The Current Status of Montenegro’s Transportation Sector

The Current Status of Montenegro’s Transportation Sector

Montenegro
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The transportation sector is one of the most important factors for a country’s progress. Montenegro’s transportation sector has been transforming over the past few years towards the goal of harmonizing its infrastructure and services with European Union regulations. The Transportation Development Strategy of Montenegro for 2019-2035 (the “Strategy”) was adopted to regulate the guidelines and plans for future projects as well as to present the current state of the transportation sector in Montenegro. The Strategy aims to improve transportation in Montenegro and thus significantly enhance both tourism and business.

Montenegro has approximately 7,000 kilometers of roads, with approximately 1,850 kilometers of main and regional roads. Currently the main roads connecting major urban centers have only single carriageways with one lane per direction. There are no freeways in Montenegro.

In October 2015, however, construction of the Bar-Boljare freeway began. This freeway will contribute to the opening of many opportunities and further realization of the potential of Montenegro’s northern region by providing a better and faster connection between it and the central and southern parts of the country and safer and more efficient transportation for people, services and goods.

The railway transportation sector has shown considerable progress in the past decade, with over 48% of Montenegro’s railway infrastructure rehabilitated, and overhauling work on remaining segments either ongoing or planned. Montenegro’s railway network consists of three mostly electrified, standard gauge railway corridors with a total length of 150 kilometers. These railways connect the Port of Bar with Podgorica and Serbia, the cities of Podgorica and Niksic, and Podgorica with Albania. Continued Improvement of railway infrastructures will increase rail efficiency and attract additional ridership.

For Montenegro, it is very important that air transportation is well developed, because of many tourists coming from around the world every year. Air transportation in Montenegro is facilitated by international airports in Podgorica and Tivat, but expansion and upgrades are necessary for each to cope with increasing seasonal air traffic. Montenegro also has airports for general aviation in Berane, Zabljak, and Niksic. There is an initiative to open an airport in Ulcinj in the future.

The most significant sector of transportation in Montenegro is maritime transportation. Montenegro has implemented 70% of the EU directives and regulations regarding maritime transportation. The ports in Montenegro are the Port of Bar, the Port of Kotor, the Port of Adria, and the Port of Zelenika.

Since 2006 the Port of Kotor has specialized in cruising tourism, becoming one of the busiest destinations in the Mediterranean. Reconstruction and equipping of the Port of Zelenika is planned in order to make it open to more international traffic, with an emphasis on the tourist-passenger segment. The Port of Bar has been partially privatized – that part renamed the Port of Adria – and the Government of Montenegro has been trying to valorize the remaining part. The Port of Bar currently operates significantly below its capacity because there are major barriers for port usage, such as limited access by road and railway plus non-competitive costs.

The only intermodal station between railway and maritime transportation in Montenegro is established in the Port of Bar. Improvements in the Port of Bar will be achieved by improving that railway connection, expanding the gates and passenger terminal, better valorizing certain port services, and valorizing the port as a new cruising destination.

Also, it is important to emphasize that maritime companies Crnogorska Plovidba JSC and Barska Plovidba JSC plan to revitalize the Montenegrin merchant fleet by acquiring new ships as soon as market conditions permit. In order to further develop shipping in Montenegro and the traditional connection between Montenegro and Italy, it is necessary to renew the maritime Bar-Bari-Bar line.

Developing an efficient transportation system is necessary for the ensuring both economic and social prosperity in Montenegro. The country is currently planning a major overhaul of its road and railway networks, the expansion of its air transportation system, and the further valorization of its maritime system.

By Igor Zivkovski, Partner, Zivkovic Samardzic Law Office

This Article was originally published in Issue 6.12 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.