The state-owned rail infrastructure company in Montenegro, Željeznička infrastruktura Crne Gore (ŽICG), has reported a loss of €3.12 million for the first half of 2026. This financial setback has prompted the company to pursue increased network-access charges, potentially leading to higher costs for both passenger and freight services.
During this period, ŽICG generated total revenues amounting to €8.44 million, while its expenditures reached approximately €11.6 million. The significant deficit is largely attributed to a shortfall in state subsidies.
The company had anticipated receiving around €7.5 million in state support for infrastructure maintenance but only received €5 million, resulting in a subsidy gap of approximately €2.5 million.
Revenue from access charges levied on railway operators was notably low at €448,000, underscoring ŽICG’s reliance on government funding.
In light of these financial challenges, ŽICG is seeking approval for increased charges related to railway infrastructure, property, and telecommunications assets. If approved, these increases could impact transport costs for freight and passengers, particularly affecting Montecargo, the Port of Bar, and users of Montenegro’s north-south railway corridor.
The company also disclosed that it has approximately €5.4 million in receivables, with around €4.46 million owed by Montecargo. Concurrently, ŽICG reported liabilities including about €7.5 million in unpaid taxes and social contributions as of the end of June.
This financial strain comes at a time when Montenegro is poised to invest significantly in the Bar railway, with a financing package totaling €225.6 million, supported by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the European Union.
This situation highlights a juxtaposition between increasing investments in infrastructure modernization and ongoing financial difficulties faced by state-owned enterprises managing the rail system. A key consideration remains whether raising access charges can enhance ŽICG’s financial standing without compromising the competitiveness of rail freight services, especially those linked to cargo operations at the Port of Bar.
