Arab wave arrives against the will of workers: Ministry claims there is no concession or sale of ports to a company from the UAE

Two unions of the "Port of Bar" assessed that this was a silent sale, after Minister Filip Radulović signed a memorandum of understanding with the Arab company

The Ministry emphasizes that workers have no reason to worry and that this is a legally non-binding document.

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Signed the Memorandum at the beginning of the month: Filip Radulović, Photo: Luka Zeković
Signed the Memorandum at the beginning of the month: Filip Radulović, Photo: Luka Zeković
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

Memorandum of Understanding with “Abu Dhabi Ports Company” which is the Minister of Maritime Affairs Filip Radulović signed at the beginning of the month has worried the workers of "Port of Bar", who claim that it is a "back door sale", while the government department says that it is not a change of ownership or a concession, but a "legally non-binding document".

After Radulović prepared and the Government adopted in March a Memorandum of Understanding with the Arab investor "Faminas Investment Group", which defines a series of conditions in the event of the purchase of 22 percent of the shares of "Barska Plovidba", a new memorandum with another Arab company, "Abu Dhabi Ports Company", came next, and relates to two ports, Bar and Kotor.

This document envisages a joint review of the potential for improving the "Port of Bar", the development of supporting infrastructure and digital solutions, as well as the possibility of cooperation with the "Port of Kotor", with full respect for state interests and existing ownership structures.

Abu Dhabi Ports Company (AD Ports Group) is a large state-owned logistics and port company in the United Arab Emirates (UAE) that operates ports, terminals, free zones and transportation networks. It is owned by the Abu Dhabi Investment Fund and is considered one of the UAE's key state infrastructure systems.

The Memorandum of Understanding (MoU), as stated in the information for the Government, recognizes the potential benefits of joint cooperation on projects for the modernization and expansion of the "Port of Bar", the development of supporting port infrastructure, including a free economic zone, railway and digital solutions in Montenegro, as well as the possibility of cooperation regarding the management of the "Port of Kotor" Cruise Terminal, in cooperation with the Municipality of Kotor as the majority owner of the port.

The purpose of the document, Radulović's department stated, is to facilitate cooperation between the parties and establish a framework for closer cooperation and exchange of information in areas of mutual interest.

The memorandum does not regulate the implementation of a specific investment project, they added, but rather "establishes a framework for future discussions, analyses, information exchange, conducting studies, and considering potential development and investment opportunities."

In the part of the memorandum relating to cooperation, it is stated that it will be established with the aim of designing joint projects and programs in accordance with the cooperation strategies adopted by the political authorities of their countries, providing, on a mutual basis, technical assistance in areas that can be identified and agreed upon, and facilitating the coordination and efficient implementation of joint activities, in order to avoid duplication of efforts.

The government and the UAE company will also form a working group that will work together to implement the memorandum.

Workers concerned about rights

After information emerged that Radulović had signed this agreement with a company from the UAE, two unions of workers from AD "Luka Bar" reacted and expressed serious concern regarding the announcements that the future is being considered through talks with the company "Abu Dhabi Ports".

They said that it is unacceptable that decisions on strategic state infrastructure are made without a full public debate, without guarantees for employees, and without the real involvement of unions.

"We reject the fact that the future of the 'Port of Bar' is being negotiated behind closed doors, through memoranda, negotiations and arrangements about which employees and the public do not have enough information," said the two unions, adding that they are particularly concerned by the fact that a company backed by foreign state capital is emerging as a potential partner.

They state that this means that the "Port of Bar" is practically not being placed under the control of an "ordinary" investor, but under the influence and control of another state, with its own economic, logistical and geopolitical interests. Such an approach is unacceptable to them, they said, and assessed that it is a path to a backdoor sale, and as an additional reason for caution, they cited the system from which the potential partner comes.

For employees of "Luka Bar", as they stated, it is not unimportant whether a strategic partner comes from a country where trade union organizing, collective bargaining and social dialogue are protected, or from a system in which trade union freedoms are "seriously limited".

They also said that putting the "Port of Bar" in a situation where a foreign investor is presented as the only salvation means an admission that the state has not done its job, and that the Port of Bar must remain under state administration.

Therefore, they stressed, they demand that representatives of employees and representative unions at "Port of Bar" be included in all further discussions about the future of the company, as well as that all documents, analyses, assessments, memoranda and possible models of cooperation be made available to the public.

"Development is not a threat"

When asked by "Vijesti" whether the Ministry of Maritime Affairs (MPO) can guarantee workers safety in the process of cooperation with "Abu Dhabi Ports" and that it will not lead to a sale, they replied that "they should not view the possible development of the company as a threat, but as an opportunity to strengthen business, increase the volume of transshipment, improve port capacities and better position the 'Port of Bar' in regional and international logistics flows."

Putting the unused potential of the "Port of Bar" into operation could mean more activities, more jobs, a stronger company, and more stable conditions for employees in the long term, they assessed.

Commenting on the concerns of the unions of the majority state-owned company, they said that they consider each appeal with special care:

"We understand the union's need to protect the rights and interests of employees, but we consider it important that the issue of the strategic development of the 'Port of Bar' is viewed objectively, in full context and based on the actual legal nature of the signed document. The Memorandum of Understanding... is not a document that decides on a change of ownership, concession, sale, transfer of management or any form of state dispossession of the Port of Bar," they told the newspaper.

They state that this is a legally non-binding document that opens up the possibility of exchanging information, conducting analyses and examining potential models of cooperation, with the aim of better valorizing the development potential of the "Port of Bar".

When asked how they would comment on the workers' allegations and why they had not included them in the discussions, they responded that the memorandum does not decide on strategic state infrastructure, nor does it make any decisions about status, ownership, concession or management, but that they will invite the workers if the projects are finalized.

"The signed MoU represents exclusively a framework for possible cooperation, exchange of information, conducting analyses and considering potential development and investment opportunities in the coming period. If any project is to be implemented in the coming period, this process will have to be conducted in accordance with the laws of Montenegro, with the involvement of all competent institutions and relevant stakeholders."

Although the Memorandum states the possibility of investing and implementing joint projects, the MPO said that it does not define specific investments, implementation deadlines, financial obligations, or individual projects.

"It opens up the possibility of examining potential cooperation in the coming period in areas related to the modernization, development, management and expansion of the 'Port of Bar', the development of supporting port infrastructure, a free economic zone, railway and digital solutions, as well as the possibility of cooperation regarding the 'Port of Kotor' cruise terminal."

We talked to Jokic, not Pjescic.

From the answer to the question of "Vijesti" whether the Ministry of Maritime Affairs had spoken with the management of "Port of Kotor" and "Port of Bar" regarding the memorandum, it follows that they communicated with the President of the Municipality of Kotor, Vladimir Jokić, but not with the director of "Port of Bar" Ilija Pješčić.

As they stated, communication with entities from the port system exists continuously, in accordance with the Ministry's responsibilities and the importance that ports have for overall maritime and economic development.

When it comes to "Port of Bar", they reiterated that it is a legally non-binding Memorandum of Understanding, which represents the initial framework for possible cooperation.

On the other hand, when it comes to the "Port of Kotor", the MPO says that there was communication between Jokić's cabinet and the relevant departments, "taking into account the fact that the Municipality of Kotor is the majority owner of AD 'Port of Kotor'". Precisely because of such an ownership structure, they told the editorial office, any possible further consideration of the issue would have to be conducted in cooperation with the Municipality of Kotor and in accordance with the responsibilities of the company's bodies and applicable regulations.

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