1. Ministry of Capital Investments Republic of Serbia
on Corridor X
Southeast European Multimodal Transport &
Trade Facilitation Forum
Alexandroupolis, December 2004
The Ministry for Transport and Telecommunications and the Republican Directorate for Roads of the Serbian Government have prepared an Action Plan for Corridor X and its auxiliary connections.
It represents the first step in the framing of a National Program of long-term strategy of development for the road network of Serbia. The National Program will permit the integration of the Republic of Serbia into the basic transport interest of our country and the EU: Serbia would become the central transport hub of our region.

2. Corridor X Road Infrastructure Total length 2360 km
Through Serbia km or 34%
Corridor X: Salzburg – Ljubljana – Zagreb – Beograd – Niš – Skoplje – Thessaloniki
Branch A: Graz – Maribor – Zagreb
Branch B: Budapest – Novi Sad – Beograd
Branch C: Niš – Sofia –Istanbul via corr. IV Branch D: Veles – Bitola – Florina – Via Egnatia
In such a geopolitical context, Serbia has a great advantage by controlling the main road connection between the Middle East and Europe. On the other hand, there are alternative directions and ways of transportation on that hub. Some are road and some are a combination of road – sea.
These directions have become ever more important and have developed during the sanctions that were imposed on our country between 1992 and They still don’t provide the possibility to completely avoid Serbia, but do present advantages for the transport of certain goods.
The most significant advantage of Corridor X is the fact that it allows un-interrupted transport between Europe and the Middle East, without the use of any waterways, This makes it a candidate for the quickest transport on that section.
Apart from the existence of sections which considerably reduce the speed of transportation, the travel time is prolonged by the long customs procedure on our borders. When the running of customs passes to the Republic of Serbia, introducing measures to speed up border crossing will significantly increase the attraction of Corridor X.

3. Road Network Managed by the Republic of Serbia
14 bill.– 16 bill. €
The road network managed by the Republic of Serbia represents its largest single property, more valuable than any other system on its territory, including the Electricity sector and Telekom.
According to the audit from 1997, the total value of the road network in Serbia is between 14 and 16 billion Euro.

4. Road Network
Serbia covers km, thereof about km main roads (380 km highways & 165 km of semi-highways) and km of local roads
The current value of the existing road network is about 15 bill. €
Network density is 43.9 km/100 km²
On 40% of main roads and 60% of local roads bearing capacity less than allowed
Road Construction Sector employs about workers
The developed OECD countries spend for maintenance between & US$ per 1 km of road, Serbia 570 US$ (26 times less)
For urgent intervention 5 billion US$ are required, and extra 1.7 billion US$ to complete the existing highway construction program

5. Sources of Investments - Loans
EBRD – 76 mil. €
Reconstruction of 490 km roads
Sections:
Batocina-Doljevac (150 km)
Pecenjevce-Macedonioan border (92 km)
Stavica-Nevade (19 km)
Stepojevac-Preljina-Cacak (98 km)
Niska Banja-Bulgarian border (68 km)
Mataruska Banja-Ribarici (63 km)
EIB – 37 mil. €
Agreement for Urgent infrastructure rehabilitation (main roads) signed in December 2001.
First disbursement was in Jun – 20 mil eur
Second disbursement was in December – 10 mil eur

6. Sources of Investments - Loans
EIB – 95 mil. €
Agreement for Rehabilitation road infrastructure on Corridor X signed in June 2002.
Reconstruction of 374 km roads and elimination of 29 black spots (more than 5 accidents per year)
Sections:
Cantavir-Novi Sad (82 km)
Croatian border-Belgrade (130 km)
Pozarevac-Batocina (51 km)
Pancevo-Banatski Karlovac (37 km)
Rzav-Gostun (94 km)

7. Increase of the Direct Income Increase of the Indirect Income
Investments Goals
Increase of the Direct Income
Increase of the Indirect Income
Preserving and Increasing the value of the road network
Increasing economical growth and the increase of the quality of transport
The increase of direct income is a consequence of the road usage payments and the taxes on the transit of transport vehicles in Serbia.
The increase of indirect income is a consequence of the state taxes on fuel and Vehicle taxes.
The road network is the single largest property of Serbia, much more valuable than the Electricity Industry and the Telekom.
The economic growth of each state is based on an efficient and cheap transport. The current price of transport is about 14% of the value of the merchandise of our market, where as in EU countries it is only 7%. In other words, about 7% of the income of our country is spent due to a low quality road network.

8. Meeting EU standards in the domain of environment and transport
Investments Goals
Meeting EU standards in the domain of environment and transport
Increasing transport safety, decreasing fatality rate, the disabled and injuries as well as the reduction of material damages
Accession of our country to the EU will result, among other things, in defining very strict criteria in the field of ecology and transport, that Serbia will have to fulfill. Timely adaptation to those standards is needed even before the formal initiation of the Stabilization and Association agreement.
Due to the bad state of the road network, the percentage of injuries, injuries resulting in disability, deaths and material damage for every 1,000,000 is one of the highest in Europe. Apart form the cost that the state incurred due to the loss of wealth and work ability, there large costs of insurance of foreigners on our roads that are about € per death case.

9. Expected Results
The improvement of the quality of the road network the corresponding changes in the Law on Traffic, the number of traffic related accidents, deaths and injuries will be reduced by about 50% for every 1,000,000km.

10. Corridor X Ring Road “Beograd” (46.7km)
520 mil. € Construction sections
Ongoing

11. Corridor X Batrovci – Beograd (104km) 18,5 mil. €
Rehabilitation of the existing road-
Finished
“Zmaj” – Bubanj Potok (19km) 10 mil. €
Ongoing
Bubanj Potok – Pozarevac (46.1km) 14 mil. €
Rehabilitation of the existing road

12. Rehabilitation of the existing road
Corridor X
Pozarevac – Batocina (51km) 15,2 mil. €
Rehabilitation of the existing road
Ongoing
Batocina – Doljevac (150km) 20 mil. €
Pecenjevce – Grabovnica (23.2km) 37 mil. €
Construction

13. Corridor X Levosoje – Makedonija (21km) 33 mil. € Construction Ongoing
Vladičin Han – Levosoje (46km) 257 mil. € Construction of the Second Side
Komren – Prosek (13,6km) 10 mil.€

14. Corridor X-Branch B Horgos-Novi Sad (126 km) 104 mil. €
Construction of the second side of the motorway-Planned
Novi Sad – Beograd (70 km) 30 mil. €
Construction of the second side of the motorway-Ongoing
Novi Sad – Beograd (70 km) 17 mil. €
Rehabilitation of the existing road
Planned

15. Corridor X - Branch B Bridge over the Danube at Beska (2.2km)
45 mil. €
Construction of the Second Bridge
Planned
Batajnica – Crossroads T6 (7.8km)
2,6 mil. €
Rehabilitation of the existing road

16. Prosek - Dimitrovgrad (96km) 450 mil. €
Corridor X - Branch C
Prosek - Dimitrovgrad (96km) 450 mil. €
Construction
Planned

17. Donations Managed by EAR
Program for 2001
Border crossing Horgos 5 mil. €
Program for 2002
Infrastructure
Sloboda Bridge in Novi Sad 44 mil. €
Border crossing Horgos – the second phase 5 mil. €
Border crossing Batrovci 4 mil. €
Capacity building of customs services 0,7 mil. €

18. Corridor X Railway Infrastructure Through Serbia 767 km or 32%
Corridor X: (Croatia) – Sid – Beograd – Nis – Presevo – (Makedonija) – 519 km
Corridor X – Branch B: (Beograd) – Novi Sad – Subotica – (Hungary) – 144 km
Corridor X – Branch C: Nis – Dimitrovgrad – (Bulgaria) – 104 km
Strana 2, bez bele podloge, slova u donjem levom uglu ako mogu da budu vidljivija

19. For urgent intervention 500 mil. Euro are required
Railway Network
Railway length is 3808 km, thereof km single-track and 275 km double-track, of which 27% electrified
The current value of the existing rail network is about 12 % of total ownership of the Republic of Serbia
On 42.8% of total railway length allowed speed is up to 60 km/h
On 11.3% of total railway length allowed speed is up to km/h
On 45.9% of total railway length allowed speed is up to km/h
On total railway network length, there are 136 slow-run speeds
Rail Company employs about workers
Target for reconstruction per year is 5 % (150 km) of total railway network, now Serbia reconstructs 40 km per year (past three years), or 3.7 times less
For urgent intervention 500 mil. Euro are required

20. Sources of Investments - Loans
EBRD – 57 mil. € - from 2002
Purpose:
Locomotives supply - 25 mil. €
Maintenance railway mechanization - 22 mil. €
Social program - 10 mil. €
EIB – 70 mil. € - from 2002
Section Kusadak - Velika Plana (L = km) railway Beograd – Nis
Section Cortanovci – Petrovaradin (L = 15.0 km) railway Beograd – Subotica
Section Dimitrovgrad – border with Bulgaria (L = 7.15 km) railway Nis– Dimitrovgrad
Section Resnik – Valjevo (L = 41.0 km) railway Beograd – Bar
Reconstruction of slow spots on Corridor X railway and part of railway section Beograd – Bar

21. Section Kusadak-Velika Plana (21.9 km)
Corridor X
Section Kusadak-Velika Plana (21.9 km)
16,4 mil.€
Reconstruction section-increased speed on 120km/h and axle load on 22.5 t
Finished

22. Corridor X-Branch C Nis-Dimitrovgrad
Widening and reconstruction of 6 tunnels and 22 bridges-UIC C gauge
(tunnels finished,
bridges-ongoing)

23. Corridor X-Branch C Dimitrovgrad-border with Bulgaria
Reconstruction and electrification of the Railway line Dimitrovgrad-border with Bulgaria 7.15 km
Reconstruction of the Railway Station Dimitrovgrad-in the near future Joint Railway Border station with Bulgaria
Total cost 15,9 mil. €

24. Corridor X Belgrade-Sid Corridor X Section Nova Pazova-Stara Pazova
(15 km) 5,5 mil. €
Capital repair-
Finished
Belgrade-Subotica X - Branch B
Section Cortanovci-Petrovaradin
(15 km) 13,4 mil. €
Ongoing

25. Bridges on Corridor X-Branch B Novi Sad
Temporary
Road-Railway Bridge
Destroyed “Zezelj” Bridge

26. Bridges on Corridor X-Branch B Novi Sad
Destroyed Varadin Bridge
New Varadin Bridge

27. Bridges on Corridor X-Branch B Novi Sad
“Sloboda” Bridge
Novi Sad
Temporary
Bridge on Barges
Novi Sad

28. Bridges on Corridor X-Branch B Belgrade-NoviSad
Destroyed “Beska” Bridge
New “Beska” Bridge

29. Bridges on Corridor X Ring Road “Belgrade”
Destroyed “Ostruznica”
Railway bridge
“Ostruznica” Road Bridge

30. Railway Project Proposals New EIB Loan for 2005 - 60 mil. €
Beograd-Sid Corridor X
Capital repair and modernization section
Batajnica-Stara Pazova-Golubinci -15,4 mil. €
Beograd-Nis Corridor X
Modernization double-track section
Jovac-Cuprija – 19,3 mil. €
Nis-Dimitrovgrad Corridor X – Branch C
Nis-Dimitrovgrad – 25,3 mil. €

31. Railway Project Proposals New EBRD Loan for 2005 – 58,8 mil.€
Development of the railway rolling stock:
Reconstruction 2000 freight cars
45,55 mil. €
Reconstruction 30 shunting diesel locomotives
12,0 mil. €
Procurement and installation of the lathe for maintenance of running gear wheels
1,25 mil. €

32. Intermodal Transport Investments
Feasibility Study on Establishing “Serbiakombi”, financed by Austrian Government
Feasibility Study on Intermodal Solutions for Competitive Transport in Serbia (IMOD-X), financed by Norwegian Government
Capacity Building for the Ministry of Capital Investments (particularly, Department for Intermodal Transport), donation managed by EAR
Twinning project for the Ministry of Capital Investments (particularly, Department for Intermodal Transport), donation managed by EAR
Institutional Study on Restructuring Serbian Railway Company (ZTP “Beograd”), financed by French Government

33. Intermodal Transport Activities
AGTC Agreement is in ratification process in Serbia and Montenegro
Parameters and standards from AGTC Agreement shall be targets for construction and reconstruction of Serbian railway infrastructure
Several hundreds of heavy freight road vehicles are in transit through Serbia every day
Reroute of this transit to intermodal (hucke-pack and Ro-Ro) transportation system should provide significant environmental, economical, safety and other results to reduce noise, water and soil pollution in transportation areas
Construction Ro-La terminals on Corridor X
Widening of tunnels and bridges on Corridor X – UIC C gauge

34. Future Activities and Projects (1)
Road, railway and intermodal transport network has been designed and constructed as an integral part of the European transport routes
Transport policy of our country is directed towards development of intermodal transport systems which have been already considerably used in Europe, especially due to an overloaded road transport
During the previous year, significant investments as loans from EBRD and EIB have been realized. Long-term investments originating from private companies through concession arrangements with domestic and foreign investors are also anticipated for the future

35. Future Activities and Projects (2)
Traffic infrastructure in Serbia is exclusively owned by the state. However, through changes of regulations the participation of the foreign capital in construction, reconstruction and use of certain sections of roads in Serbia is expected to come into life.
According to the Law on Concessions, concessions would be awarded for construction, maintenance and use of roads, public railway infrastructure, facilities for air traffic, equipment and airport, facilities for waterway transport, in one word-for overall infrastructure.

36. Conclusions
The development economy of our country depends on expected capital investments and support by IFI, permanent development and modernisation of the traffic infrastructure.
Modern road, railway and intermodal transport infrastructures with the essential infrastructure and facilities represent the strategic advantage and economic chance for our country.
By construction of contemporary traffic infrastructure the Republic of Serbia provides the way to the Transport and Trade Facilitation of South- East Europe and Asia.

37. Alexandroupolis, December 2004 Ministry of Capital Investments
SERBIA
Montenegro
Ministry of Capital Investments
Republic of Serbia
Serbia & Montenegro
Belgrade, Nemanjina 22, Phone: , Fax.: