In an effort to rescue Crnogorska plovidba from financial collapse, Montenegro’s Ministry of Maritime Affairs has announced a strategic cooperation plan with Barska plovidba. Under the proposed agreement, Barska plovidba will lease two ships from Crnogorska plovidba in exchange for a one million euro advance payment. This amount will help Crnogorska plovidba settle debts with banks and suppliers and restore short-term liquidity.
The plan, which will be voted on at an extraordinary shareholders meeting of Barska plovidba next Monday, aims to preserve valuable assets and jobs. If approved, the contract will be signed for an indefinite period, with the obligation that the one million euro advance be repaid by June next year. Barska plovidba will receive nine percent of the ship rental income, paid quarterly.
This is a temporary solution, said Maritime Affairs Minister Filip Radulović, who added that Prime Minister Milojko Spajić has tasked him with finding a long-term model to optimize both companies by the end of the year. Although a merger has been mentioned, Radulović explained it is legally unfeasible since both companies have negative equity. There are also no current plans to buy or sell ships, despite hopes expressed by company leaders.
Vladimir Tadić, director of Crnogorska plovidba, said he took over in February amid serious financial troubles, including a 400,000 euro loan from Prva banka, 320,000 euros in unpaid supplier debts, and unprofitable ship leases. One ship was even held in an Algerian port due to a 425,000 euro debt from a previous lessee. Although that debt has now grown beyond 700,000 euros, arbitration is underway to recover the funds.
A new lessee helped release the ship from Algiers by covering part of the debt, but only under the condition of a reduced rental fee, resulting in a 50,000 euro loss. Currently, the company has no profit from that lease. In February, rental rates were at their lowest in years, with ships earning only 7,700 dollars daily—below the break-even point of around 8,000 euros.
Barska plovidba’s director, Boris Mihailović, noted that his company is in a better financial position, with active contracts worth 11,500 dollars per day per ship until the end of the year. The company has funds available to either reduce its debt to the state or support the recovery of Crnogorska plovidba.
Mihailović emphasized that this cooperation is essential, warning that Barska could face the same fate in a few years if structural changes are not made. The goal is to better utilize all four ships owned by both companies and make operations financially sustainable through cost optimization and long-term planning.
He also said that the state, as the main creditor, must be flexible with existing debts while a sustainable business model is developed. The future plan involves gradually shifting from leasing ships to managing them independently, which could increase revenues by 20 percent. This transformation is expected to take at least three to four years, and could be supported by the eventual purchase of new ships.
Barska plovidba still owes about 25 million euros for its vessels, with the final loan payment scheduled for the end of 2032.
