The work stoppage by certain employees within the Railway Infrastructure has halted over 220 wagons, with around 130 fully loaded with goods meant for transshipment at the Port of Bar. This has disrupted both freight and passenger transportation across the country. While both the Port of Bar and the Railway Infrastructure have reported significant accumulating losses without providing specific figures, Montecargo has indicated a daily loss of approximately 20,000 euros due to the halt in operations. Instead of trains, passengers are now being transported by 25 to 30 buses daily.

A group of 85 train dispatchers and traffic controllers from the Railway Infrastructure Company (ŽICG) has indefinitely suspended their work, leading to a complete shutdown of train services throughout Montenegro since Friday. Their demands for higher salaries from the company’s management prompted this decision. The blockade was officially announced the previous Wednesday, alongside a request for a meeting with ŽICG leadership. A lengthy meeting took place yesterday, but no agreement was reached, entering the fifth day of the traffic blockade.

Director of the Port of Bar, Ilija Pješčić, informed “Vijesti” that a prolonged suspension could jeopardize long-term contracts that constitute a crucial part of the company’s revenue. He highlighted that approximately 65 percent of annual transshipment traffic is derived from agreements with Uniprom and ZiJin, putting the new contract with Elektroprivreda Srbije at risk as well.

Rapidly Increasing Costs

“I would like to underscore that the fulfillment of two ongoing multi-year commercial contracts, accounting for about 65% of the annual transshipment volume at the ‘Port of Bar’, is directly linked to the reliability of railway operations. This includes our contract with ‘Uniprom metali’ in Nikšić for bauxite handling and another with ‘ZiJin’ in Bor for copper concentrate. This showcases the extent of the Port’s dependence on the smooth functioning of railway transport. Any disruption affects a complex logistics network (producer – railway – port – shipper – buyers), with one broken link rendering the entire system dysfunctional. As a result, all parties in this logistics chain are incurring escalating direct and indirect costs, which could lead to redirecting goods to alternate logistics routes or losing significant business for the Port of Bar if the situation persists,” Pješčić explained.

According to him, “Port of Bar” is experiencing direct measurable losses equivalent to the revenue lost from goods that would be transported by wagons, compounded by the underutilization of resources meant for transshipment operations.

“Currently, over 220 wagons are on the railways in Serbia and Montenegro, with about 130 full of goods scheduled for the Port. We expect a ship for bauxite to arrive in about a week, but delivery from Nikšić is stalled due to the work stoppage at ŽICG. If the situation continues, particularly with reduced goods directed to the Port, the financial implications could be severe. The annual value of our work with Uniprom for bauxite reloading at the Port is about three million euros, while transporting copper concentrate generates over four million euros,” Pješčić noted, emphasizing that “competition on alternative logistics routes is proactive and already presenting options to our partners. If the crisis lingers, this could result in goods being rerouted to other regional ports, which would spell disaster for us.”

It’s important to mention that a new significant contract for the “Port of Bar” is set to commence in early September, involving the handling and storage of coal for the Serbian Electric Power Company. This will depend heavily on the railroad’s operational reliability, as coal needs to be shipped to the Port and then transported by rail to consumption sites (thermal power plants in Serbia).

Buses Selected via Tender.

“The anticipated annual revenue from this new agreement is over 2.5 million euros, with the first ship carrying 65,000 tons of coal already en route from the Port of Bar. This situation poses significant risk for this contract as partners may reconsider the reliability of the Port of Bar route amidst potential risks, reverting to coal supply models using other ports they have used before,” emphasized Pješčić.

He stressed that this does not diminish the rights of employees to demand improvements in their employment conditions but aims to highlight the serious and widespread consequences associated with halting rail transport of goods.

ŽPCG acknowledged their losses stemming from the interruption of rail traffic but noted that pinpointing exact amounts at this time is challenging.

“Our costs mainly involve orchestrating alternative transport and processing refunds for passengers who choose to cancel their trips, along with obligations tied to transportation contracts. Currently, our top priority is ensuring continuous service and providing passengers with suitable alternatives to rail transport,” stated the state-owned railway firm. They also mentioned organizational challenges like managing alternative transportation, passenger scheduling, international logistics, and supporting services.

Per the current schedule, ŽPCG is utilizing 25 to 30 buses daily, with costs varying depending on the route and the passenger volume needing alternative transport.

“While these costs are substantial, we feel an obligation as a public company to prioritize the smooth transport of passengers. Engagement of alternative transport is strictly managed through contracts negotiated with carriers selected through public procurement processes — we do not arrange for ad-hoc measures,” added ŽPCG.

Even in this emergency situation, all departures are organized through alternative bus transport aligned with the existing timetable. Passengers may notice a difference compared to train travel; however, ŽPCG is dedicated to maintaining service regularity and quality.

“Competition on other logistics routes is not standing still and is already offering solutions to our partners if the crisis continues to redirect goods to long-distance ports in the region, which would be disastrous for us,” cautioned Pješčić.

Montecargo Faces 20,000 Euros Daily in Losses

Montecargo reported to “Vijesti” that the disruption of rail traffic is costing them 20,000 euros daily.

“This blockade not only affects our financial position but breaches contractual obligations toward our business partners, jeopardizing our reputation as a reliable transporter. A prolonged disruption may lead to the irreversible loss of strategic clients, like major energy and industrial firms, which may shift their transport to alternate routes,” shared the state-owned company.

They specifically noted a recently signed contract for coal transport for the Serbian Electric Power Company, set to start in early September, valued at 2,250,000 euros, marking a new supply direction for the first time through the Port of Bar. “This is one of several contracts Montecargo has secured this year, underscoring our statements regarding potential millions in losses. It’s important to consider how significant losses might impact our partners, including Port of Bar, Port of Adria, Uniprom metali, Stellantis, TCL, HBIS, Stratemis, Mbox, Panšped, Elan Continental, and Srbija Kargo,” stated the company.

Montecargo stressed that the current situation exacerbates an already precarious railway system struggling for survival and advancement. The unresolved issue could result in not only short-term repercussions but also long-lasting systemic consequences.

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