MONTENEGRO
The Pearl of the Adriatic

Introduction - A New Beginning - Privatization - Finances - Rebuilding the Economy
Oil discoveries - Telecom Fever - Connecting Montenegro to the World - "Wild Beauty"


CONNECTING MONTENEGRO TO THE WORLD

Regional dynamics have also played a pivotal role in the transport sector.

"Montenegro is the entrance, the door to the region," says Jusuf Kalamperovic, Minister of Maritime Trade and Transportation. "Transport participates with 20% to the national income of Montenegro and we are trying to develop all four forms of transport in order to connect to all neighbouring countries".

Adriatic Shipjard Bijela

"We have opened our borders, established transport, commercial relations and abolished visas for all nationalities " adds Kalamperovic, pointing to new projects in maritime, land and air transport.

The port presently has a capacity of 6 million tons, with links to Italy, Bosnia, Serbia, Kosovo, Macedonia, Hungary, Romania and Albania. "Therefore, the port should be the entrance to the Balkans, first of all for goods and also for passengers" adds Kalamperovic. Its operations will soon be privatized through additional capitalization, concessions and joint ventures.

With the same ambitions and the same capacities the Bar-Belgrade railway was built. It is the fastest way of transporting goods from the whole region to the Adriatic and from the port to the inland.

Privatization will also affect this sector. As Kalamperovic told us, the state owns 80% and the workers 20% of the port. An important point is that this port has the benefits of a custom-free zone. It also has production space, packing and processing facilities. Therefore, it is possible to have machines in the port, to bring raw materials, produce and export through custom-free duty.

An underground tunnel is being built between Podgorica, the capital of Montenegro, and the Adriatic Sea, which will not only connect the port to the rest of Montenegro and to the region, but that will also promote coastal tourism. A strategic characteristic is that this tunnel is to become part of a highway that will facilitate links between Adriatic Sea and Central Europe. The highway should connect Bar and Belgrade, with a link towards Kosovo. As there is not enough money for this type of infrastructure projects, Montenegro decided to construct the most important quotas of the transportation projects. In this group of project is the bypass of Podgorica that will become part of the Adriatic Sea bypass, which is planned to link Western Europe and Turkey.

Bridge - developping the infrastructure

Air transport is also crucial. "As far as both tourists and businessmen are concerned, Montenegro is an air destination" emphasized Kalamperovic. He has therefore planned to renovate the Podgorica airport and promote the expansion of Montenegro Airlines, the national airline, in order to facilitate access to the country.

Currently, the Serbian Airline carrier, JAT, owns the airports in Podgorica and Tivat. Even though the Airports were built by Montenegro, they have been owned and managed by the federal government until now. Today, in order to improve conditions at these airports, Montenegro plans to undertake their reconstruction.

"We want our airports back, and Montenegro is ready to pay to JAT what it has already invested. I think that we are on the right track to solve this matter and to be in a situation to decide for ourselves the fate of our airports" says the Minister of Maritime Trade and Transportation.

"According to the Montenegrin position and the Master Plan for the Development of Tourism, the main airport in Montenegro should be the one of Podgorica. It will be, by means of new tunnel built between Podgorica and the seaside, the main tourist airport. Furthermore, Podgorica airport has an exceptionally good climate and geographic condition. There is never any fog or snow here and it is open all the yearlong. Therefore, it will become an alternative airport to Belgrade, Sarajevo and Skopje" predicts Kalamperovic.

The airline industry is led by Montenegro Airlines, which was established six years ago as a symbol of the country's relative independence, linking Podgorica to the main airports in Western Europe.

"Podgorica is the smallest city in Europe with the greatest number of international destinations in the continent" proudly states Zoran Djurisic, General Manager of Montenegro Airlines. Montenegro Airlines has seven international destinations and is preparing to open new lines to Amsterdam, London and Paris. It also runs additional charter flights to the Czech Republic, Greece, some cities in Germany, Israel and Switzerland.

The development of the airport and of the airline will increase exponentially with tourism development and increased stability in the region. Meanwhile, Djurisic is preparing his fleet by forging strategic alliances with European carriers and increasing his international representation. "We are aware of the competition on the European sky, and we are getting ready for it".

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© World INvestment NEws, 2002.
This is the electronic edition of the special country report on Montenegro published in Forbes Global .
May 13th, 2002 Issue.
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