The European Investment Bank (EIB) is assessing the project concerning the reconstruction of the Bar – Golubovci rail section, part of Montenegro’s Rail Route 4. The proposed EIB financing amounts to EUR 168 million, out of a total eligible cost of EUR 231 million.
The project, to be implemented by Railway Infrastructure of Montenegro (Željeznička infrastruktura Crne Gore, ŽICG), covers the reconstruction of 38.6 km of open, electrified railway line, 17 km of station tracks, and 6 km of shunting tracks. The standard gauge, fully electrified line includes five railway stations, four train stops, seven level crossings, ten bridges, and four railway tunnels. The line is used for both passenger and freight services.
The Bar – Golubovci rail line, a single-track, standard-gauge, fully electrified route with a total length of 38.6 km, is utilised for both passenger and freight transport. It includes five railway stations, four train stops, seven level crossings, ten bridges, and four tunnels.
The project is expected to be completed by December 2029, when trains will be able to operate at speeds of up to 120 km/h, excluding urban areas and the section passing through Skadar Lake National Park, where speed restrictions will apply. Once the modernisation works and installation of new signalling and power supply systems are completed, the availability and reliability of the rail line will be significantly improved.
The modernisation of this line aims to facilitate the growth of rail traffic across Montenegro, the Western Balkans, and the broader European railway network. The project is expected to generate time savings, reduced vehicle operating costs, enhanced transport safety, and environmental benefits through lower greenhouse gas emissions and reduced pollution.
The Bar – Golubovci rail section forms part of the Bar – Vrbnica railway, the most important rail corridor in Montenegro, connecting the Port of Bar with Podgorica and the border with Serbia. The railway is part of the indicative extension of the TEN-T Core Network to the Western Balkans and will bring 39.6 km of railway line up to TEN-T standards, including upgrades to electrification, signalling, and telecommunication systems.
This line lies on the indicative Extended Orient/East-Med Trans-European Network (TEN-T) core corridor, also known as SEETO Route 4, as identified by the South East Europe Transport Observatory.
The Orient/East-Med Rail Corridor extension into the Western Balkans, running along Route 4, spans 580 km, from Vršac (Serbia–Romania border), through Belgrade, to Podgorica and Bar. The Bar – Vrbnica line (with Vrbnica at the Montenegro–Serbia border) is the most significant segment of Montenegro’s rail network, carrying approximately 20% of all passengers and 60% of cargo. Rail remains a vital component of Montenegro’s transport sector, accounting for nearly 60% of freight and 10% of passenger traffic.
The European Union has supported the preparation of this project through technical assistance, providing EUR 3 million via the Western Balkans Investment Framework (WBIF) under Flagship 2 – Connecting North to South, part of the Economic and Investment Plan for the Western Balkans (adopted in October 2020). In addition, five previous grants have supported the reconstruction of railway bridges, tunnel rehabilitation, landslide mitigation works, and the installation of signalling and interlocking systems across Montenegro’s rail network.
Financing for Bar – Vrbnica rail route
The EU has contributed EUR 70 million in grants for the rehabilitation of the Bar – Vrbnica R4 rail interconnection, complementing EUR 140 million in loans from the European Investment Bank and the KfW Development Bank (on behalf of the German Federal Government).
The Bar – Vrbnica rail section has secured a total of EUR 405.6 million in financing, comprising EUR 188.2 million in grants and EUR 212.3 million in loans provided by the EIB and the European Bank for Reconstruction and Development (EBRD).
The Bar – Vrbnica line, which opened to traffic in 1976, has not undergone any major overhaul of its signalling systems, bridges, or tunnels. Since the early 2000s, Montenegro has been developing plans for the comprehensive rehabilitation and modernisation of the railway line, with ongoing support from the European Union, EIB, and EBRD.
As part of the Economic and Investment Plan for the Western Balkans, the EU will mobilise up to EUR 9 billion in funding under IPA III (2021–2027). This funding will support projects in transport, energy, and the green and digital transition, contributing to sustainable growth and employment throughout the region.
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