Special edition newsletter
Transport and logistics - Ready to move the impossible?
Filip Radulović, Minister of Transport and Maritime Affairs of Montenegro - In the construction of 480 km of highways and high-speed roads, a planned investment of EUR 8 billion, multimillion-dollar investments in railways as well
Filip Radulović (Photo: Vlada Crne Gore/Saša Matić)
This is what the Minister of Transport and Maritime Affairs Filip Radulović said in an interview for eKapija.
Also, significant investments in railway infrastructure were announced, the value of which is measured in hundreds of millions of euros, and the Ministry of Transport and Maritime Affairs was recognized as one of the largest user institutions of grants from available EU funds, primarily the Investment Framework for the Western Balkans (WBIF) for the field of transport. According to Radulović, the overhaul of the railway is an urgent need to ensure the appropriate level of development of Montenegro and attract naturally determined passenger and goods flows.
The goal is also the valorization of the Port of Bar and its development as the main international cargo port in Montenegro. A prerequisite for this is precisely the construction of infrastructure in the hinterland and the improvement of the railway. At the same time, work is also being done on the development of an air traffic strategy in which cargo traffic occupies an important segment. With the development of the airport, Radulović told us, we can expect additional demand from cargo carriers.
Speaking about the most significant projects when it comes to road traffic, Radulović said in an interview for eKapija that only in the first four months of this year, tenders were announced for five conceptual solutions for highways and high-speed ways, and a pre-qualification call for the development of the main project and construction of the section Mateševo-Andrijevica.
- This Government is firmly committed to continue the implementation of strategic projects, especially projects in the field of road infrastructure. In order to continue the construction of the Bar-Boljare highway, i.e. the continuation of the construction of the next sections, we received the support of the European Commission (EC) and the European Bank for Reconstruction and Development (EBRD), in the form of providing credit funds in the amount of EUR 200 million, as well as grants in the amount of 40% of the project`s value, that is, between 200 and EUR 240 million.
The plan is to implement projects worth around EUR 8 billion by 2030 (Photo: YouTube/Monteput)
In accordance with the plan and the promise that this year, public calls for more conceptual solutions and conceptual projects for highways and high-speed roads will be announced, as well as that a tender for the selection of contractors for the Mateševo-Andrijevica section will be announced on April 24 on the website The EBRD has published a pre-qualification tender for the development of the main project and the construction of the Mateševo-Andrijevica section of the Bar-Boljara highway, after which the entire procedure for selecting the contractor will be carried out according to the rules and with the consent of the EBRD, in order to have a contract signed with the contractor at the beginning of next year. Considering the size and importance of the project, we expect great interest from renowned international companies in the field of road construction, which will be able to respond adequately to such a challenging project with their knowledge and technology.
The commitment of the Ministry to the implementation of large infrastructure projects is also evident in the fact that in just the first four months of this year, public invitations were issued for the development of five conceptual solutions for highways and high-speed roads - the conceptual solution for the crossing of the Bar-Boljara highway and the Adriatic-Ionian highway, the conceptual solution for crossing the Boka Kotorska bay, conceptual design of the highway Andrijevica border with Kosovo, conceptual design of the high-speed way Crnča-Pljevlja-Granica with BiH and conceptual design of the high-speed way Danilovgrad-Nikšić and for the conceptual design of the highway Andrijevica-Boljare.
Also, I must point out that in the previous period several hundreds of kilometers of main and regional roads were built, reconstructed and modernized, which created the conditions for higher quality, more comfortable, more economical and safer traffic and therefore better connectivity and road accessibility in Montenegro. Thus, this year, it is planned to continue or start the construction or reconstruction of approximately 230 km of regional and main roads, namely: 120 km in the northern region, 75 km in the central region and 36 km in the coastal region. In addition to the construction of the highway, the most significant and therefore the most expensive projects are the reconstruction of the road Rožaje-Špiljane, the reconstruction of the road Lepenac-Ribarevine-Berane, the reconstruction of the road Bijelo Polje-border with Serbia, the construction of the Tivat-Jaz boulevard, the construction of the road Cetinje-Čevo, the construction of the road interchange Veruša-Lopate, construction of the western bypass Podgorica, a new bridge over the river Tara in the locality of Šćepan Polje, a bridge over the river Bojana....
The realization of these projects has multiple significance in terms of increasing traffic safety, better traffic flow, shorter travel time and impact on tourism and the overall socio-economic development of the country. Investing in road infrastructure is an investment in the future of Montenegro, because without a good road infrastructure, there is no economic development of the country, good tourist offer, better connectivity and accessibility.
eKapija: What is the value of all the planned projects, when it comes to road construction? Does 2030 still stand as the expected deadline for all these investments to be realized?
- The Government of Montenegro has a clear vision of the development and construction of road infrastructure with the aim of improving the connectivity of certain regions of Montenegro, as well as the connectivity of Montenegro with the countries of the region and European road corridors.
The total capital budget for the year 2024 for the development of road infrastructure amounts to EUR 161 million. In the period up to 2030, the realization of highway and high-speed way projects with a length of 480 km and a total value of approx. 8 billion EUR is planned. It is the firm determination of this Government that these projects will be successfully implemented in the coming period.
The realization of these projects will enable a better connection of Montenegro with European corridors, which will make Montenegro more accessible and competitive for domestic and foreign investments.
(Photo: Vlada Crne Gore/Saša Matić)
eKapija: Significant investments were also announced in the railway sector. You recently said that the plan is to reconstruct the entire railway line to the border with Serbia by 2029. What are the key projects expected in the next few years?
- The Ministry of Transport and Maritime Affairs is recognized as one of the largest user institutions of grants from available EU funds, primarily the Investment Framework for the Western Balkans (WBIF) in the area of transport. The key projects that will be launched in the coming period are financed precisely from this fund, as well as from the credit funds of the European Investment Bank (EIB) and the European Bank for Reconstruction and Development, namely:
- The railway improvement project, which will include the rehabilitation of 13 steel bridges, eight tunnels, the rehabilitation of 20 km of railway on the section Lutovo - Bratonožići - Bioče, as well as the modernization of depots and workshops for the maintenance of railway rolling stock in a total value of EUR 80 million (of which 50% is WBIF grant funds). The financial agreement on the loan and grant has been signed, the beginning of implementation is expected in the second half of 2024. These funds are intended for the improvement of the existing state of the railway, which will reduce light journeys on about 20 km of the railway, increase train speeds and reduce maintenance costs. In addition, investment maintenance of the undercarriage elements of the railway will be carried out in order to raise the level of traffic safety.
- The project of the reconstruction of the section Bar - Golubovci, which will include the reconstruction of the upper train of the railway, rehabilitation of concrete bridges, stabilization of slopes in the area of the Ratac landslide, reconstruction of the EVP Bar plant, reconstruction of the contact network, replacement of the system of signaling and safety devices, adaptation of station buildings. The estimated value of the project is EUR 218.43 million provided from the WBIF fund (50%) and EBRD and EIB loans. Project implementation will begin in 2025.
- Procurement of electric trains for the transportation of passengers, which will be realized through a credit arrangement with the EBRD bank in the amount of EUR 30 million. The tender for the purchase of trains is expected to be announced in the fourth quarter of the current year.
eKapija: We are all aware of the importance of the Belgrade-Bar railway for the development of passenger and cargo traffic in Montenegro. What about the other routes that were discussed during the previous years - the railway from Čapljina to Nikšić, and the connection of BiH, Montenegro and Albania by railway, the activation of the railway to Shkodra...?
- Renovation of the railway and other routes is an urgent need in order to ensure the appropriate level of development of Montenegro and to attract the naturally determined passenger and goods flows. The reconstruction plan of the Nikšić-Čapljina railway becomes more realistic than before, considering that this railway is included in the indicative extension of the Trans-European Transport Network (TEN-T), as a railway that will connect Route 2 and Corridor Vc and thus open a new direction from Greece and Albania , via Montenegro, BiH and Croatia towards Central Europe. This fact creates a key prerequisite for withdrawing funds from available EU funds in order to overhaul this railway.
The initial step towards the realization of this project was made in 2008 when the Spanish company Inocsa Ingenieria S.L prepared a preliminary solution, study and spatial planning documents for the regional railway Čapljina-Trebinje-Nikšić. The analysis carried out contains three scenarios, of which the most optimal solution is the scenario that proposes the construction of a single-track railway (such as the railway from Nikšić to Podgorica), where the construction costs of 57 km through Montenegro would amount to EUR 180 million, while it would be necessary to provide EUR 630 million for the part through BiH. Given that the projections are from 2008, it would be necessary to make a new calculation of all elements in this part.
The part of the railway from Podgorica to Nikšić, with a length of 56.6 km, was completely overhauled and modernized in the period from 2006 to 2012. Further activities on the overhaul up to Čapljina must be jointly coordinated, because the railway is international and applying for funds for the preparation of technical documentation and the execution of works is only appropriate if it is carried out through the joint cooperation of two countries.
In addition to this direction, the realization of a project worth EUR 2.6 million secured from the WBIF fund is underway, which includes the development of the main project for the reconstruction and modernization of the route in the length of 25 km from Podgorica to the border with Albania, which, among other things, will include the electrification of the railway , the reconstruction of the tracks of the station in Tuzi, as well as the reconstruction of the station building in Tuzi.
Port of Bar (Photo: Shutterstock/Sergei Fedorov)
ekapija: The Port of Bar probably plays a key role in the development of transport and logistics in Montenegro. However, we can often hear that its potential is insufficiently used. How satisfied are you with the results of Luka Bar? Where do you see the biggest problems when it comes to its full valorization and how can these problems be solved?
- The Port of Bar, in accordance with the strategic and spatial planning documents, must be developed as the main international cargo port in Montenegro, in such a way that the degree of utilization of the existing capacities should be increased, but also new capacities should be developed that will lead to the improvement of port services . Of course, when we talk about the valorization of the potential of the Port of Bar, we inevitably have to remember that the most important prerequisite for its further development is the construction of appropriate infrastructure in the hinterland.
eKapija: We mentioned investments in the railway sector, which is an important prerequisite for the development of the Port itself. The importance of this is also shown by the case of Croatia, which initiated the project of building a low-lying railway towards Rijeka, all with the aim of its further development and the fastest possible transport of cargo to the port. Can the Port of Bar be competitive in relation to Rijeka, but also in relation to other ports in the region, if we know that the Bar railway in certain parts reaches an altitude of 1,000 meters, which is certainly an aggravating circumstance when it comes to cargo traffic?
- Bearing in mind the terrain conditions, i.e. the geographical area through which the railway passes, it is clear that the service life of this railway is significantly shorter compared to the railways that pass through the plains, so that in addition to regular maintenance, considerable funds are necessary to improve its regional importance. Due to the exploitation of the railway, over time there was a reduction in speed, in order to preserve the necessary level of safety, which made it less competitive, both for the transport of passengers and for the transport of goods. By renovating the railway, i.e. increasing speeds and comfort, we want to attract a larger number of passengers, as well as users of freight transport services by rail, i.e. create better conditions for the development of international traffic.
Since, due to the economic crisis, the flows of passengers and goods have changed significantly, it is necessary to create conditions for increasing the competitiveness of rail transport. The transport corridor cannot attract goods flows if it has not achieved the appropriate level of development of logistics systems and transport infrastructure and provided satisfactory service quality. Therefore, the overhaul of the railway is an urgent need in order to ensure the proper development of Montenegro and the entire gravitating area and to attract naturally determined passenger and goods flows.
eKapija: Earlier, the question of reunifying the Port of Bar and returning it to state ownership was raised. Is this plan still in place?
- The Ministry of Transport and Maritime Affairs is looking at potential models that could be applied in order to unify the Port of Bar, bearing in mind that the unification of the port is one of the strategic activities to which we should be committed in the coming period. We remind you that almost the entire area of the port of Bar has the status of a Free Zone, which represents a very important economic potential, so the Ministry in cooperation with the Port of Bar will actively work on more significant use of the free zone, especially bearing in mind the numerous benefits that the status of the free zone provides to the host country and the foreign investors.
Filip Radulović (Photo: Vlada Crne Gore/Đorđe Cmiljanić)
eKapija: You also announced the merger of the Crnogorska and Barska plovidba companies, and the project of merging two railway companies has also already been launched. What are the expected benefits from these procedures?
- The situation in the shipping companies AD Crnogorska plovidba and AD Barska plovidba is not at an enviable level, and I believe we are all aware of that. So, as many times before, the state had to get involved in providing the missing funds for repayment of the loan debt to Exim Bank. It is also known to our public that both shipping companies are in an unenviable position, since they have to return the uncoordinated state aid and, at the same time, pay off the remaining amount of the loan owed to the Exim Bank.
Barska plovidba is, to some extent, in a better situation than Crnogorska plovidba because the credit arrangement was more favorable, it also owns its own real estate, has a much smaller obligation to return funds to the state budget that were allocated as uncoordinated state aid, etc.
We will work on creating the necessary conditions for the merger of shipping companies. However, it is our intention to look at other potential modalities that could possibly lead to the sustainability of these societies. I certainly think that the existing solution is not sustainable and that we should be guided by the so-called economy of scale, that is, consolidate the fleet at our disposal and reduce the business expenses of both companies.
eKapija: What is the situation regarding air cargo traffic? What are the potentials of Montenegro in this segment and can the infrastructure at Montenegrin airports meet all the challenges when it comes to this type of transport?
- Appreciating the fact of the construction of the highway and better connections with the surrounding cities, Montenegro is creating the necessary preconditions for the development of air-cargo traffic
On an annual level, the Airports of Montenegro serve 10-15 cargo flights and that only at the Aerodorm in Podgorica. Cargo is present on regular routes of Turkish airlines, Air Serbia, To Montenegro, Austrian Airlines. When it comes to the infrastructure, it certainly could not meet the challenges of a more serious volume of cargo traffic with specific types of goods. Our capacities on the platform and cargo warehouse are limited (especially Tivat). The cargo warehouse in Podgorica has a capacity of 300 m2 and is divided into inbound and outbound goods. Also, in situations where we have flights with dangerous goods, we serve those flights on a military platform.
In the following period, activities are planned to develop an air transport strategy, and an important segment in the strategy is cargo transport. In any case, with the development of the airport, we can expect additional demand from cargo carriers.
eKapija: In Serbia, but also in other countries of the region, logistics centers are being intensively built. Is there space and need for such facilities in Montenegro as well, despite the limitations and underdeveloped industry? And would their construction also mean the creation of new jobs?
- Logistics centers can greatly influence the development of air traffic. The construction and development of logistics centers is not in the domain of our Ministry, but if there is any initiative on this topic, we are ready to provide full support.
Dragana Obradović
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