Luke Bar faced various challenges but managed to operate successfully last year, as announced by her representatives. They are expected to implement support for the company in Montenegro. Ilija Pjesčić, the CEO, stated during a radio interview that last year’s business activities are pending finalization due to the control body’s yet-to-be-adopted financial report.

“Total transmission reached over 1.8 million tons, with revenues hitting 15 million euros, and the profits generated by the port, after accounting for all costs and receivables, have left us quite satisfied,” Pjesčić remarked.

Last year, the company did suffer significant losses due to an unusual storm that struck in early July.

“If someone had told us back in July that we’d finish the year this satisfied, we would have been astonished. The storm’s negative impacts were mitigated, and neither goods nor our operations sustained major damages. Now, we’re looking at the situation optimistically since we will be able to enhance our transshipment and warehouse capacities along the coast,” Pjesčić added.

He recounted that the collapse occurred in merely seven minutes during the fierce storm.

“Three loading bridges, which were installed back in 1977, along with one crane used for grain materials, were affected. These structures had significantly deteriorated, and the company that manufactured them had exited the market over 20 years ago. Repairs were carried out within the port, indicating that our technical and machinery service team managed to restore them to a functional state,” Pjesčić explained.

Pjesčić mentioned that there have been discussions about modernizing outdated equipment and techniques, but the port currently lacks the financial resources necessary for such investments.

He noted that while they quickly regained operations, they are looking to procure an additional two mobile cranes.

“Luke Bar is a state-owned company and deserves far greater support from the government. I understand the need to adhere to EU regulations, but this is vital infrastructure that must be maintained. In terms of capacity, we could outperform much larger, more developed states. However, at this time, we see no positive signals from the government. I urge them to offer substantial assistance to this pivotal company,” Pjesčić stressed.

He pointed out that the port was the third largest in the former Yugoslavia, but now struggles to compete, having lost valuable market footing.

“We are now contending for fourth place, which concerns me greatly, especially since the Albanian government is making significant investments in the port of Durres, which will soon emerge as a formidable competitor, only 80 kilometers away,” he added.

When asked about the status of the LNG terminal construction, Pjesčić clarified that it hadn’t been abandoned; rather, the Board of Directors and Management must await direction from the government, as the area is state-owned, and only management rights have been granted to Luke Bar.

“The government could decide to transfer management of the port to another entity, such as Elektroprivreda (EPCG) or a partner, to develop the LNG terminal and a thermal power plant in this region. Obviously, a thorough analysis is necessary, and that is already underway. I reiterate, we have not given up, as many countries operate multiple LNG terminals; there’s no reason we shouldn’t,” Pjesčić stated.

He also highlighted that between 2018 and last year, salaries grew by 40 to 50 percent, which is substantial.

“Our workforce is expanding. Currently, average salaries stand at around 960 euros, which is decent; however, considering inflation, our unions and I will seek better salary models, although increasing costs right now represents a significant risk,” he concluded.

When queried about this year’s priorities, Pjesčić emphasized focusing on logistics throughout Montenegro.

“We witness that a significant volume of goods passes through the Balkans in transit, yet our port only captures a small fraction of that cargo. The challenges include our rail network and competitive pricing, which ultimately impacts our port’s viability. These factors are dictated largely by external shippers,” he elaborated.

He urged the government to ensure protections for local companies, noting that if goods transit through Montenegro, new transit pricing should be established to safeguard the port and its related industries.