The Montenegrin Railway System

By Ljubinko Dedovic (October 2003)

The Montenegro Railway marks its ninety-fifth year of existence this year, but there are not many reasons to celebrate – Privatisation: yes, but how and when?

An Uncertain Perspective

The Montenegro Railway marks its ninety-fifth year of existence this year, but there are not many reasons to celebrate – Privatisation: yes, but how and when?

Montenegrin railroad workers are celebrating 95 years of work this year, 95 years since the first Montenegrin route from Bar to Virpazar began running. Let us recall, for comparisons sake, the English Parliament approved the construction of the first railroad route from Stockton to Darlington in 1823. Tests were conducted on September 27, 1825, in front of experts and enthusiasts and this marked the birth of the railroad. The first railways build on the territory of the southern Slavic people were build in the middle and late 1800s, at a time when a good portion of that territory was under the control of Austria-Hungarians and Turks. The Belgrade-Nis route was established in 1884 and was the first of its kind on the territory of Serbia. Montenegro received its first railway in 1908.

Humble beginnings

When looking at the results made and the construction of the Montenegro railroad system, we must take into consideration the humble beginnings and the inadequate and unsatisfactory economic-systematic solutions. The goal of development for the next period of time was hindered by the acceptance of the underdeveloped system of railway traffic, which in effect hindered the already stunted economic growth of Montenegro.

Limiting components consequently brought about a lack of construction of an anachronistic railway infrastructure, as well as a lack of wagons and locomotives to satisfy the technical-exploitative characteristics. Besides this, the incompatibility between offers and a wide variety of demands which the railway needed always existed. In addition, the communication between the railway and all other transportation services was weak, and accepting new methods of transportation in the railway industry was neglected.

The area of the surface of Montenegro is 13,812 square-kilometres, while the complete distance of the railway is a meagre 250.3 kilometres. Starting from an indicator of the density of railway connections at 100 square-kilometres, Montenegro’s system can easily be places as the most underdeveloped one throughout the former Yugoslavia.

In order for the railway to achieve its role which it objectively should have with the Montenegrin transportation system, it must modernise its capacity, work organization and business politics. That is why an all-encompassing modernisation must be the initial route of development for the Montenegrin railway in the coming period of time. It is the main prerequisite for bettering the quality of its transportation services and edging closer to the level of standards already achieved in developed European countries.

When looking at the current state of the Montenegro railroad transportation system, it is obvious that its priority in modernisation must by the railway infrastructure. The rails need to be revitalised: Vrbnica-Bar (the portion of the Belgrade-Bar route which runs through Montenegro) and Podgorica-Niksic. In the near future, with stronger economic trends, it would be realistic to expect an activation of international routes which would link Montenegro and Albania.

The route from Vrbnice to Bar is part of the route between Belgrade and Bar, which is vital to the federal union between Serbia and Montenegro and plays an important role in the traffic system of the Balkans. The railway on this route is in fairly poor condition. It was constructed 27 years ago. The entire distance from Vrbnice to Bar, 169 kilometres, has been in need of a general repair for some time now. The Belgrade-Bar route represent the only functional tie between the Bar Port, which many feel is Montenegro’s most important economic spot along the seacoast, and its fairly widespread gravitational region. Because of this, is very important for Montenegro to make repairs to the railways in Montenegro on the route between Belgrade and Bar, and then fully modernise it as well.

The route between Podgorica and Niksic, which is a distance of 56.5 kilometres, is in very poor shape. If repairs are not made immediately the danger of travelling this route will come into question. Closing this route for travel would have a number of negative consequences for the Montenegrin economy, especially for its aluminium industry, mining and railroad services. A very discouraging fact is that 40 years has past since the last repairs were made to this route. Talks of repairing this route have been going on for fifteen years. The eventual halting of traffic on this route would with time enable the building of a new set of tracks from Niksic to Podgorica, and would result in an increase in transportation costs for the economy, an increase in ecological costs and more demand for liquid fuel. None of these would work in the interest of Montenegro and its economic development.

Prerequisites for Development

Technical-technological modernisation is one of the most important prerequisites for the metamorphosis of the Montenegro Railroad into a modern, commercial company. But, in order to achieve these goals, technical-technological improvements are not enough. Changes must be made in the ownership, organisation and functional aspects of the company as well.

Objectively, under Montenegrin conditions, the road towards an effective railways system will not be short or easy. It is important to stress that we need an original model of organisation and functionality for the railroad, one that does not exist anywhere else in the world; though in recent history we have had many original, albeit unproductive and ineffective solutions.

In new situations it is necessary to keep in mind the experiences of the railroads of EU member countries. The experiences of other countries can help us, but they will not free us from the responsibility we have towards our own future. A possible solution for us would be a creative implementation of modern concepts for the railroad which have already been confirmed in developed European nations under conditions adapted for the Montenegrin industry.

Transformation and privatisation of the railroad is a very big problem, even in developed countries. For example, the Germany Government adopted a long-term project on July 15, 1992 for reforms in its railroad, as a first step towards privatisation, with a ten year timeframe for completion.

What is the perspective of the Montenegrin Railway? How much time will be need for it to grow into an effective, competitive and profitable company? At this moment it is hard to give a decisive answer and all the questions remain open-ended. We must take into consideration the fact that the railway has been neglected for many years and that little money was invested. Its limits were met long ago and an urgent revitalisation if needed for almost the entire railway infrastructure. However, it must also be considered that Montenegro is far too weak economically to modernise the railway independently, so we must have decisive support from financial institutions of the European Union.

In the strategy of development for the Montenegrin traffic system, it is very important to put the railroad at the top of the list of priorities. Modernising and expanding connections would lead to better ties between production and consumption centres, a significantly better use of natural riches and other resources, a greater mobility factor for producers, an more effective use of tourism and an expansion of the seacoast industry, and the realisation of proclaimed ecological pretensions. Most importantly, it would strengthen Montenegro’s traffic integration process in the West Balkans region and all throughout Europe.

The author is a professor at the Faculty of Economy in Podgorica
Source: Ekonomist magazine (October 6th, 2003)