Two properties of Barska Plovidba, the old administrative building in Bar measuring 1.825 square meters and the business premises in Belgrade measuring 67,56 square meters, are worth almost 1,9 million euros together, according to the latest estimates provided to "Vijesti" by this state-owned company.
This property, which has not been fully functional for years, will be used as planned by the Government to rescue the Montenegrin state-owned shipping companies, Barska and Crnogorska plovidba, which are in millions of euros of debt.
The buildings are located in attractive locations, the old administrative building in the center of Bar, on Marshal Tito Street, while the office space in Belgrade is located in the very center of the city, on Nikole Pašić Street. However, despite their location, these properties have been lying unused for years - the old building in Bar is dilapidated and 2005 percent of its area has not been used since 92, while the office space in Belgrade has been empty for more than two decades.
According to a document from the Ministry of Maritime Affairs on the need to urgently resolve the current liquidity problem of Crnogorska plovidba, the money generated from the sale of these properties will be directed to repaying Barska plovidba's debt to the Chinese Exim Bank, and the remainder, in accordance with Government guidelines, will be used for other purposes, including supporting Crnogorska plovidba, which is facing the threat of bankruptcy.
Shareholders' meeting in May on real estate sales
This plan is part of a broader model of business-technical cooperation through which Barska plovidba would take over the ships of Crnogorska plovidba, provide it with emergency liquidity, and stabilize the state maritime economy sector.
"Barska plovidba has not yet initiated the sale of these real estate properties. It is planned that a decision on the sale will be proposed at the Extraordinary Shareholders' Meeting, which should be held in the second half of May 2025, after which, if the decision is made, other conditions and the method of sale will be defined. If a decision on the sale is made at the planned Meeting, the money from the sale of the aforementioned real estate and its final purpose will be agreed with the Government and the relevant Ministry of Maritime Affairs," Barska plovidba said.
As they stated, the old administrative building on Marshal Tito Street in Bar was built in 1966 and at the end of last year its value was estimated at 1.754.906,64 euros, while the business premises in Belgrade are located in the "Borbe" building on 7 Nikole Pašić Street and are estimated at 132.121,72 euros.
"The old administrative building is dilapidated and 92 percent of its square footage has not been used since 2005, when the administration moved to business premises on Pier 5 (passenger terminal). Part of this building, which makes up 8 percent of the total area, refers to offices leased to Prva Banca, which has been our tenant for many years. The business premises in Belgrade have also not been used for over 20 years," Barska Plovidba said.
Both companies ended in the red in 2024
It is certain that the sale of these properties will not be able to patch up the financial difficulties of the two shipping companies.
According to financial data, Crnogortska plovidba ended last year with a loss of 778 thousand euros, while the year before it was in the red by 165.000 euros.
The Ministry of Maritime Affairs states that Crnogorska plovidba generates revenue exclusively based on the lease agreements for two ships "Kotor" and "Dvadeset prvi maj" and that during the last quarter (October-December) of 2024, a decline in freight rates was recorded on the global market, whereby Crnogorska plovidba, within the planned timeframe, failed to conclude new long-term lease agreements for ships, which would ensure stable income and smooth operational functioning.
"Given that the conclusion of new contracts is expected in August 2025, and that the negotiation of higher freight rates has been missed, Crnogorska plovidba is facing the problem of maintaining current liquidity. The inability to secure the funds necessary for the operational functioning of the company may have unforeseeable consequences for its status and assets," the Ministry of Maritime Affairs stated.
The account of Crnogorska plovidba, as shown by yesterday's data from the Central Bank, is still blocked due to a debt of around 355 thousand euros. The account was blocked by Prva Banka due to a debt based on a loan that the company has.
Crnogorska plovidba's unallocated loss from previous years, as shown in last year's business report, reached 14,73 million euros, and Barska plovidba's 15,31 million. Barska plovidba ended last year with a loss of 238 thousand euros, while the year before it was in the red by 145,9 thousand, according to business reports.
"Given that freight rates in the first quarter of 2025, in the amount of 11.500 USD/day per ship (less brokerage commission/commission), are significantly higher than the freight rates in the first quarter of 2024, when they were 10.500 USD/day per ship (less brokerage commission/commission), it is expected that the business result in the first quarter of the current year will be significantly better than the results from the same period last year, not only due to freight rates, but also due to the rationalization of operating costs," said Bar Shipping.
The Bar-based company justifies last year's negative result by saying that it was mostly negative due to negative exchange rate differences and the dollar-euro ratio, which the company cannot influence, and due to the mandatory ship overhaul, for which around two million euros were spent, as well as the failure to generate revenue during the period when the ships were under repair.
Barska plovidba owes China's Exim Bank 26,87 million dollars on a loan for purchased boats. The next installment of 1,79 million is due at the end of July.
Daily charter of Barska plovidba boats $11.500 per day
Barska plovidba has two boats that are currently rented from the company "Norden" from Denmark.
"Both ships are chartered at a charter rate of $11.500 per day/per ship less 5 percent brokerage/commission. The ships are currently chartered for a period of 10-12 months. The charterer is one of the most reputable shipping companies 'Norden' from Denmark."
Part of the facility in Bar, which makes up 8 percent of the total area, refers to offices leased to Prva Banka, which has been our tenant for many years, they say in Barska Plovidba.
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