Luka Bar, despite facing numerous challenges, performed well in the past year, according to its representatives, who also stated that the government should provide more support to the company.
In an interview with Radio Bar and the Bar Info portal, the company’s CEO, Ilija Pješčić, shared preliminary figures regarding the past year’s performance, noting that the official financial report is yet to be approved by the management board.
“Throughput exceeded 1.8 million tons, revenue reached 15 million EUR, and the profit generated by Luka Bar, after deducting all costs and receivables, was about 1.3 million EUR, so we are very satisfied,” said Pješčić.
The company suffered substantial damage in an unusual storm that hit at the beginning of July.
“If someone had told us in July that we would end the year like this, I would have been more than satisfied. We minimized the negative consequences of the storm to the maximum, and neither goods nor clients suffered as a result. Now, we even look at that unfortunate event positively, as it has allowed us to significantly improve the throughput and storage capacities at the Volujica quay,” added Pješčić.
He explained that just seven minutes of the storm led to a collapse.
“Three bulk cargo unloading bridges, installed back in 1977, and one crane used for unloading grain were destroyed. These structures were outdated, and even the company that originally manufactured them has not been present on the market for over two decades. They had been serviced in-house by our Technical and Mechanical Service employees, which made them somewhat functional,” Pješčić explained.
While the company had been considering replacing these outdated structures with more modern equipment, Luka Bar lacked the financial resources to independently fund such an investment.
Pješčić emphasized that despite the setback, Luka Bar continued operations and quickly recovered, although they requested the procurement of two additional mobile cranes.
“Luka Bar is a state-owned company, and the government should provide much greater support. I understand that we must comply with legal regulations, especially as we are in the EU accession process, but this is vital infrastructure that must be protected. Even much larger and more developed countries would be proud to have a port like this. However, for now, we haven’t seen any positive impulses from the government side. Therefore, I appeal to the government to become more involved and assist this important company,” Pješčić added.
He also pointed out that Luka Bar was the third-largest port in former Yugoslavia, but now it has lost the market competition to the Port of Ploče.
“We are fighting for fourth place, but I fear it will be difficult to achieve, as the Albanian government is investing enormous amounts into the Port of Durrës, which will become a significant competitor, just 80 kilometers from here,” Pješčić said.
Regarding the LNG terminal construction, Pješčić clarified that the project has not been abandoned. However, decisions regarding the space, which is state-owned and managed by Luka Bar, are made by the government.
“By a government decision, it could be excluded from Luka Bar and transferred to a different management entity, like Elektroprivreda (EPCG), or a partner that would build an LNG terminal and a thermal power plant. Expert analysis is being conducted, and the project has not been abandoned. Many countries have multiple LNG terminals, so why shouldn’t we have one?” Pješčić said.
From 2018 to last year, the company recorded a 40 to 50 percent increase in salaries, which Pješčić believes is significant.
“The number of employees also grew. The average salary is currently around 960 EUR, which is solid. However, considering inflation, we will try to find a better pay model in collaboration with our unions. But it would be very risky for the company to incur that cost right now,” Pješčić said.
When asked about the priorities for this year, Pješčić focused on the logistics route through Montenegro.
“We are witnessing that many goods transit through the Balkans, but Luka Bar handles a very small portion of this cargo. The reason is the railway network and pricing, which makes Luka Bar less competitive than others in the region, and these prices are, among other things, dictated by shipowners. But something must be done,” said Pješčić.
He appealed to the government to protect local companies, stating that if goods are to transit through Montenegro by rail, new transit prices should be established to protect the port and the country’s industrial system.
“We expect to sign a significant contract with Elektroprivreda Srbije for the long-term coal transshipment project. We will also increase bauxite transshipment, with new concessionaires appearing on its mining sites. I hope that we will continue working with the goods we handled over the past two years, which will contribute to the stability of Luka Bar,” concluded Pješčić.
