December 11, 2018 - For Montenegrin maritime companies - Crnogorska Plovidba doo and Barska Plovidba doo, it would be the best to merge the capacities into one company, according to the Association of Naval Captains of Montenegro (UPKCG) Kotor.
In the words of the UPKCG Management Board member Janko Milutin, from the market angle, today there is an unimaginable existence of two companies in the majority of state ownership with only two ships each.
"Every shipping company is looking at the costs, and in the example mentioned it would be good to have the capacity to join one company with four vessels. Business costs would be lower. There would be fewer employees in administration jobs. Better offers would be made from insurance, various suppliers, as well as for ship finishing," Milutin told Radio Kotor.
He also points to the importance of professionalism when it comes to relationships between the company and the ship. "Of course, this is not all that easy in these cases. Business management is not simply because they work with people they know, with whom they live in the same city. However, professionalism and cost savings are the goals that shouldn't have any alternative. The market is alive, and I hope to have a better financial effect for both companies," Milutin said.
He reminded that the UPKCG talked to the Montenegrin Chamber of Commerce before building the ships of the mentioned maritime companies. "It is a good opportunity now that the seafarers' Union starts something in this respect. There are very few countries that have their own state-owned company, which has its fleet with bulk carrier ships like Montenegro. Maybe we are the only one," said Milutin.
He believes that Montenegrin seafarers, who have accumulated a certain amount of capital, or with the help of banks or funds, may have emerged as owners of maritime companies because it is a job they know to work. Milutin is sure to know he is running it.
"We should not expect that the state buys new ships in the business development goal. I think it is primarily about sailors and people who have an economic interest," Milutin said.
The founder of Crnogorska Plovidba doo is the Government of Montenegro - Ministry of Maritime Affairs and Transport, which provides every kind of support and has complete control over the company's activities. The maritime company owns the cargo ships "Kotor" and "21. Maj" of 35,000 tones. The government holds a majority of the company's share - 99.97%, while the Employment Bureau of the Ministry of Labor and Social Welfare has a residual of 0.03%.
Barska Plovidba doo in the cargo segment has the ships "Bar" and "Budva,” the bulk carriers a load of 36,000 metric tons. Since the completion of construction in 2014., the ships are time-leasing with the English company Sea Pioneer from London.
"BARSKA Plovidba" currently has the largest share of revenue from these two freight vessels. The smaller part comes from the contract with the company "Jadrolinija" from Rijeka based on the maintenance of the Bar-Bari line. Due to shortage and technical malfunction, two years ago, the Barska Plovidba’s ship Sveti Stefan II was withdrawn from the front. The company is negotiating to buy a new ship for the transport of passengers on the only Montenegrin international maritime line.
