Montenegro has successfully obtained a €225.6 million financing package aimed at upgrading the railway that connects Podgorica with the Port of Bar, enhancing a vital freight and transport corridor within the country.
This financial package consists of a €50 million sovereign loan from the European Bank for Reconstruction and Development, an €112.6 million grant from the European Union, and a €63 million loan from the European Investment Bank.
The funds will be utilized for the reconstruction of approximately 39 kilometres of railway between Golubovci and Bar. The scope of work includes the renewal of track infrastructure, modernisation of three railway stations and 11 bridges, as well as upgrades to signalling, telecommunications, and power systems.
This project holds strategic significance as it serves as the primary freight link between the Port of Bar, Montenegro’s industrial regions, and Serbia. Enhanced capacity and reliability are expected to bolster Bar’s role as a logistics hub for Serbia and other landlocked markets in the Western Balkans, particularly for bulk commodities, metals, containers, and industrial cargo.
The investment also encompasses technical assistance focused on strengthening Montenegro’s railway institutions, which includes support for the new Railway Agency and enhancements in cybersecurity measures.
The substantial EU grant component notably alleviates Montenegro’s financial obligations while facilitating expedited infrastructure modernization necessary for its EU accession efforts.
For the Port of Bar, improvements to the rail system may prove to be more commercially significant than merely increasing port capacity. The port’s ability to attract regional cargo is closely tied to the efficiency, dependability, and cost-effectiveness of its inland railway connections.
This initiative thus aligns Montenegro’s transport infrastructure development with its goal of boosting transit trade and enhancing Bar’s competitiveness as a logistics hub in the Adriatic region.
