Montenegro’s state-owned freight operator Montecargo ended 2025 with €12 million in liabilities and €10.9 million in accumulated losses. The trend is raising significant uncertainty over the company’s ability to meet its financial obligations, according to auditor Eurorev.
The financial situation has been exacerbated by the collapse in bauxite transport, which previously accounted for more than 52% of Montecargo’s traffic volume. Only 15 bauxite trains ran between July and December 2025, followed by 27 so far in 2026, representing a 95% decline. Around 50 employees remain assigned to the affected operation and continue to receive salaries despite the lack of regular work.
Financial situation
Total liabilities comprised €3.5 million in long-term and €8.5 million in short-term debt. For the latter, this is a €1.5 million increase compared to a year earlier. Around 50% of Montecargo’s liabilities are owed to other state-owned companies and the government itself.
More specifically, significant liabilities included €2.4 million owed to infrastructure manager ŽICG, €1.23 million to rolling-stock maintenance company OŽVS. An additional €350,000 is owed to private forwarder Trans Cargo Logistic, while the remaining €1.2 million is due in taxes and social contributions.
On a more positive note, Montecargo recorded €7.1 million in operating revenue in 2025, up €900,000 (or 14.5%) year-on-year. Operating expenses amounted to €4.25 million, while gross salary costs reached €4.41 million. Hence, the company posted a €960,000 loss, compared to over €1.5 million in 2024.
Rail freight in Montenegro
Montecargo is Montenegro’s main rail freight operator. Its main routes are the Vrbnica–Bijelo Polje–Podgorica–Bar corridor (which then runs to Serbia), and the 56.6 km Podgorica–Nikšić line, which is used mainly for bauxite traffic. There is also a line from Podgorica to Tuzi, the only link to Albania, but traffic is negligible.
Montenegro’s railway network is 251.5 km long, with the Vrbnica–Bar international route accounting for 169.2 km. According to MONSTAT, total rail freight amounted to 1.00 million tonnes in 2024 and 1.021 million tonnes in 2025 (+2.1%). Rail freight performance increased from 135 million to 155.4 million tonne-km (+15%).
In addition to Montecargo, the other operator in the country is Kombinovani prevoz Montenegro (KPM), part of the Serbian Kombinovani prevoz Group. KPM received its Montenegrin freight licence in 2023, with its safety certificate covering the state border–Bijelo Polje–Bar and Nikšić–Podgorica routes.
KPM operated its first independently run freight train in Montenegro in September 2023 between Serbia and the Port of Bar. The company was established in Montenegro in 2021 to provide freight services between Serbia, Montenegro and potentially Albania.