The Railway Transport of Montenegro operated positively in 2021, with an increase in revenue compared to the previous period.
The Railway Transport of Montenegro operated positively in 2021, with an increase in revenue compared to the previous period. There was a significant increase in ticket sales revenue in both local and international passenger transport, while responsible management policies resulted in expenses being only 3% higher than in 2020, which were associated with a greater volume of passenger transport and achieved train kilometres. During 2021, 554,772 passengers were transported and 10,257 trains were launched. Significant overhauls of rolling stock were also carried out for the needs of passenger transport in both local and international traffic.
The results achieved in 2021, as well as the trend of increasing passenger numbers in the first quarter of 2022, suggest another excellent tourist season.
The Railway Transport of Montenegro concluded the business year 2021 with a positive financial result. A profit before tax of €873,003 was achieved, representing an increase of 27% compared to the business result in 2020.
The dominant influence on this financial result was the increase in revenue, which amounted to €9.46 million in 2021. Revenue from sales for the previous 12 months was €2.26 million. In local traffic, ticket sales revenue amounted to €1.06 million, representing an increase of 26% compared to 2020, while in international traffic, revenue amounted to €1.02 million, which is significantly higher than in 2020 when it was only €212,148.
The structure of other revenues is predominantly composed of inflows based on the Agreement on the Obligation to Provide Passenger Transport Services of Public Interest, where state compensation for 2021 amounted to €5.81 million, which is 8% less than in 2020. In terms of other inflows from the state budget, two instalments based on the EBRD loan for the purchase of trains from 2013 were recorded, amounting to €1.18 million. During 2021, 554,772 passengers were transported and 10,257 trains were launched.
The results achieved in 2021, as well as the trend of increasing passenger numbers in the first quarter of 2022, suggest another excellent tourist season.
The responsible management policy on the expenditure side of the company also influenced the achieved business result. In the previous year, expenses amounted to €8.58 million, which is only 3% higher than in 2020, bearing in mind that there was a greater volume of passenger transport, a higher number of trains launched, and achieved train kilometres.
€4 million was allocated for wage costs, which are at the same level as in 2020. As of 31.12.2021, the company has 376 employees, with an average net salary of €501. Thus, in the previous year, a restrictive personnel policy was implemented, where the majority of organisational activities were realised from the existing human resources of the company.
Material and service costs amounted to €2.1 million and were on average 12% higher than in the comparative period of the previous year. Depreciation and provisioning costs amounted to €1.85 million, representing a decrease of 9% compared to the business year 2020. Intangible costs amounted to €399,444, of which the largest portion was for insurance costs of rolling stock and passengers, amounting to €150,000, which is 15% less than in the previous year, while the costs of executed court decisions amounted to €44,213 and were 16% lower than in 2020. In total expenses, other operating expenses, financial expenses based on interest, asset adjustments, etc., have a smaller share.
During 2021, significant overhauls of sleeping, couchette, and seating passenger carriages were carried out for the needs of international transport on the Bar - Belgrade – Bar route, as well as the overhaul of an electric multiple unit for local passenger traffic on the Bar - Bijelo Polje – Bar route, with a total value of €1.15 million.
In anticipation of the summer tourist season, the overhaul of another 5 passenger carriages is expected.
In order to better prepare for the upcoming summer tourist season, in addition to regular departures, we also offer special tourist and agency trains on all routes for the organisation of activities related to the transport of passengers to organised cultural events, as well as transport of passengers to attractive tourist destinations located near the railway.
Additionally, promotional ticket prices are currently available on the Podgorica – Nikšić route, as well as special discounts for transporting bicycles for all cycling enthusiasts, along with a set of commercial discounts for children, individuals under 26 years with EURO<26, ISIC, ITIC, IYTC, ETC, EYCA identification, holders of RAIL+ identification, individuals over 60 years, as well as for members of certain professional and sports associations.
During 2021, there were no major extraordinary events or train cancellations caused by our company’s fault. Due to works on the track and the rehabilitation of certain sections, alternative passenger transport was duly engaged in cases of interruptions in railway traffic.
The Railway Transport of Montenegro will continue to work constantly on improving services to ensure the satisfaction of our service users.