Montenegro has secured a €225.6 million financing package for the modernisation of the railway connection between Podgorica and the Port of Bar, covering reconstruction of around 39 kilometres between Golubovci and Bar.
EU and development-bank financing
The package consists of a €50 million sovereign loan from the European Bank for Reconstruction and Development, an €112.6 million EU grant and a €63 million loan from the European Investment Bank.
The financing will support reconstruction of the railway infrastructure and upgrades to key systems along the route. Works will include the modernisation of three railway stations and 11 bridges, as well as improvements to signalling, telecommunications and power systems.
Railway connection to Bar and Serbia
The railway is the main freight connection linking the Port of Bar with Montenegro’s industrial hinterland and Serbia. Higher capacity and improved reliability on the route could strengthen Bar’s role as a logistics gateway for Serbia and other landlocked Western Balkan markets, including for bulk commodities, metals, containers and industrial cargo. The project also provides technical assistance for Montenegro’s railway institutions, including support for the new Railway Agency and improvements in cybersecurity.
Infrastructure investment and EU accession
The €112.6 million EU grant reduces the financing burden on Montenegro while supporting infrastructure modernisation associated with the country’s EU accession process. For the Port of Bar, the railway investment is directly linked to its ability to handle regional cargo. The efficiency, reliability and cost of inland rail connections affect the movement of goods between the port and regional markets. The project connects Montenegro’s transport infrastructure development with efforts to increase transit trade and strengthen the position of the Port of Bar as an Adriatic logistics hub.
