The Railway Agency was officially established on January 7, while it will become a full-fledged railway market regulator only after internal organization, hiring of employees, council members and directors. On the same day, the former controller of this sector, the Railway Administration, was officially closed down, with ten employees taken over by the Ministry of Transport, while its operations, cases, archives, documentation, premises and equipment will be transferred to the Agency on the day of its commencement of operations.
The new regulator will also receive a loan from the state treasury to start operations.
This was officially told to "Vijesti" by the Directorate for Railway Transport of the Ministry of Transport.
The establishment of the Agency is envisaged by the Law on Railways, which was adopted by the Parliament at the end of July last year, and is necessary for the purpose of further harmonization of domestic legislation with European Union (EU) legislation, i.e. regulation of conditions and methods of managing railway infrastructure and transport, as well as taking steps and conditions to fulfill two of the four final benchmarks for closing negotiation chapter 14 (transport policy). The headquarters of this company will be in Podgorica, it will have a director and a council of three members, while it will be financed by fees from railway companies, issuing licenses, approvals...
According to the new Law, the Government will sign five-year contracts with companies that want to engage in the railway business, while the Agency will issue them licenses.
"Pursuant to the Decision on the Establishment of the Railway Agency adopted by the Government on December 31, 2025, which entered into force on January 7, the Agency takes over all tasks, objects, archives, documentation, premises, equipment, working tools and other tangible and intangible assets that were previously used by the Railway Administration. Pursuant to the Regulation on Amendments to the Regulation on the Method of Work and Organization of State Administration adopted by the Government at the same session, as of January 8, the Ministry of Transport will take over civil servants and state employees employed in the Administration from the Administration. The Ministry is obliged to adopt an act on internal organization and systematization within 30 days of the abolition of the Railway Administration. Ten employees were employed in the Administration. The Ministry, in cooperation with the European Bank for Reconstruction and Development (EBRD), prepared requests for long-term support and strengthening of the administrative capacities of the Agency," the Directorate said.
According to the Government Regulation, employees who are not assigned by the Ministry of Transport through internal organization and systematization will exercise their rights in accordance with the regulations on civil servants and state employees.
When asked about the salaries of employees at the Agency, the Directorate stated that salaries, internal organization and other issues regarding the work of this body will be defined by the statute, the act on organization and systematization, and that workers, council members and directors will be hired based on competitions and advertisements.
The Directorate did not clarify how many and what kind of premises will be taken over from the former Administration, nor their square footage, but they stated that until the Agency begins generating its own revenues, it will receive a loan from the state treasury. It will receive that money through a loan agreement with the Ministry of Transport, which will prescribe the method and deadlines for its repayment.
"In addition to budgetary funds, the Agency will also be financed through revenues generated within its activities in the form of fees for issuing licenses, certificates and approvals, as stated in the Law on Railways. Since the Agency will have the status of a legal entity, all revenues of the Agency will be realized through the account of that body. However, due to the small market, these revenues are not sufficient for the independent functioning of the Agency, which is why additional funds must be provided through a loan. An increase in revenues for both the Agency and the railway companies can only be expected after all initiated projects for the modernization of infrastructure are implemented, with investments in the infrastructure capacities of the Port of Bar, with the opening of the market envisaged by the proposal of the new Law on Railways, which will ultimately lead to the improvement of the operation of the entire railway system and an increase in the number of new operators," the Directorate emphasized.
The Agency's full functionality, they say, will only be achieved after the announcement of the competition and the announcement. They emphasized that according to the Directive on the Single Railway Market, the regulator's decisions can only be subject to judicial review, while under the previous Railway Law, they were in contradiction with that EU regulation - because the Agency's decisions were subject to review by the Ministry of Transport, as a second-instance body.
The Directorate for Railway Transport stated that the independence of the regulator stems from the obligation to harmonize national with European regulations, and in particular from activities related to final benchmark 2, negotiating chapter 14, that Montenegro must provide a competent, independent and efficient railway regulatory body and safety authority, in compliance with EU safety and interoperability standards.
They also claim that by establishing the Agency as an independent regulator, clear procedures will be established for non-discriminatory access to the railway market for all operators, and through the issuance of approval for the safety management system and control of procedures, in parallel with improving the safety of the organization of this transport of passengers and goods.
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