Press release

The board of directors of "Port of Bar" JSC has adopted the Decision on starting the investment - the purchase of a new mobile harbor crane. The investment will be financed from a loan arrangement in the amount of 5 million euros, which the company will conclude with the Investment and Development Fund.

The decision was made on the basis of an initiative sent by the executive management, on the basis of extensive documentation and detailed financial analyses. The natural disaster that hit the Port of Bar on July 2, 2024. year and caused enormous material damage, causing the collapse of all three transshipment bridges Cerreti e Tanfani, each with a load capacity of 12 tons, as well as the collapse of the grain loading tower. With the complete degradation of transshipment bridges and the loading tower, the technical capacity of the ship-shore link (and vice versa) at the Dry Bulk Terminal was reduced by 40%. About 80% of the total annual transshipment in "Port of Bar" AD is carried out at the mentioned terminal.

Having looked at the initial direct material damage, we began to look at and analyze possible indirect damage to port operations. Any non-fulfillment of contractual obligations to clients, payment of dangub and work stoppages would have unfathomable consequences for the company's operations. And not only for the operations of Luka Bar, but for all companies in the transport chain, because the loss of already contracted jobs would affect everyone equally. The multiplicative effects of the negative business of the Port of Bar would have a negative impact on both the municipality of Bar and the entire country.

In serious efforts to prevent such a scenario from happening, responsibly managing the company, the Board of Directors and the management made a decision to start the investment of purchasing a new mobile crane. In particular, we have in mind the preciousness of time, because it takes several months to implement all legal procedures ("Port of Bar" JSC is obligated to public procurement), as well as very demanding technological procedures. The acquisition of one mobile crane will somewhat compensate for the lack of transshipment bridges and it is the first step towards repairing the enormous damage we have suffered, but the investment cycle towards the acquisition of port machinery must continue.

We expect, based on intensive discussions and promises made, help from the Government of Montenegro, because the state is the majority owner of the company, and the Port of Bar is one of the most valuable state resources. The urgency of the action and our responsibility that the work process and contractual obligations must not be jeopardized in any way conditioned the decision to independently enter into a credit arrangement, but the necessity of providing assistance from the state remains a key moment for the further operations of the Port of Bar.

BOARD OF DIRECTORS “PORT OF BAR” JSC