Through the development of a modern, sustainable, efficient, interoperable and integrated transport network, a sound transport policy can promote closer co-operation with neighbouring economies and be a key driver of competitiveness, both for an economy as well as for the region. The first sub-dimension, planning and management, measures the extent to which an orderly, coherent, consistent and transparent process is in place for developing transport policy and implementing infrastructure projects. The second sub-dimension, regulation and connectivity, determines how well transport modes and networks are regulated and operated, as well as how they are leveraged to promote regional connectivity. The third sub-dimension, sustainability, measures progress towards resource efficiency, environmental protection, reducing health impacts and increasing safety as well as social inclusion.
Western Balkans Competitiveness Outlook 2024: Montenegro
12. Transport policy
Abstract
Key findings
Since the last Competitiveness Outlook (CO) assessment (2021), Montenegro has maintained steady progress in improving its performance in transport policy (Table 12.1). The most significant progress is observed in planning and management, which can be attributed to the updates reported on project selection and procurement processes. Montenegro has also continued efforts to advance the implementation of action plans on rail, road and transport facilitation, and actively pursued efforts to improve the sustainability of the transport sector.
Table 12.1. Montenegro’s scores for transport policy
|
Dimension |
Sub-dimension |
2018 score |
2021 score |
2024 score |
2024 WB6 average |
|---|---|---|---|---|---|
|
Transport |
11.1: Planning and management |
2.8 |
2.6 |
||
|
11.2: Regulation and connectivity |
2.3 |
1.9 |
|||
|
11.3: Sustainability |
2.3 |
2.1 |
|||
|
Montenegro’s overall score |
1.6 |
2.1 |
2.5 |
2.2 |
|
The key findings are:
Montenegro has experienced delays in implementing its Transport Development Strategy 2019‑35, as no action plan has been developed since 2022. Moreover, monitoring and evaluation of the strategy and its action plans show a lack of consistency, as the most recent monitoring report was published in 2020.
Cost-benefit analysis (CBA) of transport projects is not being conducted for all projects; it is only being done for projects financed through the capital budget and included in Montenegro’s single project pipeline. Moreover, Montenegro is reliant on international CBA guidelines as it has not developed its own methodology, which would be tailored to its context and needs.
Progress is being made on integrating sustainability objectives into the policy framework for transport. Measures to make transport more sustainable, such as supporting electric vehicle uptake and improving the energy efficiency of ports, are being implemented, but need to be scaled up. Montenegro is developing a Low Carbon Development Strategy and is planning to integrate greening objectives into its transport strategy, which has the potential to increase the level of ambition of these measures and ensure effective implementation.
Montenegro maintained good momentum in strengthening regional connectivity by continuing bilateral cooperation with Serbia, Bosnia and Herzegovina, and Albania to improve connectivity through the establishment and modernisation of several key rail and road border crossing points.
There is significant room for improvement in efforts to enhance road safety. Road fatalities have increased by over 50% since the last CO assessment and were over double the EU average in 2022 (118 per million inhabitants compared to 46). To address this concerning trend, a new road safety strategy covering the period until 2030 has been developed, and plans to establish a Road Safety Agency are under way.
State of play and key developments
Sub-dimension 11.1: Planning and management
Montenegro has continued efforts to improve the planning and management of the transport sector since the last assessment cycle. The economy has a robust policy framework guiding the development of the transport sector, although its implementation and monitoring have experienced delays. Namely, the Transport Development Strategy (TDS) for 2019-35, which was adopted in 2019, continues to set out Montenegro’s long-term transport vision. It covers all transport modes and contains clear and measurable objectives, budgets for measures, and defined roles and responsibilities for its implementation (Ministry of Transport and Maritime Affairs, 2019[1]). The strategy development process involved the utilisation of a transport model to forecast growth in transport demand. The implementation plan of the TDS is segmented into two phases, spanning from 2019 to 2027 and from 2028 to 2035. Action Plans are formulated for biennial periods; the strategy was supported by a detailed Action Plan for 2019/20 and followed by an Action Plan for 2021/22, whose adoption was slightly delayed. However, no new action plan has been drafted since the 2021/22 plan, showing a lack of consistency in implementation.
Oversight of the TDS is conducted by the co-ordinating body of the Ministry of Transport and Maritime Affairs (MTMA), in accordance with the TDS guidelines. In order for the transport vision to evolve with the dynamic nature of the sector, periodic revision of the strategy, informed by systematic updates derived from monitoring reports and impact assessments, is planned. Yet so far, only one monitoring report has been published for the 2019-20 period, showing room for improvement in the consistency of monitoring.
Montenegro has strengthened its transport project selection processes since the last CO assessment. The Single Project Pipeline (SPP) has existed in the economy since 2015 and is incorporated into Montenegro's Transport Development Strategy for 2019-35. For the transport sector, it includes fourteen projects collectively worth EUR 3.7 billion that are part of the indicative extension of the TEN-T network to the Western Balkans, and was last updated in 2021. Cost-benefit analysis (CBA) is applied to projects seeking funding from the capital budget, which includes projects exceeding EUR 5 million and those listed in the SPP. Consequently, the financial returns on other projects funded by the national budget remain undisclosed. Moreover, in practice, CBA is not consistently applied, as it is mainly used for internationally funded projects, and its findings are not always taken into account. National CBA guidelines, containing benchmarks and discount rates that are adapted to Montenegro’s context and needs, have not yet been developed.
In 2023, the Ministry of Finance released a Decision on the Preparation of the Capital Budget and Specification of Evaluation Criteria for the Selection of Capital Projects (Ministry of Finance, 2023[2]). This decision expands the scope of the existing project prioritisation tool and adds new evaluation criteria that must be applied to capital projects in the economy. These criteria include contributions to regional and economic development, public service enhancement, and citizens' quality of life. Projects must also address health, safety, and property risks, contribute positively to the environment, encourage employment, address demographic challenges, improve energy efficiency, and contribute to constructing facilities for safety enhancement, among others.
The procurement process for all transport infrastructure projects adheres to the regulations outlined in the National Public Procurement Law (2019), which governs all infrastructure projects in the economy. In February 2023, the government approved a report on executing the 2021-25 strategy aimed at improving public procurement and public-private partnership policies in Montenegro (European Commission, 2023[3]). The adoption of a corresponding Action Plan for the year 2023 accompanied this decision. These developments provide the groundwork for the deployment of alternative procurement methods, which could allow Montenegro to enhance efficiency, foster innovation, optimise costs, encourage private sector participation and ultimately achieve better outcomes in the implementation of its transport infrastructure projects. However, Montenegro has not yet implemented any transport public-private partnership (PPP) projects despite initiating the prequalification process in 2019 for awarding a concession contract for Podgorica and Tivat airports, which was subsequently suspended. In early 2024, the government instructed the transport ministry to resume discussions with the International Finance Corporation (IFC), the private sector lending arm of the World Bank Group. The aim is to proceed with the second tender phase for a 30-year concession contract to operate the two international airports (See News, 2024[4]).
Asset management systems for different modes of transport are currently absent in the economy. Montenegro took a significant step towards addressing this gap by securing a grant from the European Bank for Reconstruction and Development (EBRD) to develop a Road Asset Management System (RAMS). At the end of 2021, an agreement was reached to establish the RAMS for highways and trunk and regional roads as part of this initiative (Transport Community, 2022[5]). Besides RAMS, the current four-year contract for maintaining Montenegro's entire state road network concludes in December 2023. According to the new Law on Roads, there is a stipulation to formulate a Medium-term Plan encompassing construction, reconstruction, and road network maintenance for the upcoming four-year period (2024-27) (Transport Community, 2023[6]). The ongoing development of this Medium-term Plan is anticipated to be completed shortly.
Sub-dimension 11.2: Regulation and connectivity
Montenegro has advanced significantly in updating and aligning its rail regulations more closely with the EU’s Rail Action Plan. In November 2021, the government approved a new national programme outlining the rehabilitation and maintenance plan for railway infrastructure from 2021 to 2023 (European Commission, 2023[3]). Monitoring of its implementation is planned but has not yet been conducted. The government is working on a new three-year National Programme for Railway Infrastructure 2024-26, whose adoption is expected soon. The Network Statement for the Port of Bar is being published, and a new Railway Law is being drafted. Regarding the opening of the rail market, Montenegro has had a liberalised rail market since 2016. Despite this, potential participants have shown a lack of interest until recently, as 2023 marked the commencement of operations for the first private railway undertaking in the market for freight (Transport Community, 2023[6]). Currently, there are two privately-owned companies for rail freight transport in the market.
Progress has also been observed in the regulation of road transport. The government has approved a four-year programme (2022-26) focused on the development and deployment of Intelligent Transport Systems (ITS) in road transport (European Commission, 2023[3]). Additionally, in December 2022, the parliament passed amendments to the Law on Roads, enabling the collection of charges for road and road land usage. The implementation of intelligent transport system solutions commenced on the Bar‑Boljare road, encompassing the Sozina tunnel and a newly opened highway section in 2022 (European Commission, 2023[3]).
Montenegro’s rail and road network utilisation is presented in Table 12.2. A downward trend has been noticed in passenger railway transport, and network utilisation is low compared to the EU average. While freight rail network utilisation has increased over the period 2019-22, it is still lower than the EU average, pointing to a continued need for increased efforts for a more efficient use of resources and infrastructure for transporting goods. Even though road network use is far below the EU average, the road network utilisation for freight has still increased, with possible negative impacts on air pollution and climate change. Adhering to EU strategies for shifting freight from road to intermodal transport could have a positive influence on air pollution and climate change – as well as on reliability, given the increasingly congested roads in the economy.
Table 12.2. Trends in rail and road transport in Montenegro and the EU (2019-22)
|
Change 2019‑22 (in %) |
2022 |
EU average (2021) |
|
|---|---|---|---|
|
Rail network utilisation |
|||
|
Passengers (passenger-kilometres/km of track) |
-22 |
0.21 |
0.99 |
|
Freight (tonne-kilometres/km of track) |
45 |
0.75 |
2.02 |
|
Road network utilisation |
|||
|
Passengers (passenger-kilometres/road network) |
-55 |
0.006 |
1.24 |
|
Freight (tonne-kilometres/road network) |
39 |
0.013 |
0.60 |
Since the last CO assessment, regulatory reforms have continued strongly in the field of aviation reforms. Numerous implementing acts on air safety and air traffic operations were enacted. After establishing the new national airline "To Montenegro" in January 2021, the government progressively increased its founding capital (Vijesti, 2021[9]). In April 2023, the parliament also ratified amendments to the European Common Aviation Area Agreement and its Annex I, focusing on regulations for civil aviation (European Commission, 2023[3]).
The concession tender for the operation of international airports in Podgorica and Tivat was first initiated in October 2019 and was put on hold in 2020. With its reactivation in 2024, the process shows Montenegro's dedication to adhering to EU standards regarding equitable and transparent public procurement and state aid regulations. Certification for Podgorica airport was completed in May 2023, while the process for Tivat airport is still ongoing (Montenegro Business, 2023[10]). This certification confirms that the airport infrastructure and operational procedures conform with international and national regulations. Throughout 2023, the adoption of several implementing laws further aligned Montenegro with common rules in civil aviation, air safety, and air traffic operations (European Commission, 2023[3]).
Before the last CO assessment, the Single European Sky (SES) I and II packages had already been fully integrated into Montenegro’s legal framework. While Montenegro is not a member of any Functional Airspace Block (FAB), it operates similarly through the partnership with Serbia in the form of Serbia and Montenegro Air Traffic Services (SMATSA). This collaboration is designed to mitigate the impact of different regulatory approaches on safety, capacity, and costs (SMATSA, 2023[11]).
As a coastal economy, Montenegro has actively advanced towards aligning its systems with the EU maritime acquis and reported regularly on the progress. The Law on Ratification of an International Convention on Oil Pollution Preparedness, Response and Co-operation was adopted in May 2021. Montenegro has implemented Directive 2009/16/EC on port state control. It has also partially implemented several other directives and regulations, including Directive 98/41/EC on the registration of persons travelling on passenger ships, Directive 2009/45/EC on safety rules and standards for passenger ships, Directive 2002/59/EC on community vessel traffic monitoring, Regulation (EU) No. 530/2012 on oil tankers, and Directive 2008/106/EC on the minimum level of training of seafarers (Transport Community, 2022[5]).
In 2022, Montenegro commenced the implementation of the National Maritime Single Window (NMSW) and launched enhancements and expansions to the vessel traffic monitoring and information system. NMSW serves as an electronic platform facilitating stakeholders in maritime transport to exchange standardised information through a unified entry point, ensuring compliance with all essential reporting requirements. The economy is still in the process of harmonising with the EU acquis on ports and has yet to enact legislation to align with the Port Services Regulation. In 2023, Montenegro marked a significant achievement by securing complete membership in the Paris Memorandum of Understanding (MoU) for Port State Control, a pact involving 27 participating maritime administrations. It facilitates the inspection and oversight of foreign ships, ensuring their adherence to international safety, security, and environmental standards (See News, 2023[12]).
Since the last CO assessment, Montenegro has co-operated well with the neighbouring economies to enhance regional connectivity. The Agreement on border control of rail traffic between Serbia and Montenegro has been in effect since 2010. To fully implement the Agreement, a prerequisite is that all border authorities must be situated at the common border station, Bijelo Polje. Montenegro is actively working to ensure the operational effectiveness of the Bijelo Polje station as a joint border facility. The adaptation and reconstruction of this joint rail station in Montenegro was successfully finished and inaugurated in May 2023 (WBIF, 2023[13]), but protocols on border crossing operations have yet to be agreed. The revamped rail station will bring significant enhancements, enabling quicker dispatching of trains in the border zone. Further improvements will be achieved through consolidated controls conducted by the railway companies and state border authorities in a unified location (Transport Community, 2023[6]).
Progress has also been observed on road border crossings with multiple neighbouring economies. Activities involving electrification, land acquisition, equipment installation, implementation of IT systems, and other associated tasks at the Joint Border Crossing Point (JBCP) Zatrijebacka Cijevna-Grabon, situated between Montenegro and Albania, have been completed. Operations at this crossing point commenced in July 2021 (Transport Community, 2022[5]). The two economies are also advancing on the bilateral border crossing agreement at the BCP Hani I Hotit/Bozaj, which will result in the control of vehicles being carried out only at the entrance (one stop) in each direction. However, an official agreement has not been reached yet. The governments of Albania and Montenegro signed an agreement to construct an interstate bridge over the Buna/Bojana river, which can also help improve connectivity between the coastal regions of the two economies.
Montenegro has successfully advanced the modernisation of BCP infrastructure by inaugurating the renovated BCP Ranče with Serbia in 2023. This reconstruction aligns with Schengen standards and best practices, significantly reducing the distance between facilities at the BCPs from 1 km to 250 m (Transport Community, 2023[6]). Montenegro is making progress in implementing the Agreement on Joint Border Crossing Points with Bosnia and Herzegovina as well. Specifically, at BCP Scepan Polje, a designated area has been identified for the future joint border crossing point, and its construction will align with the building of the Tara River Bridge. Additionally, Montenegro has co-ordinated with Bosnian authorities to secure approval for installing optical cables in the road zone at the Klobuk and Zupci border crossing points (Transport Community, 2023[6]).
The Transport Development Strategy (TDS) for 2019-35 has provisions to support the development of combined transport. The strategy recognised the underdeveloped intermodal transport system as a shortcoming and envisaged elaboration of the Study on the Development of Intermodal Transport. One of the strategy’s objectives is the creation of intermodal stations along the rail corridor in Podgorica and Bijelo Polje, which would facilitate rail transportation of containers from the Port of Bar to the inland parts of the country and reduce road freight traffic (Ministry of Transport and Maritime Affairs, 2019[1]). However, no progress has been made on these activities yet.
Continued efforts are observed in Montenegro to support the development of smart transport systems. In 2022, the government adopted the Programme for the Development and Introduction of Intelligent Transport Systems in Road Transport for 2022-26, which constitutes Montenegro’s ITS Strategy. As part of the same project, a set of guidelines known as the Rulebook has been formulated to specify detailed conditions, technical requirements, specific terms, and interoperability components of the electronic toll collection system. Tolls are exclusively applied to the Sozina tunnel, which connects Podgorica to the coast. Furthermore, the implementation of a tolling system is under way for the initial segment of the Bar‑Boljare highway (Transport Community, 2023[6]). With support from the EBRD, Montenegro is looking to develop a Traffic Data Collection System, which would strengthen data collection on traffic flows in road transport and allow for better planning, management and safety.
During the Connectivity Summit 2023, which took place on 15-16 May in Budva, Montenegro, the Ministers of Transport from WB6 economies approved the Joint CEFTA-Transport Community Declaration titled "Taking Forward the Green Lanes” (CEFTA, 2023[14]). An essential component of this declaration involves the trial and implementation of digital transport corridors.
Sub-dimension 11.3: Sustainability
Montenegro has taken steps to advance towards an environmentally sustainable transport system. The economy is currently formulating its National Plan of Adaptation to Climate Change (NAP) to align with the relevant EU acquis. Complying with the Law on Protection against the Negative Impacts of Climate Change, the economy is developing a Strategy for Low Carbon Development along with an Action Plan, supported by the World Bank (Transport Community, 2023[6]). In 2024, Montenegro’s Transport Development Strategy is set to undergo an update incorporating sustainability elements, which would be a positive sign of adaptation of the policy framework to international and European standards. However, it remains to be seen to what extent this update will contain a comprehensive set of measures aiming to support the greening of the transport sector and the full alignment with the Green Agenda for the Western Balkans and the Smart and Sustainable Mobility Strategy.
The Ministry of Capital Investments has launched efforts to develop a Strategy, Feasibility Study, and Environmental Impact Assessment on the use of alternative fuels. This initiative aims to provide suitable recommendations for transposing relevant directives; these activities are anticipated to commence in 2024. Additionally, under CONNECTA, a Technical Assistance initiative for the strategic framework regarding the deployment of e-charging stations on TEN-T Core and Comprehensive Network was completed in August 2023. The initiative identified 14 priority locations for the deployment of electric vehicle charging stations (EVCS) in Montenegro (Transport Community, 2023[15]).
Montenegro has also introduced incentives to encourage the introduction of low- and zero-emission vehicles. Two tenders were issued in 2021 and 2022, each with a grant fund of EUR 100 000, allocating EUR 50 000 for electric vehicles and EUR 50 000 for hybrid vehicles. Subsidies of EUR 5 000 for electric vehicles and EUR 2 500 for hybrid vehicles were granted. Individuals could receive subsidies for one vehicle, while legal entities and entrepreneurs were eligible for up to two vehicles. Through these tenders, the Eco-Fund has already subsidised the purchase of 42 hybrid vehicles and 20 electric vehicles. The Eco-Fund plans to provide investment incentives for charging infrastructure, contingent on availability (Transport Community, 2023[15]). While these initiatives are encouraging, their presently small scale prevents them from significantly contributing to reducing transport sector emissions in Montenegro.
The Port of Bar in Montenegro was very active during the assessment period, participating in various EU‑funded projects aimed at improving the port community system and the greening of ports. As part of the SMARTPORT project, the port installed 73 LED (light emitting diode) luminaires on terminals, contributing to energy efficiency (SMARTPORT, 2021[16]). Additionally, the port is modernising its fleet by acquiring hybrid buses, aligning with the Green Plan of the Port of Bar. These hybrid buses will replace multiple private cars for transportation within the port area (SteelGuru, 2022[17]). Furthermore, the port has finalised contracts for upgrading the Port Community System through the EFINTIS and LASTING projects, connecting with Customs Information Systems and introducing radio-frequency identification (RFID) cards for enhanced security and compliance with the International Ship and Port Facility Security (ISPS) code (Transport Community, 2023[15]). Concurrently, efforts are being made to establish liquefied natural gas (LNG) terminals, particularly in the vicinity of the Port of Bar (Construction Briefing, 2023[18]). Going forward, the port plans to allocate EUR 1.88 million obtained through 6 INTERREG projects to the installation of solar panels, improving monitoring of the port’s environmental impact and introducing mitigating measures, as well as infrastructure upgrades in other areas. These efforts reflect the Port of Bar's commitment to greening and technological advancements.
Road fatalities in Montenegro have increased between 2021 and 2022, as shown in Table 12.3. Montenegro will require substantial additional endeavours to achieve the revised “Vision Zero” target of zero deaths by 2050, which includes an interim objective of reducing road fatalities by 50% between 2020 and 2030.The number of road fatalities per million inhabitants in the economy was 118 in 2022, 157% higher than the EU average of 46 (Table 12.3). There is a pressing need for immediate action to improve road safety, given the concerning increase in road fatalities and the significant deviation from the EU average. Montenegro has implemented measures to strengthen institutional structures, enhance road safety data, invest in infrastructure safety, and align with the EU acquis. It was the second-best regional performer in 2022 in terms of progress in aligning with the EU acquis on road safety (Transport Community, 2023[6]) but intensified efforts are needed to enhance road safety on the ground.
The Ministry of the Interior developed the Road Traffic Safety Improvement Strategy (2023-30) and a corresponding two-year Action Plan (2023-24), which are pending adoption by the government. A working group has been established, and expertise has been provided through the project "Technical Assistance for Capacity Support to the Transport Sector and EU acquis Alignment in Montenegro”. This initiative also involves a study to analyse Montenegro’s current institutional structure and road safety management. The expected outcome is developing a model for the future Road Traffic Safety Agency, aiming to enhance road safety co-ordination and monitoring.
The alignment and transposition of legislation with the EU Directive 2008/96/EC on Road Infrastructure Safety Management have been completed. Montenegro conducted a public call to enhance 15 school zone locations on the main road network. The Road Safety Inspections for 100 km on the state roads network and Road Safety Audits for four tunnels longer than 500 metres on the state roads network have been completed (Transport Community, 2023[6]).
Table 12.3. Road safety trends in Montenegro and the EU (2012-22)
|
Change 2012-22 (in%) |
Change 2019-22 (in%) |
2022 |
|
|---|---|---|---|
|
Change in the number of road fatalities (MNE) |
57 |
55 |
|
|
Change in the number of road fatalities (EU) |
-22 |
-9 |
|
|
Number of fatalities per million inhabitants (MNE) |
118 |
||
|
Number of fatalities per million inhabitants (EU) |
46 |
Sources: European Commission (2023[19]); Montenegro data – Information provided by the government for the Competitiveness Outlook assessment.
Montenegro has also taken steps to meet the safety objectives for other modes of transport. The economy will fully establish the institutional framework for railway safety once the Railway Law is adopted, empowering bodies such as the National Safety Authority (NSA) and the Regulatory Body for Railways (RRA).
A just and fair transport system is not currently addressed in any strategic document in Montenegro. Nevertheless, legal provisions regarding the rights and protections of persons with disabilities are in place, and are defined in the legal frameworks for road transport and public transport. The planned adoption of the Railway Law is expected to strengthen the legal framework for passenger rights in rail transport.
Overview of implementation of Competitiveness Outlook 2021 recommendations
Montenegro has made progress in following up on the Recommendations of the CO Assessment 2021 (Table 12.4). Since 2021, Montenegro has demonstrated significant progress in its transport sector, focusing on planning, project selection, and governance. The Transport Development Strategy (TDS) for 2019-35, though slightly delayed in its 2021/22 Action Plan, remains a key guiding document, integrating the Single Project Pipeline (SPP) and cost-benefit analysis for transparent decision making. Governance reforms include aligning rail regulations with the EU, liberalising the railway market, and establishing a comprehensive institutional framework. The aviation sector underwent regulatory reforms, and maritime alignment efforts resulted in full membership in the Paris Memorandum of Understanding. Sustainability initiatives involve adapting to climate change, alternative fuels, and incentives for low-emission vehicles. Despite increasing road fatalities, Montenegro has prioritised road safety, introducing a new strategy and action plan that need to be adopted by the government. These developments showcase a holistic approach to modernising the transport sector while addressing environmental sustainability and safety concerns.
Table 12.4. Montenegro’s progress on past recommendations for transport policy
|
Competitiveness Outlook 2021 recommendations |
Progress status |
Level of progress |
|---|---|---|
|
Develop sound asset management practices that are in line with the national inventory system |
Montenegro is establishing the Road Asset Management System (RAMS) with an EBRD grant. The ongoing development of a Medium-term Plan for 2024-27 also demonstrates a commitment to strategic road network planning. However, despite this encouraging development, the economy currently lacks asset management systems for all modes of the transport sector. |
Limited |
|
Develop and tailor cost-benefit analysis (CBA) guidelines specific to Montenegro |
The economy has not developed or tailored cost-benefit analysis guidelines in accordance with this recommendation. |
None |
|
Ensure that transport facilitation remains a priority |
Montenegro has continued to co-operate well with the neighbouring economies to enhance regional connectivity by improving rail and road transport facilitation. |
Strong |
|
Develop a combined transport strategy to promote sustainable transport |
Montenegro aims to implement combined transport, with goals outlined in the Transport Development Strategy, emphasising intermodal stations for efficient rail container transportation and reduced road freight traffic. However, no progress has been made towards these goals. |
Limited |
|
Develop an Integrated Environmental and Transport Action Plan |
Montenegro has not developed an Integrated Environmental and Transport Action Plan but has formulated plans such as the National Plan of Adaptation to Climate Change (NAP) and the Strategy for Low Carbon Development, along with an Action Plan that aims to advance the economy towards environmentally sustainable transport. Montenegro also plans to update its TDS to include sustainability objectives. Moreover, the economy is implementing several concrete measures to improve the environmental sustainability of the transport sector, although their level of ambition and scale could be increased. |
Moderate |
The way forward for transport policy
Montenegro has made notable achievements that include the Transport Development Strategy and the ongoing establishment of the Road Asset Management System. In the future, addressing road safety is crucial, urging the creation of a dedicated Road Safety Agency and collecting key performance indicators (KPIs) recommended by the EU. Commitment to sustainability is evident through e-charging stations and incentives for low-emission vehicles, yet a comprehensive policy framework is essential. Montenegro should prioritise developing domestic cost-benefit analysis guidelines, fostering well-functioning combined transport, and ensuring a holistic approach for a sustainable transport future. Going forward, policy makers could:
Develop domestic CBA guidelines for all transport modes. Montenegro needs to develop its own CBA guidelines with accompanying technical instructions. The guidance should be updated often, at least every two years. Developing a benchmark for all technical and economic parameters is necessary to ensure consistency in the discount rates used for similar projects in the same economy, including the financial and economic discount rates in the state guidance documents. This benchmark must be consistently applied in project appraisal at the state level.
Ensure the development of a comprehensive policy framework for greening the transport sector. Progress is being made on developing the National Plan of Adaptation to Climate Change (NAP) and the Strategy for Low Carbon Development, and the government plans to update the TDS to include sustainability objectives. These developments present an opportunity to ensure that Montenegro is equipped with policies that can support the development of a more sustainable and environmentally friendly transport sector through measures that are comprehensive and co-ordinated. Such a framework should integrate existing indicators and develop new ones. Measures and indicators should be applied in the relevant strategies and be monitored by relevant bodies. Policy decisions for greening transport are made within the context of available budgets and competing priorities. Hence it is crucial to consider the substantial additional investment required for scaling up existing initiatives, such as incentivising the uptake of electric vehicles, developing charging infrastructure for electric vehicles, promoting alternative fuels, providing adequate clean public transport and electrification of railways.
Enhance efforts to develop well-functioning combined transport. Combined transport is the most cost-efficient transport mode, reducing environmental pollution and increasing co-operation between the freight forwarding network companies. Achieving well-functioning logistical chains and establishing an international corridor approach and intermodal solutions could promote high competitiveness in Montenegro’s transport market. While the Transport Development Strategy has provisions to support the development of combined transport, Montenegro should accelerate the adoption of an implementation programme so that actions can begin. Particular attention should be given to the development of efficient intermodal freight infrastructure, which can have important benefits in terms of efficiency of goods transport as well as decarbonisation (Box 12.1).
Box 12.1. The importance and benefits of developing multimodal freight infrastructure
The development of efficient and well-functioning combined transport can have substantial benefits for an economy’s competitiveness by facilitating and enhancing the efficiency of the logistics chain, as well as supporting the decarbonisation of the transport sector.
Intermodal terminals serve as nodes in the logistics chain where freight is transferred from one mode to another (e.g. from road to rail or from rail to maritime). Their efficient functioning depends on several factors, including capacity, costs, reliability and connectedness within the overall transport network.
Beyond simply developing this hard infrastructure, policies also need to ensure that informational and regulatory aspects are used to make the most of the infrastructure’s potential. For instance, the flow of information can be facilitated through ICT systems and exchange of data, making the freight forwarding process more efficient and predictable.
In the case of Montenegro, particular attention should also be focused on the connectedness of maritime infrastructure (such as the Port of Bar) with the hinterland. For example, in Spain, a rail‑focused strategy for the development of the hinterland helped the Port of Barcelona increase the amount of twenty-foot equivalent units (TEUs) moved by rail from/to the port sixfold. These impressive results were enabled by the improvement of portside terminals and inland dry ports in Iberia.
Source: Adapted from ITF (2021[20]).
Continue efforts to improve road safety. To enhance road safety in Montenegro, it is strongly advised to urgently adopt the new road safety strategy and establish a dedicated Road Safety Agency. This agency should be modelled to align seamlessly with the existing institutional structure. Additionally, Montenegro should focus on adopting a safe system approach and collecting key performance indicators the European Union recommends (Box 12.2). These indicators cover various aspects such as speed, seat belt usage, alcohol consumption, helmet usage, distraction, vehicle safety, infrastructure quality, and post-crash care. Collaboration with the TCT Secretariat is crucial to facilitating the integration of Montenegro into European road safety initiatives. Efforts to implement "Joining EU CARE" should be continued, thereby ensuring the country's commitment to advancing road safety standards in line with European benchmarks.
Box 12.2. Adopting the Safe System Approach and safety performance indicators for improved road safety
In the past decade, the International Transport Forum (ITF) has promoted the adoption of the Safe System Approach to road safety. This approach can drastically reduce road fatalities and is endorsed by the United Nations General Assembly. It now forms the basis for the new Global Plan for the Decade of Action on Road Safety 2021-30. The Safe System Approach is a proactive approach to road safety; it is preventive and predicated on the notion that people make mistakes and that these errors can result in traffic crashes. It seeks to identify and proactively address vulnerabilities in the transportation system in a holistic manner. Adopting the Safe System Approach is a concrete step that the WB6 economies can take to improve road safety outcomes.
The Safe System Approach requires road safety authorities to collect, analyse, and use accurate road safety data and develop safety performance indicators (SPIs). The European Commission developed a list of SPIs with the correspondent methodology in the Baseline project. These safety performance indicators are related to driving behaviours, such as following speed limits, drunk driving, and seat belt usage. Indicators related to vehicles, infrastructure and trauma are also important. Road safety improvement can be further accelerated by identifying distinct at-risk user groups – or vulnerable user groups – and implementing safety performance indicators to improve road safety outcomes. The ITF report recommends SPIs, tailored for vulnerable road users such as pedestrians, cyclists, and motorcyclists. Implementing SPIs that are specific to these groups can help the WB6 economies advance on the Road Safety Action Plan goal of protecting vulnerable road users.
Sources: ITF (2023[21]; 2022[22]).
References
[14] CEFTA (2023), Joint declaration “Taking forward the green lanes”, https://cefta.int/wp-content/uploads/2019/01/Joint-declaration_1683890468.pdf.
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