Montecargo has successfully secured the wagons and containers needed to resume transporting copper concentrate, following a recent ban imposed by authorities due to environmental contamination at the Port of Bar. This ban necessitated technological changes in the loading and unloading processes for these goods.
Officials from Montecargo confirmed to “Vijesti” that the halt in copper concentrate transport, compounded by a strike among Boksit workers preventing the transport of bauxite, led to significant revenue losses and delayed wage payments within the company.
Both issues have now been resolved, and transport operations have resumed, as reported by “Vijesti.”
During a gathering of discontented workers outside the company’s headquarters on Monday, Montecargo’s Board Chairman Miroslav Brajović mentioned that copper shipments from Serbia would soon recommence. However, he noted that it would take at least a month to procure an additional 350 wagons and 700 containers.
“The issue of transporting copper concentrate arose immediately following the ban imposed by the Environmental Inspection, which identified elevated copper concentrate levels in the air during transshipment at the Port of Bar. Fortunately, despite the time-consuming procurement process for new vehicles and containers to accommodate the new technology, our partners took proactive steps in recent weeks, enabling us to restart transport with a solid plan effective July 1,” stated the company.
Concerns over wage payments
Employees of the railway company, which employs around three hundred workers, gathered peacefully to demand changes in management due to jeopardized operations, concerns over wage security, an unsigned collective agreement and unfulfilled promises. Montecargo’s operations were further disrupted by a recent blockade staged by former employees of the bankrupt Nikšić Boksit mine, who blocked the Seoca mine’s platform due to outstanding claims. This blockade directly affected the operations of Uniprom, the Port of Bar, and other railway companies, with Brajović confirming significant financial losses for the company over the past month.
Several Montecargo workers expressed concerns on Monday, claiming that the company only had enough funds to cover salaries for one more month, as previously communicated by management. Brajović assured them that funds were available for the next three months, with a three to six-month consolidation plan provided by the Ministry of Transport.
Revenue and financial concerns
“Vijesti” obtained financial documents for June from a company source, revealing that Montecargo earned €128,918 from transport operations by June 24, 2024. Over 24 days, they transported more than 20,300 tons of goods using 368 freight cars. However, the same source indicated that this turnover was insufficient, as Montecargo requires between €600,000 and €700,000 monthly, considering all operational costs, to sustain business operations.
“Vijesti” requested detailed information from the company regarding current account balances, the accuracy of provided data, monthly turnover, required funds for sustainability, the number of operational wagons and other expenses.
“We consider questions regarding our financial resources to be proprietary and are wary of manipulation. Employee salaries will be secured and paid from our own funds through the execution of transport services,” emphasized Montecargo.
Management strategy
They emphasized being a robust company with extensive experience and a plan to navigate this current crisis, which they hope will be temporary. They acknowledged that such challenges are inherent in any business, particularly those involved in transportation. They also highlighted the state of the national economy, which lacks mass production and internal transport needs, prompting their focus solely on international transport (transit of goods) to and from the Port of Bar, as well as bauxite exports.
“Unexpected circumstances have arisen without indications of a swift resolution, stemming not from our internal operations or sporadic business dealings, but from unresolved issues involving former Boksit mine workers and the state. In addition to global risks, internal risks have emerged, such as the ongoing strike by Boksit workers since June 3, which has consistently disrupted operations across multiple entities in Montenegro’s economy (including ours, the Port of Bar, Uniprom, and other railway companies). This disruption in bauxite transport followed another six-day blockade at the end of March/early April 2024,” explained company representatives.
Montecargo stressed its market-oriented approach but acknowledged disruption from global issues and geopolitical tensions affecting the transport sector, energy, and processing industries. They noted these disruptions have also dampened global mid-term economic growth prospects, keeping economic conditions at their lowest in recent decades.
Private sector challenges
Montecargo’s Executive Director, Dušanka Dragojević, noted earlier this week that alongside existing challenges, a private operator, Kombinovani prevoz, has entered the market, potentially seeking to compete with the state-owned company. She clarified that they have no objections to the new company’s operations in a free market but expect fair competition on equal terms.
“However, from the outset, they have faced challenges, including hiring retired locomotive engineers and railway workers. These individuals perform strenuous tasks and enjoy preferential working conditions. If they are eligible for retirement benefits under the law, I would like someone to explain why they cannot work for us but can work for a private operator,” she emphasized.
She clarified that these gatherings are not in the interest of workers but may be driven by others aiming to destabilize Montecargo through employee resignations and acquisition of their operations.
Brajović echoed similar sentiments, asserting that Montecargo remains one of the strongest companies in the Balkans, suspecting that supply disruptions due to the war in Ukraine may be motivating others to pursue their business interests.
