The Port of Bar (Montenegro) has a high development potential, which, if properly approached, will help increase its importance in the region. In order to meet this objective, the authorities have elaborated a programme for the development of infrastructure and construction of facilities to answer to the traffic flow capacity, especially to and from the Black Sea. Projects include the modernisation of infrastructure and existing terminals and the construction of other transport connections that will ensure the increase of the transport capacity. Among them, the project on the reconstruction of the Bar-Belgrade line, the launch of activities concerning the integration of logistics into the transport system of Montenegro, the development of maritime connections with the Adriatic ports, as well as the construction of intermodal terminals in Bar, Podgorica and Bijelo Polje stations. At present, traffic safety works are carried out on the Bar – Belgrade line. The line has strategic importance for the transport in Montenegro as it provides connection between Vrbnica (north), Bar (south), the economic centres in Bijelo Polje, Mojkovac, Kolašin, Podgorica and Bar, with direct connection to Nikšić.
Regarding terminals, 4 terminals will be built among which one dedicated to liquid freight in Bigovica (capacity of 250 thousand cubic meters), for dry bulk through the extension of
operational surfaces by another 400 meters, the construction of facilities necessary for storage and the optimisation of freight handling technologies. A terminal for grains with a capacity of 30 thousand tonnes for which there is partial infrastructure and a container terminal will also be developed.
According to the Urban Plan, a surface of 350 hectares is dedicated to the development of the port. Mr. Deda Djelovic, Director of the Development Department, has provided more information on the strategic projects of the Port of Bar in the interview below.
Railway PRO: For freight transport in Montenegro, the Port of Bar is the main source which ensures international traffic, being the gateway to South-Eastern Europe. In this context, how could the Port of Bar use its development potential to become a transport hub in the region and provide a high freight flow?
Deda Djelovic: Having an excellent geographic position and different other strengths, the Port of Bar has huge potential to became a port of regional importance. The process of utilizing the mentioned potential is very complex, has several components and is under influence of various factors, but, it is obvious that, in the very initial stage, maximal efforts have to be made in the field of increasing, as much as possible, the utilization rate of the existing Port capacities, by intensive promotional activities in order to attract new customers, by permanent increasing the quality of Port services, etc. All these previously mentioned activities have to take into account real values of parameters which determine current Port capacity, including values of current capacities of road and railway connections of the Port with its hinterland. In parallel, the Port has to take all necessary steps and to wait prepared a moment of finalization of crucially important regional infrastructural projects such as rehabilitation and modernization of the railway Bar – Belgrade, building the highway Bar – Belgrade, etc. Realization of these important projects will significantly contribute to the fulfilment of “external” preconditions for achieving regional importance of the Port of Bar.
Railway PRO: What are the factors that confirm the existence of the development potential of Port of Bar that ensure the freight flows through the port, from and to Romania, including potential extensions to other countries?
Deda Djelovic: The group of these factors is very wide, but I am going to mention just a few of those. The starting point is that Port of Bar has significant capacity, determined by existing port superstructure, port infrastructure and port equipment, and available development area, reserved by the Detail Urban Plan, which enables further increasing of the Port capacity. As well, there are registered concrete interests of different subjects from Italy, Serbia, Romania, Hungary, etc. to establish cargo flows, via the Port of Bar, to and from mentioned countries, based on the important expected time savings, costs reductions, etc. The third important initial factor is expected economic growth in all of the mentioned countries and intensification of related export-import activities, etc.
Railway PRO: The infrastructure development strategy includes the modernisation of the Bar-Belgrade line and the construction of new terminals. How are works on the Bar-Belgrade line progressing considering its strategic importance for the transport system in Montenegro?
Deda Djelovic: Currently, as per my information, all activities are directed to the elimination of different “black points”, which are threats for the railway traffic safety or have important negative influence on the allowed transport speed and other parameters. Works on complete rehabilitation and modernization of the line Bar – Belgrade have not started yet.
Railway PRO: What can you tell us about the implementation of projects for the construction of terminals? What are the projects initiated or to be initiated in the near future?
Deda Djelovic: Under the Montenegrin transport system development strategy, development of three intermodal terminals at railway stations in Bar, Podgorica and Bijelo Polja is foreseen. For now, projects are not initiated, but, having in mind their significance for the general intensification of intermodal transport activities in Montenegro, it is expected that in the very near future projects will be concretized.
Railway PRO: What can you tell us about the amount of necessary investments and about financing sources? What can you tell us about the implication of the private sector in these projects?
Deda Djelovic: It is one of the most important questions, especially having in mind limited financing sources and other related limits determined by the economic crisis. Different financing options are opened, but, most probably, public-private partnership (established through the appropriate procedure conducted by the governmental bodies in charge) seems to be the most realistic variant.
Railway PRO: After developing the projects in plan, what do you think their impact will be in the transport and logistics system of Montenegro and in the region?
Deda Djelovic: Results of different relevant analyses show that the share of the intermodal transport in the overall transport activities in Montenegro is very low, so, the first expected positive effect of these projects development is correction of this negative situation (positive effects on increasing the share of intermodal transport in the overall transport activities in Montenegro).
Railway PRO: What do you think the methods of railway transport integration into the whole transport and logistics system are? Do you think that railway transport could be the core of the transport system?
Deda Djelovic: At this moment, the major part of cargo quantities handled through the Port of Bar are transported by road. It is not the optimal situation from different aspects (technological, …), when transporting large quantities of dry bulk cargoes from/to the Port. It is an obvious necessity to improve model of cooperation between the Port and railway cargo operators in order to try to establish a kind of “common approach to the market”.
Railway PRO: What can you tell us about the privatisation process of container
operators Container Terminal and General Cargo- CTGC? According to the latest information available on the official website of the Privatization and Capital Projects Council, the state has launched the demand for expressions of interest in the sale of the 62% stake.
Deda Djelovic: The privatization process of the Container and General Cargo Terminal (CTGC) is in the very final phase. Privatization contract was signed recently and these days the Parliament of Montenegro should confirm granting of the 30 years concession to the new Terminal major shareholder, a Turkish company “Global Ports”. As per current plan, CTGC will be formally taken over by the new major shareholder at the beginning of the next Year. As you practically said, through the privatization process the State of Montenegro has sold its 62% stake.
Railway PRO: If privatised, what will be the impact of the process over the port’s development, from the point of view of both infrastructure and attraction of freight through the port?
Deda Djelovic: Respecting the fact that the new major shareholder of the CTGC will be obliged to realize a investment plan in the beginning period of the concession period in order to modernize cargo handling technologies and having in mind its expected full engagement in attracting new customers, positive effects of privatization on the functioning of this Terminal operator, as well as, positive effects on the whole port area can be expected.
Railway PRO: How can the railway capa-city in ports be improved?
Deda Djelovic: All the Port of Bar cargo terminals (except the Passenger terminal) are in the optimal way connected with the railway Bar – Belgrade. Current capa-
city of the Port of Bar railway network is in line with the maximal Port capacity and is, unfortunately, underutilized. Connecting answer to this question with the answers to the pervious questions, I would like to repeat the necessity of making joint efforts of all relevant actors of the Montenegrin transport system to increase the share of the railway transport. Here has to be underlined an important thing – even current condition (capacity) of the railway Bar – Belgrade enables significant increasing of cargo quantities via the Port of Bar (it is not necessary to wait, from now, for the complete rehabilitation and modernization of the Railway Bar – Belgrade).
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