Montenegro is preparing a new investment phase for its railway network with the Bar–Golubovci modernisation project, linking the Port of Bar with the country’s inland transport system. The project covers approximately 39 kilometres of electrified railway and has a financing package worth around €175.6 million.
Funding includes approximately €63 million from the European Investment Bank (EIB) and about €112.6 million in EU grant support. The substantial grant component reduces the amount of project financing that must be borne by Montenegro’s public finances.
The railway connection is directly linked to the long-term competitiveness of the Port of Bar, as cargo throughput depends not only on port capacity but also on the efficiency of inland transport.
The modernisation is expected to improve railway safety, reliability, line speed and freight capacity. The physical investment is being developed alongside digital changes in port and customs procedures. Montenegro is implementing the National Single Window and Port Community System, bringing improvements in physical transport infrastructure and digital trade processes into the same logistics corridor. Rail investment also affects the cost structure of Montenegro’s external trade. The country imports significant quantities of machinery, vehicles, construction materials and consumer goods, while more efficient rail freight can reduce logistics costs for companies and improve the competitiveness of the Port of Bar compared with transport routes that depend more heavily on roads.
The project will generate demand across multiple railway construction and engineering disciplines. These include track works, signalling, electrification, bridges, stations, drainage, communications and specialist engineering services.
The involvement of EU grant financing also brings procurement and implementation requirements associated with the funding. These requirements can strengthen project governance while extending the preparation process. The €175.6 million Bar–Golubovci investment is centred on upgrading a key railway connection between the Port of Bar and Montenegro’s inland transport network, with improvements to freight capacity, reliability and the efficiency of the wider corridor.
