This week, Barska Plovidba paid €150,000 to Crnogorska Plovidba, which was used by the Kotor-based company to cover half of the outstanding sailors’ wages on its two ships.
Boris Mihajlović, director of Barska Plovidba, stated that a business-technical cooperation agreement, approved by the Ministry of Maritime Affairs and shareholders of both companies, provides a new opportunity that must be utilized.
Both companies, majority state-owned, operate primarily by leasing vessels on a time charter basis—a model that is easiest but least profitable.
The Montenegrin government has repeatedly allocated funds to Crnogorska Plovidba to help repay loans taken to purchase two ocean-going vessels in 2012. The loan was fully repaid this year, but the company still owes the state €37 million.
Barska Plovidba, which has been more diligent in repaying its loan to the Chinese EXIM Bank, still owes about €9 million to the state.
Mihajlović emphasized the state’s interest in preserving ships flying the Montenegrin flag and sees the cooperation agreement as a positive step.
Under the agreement, Barska Plovidba committed to paying up to €1 million to Crnogorska Plovidba by the end of the year. The first installment of €150,000 has already been paid, covering half of the outstanding wages for sailors.
New favorable charter contracts for Crnogorska Plovidba’s two vessels—21. maj and Kotor—have been signed, increasing monthly revenue by nearly €70,000.
A key challenge remains the technical condition of the ships, with concerns about some low-quality spare parts previously installed. Foreign inspectors will soon board the vessels to assess their condition.
Mihajlović also announced plans to analyze all aspects of operations, including fuel procurement, spare parts, and cost optimization, aiming to stabilize the financial situation of both shipping companies.
He stressed that without a detailed analysis proving investment profitability, it is unrealistic to expect the state to guarantee funds for new vessels, despite the estimated remaining operational lifespan of Montenegro’s four cargo ships being five to seven years.
