The decision to sell the ships Kotor and 21. maj is expected to be made at the extraordinary shareholders’ assembly of the Kotor-based company Crnogorska plovidba, scheduled for Wednesday, July 16. This follows the government’s adoption of a proposal by Minister of Maritime Affairs Filip Radulović, who stated that selling the ships is the only way to avoid a forced sale of the vessel Kotor.
The government, as the 100 percent owner of Crnogorska plovidba, appointed State Secretary Jovan Šćekić from the Ministry of Maritime Affairs as its representative at the assembly. This decision effectively concludes months of discussions around efforts to save one of the two national shipping companies, whose debts to the state now exceed 37 million euros. The crisis escalated last month when the ship Kotor was detained in the U.S. port of Savannah due to technical problems.
Minister Radulović explained that despite efforts to rescue Crnogorska plovidba, the situation has become uncontrollable. The debt to the American towing company currently exceeds 650,000 dollars, while other expenses have surpassed 310,000 dollars and are increasing daily. The ship carries cargo worth seven million euros, and delays in delivery could result in penalties exceeding three million euros. The minister stated that the only sustainable solution is to initiate an open-market sale to cover creditor claims and return any remaining funds to the state budget.
Although the Ministry previously claimed that shutting down the company was not under consideration, the current situation has left no viable alternative. Crnogorska plovidba lacks the funds to settle its debts, and the Law on State Aid Control prohibits the government from further investment in this or in Barska plovidba.
The state has not been allowed to pay the companies’ debts since 2022, when the Agency for the Protection of Competition determined that it was illegal for the government to cover loan installments to China’s Exim Bank. Despite this ruling, the state reportedly continued payments, which the Agency considered unlawful aid.
Maritime expert Goran Sindik stated that Crnogorska plovidba was never financially sustainable and mainly served as a vehicle for political appointments. He believes the company was doomed to fail because it lacked professional management capable of operating within the demanding standards of maritime business.
Sindik pointed directly to the Ministry of Maritime Affairs as being responsible for the collapse of Montenegro’s shipping sector, either due to incompetence or mismanagement. He warned that Barska plovidba may soon face the same fate, as political appointees lacking expertise cannot manage complex maritime companies.
He added that in the global maritime industry, even well-managed companies with state support and strong banking ties struggle to survive in tough conditions. Therefore, without deep restructuring, Montenegrin shipping companies have little chance of recovery.
Radulović confirmed that legal proceedings for the arrest of the ship have already begun and warned that a forced sale under U.S. law would be the worst-case scenario, as it would fetch only the minimum necessary to cover outstanding claims. The Ministry explained that the Kotor has been detained for over 20 days due to equipment failures, crew errors, and poor management, leading to growing expenses that now risk exceeding the ship’s market value.
Sindik emphasized that in international maritime companies, accountability is personal and transparent. He questioned who was responsible for allowing the Kotor to fall into disrepair and why no individual had been held accountable.
He explained that a properly maintained commercial vessel generates significant income, while poor maintenance leads to massive expenses. Companies must ensure technical upkeep, maintain financial reserves, and have qualified managers capable of quick, efficient responses to business challenges.
The ships were purchased in 2012 with a loan from China’s Exim Bank, costing the state nearly 69 million dollars, including 12.1 million in interest. Although Crnogorska plovidba occasionally paid installments, the government usually covered them. The state now seeks to recover over 37 million euros from the company.
Barska plovidba’s ships Bar and Budva were also financed through a loan from Exim Bank in 2013. They were delivered in 2014, and the company still owes 25 million euros, with the final payment scheduled for 2032.
