Today, the Government approved the draft Law on Railways, setting the stage to meet two of the four final benchmarks for closing Chapter 14—opening the market and establishing an independent regulatory and national body for railway safety.

“Despite the calls for a new Railway Law for many years, it is evident that there has been a lack of genuine political will to undertake this crucial reform,” stated the Ministry of Transport.

Among the most significant changes proposed by the law is the creation of the Railway Agency, which will inherit the responsibilities of the current Railway Administration.

“This approach is driven by the need for an independent body to regulate the railway market, aligning with European standards, particularly Article 55 of the Recast Directive 2012/34/EU, which mandates the functional and legal independence of the national regulatory authority,” the Ministry noted.

The current structure, where the Railway Administration operates within the state administration and is accountable to the Ministry, does not adhere to European standards for regulator independence.

Hence, the proposal is to launch an Agency that, as a legally and functionally distinct entity, will ensure full compliance with EU legislation.

The decision was crafted in accordance with the Law on State Administration and the feedback from the Ministry of Public Administration.

This draft law not only conforms to the Recast Directive but also implements the Directive on awarding public interest service contracts, thus enhancing market competition mechanisms and improving railway services while ensuring equal conditions for both state-owned and private operators.

“The law was developed through an extensive consultative process in collaboration with relevant institutions and railway companies, with all feedback thoughtfully incorporated into the final draft. Following alignment with the European Commission’s recommendations, a formal positive opinion was received, affirming that the Law’s text aligns fully with applicable EU regulations,” the Ministry remarked.

The Law is slated for implementation on January 1st of next year, with preparations for the Law on Railway Safety and Interoperability also underway, which is critical for fulfilling the remaining obligations under Chapter 14.

“The work on this law is nearing completion, and once we receive feedback from the relevant institutions, it will be forwarded to the EC,” the Ministry concluded.

This legislative measure underscores Montenegro’s commitment to modernizing the railway sector and further advancing its European integration while enhancing transparency, competitiveness, and safety in railway transport.

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