Herceg Novi’s strong 2026 nautical season is exposing a shortage of available berths at the municipal port of Škver, creating a potential infrastructure investment programme estimated at €15 million to €25 million. Nautical traffic at Škver increased by 12–15% year on year in June and approximately 30–40% in July. Between around 20 July and the beginning of August, more than 30 vessels were reportedly refused berths because available capacity was exhausted.
Rising Demand and Limited Capacity
From early May to mid-July, Škver operated at approximately 80% occupancy, with utilisation reaching 80–90% during both daytime and nighttime periods. The harbour has around 26 conventional berths and approximately 30 mooring positions, depending on vessel size. When all operational areas are used, it can accommodate a maximum of about 40 vessels.
Montenegro’s wider nautical market also recorded significant activity in 2025. A total of 4,836 foreign leisure, sport and recreation vessels entered Montenegrin waters, carrying 25,800 people. Sailing yachts represented 42.7% of arrivals and motor yachts 40.9%. Of the foreign vessels recorded, 847 were longer than 20 metres, while another 793 measured between 15 and 20 metres.
Škver Has a Different Market Position
The nearby Portonovi Marina at Kumbor already offers 238 berths for yachts and superyachts of up to 140 metres, with deep-draft facilities, fuel, water, electricity, waste-water and oil-waste services, security and border-crossing facilities. Škver serves a different market, with its location immediately below Herceg Novi’s historic centre and promenade. Its potential customer base includes transient sailing yachts, medium-sized motor yachts, charter fleets, excursion vessels, water taxis and local boats.
Port management has previously indicated that approximately 1,000–1,500 visitors per day can arrive through the city port during periods of intensive passenger and excursion activity. Additional berths could therefore support tourism activity beyond direct marina income, bringing more visitors into restaurants, shops and accommodation businesses in the city.
Breakwater Requires Major Investment
The principal infrastructure issue is the harbour’s breakwater, which is exposed to southerly and south-westerly winds and can be overtopped by waves during severe weather. The existing constructed waterfront on its inner side is approximately 210 metres long, with water depths generally exceeding two metres. The breakwater dates substantially in its current form to 1955 and has deteriorated because of storms, marine exposure and age. Planning work has considered rehabilitation and a possible 20–30 metre extension to improve protection of the harbour basin.
A preliminary investment scenario places the first phase at approximately €8 million–€14 million, covering breakwater rehabilitation, structural strengthening, wave protection, underwater works and a possible extension. A further €4 million–€7 million could be required for moorings, floating pontoons, utilities, fire protection, wastewater equipment, CCTV, digital berth management, navigation systems and harbour services.
A third phase of approximately €3 million–€5 million could cover passenger areas, water-taxi infrastructure, public-space improvements, marina offices and limited commercial facilities. The resulting indicative investment envelope is €15 million–€25 million, potentially approaching €30 million if underwater reconstruction, dredging or additional coastal protection proves necessary.
Public and Private Investment Could Be Separated
The structure of financing will be important because the breakwater provides a wider public benefit beyond marina operations. A private operator financing the entire coastal-protection and commercial infrastructure programme under a relatively short concession would face a heavier investment burden. A possible structure would therefore place core breakwater and coastal-protection works with Morsko dobro, the Municipality of Herceg Novi, the state budget and potentially European infrastructure or environmental funding instruments.
A private or public-private operator could instead finance the revenue-generating components, including pontoons, utilities, digital systems, guest facilities, commercial berths and service infrastructure. Under that model, private operator investment of approximately €6 million–€10 million would be required rather than the full €15 million–€25 million programme.
Port Law Opens a Potential Concession Route
Škver has operated for years without a stable long-term framework, while port management has repeatedly called for its legal status to be resolved and for a long-term concession. Montenegro’s new Ports Law entered into force in January 2026. It provides mechanisms for concessions covering the construction, reconstruction, maintenance and financing of port infrastructure, including structures comparable to build-operate-transfer arrangements.
Resolving the harbour’s exact boundaries and management rights remains necessary. A concession of approximately 15 years, previously discussed by city-port management, would provide greater certainty, although that period is relatively short for amortising major marine civil works. A configuration of approximately 60–80 managed positions across the wider harbour basin could increase capacity from the current practical maximum of around 40 vessels, while retaining a significant share for municipal users.
Commercial Revenues Could Come From Several Sources
The principal commercial customers could include medium-sized yachts, charter vessels, excursion operators and seasonal berth holders. Additional income could come from passenger charges, electricity and water sales, fuel-related concessions, wastewater services, water taxis, charter turnaround services and controlled waterfront leases.
An indicative mature incremental revenue range of approximately €1 million–€2 million annually has been considered, depending on the final berth structure and the share reserved for local users.
The figure is an investment scenario rather than a forecast of current Škver revenue. Port management has previously argued that most future capacity should remain available to Herceg Novi residents, rather than being converted entirely into premium commercial berths. A transparent distinction between municipal and market-priced capacity would therefore be required.
Wider Urban and Tourism Impact
Škver’s position inside the city gives it a different economic profile from standalone marinas outside urban centres. Visitors arriving by yacht can directly access restaurants, cafés, supermarkets, accommodation, maintenance businesses and taxi services.
The port could also support a longer nautical season. September is traditionally attractive for charter activity as prices decline from peak-season levels, while winter berths, sailing events, yacht-club activities and shoulder-season charter packages could extend demand beyond July and August.
Any redevelopment would also need to address storm resilience, particularly because of Škver’s exposure to southern weather. Future works would need to consider overtopping, protection of utilities and safe operating conditions under increasingly severe marine conditions. The 2026 season has provided measurable evidence of the capacity problem: nautical traffic increased by 30–40% in July, while more than 30 vessels were unable to secure berths. This combination of rising demand, high occupancy and rejected traffic has strengthened the case for moving Škver from a maintenance issue toward a structured €15 million–€25 million port investment programme.
