Montenegro’s passenger railway operator, Željeznički prevoz Crne Gore (ŽPCG), has accumulated losses of approximately €26 million, reflecting persistent financial and operational difficulties.
The company recorded a loss of around €1 million in the first half of 2026, compared with €683,000 in the same period of the previous year. Its immediate liquidity ratio stood at just 0.01, while the current ratio reached 0.69, indicating limited capacity to meet short-term obligations.
State Support and Operating Costs
ŽPCG receives approximately €6 million in annual state subsidies, while ticket sales generated around €1.7 million. The company’s main operating costs include €2.8 million in wage expenses and another €2.6 million in other operating costs.
The operator also had approximately €7 million in unpaid taxes and social contributions at the end of 2025, adding to its financial burden.
Ageing Trains and Infrastructure Constraints
Management has attributed the company’s difficulties to ageing and unreliable rolling stock, restrictions on railway infrastructure, passenger dissatisfaction and insufficient public compensation for the services provided. These challenges affect service reliability and the operator’s ability to attract more passengers, limiting the potential for higher commercial revenue.
Railway Investment Requires Better Operating Performance
Montenegro is investing in railway infrastructure with support from the European Union and international financial institutions. Projects include improvements to the Bar–Podgorica corridor and connections towards Serbia, while the railway also supports the transport role of the Port of Bar.
However, infrastructure investment alone will not resolve ŽPCG’s financial problems. A more sustainable model would require public service contracts linked to measurable performance indicators, including reliability, punctuality, passenger numbers, rolling-stock availability and operating costs per train-kilometre.
Restructuring and Public Service Reform
The company’s financial position raises questions about the need for recapitalisation, operational restructuring and a redesign of the subsidy system.
Linking state support more closely to service quality and operating performance could improve accountability while clarifying the public costs of maintaining passenger railway services. Investment in rolling stock will also remain important to improving reliability and passenger demand.
