Confidence in rail transport is growing, with revenues from local and international traffic in September 2023 being 22% higher compared to revenues from September 2019.
Rail Transport of Montenegro AD Podgorica, as a public interest company, despite constantly facing challenges and issues, as well as the negative image created in the public by dissatisfied individuals in correlation with certain media, improves its operations year after year, as evidenced by official business and operational data. With the Board of Directors, which includes the Chairman Marko Bertanjoli and Board members Miralem Redžepagić, Mirsad Veliu, Dragoljub Radošević, and Željko Miladinović, along with the Executive Director Ilinka Pavićević, significant results have been achieved through their dedication, commitment, and professionalism. Another successful tourist season has been realised, along with numerous investment projects. A Collective Agreement has been signed and a systematisation adopted, which the workers had been waiting for since 2016. Significant projects with foreign markets have been initiated and realised, key urgent and strategic issues for the company's operations have been addressed, and a credit arrangement with EUROFIME in the amount of 2 million euros has also been approved. Furthermore, priority has been placed on significantly reducing accumulated tax liabilities from previous periods, as well as ensuring conditions for the procurement of new rolling stock through a credit arrangement with the EBRD.
The current Board of Directors, in cooperation with management, is working on the refurbishment of as many rolling stock units as possible, prioritising the safety of our passengers, given that ŽPCG is a public interest company and that all available resources must be invested to ensure safe, comfortable, and of course, clean transport in clean trains, which is given great attention. Thus, investments in rolling stock this year have significantly increased compared to the previous year, more than doubling (114%). To be precise, in 2022, investments amounted to 720,905.00 € excluding VAT, while in the current year, investments totalled 1,543,227.00 € excluding VAT. Therefore, this year all investments and repairs of rolling stock that are absolutely necessary for the safety of passenger transport have been completed and cannot and must not be called into question.
Additionally, in light of information previously circulated through the media that Rail Transport is operating at a loss, we wish to emphasise that although as of 30.06.2023, the company was operating at a loss of 155,000 EUR, this was due to the write-off of approximately 290,000.00 EUR of disputed receivables from previous years, which the previous management persistently recorded as an item in the Auditor's report. These disputed receivables arose from maternity leave and sick leave exceeding 60 days that could not be refunded due to statute limitations, all due to accumulated tax debts dating from earlier periods. It is important to highlight that, in accordance with its capabilities, the Company has been settling current taxes and contributions with regular monthly payments over the last four years, as well as through the redirecting of VAT credits to reduce tax and contribution debts, even though the Tax Administration is closing debts based on their age with these payments.
Despite all the challenges we face, we are pleased that confidence in passenger rail transport is growing month by month. Revenues from local and international traffic in September 2023 were 22% higher compared to revenues from September 2019.
In September, ŽPCG transported as many as 87,844 passengers in local and international traffic. This is yet another result of dedicated work and planning for the tourist season, as well as the promotion of our services and the attractiveness of the railway route through Montenegro in foreign markets.
We also consider the full support expressed by EBRD representatives for Rail Transport of Montenegro as a confirmation of successful operations, recognising the professionalism in our work, as well as the importance of procuring new electric multiple units, both in terms of safety and in achieving the full potential of this company in the field of efficient and sustainable public transport and the tourist offer of Montenegro. We hope for further support from the State, which should facilitate this entire process so that we can realise this significant project of procuring new rolling stock as soon as possible. With new rolling stock, conditions would be created for an even richer offer from our company and more departures on all routes. Additionally, it is planned to reintroduce a restaurant car after a long time, and we expect this to be successfully realised by April next year at the latest, so that we are better prepared for the summer tourist season.
All this data confirms that the Board of Directors, together with management, significantly contributes to the successful operation of the company, and this in a very short period, contrary to how it is portrayed in public by dissatisfied individuals employed in this company who obstruct the work process by presenting business documentation to the public out of context or in a distorted context, disseminating malicious and inaccurate information, thereby not only damaging the company's image but also spreading panic among passengers and creating distrust in the safety of rail transport. We would particularly appeal to the media not to follow sensationalist and unverified data, as this harms the credibility of a state company of public significance.
In conclusion, we would like to emphasise once again that we are particularly pleased that the number of transported passengers is increasing month by month, demonstrating that users of our services are not swayed by sensationalist disinformation but are exclusively motivated by the quality of the services provided, giving us the impetus to work even better to justify their trust.