Montenegro’s Railway Infrastructure Company (ŽICG) reported a net loss of €2.57 million for 2024, despite reducing its deficit by 19% compared to the previous year. In contrast, Railway Transport of Montenegro (ŽPCG) posted a profit of €549,166—137% higher than its 2023 result.
ŽICG’s revenue dropped to €19.17 million in 2024, down 5% from 2023, while its total expenses rose to €21.6 million. The company’s financial loss exceeded projections by €1.62 million. The report attributes the deficit to inadequate funding for rail maintenance, delayed state payments, and the impact of the “Europe Now 2” wage reform, which raised minimum salaries.
Additionally, ŽICG is burdened with €6 million in tax and contribution debts and faces difficulties collecting receivables from related railway firms, which account for 96% of outstanding customer payments. The inability to recover these funds has disrupted regular payments to suppliers and the state.
The company also highlighted complications with property ownership, as its assets are officially registered as state property, limiting ŽICG’s asset value and potentially harming minority shareholders. Legal challenges are ongoing to reverse these ownership transfers.
ŽICG management emphasized the need for €26 million from the state budget to settle accumulated debts and ensure operational stability.
