (Cut-Slopes Stabilisation on Express Road A2, Kriva Palanka–Stracin section), and finally, the Safe and Sustainable Transport Programme.

Another significant achievement is establishing the Green Lanes initiative with CEFTA. The Green Lanes initiative kicked off in 2020 amidst the COVID crisis and was instrumental in preserving trade and transport flows in the Western Balkans. It evolved from prioritising necessity goods to a genuine exchange of information between the customs and other border agencies relevant for speeding up the border clearance process. It was and still is one of the most successful regional stories, which is now being extended on the region`s borders to the neighbouring EU member states.

(The Green lanes are one of the most successful regional stories)

Through our Road Safety Observatory and the Transport Observatory/Data Information System, we are creating powerful tools for monitoring different transport segments across the region.

The Western Balkans Road Safety Observatory is a regional platform for the exchanging information and strategies, action plans and initiatives in road safety and collecting timely, objective and reliable information that effectively contributes to reducing road traffic casualties. It builds knowledge on improving the national crash data systems and harmonising the data with CADAS protocol. One of the main goals of the platform is to ensure road safety data in the six Regional Partners reaches enough quality and breadth of coverage to facilitate a smooth transition into EU`s CARE database.

Our Transport Observatory/Data Information System (TODIS) is a strong tool for all regional partners and transport companies. It will support the monitoring of transport infrastructure, measuring compliance with TEN-T standards, planning investments, and maintenance. Also, TODIS has the possibility of monitoring projects and transposition of relevant EU legislation...

Finally, the Transport Community has actively been engaging with Western Balkan and European partners to make the first-ever Western Balkan transport corridor - the Western Balkans-Eastern Mediterranean European Transport Corridor - a reality. This Corridor connects eight EU member states with the Western Balkans six in one network.

eKapija: How would you describe your relationship with the Serbian government? Where do you see room for improvement?

- Our relationship with the Government of Serbia is dynamic and constructive. As one of the contracting parties, Serbia has been very active on technical and political fronts, fostering a productive engagement with our organisation. This proactive stance has translated into tangible progress, also in transposing relevant EU legislation.

Serbia's commitment is evident in the fact that it has fully transposed 27% of the relevant EU legislation and partially transposed 37%. However, as with any partnership, there is always room for improvement. While acknowledging the significant achievements made, it is essential to address the remaining legislation yet to be fully transposed and implemented.

When it comes to the TEN-T compliance for Serbia, the situation varies for each of the transport modes. For example, the percentage of compliance for the track gauge is almost 100%, the axle percentage of compliance for the track gauge is almost 100%, and load is 88%. Compliance with the European Rail Traffic Management System (ERTMS) is improving thanks to the deployment of this system on the Belgrade-Novi Sad rail section, which is, at the same time, the only line with ERTMS installed in the whole Western Balkans.

Moving forward, I see an opportunity for enhanced cooperation and coordination to accelerate the transposition process further. Strengthening mechanisms for technical assistance and capacity-building initiatives could help streamline the implementation of remaining legislative measures.

eKapija: The EU`s trans-European transport network policy, known as the TEN-T policy, is a key instrument for connecting Europe with ambitious targets. These targets include increasing rail freight, ensuring trains travel at least 160km/h by 2040, and connecting major airports that handle more than 12 million passengers annually with long-distance rail. What do you see as the main obstacles in achieving these ambitious targets?

- Achieving these ambitious targets undoubtedly presents challenges requiring careful consideration and a strategic approach.

We need clarity on priorities - while there has been progress in establishing priorities, maintaining clarity on priorities remains essential. Ensuring stakeholders are aligned and committed to these priorities is crucial for effective implementation.

The timelines set for the completion of the Core Network (by 2030), Extended Core Network (by 2040), and Comprehensive Network (by 2050) impose significant pressure on project implementation. Meeting these deadlines necessitates efficient project management, resource allocation, and timely decision-making.

Furthermore, harmonising standards, for example, across different rail systems, is imperative for achieving seamless connectivity. Reforms in rail infrastructure, such as electrification, implementation of the European Rail Traffic Management System (ERTMS), and adherence to common track gauge and axle load standards, are essential for interoperability. Ensuring compliance with these standards can be challenging, particularly for cross-border projects where alignment with neighbours is crucial..

Adequate funding is also vital for the successful execution of TEN-T projects. The alignment of funding priorities with project requirements and the availability of sufficient financial resources are essential considerations. Addressing funding gaps and exploring innovative financing mechanisms are vital to overcoming this obstacle.

The capacity shortage, both in terms of infrastructure and human resources, poses a significant challenge to project implementation. Enhancing infrastructure capacity to accommodate increased rail freight and passenger traffic is essential. Moreover, investing in workforce development and skill-building initiatives is crucial for accelerating project delivery.

Ensuring consistency and alignment of standards and regulations on both sides of the border is crucial for cross-border projects. Facilitating cooperation and coordination among different partners to address regulatory discrepancies and streamline project implementation processes is also important.

eKapija: Part of the TEN-T policy is integrating six Western Balkan partners into the newly established European Transport Corridors. How will Serbia and region benefit from it?

- In December 2023, a political agreement was reached between the European Parliament and the Council of the European Union to revise the regulation on the Trans-European Transport Network. This agreement was followed by a positive vote in the European Parliament in late April, paving the way for its operationalisation. Among other changes, this legislation regulates the integration of the six Western Balkan partners into the newly established Western Balkans-Eastern Mediterranean European Transport Corridor.

For the first time, this connects eight EU member states with the Western Balkans six in one network. It starts in Austria, then goes from Italy, Slovenia, Croatia, Hungary, the entire Western Balkans, Bulgaria, and Greece, and ends with a maritime connection to Cyprus. All of this, for the first time, becomes one.

This unique Corridor will be an additional chance to develop Western Balkans infrastructure. The Core Corridor Coordinator will facilitate the development of the Corridor together with the Transport Community.

What is also important is the fact that this will be one Corridor with the same standards and the same timelines for completion.

Regarding benefits, we should talk about long-term stable priorities for where investments will be directed. As part of the Trans-European Transport Network, Serbia gains a strategic role as a key link between Europe`s north and south. This central position attracts investment and facilitates international trade through improved road, rail, and inland waterways connections, especially along the Danube River.

Serbia`s integration into the European Transport Corridors ensures stable funding and clear priorities for infrastructure projects, enhancing safety and efficiency. This leads to a more robust economy, reduced transportation costs, and greater appeal for foreign investment. Additionally, it promotes regional cooperation, fostering economic growth and stronger political ties within the Western Balkans and with the EU.

eKapija: One of the acute problems is the very long waiting time for trucks at the borders. How to solve this? When can we expect the full establishment of green corridors among the Western Balkan countries and its expansion to EU countries?

- Built on the success achieved in the Western Balkans region, the initiative has been expanding to the EU Member States as of 2022. So far, memoranda of understanding (MoUs) have been signed for the exchange of electronic data on the shared BCPs through the SEED system (Systematic Electronic Exchange of Data) between Greece and North Macedonia, Croatia and Montenegro, Croatia and Bosnia Herzegovina, for the road transport, as well as between Italy and Albania, and Italy and Montenegro, for the maritime transport.

The Transport Community works closely with CEFTA, the European Commission and Regional Partners to decrease waiting times and increase safety and efficiency of border crossing points. To that end, a roadmap will be put forward which defines the next activities in the form of short-, mid- and long-term priorities and puts in place the necessary coordination structure, including from the EU neighbouring Member States.

The idea behind this is to also modernise the busiest pairs of border crossing points (BCPs) between the EU and the Western Balkans, where improvements are needed in infrastructure (to increase the capacity throughput of the BCPs), new technologies and digitalisation (to accelerate and simplify the procedures), as well as establishing coordinated controls and capacity building of the border agencies (to improve the performance and efficiency of the border staff). For example, all major BCPs between Serbia and all its EU neighbours - Croatia, Hungary, Romania, and Bulgaria, are included within the priority list.

This will undoubtedly lead to accelerating the movements of goods, improving risk management, shortening the waiting times, improving the business environment, increasing transparency, reducing costs of trade, and assuring the safety and security of value chains.

The existing Green Lanes have already reduced waiting time at intra-Western Balkans border crossing points. According to CEFTA`s data, 20 years of waiting time was saved only in 2023 thanks to the intra-regional Green Lanes. Reducing the waiting time at the borders by three hours would be similar to lowering tariffs by around 2 per cent across all economies. The final aim of extending the Green Lanes to the EU and modernising the BCPs is to boost trade and make the region more attractive to investors.

In parallel, Serbia is working on establishing one-stop and joint controls on its shared border points with other Western Balkan neighbours. Following the good example set on the BCP Preševo-Tabanovci with North Macedonia, similar arrangements are expected with Bosnia and Herzegovina. In contrast, on the rail network, it is expected that joint operations will soon start between the Serbian and Montenegrin authorities at the common rail station in Bijelo Polje.

eKapija: How would you assess the state of the transportation and logistics sector in Serbia, what are the major challenges and where the opportunities lie?

- Serbia`s transportation and logistics sector has great potential due to its strategic location as a central link between Europe, the Middle East, and Asia via the Corridor X. The proximity of major cities in the Western Balkans within a 400-500 km radius allows for efficient connectivity. At the same time, Serbia`s position in the Western Balkans makes it a critical transit point for international trade. The Western Balkans offers the shortest land route from the EU to the Middle East and Asia, giving it a competitive advantage in logistics.

Opportunities lie in modernising infrastructure to support better multimodal connections among roads, rails, and ports. To capitalise on its strategic location, the region needs to enhance its ports and streamline border crossing points to reduce delays and improve trade flow. Key challenges include the need to update infrastructure and improve intermodal connectivity. Addressing these issues can position the region as a major transportation hub, driving economic growth and facilitating international trade.

There are significant improvements in Serbia, such as the modernisation of the rail section Belgrade-Novi Sad-Subotica of the Corridor X. However, the lack of terminals in the Western Balkans is visible. The new terminal in Batajnica, co-financed by the EU, will operate soon. With its opening, the situation will be improved. It will increase the multimodal transport and enhance cooperation between road, rail, and inland waterway transport.

eKapija: What do you see as the most important projects in the sector in Serbia and region at the moment?

- Some of the key projects and investments in Serbia and across the region are centred around Corridor X, which connects north and south, Corridor Vc, connecting the north and the south of Bosnia and Herzegovina, and Corridor VIII, connecting the Adriatic with the Black Sea.

To illustrate this, let's talk about the investments in rail. Serbia is undertaking four major infrastructure projects in railways as part of the Trans-European Transport Network, with a combined budget of EUR 1.409 billion. These projects involve upgrades to railway sections totalling 269 km in length.

One key development is the construction of the Novi Sad-Subotica railway section, which began in April 2022, meeting all TEN-T standards. The Belgrade-Novi Sad line is already fully interoperable, with a maximum speed of 200 km/h and equipped with the European Train Control System (ETCS) Level 2.

Serbia has also completed the regional railway line between Subotica and Horgoš, on the border with Hungary. This electrified line allows a maximum operational speed of 120 km/h.

Furthermore, with the EU support, construction on the Niš-Dimitrovgrad section began in 2023, following the finalisation of the tender process. Serbia plans to improve 108 km of railway on its Core network to comply with all TEN-T requirements, except for ETCS and Global System for Mobile Communications - Railway (GSM-R). This project has a budget of EUR 426 million, funded by a grant from the Western Balkans Investment Framework (WBIF), a European Investment Bank (EIB) loan, and the Serbian government budget.

In 2023, Serbia secured funding for three additional projects. One is building a single operations centre to manage railway traffic across the national railway network. The second is completing phase 2 of construction on the Main Railway Station. Finally, constructing tunnel number 4 on the Stalać-Đunis section as part of the broader Belgrade-Niš project. Finally, in February 2022, Serbia signed a grant agreement with the European Commission to support a significant infrastructure project connecting Belgrade to Niš. The grant is valued at approximately EUR 600 million, with the overall investment for this project estimated at EUR 2.7 billion.

eKapija: What would you advise Serbian transportation and logistics companies on how to remain competitive in Europe?

- The first step is the full application of the EU standards. Once we have this in place, transport and logistics companies can operate seamlessly in the same conditions as in the EU, becoming more competitive in the respective markets. In addition, the EU standards can bring more space for innovation and application of modern technologies, which also pushes towards increased competitiveness in the logistics industry and the regional economy.

Prioritising investments in modern trucks, rail infrastructure, and inland waterways can bring substantial benefits. Transitioning towards greener modes of transport reduces carbon emissions and enhances reliability, cost-effectiveness, and accessibility. Embracing multimodality, which integrates various transportation modes seamlessly, will be key in optimising supply chain logistics and overcoming challenges associated with traditional single-mode transport.

eKapija: The Transport Community is among the organisers of the Green Mobility Summit in Sarajevo, on June 6 th and 7 th , 2024. Is the region ready for the green transport and logistics, especially given the fact that transport sector is huge contributor to greenhouse gas emissions?

- We are pleased to be working together with the German Federal Government and their development agency GIZ on organising the Green Mobility Summit which Bosnia and Herzegovina will host. The summit will focus on how we ensure we green the transport.

The transport and energy sectors are among the most polluting in the EU and the Western Balkans. With this in mind, we know that transport needs to do its part in protecting the environment, lowering CO2 emissions, and, in general, contributing to a greener future.

During the summit, we will explore topics such as urban mobility, electrification of transport, cycling infrastructure, and many others, mirroring the European efforts in this regard – promoting more sustainable and healthier modes of transport. Finally, we will also explore what we need to do to prepare our infrastructure – our roads and rails – for climate resilience. Now, when building new infrastructure and modernising the existing, we should make sure that it is resilient when it comes to climate change.

The region is ready for green transport and logistics, and we, as the Transport Community, remain determined to work with the authorities to achieve this goal.

M. Dedić