1. Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication Ministerial Meeting on MITIGATING CONGESTION ADDING CAPACITY Prioritizing investments to manage congestions (inter-modal aspects, corridors, gateways) M I N I S T E R dr Andrija Lompar 30-31 May, 2007 Sofia BULGARIA

2. Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication Difficult terrain for construction and high maintenance costs (55% of total Montenegrin territory is above 1000 m of sea level) Improperly treated transport infrastructure in the last 15 years mainly due to weak economic situation and lack of financial sources in the budget Low infrastructure characteristic - steep slopes, absence of shoulders, tight curves, low radii, relatively high pavement degradation… BACKGROUND

3. TRANSPORT MAP OF MONTENEGRO

4. AVERAGE ANNUAL DAILY TRAFFIC AADT MONTENEGRO 2006

5. TRANS EUROPEAN TRANSPORT NETWORK

6. NEEDS FOR BETTER CONNECTION Trough Montenegro does not pass any trans-European corridor High Level Group EXTENSION OF THE MAJOR TRANS-EUROPEAN TRANSPORT AXES TO THE NEIGHBORING COUNTRIES REPORT RECOMMENDATIONS:  targeted cooperation frameworks should be put in place, taking into account the existing cooperation modalities, political situation and transborder traffic South East Europe Region: Memorandum of Understanding on Development of the South East Europe Core Regional Transport Network, June 2004 Port of Bar is included in Motorways of the Seas Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication

7. South East Europe Core Road and Airport network Capitals Cities of regional importance Core Road Network TEN or TINA roads Danube or Sava Airports South East Europe Core Rail and Ports network Capitals Cities of regional importance Core Railway Network TEN or TINA railways Danube or Sava Sea and inland ports MEMORANDUM OF UNDERSTANDING ON DEVELOPMENT OF THE SOUTH EAST EUROPE CORE REGIONAL TRANSPORT NETWORK

8. MONTENEGRO TRANSPORT DEVELOPMENT STRATEGY VISION Stabile and sustainable, in wider areas integrated, economically stimulating transport system MISSION Qualitative transport infrastructure ready to support economic needs of Montenegro, aiming to encourage its economic development and management, respecting economic principles, attracting private capital in transport and better functional connectivity of transport infrastructure with its users Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication

9. FACTORS AFFECTING CONGESTION BY TRANSPORT MODE RAILWAY Necessity for larger repairs of railways infrastructure (167km railway line Bar-border with Serbia include 105 bridges and 106 tunnels( Lack of significant participation of multimodal and combined transport Average age of rolling stocks over 30 years Insufficient logistic chain with the Railway of Serbia and the Port of Bar Unfinished development reforms- restructuring and privatization of operating activities ROADS AND ROAD TRANSPORT Incomplete road infrastructure Extremely high seasonal traffic distribution namely high traffic peaks during the tourist season Problems related to road maintenance and existence of the large number of critical points (incomplete slopes, incomplete bridges, winter maintenance…) MARITIME TRANSPORT Connectionless of the Port of Bar with the transshipment centers in the region with fidder services Obsolete cargo handling equipment Unfinished development reforms- restructuring and privatization of operating activities CIVIL AVIATION Extreme density flights during the tourist season Unfinished development reforms- restructuring and privatization of operating activities Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication

10. HIGHWAYS AND CORE ROAD NETWORK ACROSS MONTENEGRO

11. CONGESTION IN MONTENEGRO UNTIL RECENTLY IS NOT RECOGNIZED AS A ONE OF THE MAIN PROBLEM IT CAME IN RECENT YEARS WITH RAPID INCREASE OF THE ECONOMIC ACTIVITIES, ESPECIALLY TOURISM- TRAFFIC SUMMER SEASONAL PEAKS ARE EXTREMELY HIGH, IN AUGUST VOLUME OF TRANSPORT IS FIVE TIMES ONE DURING THE WINTER INCREASING TRANSIT IMPACT ON URBAN, LOCAL AND REGIONAL TRANSPORT SEASONAL CHARACTERISTIC IS NOT LIKELY TO JUSTIFIES MAJOR INVESTMENT IN TRANSPORT INFRASTRUCTURE Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication

12. POLICY RESPONSES TO CONGESTIONS TRANSFER OF CARGO TRANSPORT FROM ROAD TO RAILWAY CONSTRUCTION OF TERMINALS FOR COMBINED TRANSPORT (PORT OF BAR, PODGORICA AND BIJELO POLJE) CONSTRUCTION OF HIGHWAYS CONSTRUCTING OF BY-PASSES AROUND MAIN CITIES BETTER MANAGEMENT OF OVERALL TRANSPORT IN MONTENEGRO (USE OF ALTERNATIVE ROUTES, SPECIAL REGIMES DURING THE WEEKENDS, BETTER ORGANISED URBAN TRANSPORT, IMPROVING URBAN-PUBLIC TRANSPORT BY INTRODUCING SEASONAL CAPACITIES…) Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication

13. GENERAL GOALS FOR TRANSPORT DEVELOPMENT STRATEGY Increase of safety and security in transport Increase of the quality of transport services Linked Montenegro transport system of Montenegro with Trans-European Transport Network TEN-T Transport infrastructure developed in line with needs of economic development Protection of environment in designing and functioning of the transport Fair determination of prices in transport Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication

14. CRITERIA'S FOR PROJECTS EVALUATION Regional importance 1. Coherency with other projects 2. Proportion of international traffic 3. Inter-operability Economic and development importance 4. Economic feasibility 5. Developmental impact 6. Approach Financial sustainability 7. Amount of investment 8. Financial sustainability 9. Degree of insurance of funds 10. Possibility of the participation of private capital Impact on environment and sociological impact 11. Environmental impact 12. Promotion of sustainable mobility 13. Sociological impact 14. Inter-modality Technical standards 15. Technical feasibility 16. Level of technical standards Specific criteria Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication

15. PROJECT SUITABLE FOR PPP Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication RAILWAY PROJECTSSHORT DESCRIPTION Estimated budget TIME framework 1. Construction of terminals for inter- modal transport on the railways stations Bar and Bijelo Polje Construction of multimodal docks and shunting as special terminals for unloading/reloading freights on/from wagons. 3.2 million € 1 year MARITIME AND SEAPORTS PROJECTS 2. Construction and reconstruction of infrastructure facilities in port of Bar Construction and reconstruction of container terminals 34.7 million € 6-8 years 3. Finalization of marine Bar construction Finalization of works on marine’s infrastructure (finalization of construction of piers and breakwaters, deepening of marine, finalization of works on supporting activities 1.5 million € 1 year 4.Revitalization of maritime economy Establishment of shipping companies in order to revitalize Montenegrin maritime economy (opening of shipping lines to connect the Port of Bar with other Mediterranean ports, purchasing of vessels or raising loans for purchasing of vessels to shipping companies) 36 million € 1 year 5. Revitalization of the Port of Virpazar and development of nautical tourism on the Skadar Lake Reconstruction of harbour capacities and opening of border crossing point for international lake- passenger traffic in Virpazar –I phase 3 million € 2.5 years

16. PROJECT SUITABLE FOR PPP Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication ROAD INFRASTRUCTURE PROJECTS SHORT DESCRIPTION ESTIMAT ED BUDGET TIME framework 6. Construction of Adriatic- Ionian highway trough Montenegro Construction of a dual road carriageways 660 million € 5-6 years 7. Bar-Boljare (border with Republic of Serbia) highway construction Construction of a dual road carriageways with a western by-pass Podgorica 2 billions € 5-6 years CIVIL AIR TRAFFIC PROJECTS 8.Berane airport rehabilitation Construction of airport’s infrastructure on the location of the existing airport which is not currently in function 22 million € 2.5 years

17. CONCLUSIONS MONTENEGRO TRANSPORT STRATEGY GOALS ALIGNED WITH ECONOMY DEVELOPMENT NEEDS AND EU TRANSPORT POLICY MITIGATION OF CONGESTION: SUPPORT OF RAILWAY AND PORT SYSTEMS INTENSIFYING REGULAR SERVICES ON INTER-MODAL AND COMBINED TRANSPORT CONSTRUCTION OF NEW INFRASTRUCTURE-HIGHWAYS USING PPP SCHEMES PRIORITIZED INVESTMENTS ON REGIONAL CORE NETWORK REFORMS EXECUTION: INFRASTRUCTURE AVAILABLE FOR UTILIZATION UNDER EQUAL CONDITIONS TO ALL STAKEHOLDERS AND PRIVATIZATION OF OPERATING ACTIVITIES BETTER MANAGEMENT SYSTEM AND INTERFACES OF ALL TRANSPORT MODE Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication

18. Government of the Republic of Montenegro Ministry of Transport, Maritime Affairs and Telecommunication andrijal@cg.yu www.minsaob.vlada.cg.yu andrijal@cg.yu THANK YOU FOR YOUR ATTENTION !!!