Infrastructure - The Base of Economic Development

2019

Infrastructure

The Base Of Economic Development

Zorana Mihajlović Ph.D., Serbian Deputy Prime Minister and Minister of Construction, Transport and Infrastructure ● Miodrag Poledica, State Secretary at the Ministry of Construction, Transport and Infrastructure ● Lazar Radaković, Assistant Minister of Construction, Transport and Infrastructure, for Railways and Intermodal Transport ● Zoran Ilić, Assistant Minister of Construction, Transport and Infrastructure ● Veljko Kovačević Ph.D., Assistant Minister of Construction, Transport and Infrastructure for Inland Water Transport ● Jovanka Atanacković, Assistant Minister of Construction, Transport and Infrastructure for Construction ● Zoran Lakićević, State Secretary at the Ministry of Construction, Transport and Infrastructure ● Zvonimir Marković, Director of Srbija Autoput ● Nenad Tomić, Director of the Highway Institute ● Jugoslav Jović, Director, “Serbia Voz” ● Miroljub Jevtić, Director General, Serbian Railways Infrastructure ● Dušan Garibović, Director of Srbija Kargo (Serbia Cargo) ● Saša Milenković MSc., GEOURB Group General Manager ● Stojan Rangelov, Director, Putevi Ivanjica ● Mirjana Čizmarov, Director of the Civil Aviation Directorate, and Predrag Jovanović, Director of the Serbia and Montenegro Air Traffic Services (smatsa) ● Danka Selić, General Manager of the Belgrade Fair ● Olga Đurić Perić, Director of Asmec Consultants d.o.o. (Ltd.) ● Dragan Gavrilović, General Manager, Sika Serbia d.o.o. (llc) ● Mića Mićić, CEO of Construction Company MPP Jedinstvo Sevojno A.D. (JSC), Sevojno ● Milun Todorović, Mayor of the City of Čačak ● Darko Bulatović, Mayor of the City of Niš ● Dušanka Golubović, Mayor of the City of Sombor ● Bogdan Laban, Mayor of the City of Subotica ● Vladica Dimitrov, President of the Municipality of Dimitrovgrad ● Nihat Biševac, Mayor of the City of Novi Pazar ● Vidoje Petrović, Mayor of the City of Loznica ● Dr Predrag Terzić, Mayor of the City of Kraljevo ● Čedomir Janjić, Mayor of the City of Zrenjanin ● Nikola Nikolić, President of the Municipality of Despotovac ● Slađan Mančić, President of the Municipality of Ruma ● Damjan Miljanić, President of the Municipality of Kula ● Vladan Kocić, President of the Belgrade Municipality of Rakovica ● Stana Đember, President of the Municipality of Čoka ● Miroslav Nikolić, President of the Municipality of Knić ● Dr Nebojša Marjanović, President of the Municipality of Boljevac ● Goran Miljković, President of the Municipality of Bela Palanka ● Milorad Milinković, President of the Municipality of Vladimirci ● Boban Janković, President of the Municipality of Mionica ● Saša Jovanović, President of the Municipality of Merošina ● Nenad Beserovac, President of the Municipality of Bogatić ● Kenan Hot, President of the Municipality of Tutin ● Dragan Tošić, President of the Municipality of Bečej ● Nenad Krstić, President of the Municipality of Trgovište ● Nebojša Nenadović, President of the Municipality of Bojnik ● Marija Cvetković, President of the Municipality of Gadžin Han ● Boban Miličić, President of the Municipality of Lapovo

INFRASTRUCTURE

24 06

TURNING POINT FOR SERBIAN INFRASTRUCTURE

NEW FACE OF SERBIAN RAILWAYS

LAZAR RADAKOVIĆ, ASSISTANT MINISTER OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE, FOR RAILWAYS AND INTERMODAL TRANSPORT

ZORANA MIHAJLOVIĆ PH.D., SERBIAN DEPUTY PRIME MINISTER AND MINISTER OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE

38

SAFE SKIES ARE OUR PRIORITY

12 CONTENT

28

PASSENGERS ARE RETURNING TO THE RAILWAYS

JUGOSLAV JOVIĆ, DIRECTOR, “SERBIA VOZ”

DANKA SELIĆ, GENERAL MANAGER OF THE BELGRADE FAIR

42

SERBIA WILL HAVE THE REGION’S MOST MODERN PORTS

VELJKO KOVAČEVIĆ PH.D., ASSISTANT MINISTER OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE FOR INLAND WATER TRANSPORT

16

OUR HIGHWAYS ARE SAFE

ZVONIMIR MARKOVIĆ, DIRECTOR OF SRBIJA AUTOPUT

34

WE’RE CONTINUING INVESTMENTS IN AIRPORTS

58

WE HAVE ALWAYS BEEN BUILDING THE FUTURE

JOVANKA ATANACKOVIĆ, ASSISTANT MINISTER OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE FOR CONSTRUCTION

MIRJANA ČIZMAROV, DIRECTOR OF THE CIVIL AVIATION DIRECTORATE, AND PREDRAG JOVANOVIĆ, DIRECTOR OF THE SERBIA AND MONTENEGRO AIR TRAFFIC SERVICES (SMATSA)

NEW INVESTMENT CYCLE = NEW DEVELOPMENT OPPORTUNITY

MIODRAG POLEDICA, STATE SECRETARY AT THE MINISTRY OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE

52

CONSTRUCTION DRIVES ECONOMIC GROWTH

46

64

INVESTMENTS IN UTILITY INFRASTRUCTURE FOR SECURE WATER SUPPLIES AND A HEALTHY ENVIRONMENT

ZORAN LAKIĆEVIĆ, STATE SECRETARY AT THE MINISTRY OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE

PORTS GENERATE GROWTH

VUK PEROVIĆ, DIRECTOR OF THE PORT GOVERNANCE AGENCY

ZORAN ILIĆ, ASSISTANT MINISTER OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE

EDITOR IN CHIEF: Miroslava Nešić-Bikić m.bikic@aim.rs DESIGNER: Jasmina Laković EDITORIAL MANAGER: Neda Lukić n.lukic@aim.rs PHOTOS: Zoran Petrović COPY EDITOR: Mark Pullen

4

TRANSLATION & EDITING MRP EDITORIAL Halifax Translation Services SALES MANAGERS: Biljana Dević, b.devic@aim.rs Nataša Trifunović, n.trifunovic@aim.rs Vesna Vukajlović, v.vukajlovic@aim.rs Mihailo Čučković m.cuckovic@aim.rs

OFFICE MANAGER: Svetlana Petrović s.petrovic@aim.rs FINANCE: Dragana Skrobonja finance@aim.rs GENERAL MANAGER: Maja Vidaković m.vidakovic@aim.rs PUBLISHER: Ivan Novčić i.novcic@aim.rs

DIRECTOR: Ana Novčić a.novcic@aim.rs a.novcic@cordmagazine.com INFRASTRUCTURE THE BASE OF ECONOMIC DEVELOPMENT Published by: alliance international media Makenzijeva 67, 11111 Belgrade 17, PAK 126909, Serbia Phone: +(381 11) 2450 508

Fascimile:+(381 11) 2450 122 E-mail: office@aim.rs; office@cordmagazine.com www.aim.rs; www.cordmagazine.com No 13; ISSN: 2560-4465 All rights reserved alliance international media 2019 THIS PUBLICATION IS FREE OF CHARGE The views expressed in this publication are those of

the presenter; they do not necessary reflect the view of publications published by alliance international media

INFRASTRUCTURE

ZORANA MIHAJLOVIĆ PH.D. SERBIAN DEPUTY PRIME MINISTER AND MINISTER OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE

Turning Point For

Serbian Infrastructure INTERVIEWS

The Government of Serbia is launching a new cycle of investment in infrastructure in 2019 that's worth more than five billion euros. Investing in new road, rail, water and air transport projects will strengthen Serbia's position as a transport hub of the region, placing the construction sector as the bearer of the country's economic growth and development

6

T

THE DEVELOPMENT OF INFRASTRUCTURE AND A NEW INVESTMENT CYCLE

his year, and the new investment cycle that we’re launching within it, in many ways represents a turning point for Serbian infrastructure. It is a turning point due to the fact that it creates a clear distinction between the past and that which remains behind us and that which is ahead of us and will mark the years and decades to come. In 2019 we are finally putting an end to the problems of the unfinished Corridor 10, neglected rail tracks and unreformed railway companies, as well as road maintenance contracts that are more than 20 years old, just as we have already done with the many years of waiting for construction permits and the formerly unregulated and inefficient real estate register.

We dealt with inherited projects and problems in the previous period, fighting to overcome lost time and returning to the chances that were missed due to insufficient investment and the lack of a clear strategy. Over the past four years we’ve asphalted almost 300 km of highways, including sections of Corridor 10 and Corridor 11, which have been completed and will be released for traffic in 2019. Thanks to this, a total of 53.7 million vehicles used our highways in 2018, which is almost 20 million more than in 2013. We have also renovated more than 500 km of rail tracks, on both national and regional routes, and procured 48 new trains.

In the construction sector, a completely new legal framework has been created, while Serbia is now competing on the issuance of building permits in the World Bank’s Doing Business Index with the world’s most developed countries. Our regulations in the field of road, rail, air and water transport are harmonised with European regulations and we’ve already achieved European standards as a country in certain areas of transport. After a break of many years, construction is again the driver of economic growth, with the value of the works having increased from 190 billion dinars in 2013 to 332 billion dinars in 2018.

Thanks to everything that has been done – and here I’ve only

INFRASTRUCTURE

mentioned one part – Serbia is starting from a better position in the new investment cycle than in 2014. We are entering into new investments with an arranged system for project management, great experience in solving problems, but also with trust having been built in us implementing that which we’ve promised to implement. This obliges us to continue realising projects with maximum efficiency in the future, and to do everything to make construction and transport the drivers of the development of business and Serbia’s economic growth for many years to come.

MODERN HIGHWAYS, EFFICIENT RAILWAYS The launch of the new investment cycle should lead to Serbia connecting with its neighbours and enable the country to position itself as a transport hub in all areas of transport.

The start of the construction season will mark the beginning of works on the Corridor 11 highway, from Preljina to Požega. We will invest 450 million euros in the construction of this road, which is being built by Chinese company ‘China Communications Construction Company’. This section, covering a distance of 30.9km, will continue with 120 kilometres of highway towards Montenegro, from Surčin to Obrenovac, which will be completed by year’s end.

We plan to launch construction of the first section of the Belgrade-Sarajevo highway in June, from Sremska Rača to Kuzmin, covering a length of around 17 kilometres and worth 225 million euros. This is the first highway that will connect Serbia directly with Bosnia-Herzegovina and Republika Srpska.

We’re also planning to commence works on two other projects in 2019: construction of the Ruma-Šabac-Loznica highway and high-speed road link, covering a total distance of around 80 km long, and construction of the Moravian Corridor. This corridor, in the form of a highway from Pojate to Preljina, will connect Corridor 10 and Corridor 11 via part of central Serbia that’s home to around 500,000 people. For this project, we will for the first time – after European, Chinese, Russian, Turkish and Azerbaijani companies – also engage an American company, Bechtel. The value of this project has been confirmed at a total of 800 million euros. Furthermore, we’re also preparing to launch construction of the first section of the Niš-Merdare-Priština Highway, from Niš to Pločnik, covering a length of 33 kilometres and valued at 212 million euros, which will be financed using EU grants and loans from European banks.

In the area of railways, the goal is to modernise the complete rail route of Corridor 10. This will imply the completion of works on two sections of the Belgrade-Budapest highway, from Belgrade to Novi Sad, and the construction of a third section, from Novi Sad to Subotica, for which a commercial contract worth 1.1 billion U.S. Dollars has been signed.

Alongside the modernisation of rail tracks from Niš to Dimitrovgrad, in a project worth 268 million euros that will be commenced this year, it is also essential in the next few years

that we complete the renewal of the as-yet-unreconstructed sections of rail routes from Belgrade to Niš and Niš to Preševo.

With the establishing of an efficient rail link between Southern and Central Europe, i.e. between the Port of Piraeus and Budapest, via Serbia, our country will become an unavoidable part of the European transport network, but also part of China’s global “One Belt One Road” initiative and an important corridor for the movement of goods in both directions between China and Europe.

During 2019 we’re also launching preparations of project and technical documentation for the unreconstructed section of the Belgrade-Bar railroad, covering a distance of 270km, as well as construction of a new railway dispatch centre, which will enable safer rail transport that’s more reliable and more efficient.

INVESTMENTS IN PORTS AND AIRPORTS Air traffic has undergone tremendous changes over the last few years, which are primarily reflected in the accelerated development of two international airports.

The Belgrade Airport has increased the number of passengers handled between 2013 and 2018 from 3.5 to 5.6 million passengers, which ranks it among Europe’s fastest growing airports. State investments in the Niš airport prompted interest among commercial airlines, thanks to which the Niš airport had exceeded a total of 350,000 passengers served by 2018, while in 2014 it had served just over a thousand travellers.

With the concession for Nikola Tesla Airport, we’ve secured the major investments that were essential to the further development of this Belgrade airport – more than 700 million euros over the next five years. However, the state will direct its resources towards the development of small airports. Alongside the continuation of investments in Constantine the Great Airport in Niš, the focus in 2019 will be on launching the work of the Morava Airport, which is set to become Serbia’s third international airport. In the first phase of works at this airport, until June 2019, 8.5 million euros

In 2019 we are finally putting an end to the problems of the unfinished Corridor 10, neglected rail tracks and unreformed railway companies, as well as road maintenance contracts that are more than 20 years old

7

INFRASTRUCTURE

will be invested, in order for this airport to be ready to receive its first planes as of June. In the next phase there are plans to construct a special cargo logistics terminal, which is important for all investors in the three regional districts of Raška, Morava and Šumadija, which have a combined population of more than 800,000 residents. After a break of several decades, investments in water transport infrastructure have not been neglected this time, but rather represent an integral part of the new investment cycle, together with investment in roads and railways. More than 200 million euros will be invested in organising the navigable waterways of the rivers Sava and Danube by 2023, including the reconstruction of ship locks at the Đerdap 1 and Đerdap 2 hydro-

electric power plants and construction of a new terminal at the Port of Smederevo.

In addition to this, plans also include the construction of a new port in Belgrade and the extension of the existing port in Sremska Mitrovica, which will enable further growth in the volume of freight transported by water and utilisation of the Danube’s full potential.

With the completion of the road sections of Corridor 10, the launch of a new investment cycle in physical barriers is also slowly being left behind.

However, we cannot feel the full effects of these investments if haulage vehicles or trains are forced to wait five, 10 or 15 hours at borders. This is why it’s important to work in parallel on the removal of non-physical barriers that represent significant barriers to the growth of GDP in the region and economic development as a whole, because they partly cancel out the positive effects of investments in infrastructure.

With individual countries of the region, primarily North Macedonia and Bosnia-Herzegovina, the construction of unique border crossings on rail routes, according to the “one-stop-shop” system, has already been initiated at the bilateral level. The removal of

non-physical barriers represents an important part of the mission of the Transport Community, headquartered in Belgrade, and an important goal within the scope of the Agenda of connectivity with the EU for the countries of the Western Balkans. Without the removal of non-physical barriers it is difficult to imagine the creation of a unified transport market, which is the aim of the Transport Community, or a regional transport system in which the countries are integrated mutually and with the EU. Considering the significant impact that transport has on the entire society, but also the EU Declaration on Equal Opportunities for Women and Men in the Transport Sector, of which Serbia is a signatory, a comprehensive study on the state of gender equality in the transport sector has been confirmed, with the support of the World Bank. This will form the basis of the first national strategy in this area, with the aim of improving transport services, on the one hand, and, on the other, enabling greater access to employment in this sector for women and creating equal conditions for professional promotion.

CONSTRUCTION DRIVES ECONOMIC GROWTH Everything that’s been done in the area of transport infrastructure construction, along with the creation of a legal framework with favourable conditions for investment, has contributed to the construction sector restoring its position as a driver of GDP growth in 2018 (with growth of 4.4%) and to construction’s contribution to GDP increasing from three per cent in 2013 to 4.7% in 2018.

Testifying to the extent to which reforms have come to life and citizens and investors have recognised what good laws and simplified procedures mean to them is the constant growth in the number of issued building permits, the number of active construction sites, the number of decisions brought on the legalisation of real estate, completed conversions, and reduced times for real estate cadastral registration... Following reform of the real estate register and the unifying of property registrations for citizens to be conducted in only one place, with a public notary, we are launching the new ‘E-space’ reform, which will enable the processing of planning documents to be carried out completely electronically, faster and more transparently. Finally, with the reforms we’re currently implementing, we expect Serbia to advance even further on the list of the World Bank’s Doing Business Index in 2019 compared to last year, when we expected more but found that others were faster than us and implemented more reforms. When we draw a line on progress achieved to date, we see that everything we’ve done in the previous four years represents the foundations on which we are continuing to build. New projects await us, which we are launching with a clear vision and goal, with great experience amassed during the previous period, but also with the same energy and determination that we’ve shown so far in overcoming all the obstacles confronting us on that road.

The launch of the new investment cycle should lead to Serbia connecting with its neighbours and enable the country to position itself as a transport hub in all areas of transport

8

Vrla Bridge

ROAD TRANSPORT

Connecting The Region With Modern Highways

Almost 300 kilometres of highways have been asphalted in Serbia over the past four years, including in the most difficult sections through the Grdelica Gorge on pan-European Corridor 10, while the number of vehicles on highways has increased by 20 million compared to 2013. With the vision of connecting Serbia to all neighbouring countries by motorway, a new investment cycle is being launched in 2019 that will see the construction of the Moravian Corridor, the Belgrade-Sarajevo highway, the Niš-Merdare-Priština highway and a highway and high-speed road links connecting Ruma, Šabac and Loznica.

INFRASTRUCTURE

MIODRAG POLEDICA STATE SECRETARY AT THE MINISTRY OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE

INTERVIEWS

Development of the road network should enable Serbia to connect with all of its neighbours in such a way that travelling to any capital in the region will not take more than three to four hours. In order to achieve the full effect of building new infrastructure, it is also necessary to reduce retention times at border crossings

12

New Investment Cycle = New Development Opportunity

T

he generally accepted and proven basic element for the development of a country and its economy is represented by high-quality infrastructure. The importance of good infrastructure for economic progress, as well as regional and global connectivity, has become an axiom; a postulate that time and again proves itself to be a model of advancement to such an extent that proving it to be such is unnecessary.

The Republic of Serbia, with its appropriate line ministry, applies this model and has been investing intensively and strategically in the development of infrastructure for several years, and consequently in the future of the national economy, which is becoming part of the single European market. The significance of high-quality infrastructure is also reflected in the fact that the accession negotiation process for the European Union defines two negotiating chapters (14 and 21) that relate to this area. The Trans-European Transport Networks (TEN-T) are conceived not only as drivers of integration between member states and their citizens, but also as carriers of greater economic development.

three to four hours. In this sense, Corridor 10 and E-763 (Corridor 11) are the most important transport axes in the country. The length of the Corridor 10 road route through Serbia totals around 820km, with about 810km already included in a full highway profile, while Corridor 11 covers around 150km (Belgrade-PoĹžega), with about 100km already built in a full highway profile. Investments in the highway network have contributed to increasing the number of vehicles, which is growing annually by between six and 15 per cent, and which in 2018 totalled just over 53 million vehicles.

Investing in infrastructure represents a driver of the economy at the moment of project implementation, given that it engages a large workforce, with workers of all structures, and utilises a large amount of raw materials and equipment. It has far-reaching effects, because it accelerates the development of the economy at the local level, enabling the launch of new activities, lowering prices of products, stimulating competition, enabling greater mobility and accessibility to end users, as well as and contributing to increasing citizens’ quality of life.

MORE VEHICLES ON HIGHWAYS With the development of its road network, Serbia aims to connect with all of its neighbours, or with their capital cities, thus fulfilling the criterion of reducing travel times to no longer than

CONNECTING WITH NEIGHBOURS With the completion of the construction of Corridor 10 and part of Corridor 11, and with the significant positive effects of previous investments, Serbia is entering a new investment cycle. The

INFRASTRUCTURE

level of investments planned in road, rail, water and air transport infrastructure is approaching a value of around five billion euros.

Projects are implemented on the core and comprehensive TEN-T network and have both national and regional significance.

An example of one such project that’s expected to start in 2019 is the construction of the Preljina-Požega section of Highway E-763, covering a distance of 30.9km and valued at 450 million euros, which will enable unbroken highway transport from Belgrade to Požega, over a distance of 150km, and will provide the basis for the further construction of the highway towards the Montenegrin border and towards Sarajevo (Bosnia-Herzegovina). Furthermore, a connection with Bosnia-Herzegovina will also be realised via the Sremska Rača border crossing, with the construction of a Kuzmin-Sremska Rača section of the highway (18km), including a bridge across the River Sava, with a total of 225 million euros. A project that’s being implemented with significant resources from EU funds is the construction of the Niš-Pločnik section (about 40 km) of the E-80 Niš-Merdare Highway, worth 212 million euros.

Another important project is the construction of the Moravian Corridor, from Pojate to Preljina, covering a distance of 110km and with an estimated value of around 800 million euros, which connects central parts of Serbia with the two most important road routes, corridors 10 and 11. The construction of this roadway will increase accessibility to municipal centres, economic zones and tourist destinations. Alongside this, bypass roads will be built around major cities in Serbia, with freight traffic redirected away from city centres, thus increasing flows of traffic, enhancing traffic safety and reducing traffic congestion on urban roads and environmental pollution. The construction of the Belgrade Bypass is underway and is of great importance not only for the capital, but also for transit traffic in its entirety, as well as construction of the “Y” section near Subotica.

that also reduces transport costs and, consequently, the price of products for final consumers.

When it comes to the implementing of all infrastructure projects in Serbia, significant attention is devoted to environmental protection, with the applying of various measures aimed at reducing the negative effects of traffic, with the mandatory preparation of an environmental impact assessment study for each individual project.

Alongside direct investments in infrastructure aimed at connecting the region, it is also necessary to pay special attention to the process of improving border crossing procedures. In order to achieve the full effect of building new infrastructure,

Investments in the highway network have contributed to increasing the number of vehicles, which is growing annually by between six and 15 per cent, and which in 2018 totalled just over 53 million vehicles

DEVELOPMENT OF LOGISTICS CENTRES The construction of bypasses around major cities creates a convenient environment for the development of logistics and industrial centres. The development of a logistics zone is planned on an area of almost 70 hectares in close proximity to the future intermodal terminal in Batajnica, which is itself located in the vicinity of the Belgrade road and rail bypasses. A logistics centre is a place where economic activities and independent companies can be grouped together, and as such tenants would include companies and logistics operators that deal with transport, freight forwarding, customs clearances and related services. This enables a more efficient transport process

Total vehicle movements 2014-2018

it is necessary to reduce retention times at border crossings, which represent a significant non-infrastructural limitation.

An aggravating circumstance that slows down the realisation of this goal is the application of rigorous security procedures at border crossings, which make it important to balance the requirements of security procedures at border crossings, on the one hand, and the need for efficient transport (especially of freight), on the other.

Further investments in transport infrastructure will have an additional impact on the creation of favourable conditions for economic growth, and – together with a good combination of credits and grants, and the increased efficiency of companies engaged in the management and maintenance of infrastructure – will enable the creation of a sustainable and reliable transport system.

2014

2015

2016

2017

2018

37,003,692

39,335,582

43,007,812

49,575,588

53,728,279

Source: PE “Putevi Srbije”

13

GLOBAL NEWS

INFRASTRUCTURE

SWEDEN

GERMANY

The Stockholm Bypass

Car Makers To Invest $68bn In Electric And Self-Driving Cars

E4, the Stockholm Bypass, is a new 21km-long road connecting the southern and northern parts of Stockholm County. It is one of the biggest road infrastructure and tunnel projects under development in Sweden.

Being developed by the Swedish Transport Administration (STA), the bypass project will mainly form an outer ring road with Norrortsleden and Tvärförbindelse Södertörn. Construction of this Skr28bn ($3.08bn) project was commenced in 2015 and is expected to be completed in 2026. The new bypass is estimated to serve around 140,000 vehicles a day by 2035.

SINGAPORE

Volvo Unveils World’s First Autonomous Electric Bus Nanyang Technological University, Singapore (NTU Singapore) and Volvo Buses have launched the world’s first full size, autonomous electric bus. The single-deck Volvo Electric bus is 12 metres long and has a full capacity close to 80 passengers.

This is a key milestone in NTU and Volvo’s development programme under the university’s partnership with the Land Transport Authority (LTA) to develop and conduct autonomous vehicle bus trials for fixed route and scheduled services, which was announced in October 2016.

The Volvo 7900 Electric bus is equipped with numerous sensors and navigation controls managed by a comprehensive artificial intelligence (AI) system.

Ensuring maximum safety and reliability, the AI system is also protected with industry-leading cybersecurity measures to prevent unwanted cyber intrusions.

UK

Road Surfaces From Plastic Waste UK-based MacRebur has opened its factory in Lockerbie, Scotland, to recycle plastic waste into material that can be used to build roads and car parking spaces. This facility will see waste plastic granulated and then mixed with an activator, binding the material. The resulting mix is then packed and sent to asphalt producers.

Construction of 1km road with the mix would see approximately 700,000 plastic bottles or 1.8 million single-use plastic bags being used.

Furthermore, the mix enables the bitumen used in asphalt production to be extended and enhanced, decreasing the usage of fossil fuel, reported BBC. The material helps create a strong road surface, which is claimed to last more than 60% longer than normal roads.

14

German car makers have revealed plans to invest more than €60bn in electric and self-driving technologies over the next three years, aimed at increasing the launch of new models three-fold amid and boosting competition.

The announcement was made by German automotive sector industry body VDA ahead of the Geneva Motor Show starting this week.

In a statement, VDA president Bernhard Mattes said: “We will invest over €40bn in electric mobility during the next three years, and another €18bn will be invested in digitisation and connected and automated driving.”

Mattes further said that ‘the ramp-up of electric mobility’ is coming to Europe as regulatory pressure and new competition is forcing the country’s dominant car industry to change.

Growing evidence against carbon emissions from petrol and diesel fuelled-vehicles on climate change have also reduced demand for conventional cars.

INFRASTRUCTURE

NORWAY

Building Submerged-Floating Road Tunnel To Cross Fjord The Government of Norway is planning to construct a submerged-floating road tunnel that will carry traffic though one of the country’s deepest fjords.

The tunnel is part of a project known as Ferry-free E39 that aims to cut the travel time in half. The E39 highway is around 1120km long and connects Trondheim in the north to Kristiansand in the south.

Ferry-free E39 is expected to cost $40bn and includes construction of a number of bridges over the fjords, along with a 27km-long, 400m-deep rock tunnel. Suspended approximately 32m under the water’s surface, the floating tunnel will comprise two tubes. One will be for incoming traffic and the other will be for outgoing vehicles. According to the Norwegian Public Roads Administration, the tubes will be affixed to floating pontoons and be separated by a gap of approximately 256 metres. The Ferry-free E39 project is scheduled to be completed by 2050.

UAE

Moscow Remains World’s Most Congested City

New AI Traffic Signal System Reduces Waiting Time By 47%

Moscow is still the world’s most congested city according to the 2018 Global Traffic Scorecard that is published annually by mobility analytics services provider Inrix, with the company identifying and ranking congestion in more than 200 cities, across 38 countries.

The key findings of Inrix’s annual Traffic

Scorecard provide a quantifiable benchmark for governments and cities across the world to measure their progress to improve urban mobility and track the impact of spending on smart city initiatives. For its latest study, Inrix analyzed 500TB of data from 300 million different sources covering over five million miles of road.

At the global level, Moscow topped the list of the world’s most gridlocked cities, with 210 hours lost due to congestion (when weighting for population), followed by Istanbul (Turkey), Bogota (Colombia), Mexico City and São Paulo (Brazil). Based purely on time lost in congestion, Bogota tops the list at 272 hours.

The report notes the dominance of Latin American cities due to their rapid urbanisation and topographies. Boston was the USA’s only representative in the top 10 most congested cities in the world.

At opening day of Gulf Traffic in Dubai, UAE, Siemens revealed details of a new research project it is working on – Flow AI – which is being developed to set timings of traffic signals at intersections using new artificial intelligence (AI) techniques.

Unlike existing signal optimisation systems, such as SCOOT, which rely on a limited number of engineer-designed timings, which are put into action depending on the traffic flows detected by embedded loops, Flow AI is able to create a virtually limitless number of new timings instantly, using cloud-based AI. This ‘personalised’ aspect differentiates Flow AI from existing signal phase and timing (SPAT) systems, such as SCOOT, which optimise timings across the entire network and must be pre-configured using a set number of possible programs. Flow AI is being built to treat each intersection individually and, it is hoped, will eventually be able to link them all together to create complete network control. Siemens is currently working with Transport fo London to create Future SCOOT. You can read a full report on this project in the October/November 2018 edition of Traffic Technology International magazine.

GLOBAL NEWS

RUSSIA

U.S.

Walmart’s Futuristic WAVE Concept Truck The world’s largest food retailer Walmart has revealed its idea of an efficient semi-truck that would substantially cut emissions caused by road transportation. Actually, they didn’t stop with the tractor and went on to create a full trailer made out of carbon fiber.

Called the WAVE concept, its name stands for Walmart Advanced Vehicle Experiment, and the most striking thing about it is the shape of the cab, as well as the way the interior is set up.

The driver gets a perfectly centred view of the road, thanks to the McLaren F1 driving position, with additional information being supplied exclusively via information screen – there are no physical gauges in sight.

Purely a concept, the WAVE will not spawn a Walmart-branded truck, at least not officially or any time soon, plus it’s very unlikely that it will be deemed financially viable to make an entire trailer out of carbon, even with the reported weight savings of 1,814 kg.

15

INFRASTRUCTURE

BUSINESS

ZVONIMIR MARKOVIĆ, DIRECTOR OF SRBIJA AUTOPUT

Our Highways ARE SAFE Highway construction and maintenance company Srbijaautoput d.o.o. (Ltd.) Belgrade can boast of having both experience and expertise, which makes it an invaluable partner of the state and local governments, but also all citizens who want to quickly and safely reach their destinations

O

ur highly motivated, professional and well-trained workers, who have rich experience, are at your disposal 24 hours a day, 365 days a year, to ensure that all highways are safe. Thoroughness, reliability and expertise are our main characteristics.

reclaiming undergrowth and cutting trees) are just some of the services performed within the scope of preserving the value and functional safety of highways, contributing to the safety of everyone participating in traffic flows.

In the period from 1st November to 31st March, Srbijaautoput has an organised winter service available 24 hours The palette of services you provide is far larger than we, a day, which ensures the safe flow of traffic. Besides the as ordinary people, would think. What are all the things removal of snow and ice from carriageways, winter services you do to ensure the smooth flow of traffic and the safety also include patching corroded impact holes and repairing of all travellers on highways? carriageways.

- Highway construction and mainteIn addition to all of this, we also Srbijaautoput was founded offer highway and road construction nance company Srbijaautoput d.o.o. in 1982 as a public sector and reconstruction services across (Ltd.) Belgrade offers a complete range the territory of Serbia. of summer and winter services to encompany, but it was only sure traffic is unhindered and safety is after its full privatisation, in Has privatisation proven to be the assured on more than 340 kilometres of highways.

April 2006, and subsequent right move for your company? What you gain from it Our five roadway bases for highway significant investments that it did - With privatisation an attempt was maintenance and six auxiliary points, which are activated for the needs of was elevated to a cutting edge made to bring significant investment providing winter services, are at our technological level in terms to the company in order to advance its technological level in terms of its disposal in the immediate vicinity of of its vehicle fleet, machinery vehicle fleet, machinery, equipment highways, in order for us to be able to for work and knowhow, and not only in respond quickly to daily requirements and knowhow the segment of highway maintenance. and tasks.

It should be noted that privatisation led to an increase in Works on repairing damaged road surfaces and other the number of employees in accordance with the growth road elements, cleaning carriageways and other elements of services provided both within the scope of the highway of the road, maintaining and arranging hard shoulders and maintenance sector and beyond. As a company, Srbijaauintersections, cleaning and maintaining ditches, gutters, breakages and other parts of the road drainage system, toput d.o.o. Belgrade has adapted to the requirements of repairs, replacements, additions and renewals of traffic the market and – besides the public administration and signage and equipment and landscaping green areas aspublic enterprises and institutions – is also at the disposal of operators in the free economy, as a competent partner. sociated with roadside land (mowing and planting grass,

16

INFRASTRUCTURE

NENAD TOMIĆ, DIRECTOR OF THE HIGHWAY INSTITUTE

BUSINESS

HIGHWAY INSTITUTE

We're Working FULL STEAM AHEAD The Highway Institute, Institut za puteve, has – thanks to its top experts – spent the past 65 years solving the most complicated tasks in the area of traffic, transport, the road management system, engineering structures, geotechnics, project design, environmental protection etc.

W

e are currently working on the design of original projects for some of the most important roadways in Serbia. We’re aware of their importance and that’s why we’re exerting exceptional efforts to ensure that the projects managed by the state are high quality, notes Highway Institute director Nenad Tomić The Highway Institute is a leading architectural design company that implements serious jobs and, equally importantly, educates young engineers. Do you have enough experts for important infrastructure projects?

- Throughout its history, the Highway Institute has always been able to boast of its staff. Today, alongside a large number of employed experts with engineering profiles, primarily in construction professions, the Highway Institute lacks a certain number of experts - graduate construction engineers, geological and geodetic engineers, as well as specialists in certain areas within the aforementioned professions for the needs of important infrastructure projects. A major problem is represented by the outflow of professionals into branches of foreign companies that are able to provide employees with better financial and other conditions.

- We’re currently completing the preliminary design for the Kadinjača tunnel, preliminary designs for four sections of the Novi Sad - Ruma Highway (Fruška Gora Corridor), the preliminary design for the Šabac-Loznica high-speed road link, the preliminary design for the Ruma-Šabac section of the highway, the development of a preliminary design and main project for the Adrani-Mrčajevci and MrčajevciPreljina sections of Highway E-761 (Moravian Corridor), the preliminary design for the reconstruction of the PazarišteTutin National Road, a project to repair unstable descents and landslides on roads E-80 and E-763.

Standing out as the most demanding projects are the Kadinjača tunnel, the Paragovo section - the Ruma bypass on the Fruška Gora Corridor and the loop junction project for the RumaŠabac Highway.

For the 65 years that we’ve existed, we’ve always endeavoured to be a secure partner, both to bodies of the state administration and to international partners and institutions. And that’s also how we will work in the future

You’ve been engaged in the most important projects over recent years, from Corridor 10 and Corridor 11, to the Fruška Gora Corridor. What is currently in your focus? Could you single out a project as being the most demanding?

The state has created conditions to work and build. How would you assess Minister Mihajlović’s claim that design companies will no longer represent a bottleneck for projects led by the state?

- I see the statement of Deputy Prime Minister Zorana Mihajlović as a clear message for all design companies in Serbia, and especially large companies, whose leaders and managers need to pay particular attention and exert extraordinary efforts in order to ensure that the projects led by the state are of a high quality. From her statement, one can unequivocally conclude that it is extremely important to respect the set deadlines that are defined in contracts.

17

INFRASTRUCTURE

BUSINESS

STOJAN RANGELOV, DIRECTOR, PUTEVI IVANJICA

OUR SYSTEM Is Complete Company 'Putevi d.o.o. (Ltd.) Ivanjica' has spent nearly 60 years working on the construction and maintenance of roads. During that time, its skilled and experienced workers have built thousands of kilometres of roads, cleared many landslides and constructed many bridges

W

e are unique according to our combined system – both safety barriers and fences against noise – which brings significant savings. The bridge systems that we implement don’t transfer the energy of an impact to the bridge structure and, thus, don’t damage it, while they have the highest level of protection,” reveals Putevi Ivanjica’s director, Stojan Rangelov.

concrete bases, a plant for prefabricating concrete elements, all necessary machinery and means of transport, as well as a laboratory for monitoring the quality of asphalt and concrete.

We invest continuously in order to provide our employees with easier and safer work, reduce costs and increase capacities, and now we are awaited by the installing of a new base for asphalt.

Our staff – from mining and construction engineers, to electrical and mechanical engineers and technologists – possesses great experience and expertise. We are also doing a lot on the education of young engineers and other employees, enabling us to overcome the growing problem of a shortage of workers in the construction sector.

Your core area is the construction, reconstruction and maintenance of roads. Where are you currently engaged?

- What sets us apart from others is that we work in difficult hillymountainous conditions, at elevation exceedThe greatest advantage of our ing 1,000 metres above sea level, which is a You are the only company in the country security and noise prevention characteristic of Ivanjica and its surroundthat’s licensed to produce the kind of ings. We believe that the best judge is the safety and sound barriers that are standard systems are their durability and public, which recognises our well maintained maintenance – viewed in terms of in the EU. Is that also the case in Serbia? network of national roads covering about 220 - Under license from Deltabloc Internakilometres. We are proud of the reconstruc- 20 years of maintenance costs, they tional Gmbh, a leader in the production of tion works so far carried out on national are at the level of 25 per cent of the safety equipment for roads that operates road IB 30 towards Studenica, which we are costs incurred by a system made in more than 55 countries, we have - since due to finish this year. We’ve implemented 2013 - been producing traffic safety sysfrom other materials the rehabilitation of the most complicated tems, concrete barriers, sound barriers, part of the Rudnik-Topola national road, while during this year we certified under crash tests, all in accordance with European expect to launch works on the rehabilitation of the Požega-Ivanjica standards (SRPS EN 1317). Last year we also received a CE cernational road. We are also capable of participating in the continued tificate of production and quality from Germany’s Tuev. For the construction of Corridor 11. Apart from our work on national roads, system application, there are mandatory Guidelines that must almost 50 per cent of our activities are related to the construction of be followed in our country, but they are sometimes disrespected. infrastructure in our surroundings and neighbouring municipalities.

We hope that this problem will be resolved with the adoption of the Guidelines for road safety equipment and noise protection When it comes to road infrastructure in Serbia, more is being systems, in accordance with European Standards (CEN). built today than was constructed in previous decades. Do you We are proud of our participation in the educating of domestic have sufficiently modern machines and enough professional experts and the improved security in the places where we’ve staff to implement all of these major works? installed our systems. The number of motor accident victims - A complete system is essential to market survival. We have two on the Zrenjanin Road has been reduced to zero, while we yet quarries, crushing plants, our own materials, asphalt and two expect to see the effects of the system on Corridor 10.

18

INFRASTRUCTURE

19

INFRASTRUCTURE

BUSINESS

OBO BETTERMANN D.O.O.

OBO Tunnel Solutions Every year, European tunnels are checked when the holiday season starts. Many accidents and fires have led to the rethinking and modernisation of most systems

T

oday, demands - even for electrical infrastructure - are extremely high. OBO makes the passage safer.

The solutions are generally invisible, but provide a sense of security.

• Creating passive security • Maintenance of functionality in the event of an error • Maintain reliable power supply and data transfer • Filling all fire protection requirements OVERVIEW OF OBO SYSTEMS • Cable management - practical and easy to install, either individually or groupguided cables • Connection and distribution - for secure connection of electrical cables with maximum IP protection • Surge protection - to protect control and power centres from partial currents of atmospheric discharges • Insulation of fire breaks - tested firefighting systems that prevent the spread of fire, smoke and heat

At OBO, you can get the right advice on appropriate materials that will not endanger the environment, the appropriate surface protection of materials that should withstand tunnel conditions that are characterised by rapid corrosion, control technology and safety, etc.

In the planning and design of all kinds of tunnel systems, experience has shown that each project has its own requirements, also for technical equipment.

At OBO, you can get the right advice on appropriate materials that will not endanger the environment, the appropriate surface protection of materials that should withstand tunnel conditions that are characterised by rapid corrosion, control technology and safety, etc. This is possible thanks to a perfectly equipped test centre where not only our standard products but also products 20

specific to specific projects are tested. Normal, problem-free operation is at the top of the system operator’s priority list in a tunnel. To enable this, all components used should be of materials that must meet stringent requirements. OBO products used in tunnels are resistant to high humidity and pressure. Mounting times can be decisive when selecting equipment that will be installed in a tunnel. OBO has set new standards in this field. The installation time is drastically reduced by quick connection of the cable tray. OBO GR-Magic and RKSMagic fast-acting systems are the ideal solution. They minimise time and significantly contribute to the completion of the project within the stipulated deadline.

Whenever something happens in a tunnel, the safety of people in the tunnel is a priority. For example, if a fire breaks out, emergency lighting systems, immobilising systems and monitoring systems must work impeccably. OBO can significantly contribute to personal safety and firefighting.

OBO systems for maintenance of functionality have been tested and approved according to the DIN 4102-12 standard. The cable carrier system is specially developed to maintain functionality in classes E30 and E90. Tunnel constructions have a dense network of energy and signal cables that pass through walls and ceilings. These design constraints must be specifically protected in fire conditions to prevent the spread of fire, smoke and temperature through openings in the walls. OBO insulation systems guarantee this.

OBO BETTERMANN d.o.o. Stara Pazova 22000 Stara Pazova, Evropska 2 web: www.obo.rs

New trains

RAIL TRANSPORT

Fast Tracks And Competitive Railways

After decades without investments in railways, more than 500 kilometres of tracks were renewed between 2014 and 2018 on Corridor 10, the rail route to Bar and regional railways, while the reform of railways has also been launched. Construction has begun on the first high-speed rail route in this part of Europe, from Belgrade to Budapest, with which Serbia has become part of China's global “One Belt, One Road� initiative, while the next challenges are linked to the complete reconstruction of the rail routes of Corridor 10 and the Bar railway.

INFRASTRUCTURE

LAZAR RADAKOVIĆ

INTERVIEWS

ASSISTANT MINISTER OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE, FOR RAILWAYS AND INTERMODAL TRANSPORT

24

The largest investments in the past several decades are currently being realised in rail transport. The previous period has seen the renovating of more than 500 kilometres of tracks, while the plan is to complete the modernisation of the complete rail route of Corridor 10 in the next few years, as well as the railroad to Bar, Montenegro

New Face Of

SERBIAN RAILWAYS

L

ed by the vision to transform Serbia into the region’s transport hub, the Government of Serbia made the modernisation of railways a priority in 2014 and, after a break of more than 20 years, launched a major investment cycle aimed at improving the rail transport system, which is unfolding in four parallel directions. The first direction is the reconstruction and modernisation of rail tracks along Corridor 10 and the Belgrade-Bar route, in order to enable the projected higher speed of rail transport. The second is the construction of a high-speed railroad to Hungary and connecting with Budapest. The third direction implies a three-year plan for the reconstruction of all regional railways. The fourth direction relates to the procurement of new rolling stock. Implementation of these four directions will increase the competitiveness of rail transport, both compared to other modes of transport and compared to Corridor 4, which traverses Romania and Bulgaria, improving transport safety and increasing the quality of rail services.

In parallel with investments, the Ministry has launched the process of reforming the rail sector. A legislative framework harmonised with EU regulations has been adopted, which have enabled the establishment of a railway services market, particularly in the area of goods transport. Three state companies have been operating on the railway market since August 2015: Serbian

Railways Infrastructure JSC (Infrastruktura železnice Srbije a.d.) public railway infrastructure asset management company; Serbia Train JSC (Srbija Voz a.d.) – the national rail passenger transport company; and Serbia Cargo JSC (Srbija Kargo a.d.) - the national rail cargo company, operating in a segment that today also includes five private companies in Serbia.

The plan is for the activities launched to be implemented by 2030 at the latest, which also coincides with the EU’s plans to modernise its core network in all member states by 2030.

According to the transport policy of the EU, the deadline for the reconstruction of regional rail routes is 2050, though Serbia will complete works much sooner.

CONSTRUCTION OF THE FIRST HIGH-SPEED RAILWAY IN THE BALKANS The Hungarian-Serbian Railway Project, which includes the reconstruction and modernisation of rail tracks from Belgrade to the Hungarian border, represents one of the most important infrastructure projects in the Republic of Serbia and one of the largest railroad construction sites in Europe. The project is being realised with funds from a loan provided by the Chinese Export-Import Bank and partly with a loan from the Russian Federation, while the

INFRASTRUCTURE

main works contractors are Chinese and Russian companies. The Belgrade-Budapest railway, the first rail route in this region capable of handling speeds of up to 200km/h, will form part of Rail Corridor Xb, which is the most important rail corridor not only for Serbia, but throughout this part of Europe. This rail route will enable our country to take advantage of its favourable geographical position and act as a kind of transit hub for the region. Moreover, the Belgrade-Budapest railroad is the first railroad construction project to be implemented by Chinese contractors on the territory of Europe, which has additional significance in terms of affirming Serbia as a key partner of China in the field of transport, in the mechanism of Beijing’s cooperation with 16 countries of Central and Eastern Europe.

FAST AND SECURE TRACKS ON CORRIDOR 10 A total of 403.7 million euros has been invested since 2015 in the reconstruction of about 223 kilometres of mainline tracks, primarily on Corridor 10 and the Bar railroad, the construction of the new Žeželj Bridge and the completion of the first phase of construction of the Prokop railway station. The effects of this investment are reflected in increased train speeds, from an average of 40-50 km/h to 100120km/h, increased capacity on reconstructed rail routes and the increased safety of rail transport. This has resulted in the number of passengers increasing on some routes, along with the volume of international freight traffic.The launch of works on the reconstruction and electrification of the Niš-Dimitrovgrad railroad is also expected to begin this year, with the construction of a bypass railroad around Niš, as well as the start of reconstruction of the railroad from Jajinci to Mala Krsna and construction of a new technical-passenger terminal in Zemun. In cooperation with Russian Railways, 2019 will see the preparation of design and technical documentation for reconstruction of the remaining 210km of the Bar railroad, from Valjevo to the border with Montenegro, with the aim of creating an efficient rail network to the Adriatic Sea and the Port of Bar.

the share of rail transport in the total transport of goods, eight multi-system locomotives have been purchased for the purposes of company Serbia Cargo. Following the opening up of the European transport market, these multisystem locomotives will be able to operate on the rail networks of Germany, Austria, Slovakia and other countries that have power supply systems that differ from ours, while for the first time Serbia will have locomotives that are interoperable, in accordance with EU requirements.

INTERMODAL TRANSPORT AND THE DEVELOPMENT OF LOGISTICS CENTRES The launch of construction of an intermodal terminal in Batajnica is planned for 2019, with around 15 million euros to be invested in construction. The Intermodal Terminal in Batajnica will be a place

BRIDGE ŽEŽELJ

where road and rail transport come together, which will welcome the arrival of container trains from the ports of the Adriatic, the Port of Piraeus and European centres. There containers will be unloaded, with goods stored and distributed to end users, which will contribute to further reducing the logistics costs incorporated into product price, down to the level of the European average.

Along the length of corridors X and VII, at the points at which they come together, as well as in regions along the aforementioned routes, possibilities exist for the development of logistics centres, especially on the territories of the cities of Belgrade, Novi Sad and Niš. With the implementation of this plan,along the route Belgrade-PančevoKovin-Smederevo, via three intermodal terminals and Nikola Tesla Airport, corridors X and VII will connect, making Belgrade a regional logistics centre. Furthermore, the logistics centre on the territory of Novi Sad would establish a connection between road, rail and Danube routes, respectively Corridor Xb and Corridor VII, while the logistics centre on the territory of Niš would estbalish a connection between the railway, road routes and Constantine the Great Airport.

Planned investments will increase the competitiveness of rail transport, both compared to other modes of transport and compared to Corridor 4, which traverses Romania and Bulgaria

RECONSTRUCTION OF REGIONAL RAILROADS AND NEW TRAINS Within the scope of the programme for the reconstruction of regional rail routes, works were carried out in 2018 on about 280km of tracks, with the value of the works totalling around 130 million euros. Routes commissioned and brought online include Šabac-Loznica-Brasina, Novi Sad-Orlovat-Zrenjanin, PožarevacMajdanpek, Predejane-Džep, Pančevo-Orlovat and Mala KrsnaPožarevac. Plans for 2019 include the reconstruction of 327.5km of railroads with a total value of around 30 million euros, which will further improve the overall quality of rail infrastructure and the efficiency of the rail network.

The development of rail infrastructure isn’t enough to improve rail transport on its own – with the renewal of rolling stock also required. At present there are 48 new diesel and electric trains operating on the network of Serbian Railways. Moreover, with the aim of creating the most attractive possible market and increasing

25

GLOBAL NEWS

INFRASTRUCTURE

GERMANY

UK

3D Printing In The Railway Sector With Deutsche Bahn

Alexa Skill Enables Passengers To Book Travel Assistance

Companies in the railway industry have started adopting 3D printing technologies to carry out production and maintenance work. They remain on the tracks for decades, travelling at high speeds and carrying different kinds of cargo – from humans to hazardous goods – in all kinds of weather conditions. To build a good train that lasts the distance and provides comfort to passengers requires a large amount of very high quality components.

But what happens when these components break? To solve this problem the railway sector is now increasingly turning to additive manufacturing, more commonly known as 3D printing. Rail companies and analysts say the technology – which has been in the making for the past three decades – could help bring obsolete spare parts back into the market and cut their fabrication time by as much as 95%.

According to Brickwede, Deutsche Bahn has already printed more than 6,000 parts covering 110 different use functions for its range of high-speed trains.

Virgin Trains has launched an Amazon Alexa ‘skill’ enabling passengers to book assistance for their journey. It began selling ticket through Alexa, using SilverRail’s booking engine and Amazon Pay.

DENMARK/SWEDEN

First International Metro In The World City chiefs in Denmark and Sweden are looking at spending up to €4 billion on what is thought to be the world’s first international metro.

Copenhagen and Malmo are investigating the construction of a 22-kilometre tunnel under the Oresund River to link the two metropolises.

They plan to use high-speed, driverless trains to transport passengers underground between the cities in 20 minutes. Train passengers can already travel between Copenhagen and Malmo over the Oresund Bridge, which takes around 35 minutes. But capacity on the crossing is expected to be squeezed when another major infrastructure project comes online in the next decade.

The JourneyCare service usually requires users to fill in an online form or call a helpline after booking, which involves repeating information which had already been provided to make the booking. Alexa can remember this data, halving the time needed to make a request to an average of 2 min, according to Virgin Trains.

‘Using JourneyCare on the Virgin Trains skill for Alexa is a fantastic asset’, said Chris Tomson, a wheelchair user who took part in testing. ‘It does a great job of combining the two processes, making the whole experience much easier.”

ITALY

Venice Simplon Orient-Express Sold To Christian Dior And Louis Vuitton The Orient Express train service has been sold to LVMH, the French luxury goods company that already owns Christian Dior, Louis Vuitton and Moët & Chandon champagne, as part of a $3.2bn deal that also includes the Hotel Cipriani in Venice, the Hotel Splendido in Portofino and 44 other deluxe hotels around the world.

LVMH, which is run by France’s richest man, Bernard Arnault, announced it had agreed a takeover of Belmond, the British company that runs the Venice Simplon Orient-Express and the Royal Scotsman as well as high-end river cruises and hotels across 24 countries.

The acquisition is part of LVMH’s drive to expand into unique luxurious experiences to complement its luxury goods brands, including Marc Jacobs, Céline, Givenchy and Dom Pérignon. LVMH already owns a string of high-end hotels including the Cheval Blanc in Courchevel, which has been a firm favourite among fashion industry movers and shakers since the 1850s.

26

INFRASTRUCTURE

BELARUS

Reforming Rail Would Boost The Economy A new World Bank Railway and Logistics Sector Study for Belarus has been published, highlighting how organisational restructuring, tariff reforms and strategic use of digital technologies would boost the competitiveness of the Belarusian railway sector: Improving rail passenger experience and contributing more to the economy.

Over the last decade, the railway sector’s share of traffic in Belarus has fallen from 35 per cent to 29 per cent, a decline which is thought to have been largely caused by increased competition from road transport, combined with challenges in the railway sector’s organisational structure and tariff policies.

The study recommends a new strategy for Belarusian Railways that includes a revaluation of assets, changes to accounting practices and development of commercial strategies and business plans both for freight and passenger units. Alongside this there is a call for the strategic use of digital technologies to improve customer service, increase operational efficiency and support infrastructure management.

CHINA

Railways Invests Over 47bln Rubles Modernising Infrastructure

Investment Of In 6,800km Of New Rail Track

Russian Railways is continuing to modernise the railway infrastructure on the Baikal-Amur Mainline (BAM) and TransSiberian Railways with the development of the Admissions and Passenger Capacity project.

In 2018, more than 47 billion rubles (€635,2) was invested in the infrastructure of eastern railways as part of the project. Approximately 40km of railway lines were built and reconstructed, more than 80 new switches were laid and a new Baikal tunnel – 6,682m long – was drilled.

By the end of the 2018, 4.3km of additional main track, four stations, seven crossings, four traction substations, 32.4km of the contact network, 82.9km of automatic blocking lines on the TaidutMogzon-Sokhondo section, 11 small bridges, roadbed on six sites, four locomotive facilities and six residential buildings for workers had been put into operation.

China Railway Corp has reportedly revealed plans to invest in 6,800km of new railway line this year as a part of the government’s plan to increase infrastructure investment.

The operator said that the plan includes installation of at least 3,200km of high-speed rail in the country.

Last year, the company invested in 4,683km of rail lines, including 4,100km of high-speed rail.

China invested $117.12bn in rail fixed infrastructure last year, higher than the initial target of $106.75bn.

In the last few years, the amount of investment has reduced in an attempt to tackle the growing local government debt. The funding target for last year was the country’s lowest since 2013.

The National Development and Reform Commission (NDRC) has approved eight inter-city railway projects in the eastern provinces of Jiangsu and Anhui, involving a combined investment of $33.82bn.

GLOBAL NEWS

RUSSIA

SERBIA

Srbija Kargo Has Successfully Completed Negotiations With Siemens Srbija Kargo has taken delivery of the first two of a total of 16 Siemens Vectron locomotives it has ordered in two batches, supported with financing from the European Bank for Reconstruction & Development.

National freight operator Srbija Kargo has successfully completed negotiations with Siemens for the purchase of eight multi-system electric locomotives, CEO Dušan Garibović said on May 15.

The procurement is being supported by the European Bank for Reconstruction & Development.

“Financial terms were favourable, and the agreement with Siemens would include a short delivery times,” said Dusan Garibovic Acting General acting director of “ Infrastructure Railway Serbia” The locomotives will be approved for operation in Serbia, Croatia, Hungary, Austria and Germany.

Srbija Kargo will also overhaul 1 100 wagons this year using its own funds.

27

INFRASTRUCTURE

BUSINESS

JUGOSLAV JOVIĆ, DIRECTOR, “SERBIA VOZ”

Passengers Are RETURNING TO THE RAILWAYS Since 2015, when Srbija Voz [Serbia Train] was transformed into a joint stock company, it has been working constantly – with the support of the Government of the Republic of Serbia and its ministries – to improve the quality of services, which has resulted in an increase in passenger numbers and revenue growth

M

odernisation of the Zemun technical-passenger station complex, worth 47 million euros, is one of the biggest projects that Srbija Voz will implement in cooperation with the European Bank for Reconstruction and Development, announces Jugoslav Jović.

Srbija Voz has been operating as a joint stock company since August 2015. How much has rail transport of passengers improved thanks to this decision of the Government of Serbia?

- Following the decision of the Government of the Republic of Serbia, and with the assistance of the respective ministry, Srbija Voz a.d. [JSC] has been working continuously to improve the quality of services and increase the number of passengers and level of revenue, which implies modernising existing rolling stock, buying new trains, upgrading the sales network aboard trains and online, introducing Wi-Fi connectivity and an information system for energy management, constructing the Zemun technical-passenger station etc.

- In cooperation with the European Bank for Reconstruction and Development, we will implement a project for the modernisation of the complex of the technical-passenger station Zemun, worth 47 million euros. This project implies the construction of a functional unit for the maintenance of rolling stock for the transport of passengers with all necessary facilities, gauges, plants, equipment and installations in function of the care and maintenance of all rolling stock.

With the EBRD, for a total value of five million euros, we will carry out the modernisation of the sales network with the introduction of mobile terminals for conductors, machines for issuing tickets and with the introduction of a modern business information system. According to the 2019 Law on the Budget, a guarantee for a new EBRD loan of 100 million euros is planned for the procurement of new electro-motor trains for internal transportation, with which the quality of services will be significantly improved, while passenger number and revenues will increase. In 2018 we implemented and introduced an application for online sales, as well as an application for mobile ticket sales that’s already available on the Play Store, while a version for the AppStore is in the final stage of development. Srbija Voz offers users services that include various commercial benefits with which they can gain discounts on tickets.

From the special offer of Srbija Voz, we single out the tourist museum trains “Plavi Voz”, “Nostalgija” and “Romantika”, which can be visited and hired for individual journeys

Is the state of rolling stock (locomotives, EMG, DMG, wagons) satisfactory?

- In recent years, with the support of the Government of the Republic of Serbia and the Ministry of Construction, Transport and Infrastructure, Srbija Voz has invested significant funds in the modernisation of its rolling stock. For main line train transport in 2016, we procured 21 new Stadler electro-motor trains and 27 Metrowagonmash diesel engines. Older rolling stock is being modernised, while we expect the purchase of new electro-motor trains in the period ahead.

What has Srbija Voz done when it comes to modernising its capacities and commercial offers?

28

Last year saw company Wall Business issue you with a A+ certification. Do you expect similar recognition this year?

- The ‘Bonitetna ocena’ credit rating is a professional and precise indicator of a company’s operations. Considering that Srbija Voz works constantly to improve the quality of its services, we expect that we will this year deservedly receive confirmation of the efforts we’ve exerted.

INFRASTRUCTURE

MIROLJUB JEVTIĆ, DIRECTOR GENERAL, SERBIAN RAILWAYS INFRASTRUCTURE

BUSINESS

Four Billion Euros For RAIL INFRASTRUCTURE UPGRADES Investments in current railways infrastructure modernisation and reconstruction projects in Serbia today amount to around four billion euros

T

hanks to major investments launched by the Government of the Republic of Serbia, and with the full assistance and support of the Ministry of Construction, Transport and Infrastructure, a comprehensive process of modernising Serbia’s railways has begun, following decades of neglect for this transport system that left it almost on its last legs. Thanks to this, rail infrastructure represents the largest construction site in the country, thereby contributing to the progress and development of the whole of Serbia, says Director General of Serbian Railways Infrastructure Miroljub Jevtić.

“We, thus, in 2018 continued works and activities on the construction of the rail line for high speeds of up to 200km/h between Belgrade and Subotica, which has a total value exceeding two billion USD. Works are underway on the section from Belgrade Centre to Zemun, where the contractor is a consortium of Chinese companies, while Russian company RZD International has already laid the first tracks for high speed lines between Stara Pazova and Novi Sad and carried out half of the works on the ‘Čortanovci’ tunnel and viaduct, as the most complex built structure on the route of the new railway line.

“In the last year we also completed construction of the Žeželj Bridge in Novi Sad, as well as the reconstruction of seven and a half kilometres of tracks along the route Topčider-RakovicaResnik, while the function of Belgrade’s main railway station has been taken over by the Belgrade Centre Station in Prokop. When I add to that the fact, thanks to a Russian loan over the past few years, a total of 205 kilometres of railroads in Serbia have been reconstructed and modernised, then I can certainly claim that

more is being invested in railways infrastructure today than in the previous decades combined,” says Jevtić.

Which projects will be current in this and the following years?

- Activities on the construction of the high-speed between Belgrade and Subotica will be increasingly intensified in the coming period. In addition to that, modernisation of the Niš-Dimitovgrad, Niš-Brestovac and Jajinci-Mala Krsna lines will also begin in 2019, as well as reconstruction of electrical and technical infrastructure along rail corridors.

In cooperation with RZD International, construction of the Unified Dispatch Centre for Rail Traffic Management is planned, as well as the continuation of works on modernisation of 207 kilometres of the Bar railroad, from Valjevo to Vrbnica, which connects to the already completed section from Resnik to Valjevo.

During 2018, around 280 kilometres were reconstructed, for the first time after several decades, while another 480 kilometres of regional railroads in Serbia will be completed during this year and next

Apart from national mainline routes, will regional railroads also be reconstructed?

- Along with the modernisation of the mainline rail corridors through Serbia, Serbian Railways Infrastructure has created a three-year programme for the revitalisation of all regional railroads, which began in 2018. During 2018, around 280 kilometres were reconstructed, for the first time after several decades, while another 480 kilometres of regional railroads in Serbia will be completed during this year and next. In this way, the network of mainline and regional railroads in Serbia will be completely modernised in just a few years, which will enable fast, high-quality and competitive rail transport according to high European standards.

29

INFRASTRUCTURE

BUSINESS

DUŠAN GARIBOVIĆ, DIRECTOR OF SRBIJA KARGO (SERBIA CARGO)

We'll Be A REGIONAL LEADER Thanks to modern organisation and an aggressive commercial policy, Srbija Kargo a.d. (Serbia Cargo JSC) is implementing an increasing number of new projects each year, therby confirming its status as one of the region's most successful companies engaged in the rail transport of freight

W

What can you tell us about the new project with company GEFCO, which has redirected the transport of road vehicles via Serbia?

- The high quality services, prices, modern organisation and safety that we provide customers prompted company GEFCO, a European leader in auto-logistics, to redirect the transport of cars along the transit route through Serbia, instead of the pre-existing route via Hungary. Trains will transport cars produced by the two largest You had ambitious plans regarding the procurement of new manufacturers from Romania to Venice. Our cooperation began locomotives and the overhauling of freight wagons. Are you at the end of January this year, when the first test train was sucmanaging to realise them? cessfully dispatched via the Vršac border - A successful business year was crowned crossing, while the transport of several Given the appearance of an with the expansion of our contract with hundred auto-trains is envisaged for 2019. ever increasing number of Siemens on the purchase of another eight Otherwise, in order to improve our operators on the rail market, and services and with the aim of ensuring safety multi-systematic “Vectron” locomotives, with which we realised the second part and reliability, we engaged a special agency with the aim of preserving its of the loan arrangement with the EBRD dealing in physical and technical security position, Srbija Kargo a.d.

IV, amounting to 32 million euros. As a to accompany these transports. approached the concluding of reminder, it is worth noting that the first part of the credit arrangement for the strategic, multi-year contracts What is your company’s commitment to purchase of the first eight Vectron locointermodal transport? motives, also amounting to nearly 32 million euros, was realised - We are aware of the fact that intermodal transport has an ever on 24th May 2018. We expect all locomotives detailed in the first increasing role in the overall rail market in Europe. In accordance contract to have arrived in Serbia by the end of March, and for the with this, we have a tendency to also improve our operations in this subsequent eight locomotives to be delivered during December area. Serbia Cargo’s commercial policy and technological/organi2019 and January 2020. sational activities in the domain of intermodal transport have led With the procurement of these 16 locomotives, which satisfy to a marked increase in the number of intermodal transport units current and future European standards in terms of ecology, noise transported. The main container flows from southeast to central and energy savings, we will become a regional leader in terms of and western Europe are transported via Serbian rail routes, and the quality, safety and modernity of our fleet, which will enable are realised by our company specifically. us to compete for the transportation of goods together with Standing out as the most important project in this area is transport companies from the EU. the container transport of Cosco trains from the Port of Piraeus We last year overhauled more than 500 freight wagons with to EU countries and vice versa. More than 700 container trains our own funds, while this year we plan to repair another 600, as were transported last year, while there has also been a notable well as overhauling 12 diesel locomotives. increase in the volume of container transport via the Port of Rijeka. e’ve bought 16 state-of-the-art locomotives and overhauled more than 500 freight carriages, but that’s not the end. We are proud of our cooperation with Europe’s leader in auto-logistics, as well as the advancement of operations in the field of intermodal transport, says Serbia Cargo director Dušan Garibović.

30

INFRASTRUCTURE

SAŠA MILENKOVIĆ MSC., GEOURB GROUP GENERAL MANAGER

BUSINESS

We Provide PERFECTION AND PRECISION At the time of its founding, GEOURB Group represented a pioneering venture, while today – 24 years on – projects are only lining up in the field of geodetics, 3D laser scanning and modelling, the detection of underground installations and facilities, comasation, analysis of crops in agriculture, geology and urbanism

W

e are proud of the reputation that we have with clients who appreciate our way of communicating, quality of services, respect for deadlines, reliability, loyalty and the added value that we offer them through the use of modern and advanced technologies. That’s why I can state freely that they determine their own identity with us, says Saša Milenković, general manager of the GEOURB Group.

- There are really a lot of them, so I’ll only list a selection: The detecting of underground oil pipelines and their entry into the cadastre register; Geodetic works in the phase of designing, installing and detecting fibre optic cables; Works on the complete route of the “South Stream” main gas pipeline in the design phase; Geological works with the objective of carrying out the gasification of a large number of settlements; Rehabilitation of terrain, swimming pools and facilities; Supervision of motorways; Regulating of agricultural land in the commassation procedures; Terrestrial 3D laser scanning and modelling of tunnels on national roads; Terrestrial 3D laser scanning of Nikola Tesla Airport; Terrestrial 3D scanning and modelling of Thermal Power Plant Nikola Tesla A; Terrestrial 3D scanning and modelling of the FK Partizan stadium; Terrestrial 3D scanning and modelling of caves and much more.

Your company was founded by your father 20 years ago, while you elevated it – together with a great team of professionals – among the ranks of the most successful companies.

- As an already proven engineer who provide a great contribution to the most important projects – the construction of highways, national roads, dams, urban complexes, residences and factories – both in the country Only with full commitment, and abroad, my father – precisely 24 years constant improvements and work With changes to laws and other regulaago – was among the first to open an indetions, what would the state be able to do can we endure and progress, and to improve the business environment? pendent geodetic bureau with GEOURB. He wanted to contribute to the realisation of - Small and medium-sized enterprises are provide our contribution to great ideas and projects for the betterment an important pillar of the economy. And fostering the professions – of the state, society and individuals, and that’s the task of the state... It is evident that he passed that passion on to me. Learning geodetic, geological, architectural work is being done to improve conditions, and gaining experience through working and in terms of urban planning but this should be done quicker and more with my father, coupled with additional systematically. Those who write regulations education and work on myself in the field of management and new must have both theoretical and operative knowledge, without that technologies, enabled me to establish a dedicated, professional it’s unlikely that we’ll set off anywhere, never mind getting there. and reliable team that has fought in a high-quality way not only Technology has really advanced greatly in the areas in which we to survive, but rather also to grow constantly. operate and that must be an integral part of the legal regulations.

Everything we do must be perfect and on time, which provides Those of us who’ve decided to live in our own country, and our clients with certainty and comfort in their further development. to live honourably and honestly from that which we gain through our daily work, have long since known that we have to struggle.

Have you been in a position to work on some of the major If legal regulations also stand on our side, favouring knowhow, infrastructure projects implemented by the state, local selfquality and integrity, that will be a serious step in advancing the governments and public companies? economy and the general development of the Republic of Serbia.

31

Approach to Belgrade Nikola Tesla Airport

AIR TRANSPORT

New Investments To Further The Development Of Air Traffic

In terms of standards of air traffic achieved, Serbia already has “one foot” in the European Union. Thanks to investments in airports in Belgrade and Niš, the number of passengers has increased by around 30% over four years, reaching a total of almost six million in 2018. The concession agreement for Belgrade Nikola Tesla Airport has secured more than 700 million euros of new investments, while the Government of Serbia will invest in the development of small airports, based on the models of Constantine the Great Airport in Niš and Morava Airport in Kraljevo.

INFRASTRUCTURE

ZORAN ILIĆ ASSISTANT MINISTER OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE

INTERVIEWS

The concession for Nikola Tesla Airport secured investment of 732 million euros in the development of the Belgrade airport, while the Government of Serbia will continue to invest in the development of small airports

We're Continuing INVESTMENTS IN AIRPORTS

I

n the domain of air transport, the Ministry of Construction, Transport and Infrastructure deals primarily with developing and advancing the provision of aviation services, air transport, air traffic management and the receiving and dispatching of aircraft, passengers, goods and post in international air traffic.

Air traffic in Serbia has achieved the highest level of harmonisation with EU regulations and is regulated by the Law on Air Transport, the Law on Airport Management and the Law on accident investigations for aviation, waterborne transport and railways, as well as more than 100 statutes and guidelines.

On the one hand, the volume of traffic at the primary Belgrade airport had reached almost the maximum projected capacity by 2014, primarily in terms of terminal infrastructure, while - on the other hand - a strong process of financial consolidation had begun in Serbia. One of the possible solutions for the further development of air traffic infrastructure was the issuing of a concession for Nikola Tesla Airport. On the basis of a public call for the selection of a concessionaire, the development and management of Serbia’s busiest airport, Nikola Tesla Airport Belgrade, was entrusted to French company Vinci Airports Serbia for a 25-year period on 22nd December 2018. The French partner accepted an obligation to pay 501 million euros in advance, to make investments amounting to 732 million euros in construction and development, and to pay an annual concession fee for the 25-year period amounting to around 250 million euros.

Nikola Tesla Airport is expected to service more than six million passengers in 2019, while Constantine the Great Airport will welcome between 380,000 and 400,000 passengers

BELGRADE AIRPORT CONCESSION At Serbia’s key airports, Nikola Tesla in Belgrade and Constantine the Great in Niš, the state of infrastructure and equipment was inadequate at the beginning of 2014. There was a lack of capacity at Nikola Tesla, while Niš airport lacked the elementary conditions to receive and dispatch aircraft in conditions of reduced visibility.

The founding of company Air Serbia in October 2013, as well as expansion of the capacity of Belgrade airport, resulted in passenger numbers increasing from 3,543,000 to 5,641,000 by 2018.

34

DEVELOPMENT OF SMALL AIRPORTS The accelerated development of the Niš airport was launched in July 2014, when the dominant services, i.e. low-cost traffic and the equipment necessary for that purpose, were deter-

INFRASTRUCTURE

mined. Within the scope of the modernisation of Niš airport, The Government of Serbia is exerting maximum efforts in oder among other things, the capacity of check-in counters was to register the 35th airport, the newly-established military-civil airport. This relates to the country’s third international airport, expanded, new equipment was procured and new procedures Morava Airport in the vicinity of Kraljevo, the operator of which were introduced, all in order to raise the level for the safe arrival of aircraft under conditions of reduced visibility. State will be Aerodromi Srbije, which has been formally made the user investments in Niš airport resulted in a more than 250-fold and manager of the civilian part of the airport complex. increase in the number of passengers – from 1,335 in 2014 to During the course of 2019, plans include investing at least 351,581 passengers in 2018. eight million euros in equipping this airport and ultimately Given the strategic importance of the Niš airport, as the second largest international airport in Serbia, and the future need for it to function under a 24/7 regime, as well as the inability of the City of Niš to finance operational work, capital costs and the obligations it took on with the transferring of this real estate from the Republic of Serbia to the City itself (including Constantine the Great Airport), the Government of Serbia accepted the decision of the Assembly of the City of Niš to return ownership of the complex of Niš’s Constantine the Great Airport to the state. The same decision of the City Assembly also saw the founding rights of Public Company ‘Aerodrom Niš’ transferred to the Republic of Serbia.

The Republic of Serbia invested 9.8 million euros in operational work and capital investments in the Niš airport from 2014 to 2018, up until the moment of its takeover, and then following the takeover of September 2018 the state invested an additional 1.5 million euros in the Niš airport for capital investments alone.

From the moment of its takeover Total number of passengers until the end of 2021, total investment of creating objective conditions to launch around 22 million euros is planned. These at international airports in Serbia traffic. The plan is for the airport to be investments will include the construction 2014 . . . . . . . . . . . . . . . . . . . . . . . . 4,639,912 certified and ready to receive the first of a new air traffic control tower worth 5.5 planes by 28th June 2019.

2015 . . . . . . . . . . . . . . . . . . . . . . . .4,812,422 million euros, around 3 to 3.5 million euros for the passenger terminal and operating 2016 . . . . . . . . . . . . . . . . . . . . . . . .5,049,909 FLIGHT CONTROL MODERNISATION The management of the airspace costs, as well as nine million euros for the 2017 . . . . . . . . . . . . . . . . . . . . . . . .5,675,002 above the territory of Serbia, the eastern operational work of the airport company, air traffic control, border police and cus- 2018 . . . . . . . . . . . . . . . . . . . . . . . .5,992,581 part of Bosnia-Herzegovina and Montetoms administration, the procurement of negro with its coast is performed by the special vehicles and the procurement of other equipment and Serbia and Montenegro Air Traffic Services Agency - SMATSA, works. With the state having taken on the obligation to invest, which has at its disposal a developed radar network, high-quality the City of Niš will be unburdened of annual costs totalling at ancillary equipment, infrastructure and highly-trained personnel. least three million euros, which is about five per cent of the SMATSA plans to launch the construction of an annex to the flight City’s budget. Commercial conditions at the airport have not control centre and control tower at Belgrade Nikola Tesla Airport. changed, while all employees who were employed prior to the Construction began in late 2018 and will continue until year’s end return of the airport to state ownership remain in the same 2020. These construction works are valued at 16 million euros. employment relations.

Alongside planned investments, another reason for optimism when it comes to the further development of air traffic On the basis of the Law on Airport Management and the in Serbia is provided by the constant increase in the number of Law on Air Transport, the Government of Serbia is working on passengers, which totalled almost six million over the course of a functional model for the development and management of 2018, or almost 70% more than in 2013. Nikola Tesla Airport is airports throughout the entire territory of Serbia. To this end, it expected to service more than six million passengers in 2019, has established company “Aerodromi Srbije” [Airports of Serbia] while Constantine the Great Airport will welcome – with growth as a general airport operator, which is tasked with implementing the National Programme for the Development of Airports. of 10 per cent – between 380,000 and 400,000 passengers. It is There are currently 34 registered airports in Serbia, though also estimated that Kraljevo’s Morava Airport could have between there are significantly more over the entire territory of the country.

10,000 and 15,000 passengers in its first year of operations.

35

GLOBAL NEWS

INFRASTRUCTURE

GERMANY

RUSSIA

Frankfurt Airport Posts Negative Growth In Cargo

Russia To Convert Tu-204 Passenger Jets Into Freighters

Frankfurt Airport (FRA) saw passenger traffic of more than 4.5 million passengers in February 2019. This represents an increase of 4.3 percent year-on-year.

Aircraft movements climbed by 4.7 percent to 36,849 takeoffs and landings.

The cargo figures including airfreight airmail declined by 3.4 percent to 161,366 metric tonnes in the reporting month.

The European hub said that the decline reflects the ongoing slowdown in global trade.

The first two months of the year have been good in terms of passenger numbers for the airport. The passenger traffic rose 3.3 percent compared to the same period last year. But the cargo numbers continue to contract, according to the figures of the first two months of 2019. Year to date, Frankfurt Airport saw 2.8 percent year-on-year decline in cargo throughput.

The Russian government and industry have begun formulating a program to convert grounded Tupolev Tu-204 passenger jets into freighters in an effort to prolong the type’s commercial service. Upon conversion of the surviving narrowbodies, which entered service in 1995, the Tu-204s would enter the fleet of the Russian Post’s aviation arm. The nationwide postal and mailing service operator belongs to the central government and cites “an immediate requirement” for ten more Tu-204Cs. If successful, the conversion program might entail completion of several more airframes at UAC’s Aviastar plant in Ulianovsk using stock parts at the plant.

SWITZERLAND

Unilode And Palnet Develop Integrated Digital Solution For Pallets ULD management solutions provider Unilode and ULD manufacturer PalNet have jointly developed an integrated digital solution for all types of PalNet pallets.

The integrated solution minimises the risk of damage or loss of the digital tag and does not obstruct daily operations or interfere with pallet stacking.

Unilode’s digital technology is based on Bluetooth Low Energy (BLE) 5, enables ULD tracking and measurement of temperature and shock.

The solution will be implemented to the entire ULD fleet of Unilode, starting second quarter of 2019. It is also available for non-Unilode customers. All existing PalNet pallets, including heavy duty pallets, can be retrofitted with the integrated digital solution. Pallets can also be acquired ex-works with a pre-installed tag.

Late last year, Red Wings—the last Russian airline to operate Tupolev twinjets on scheduled passenger services and regular charters—withdrew its eight Tu-204-100s from active service.

Meanwhile, the Russian Post insists the Tu-204C freighters it has flown since December 2016 have proved themselves economically viable. On March 4, the operator announced a decision to expand aviation services into China by adding Nanjing to the already flown Harbin, Hangzhou, and Zhengzhou routes. Today, the Russian Post employs two Tu-204Cs on Chinese services. China generates more than 90 percent of parcel traffic into Russia, and its share stands to grow further through expansion of mutual trade and favorable conditions enjoyed by internet outlets.

SOUTH KOREA

Seoul–Da Nang Is The Fastest Growing Route In Asia-Pacific The fastest growing major passenger route in Asia-Pacific is between South Korea’s capital city, Seoul, and the coastal city of Da Nang in Vietnam, according to Routesonline. The information is revealed in a new study published to coincide with Routes Asia 2019. Routesonline claims that a 71% rise in the number of passengers flying between Incheon International Airport and Da Nang International Airport ensures that it is fastest-growing in the Asia-Pacific region. In 2018, Routesonline says that more than 2.2 million passengers took a flight between the two destinations, which links South Korea’s capital and the largest city in central Vietnam, compared with 1.29 million just 12 months earlier.

36

INFRASTRUCTURE

THAILAND

Low-Cost Carriers Drive Thailand’s Rapid Growth Thailand’s aviation market has grown at an enormous rate in recent years, with the total number of departure seats topping 100 million for the first time in 2018.

The figure of 103.1 million seats last year is 152 percent higher than just a decade ago. Domestic capacity has risen from 17 million in 2009 to 49.5 million in 2018, while international capacity has grown from 23.9 million to 53.6 million over the same period.

The number of low-cost departure seats in Thailand’s market overtook the number offered by full-service carriers for the first time ever in 2018, figures from OAG show. There were almost 52.6 million low-cost seats last year, compared with 50.6 million mainline. The growth of the low-cost market has been phenomenal, growting from fewer than eight million departure seats in 2009.

China is Thailand’s largest international market by some distance, with more than 13.5 million departure seats on offer in 2018. Thai Lion Air had the biggest capacity on offer during the year at 1.79 million seats, followed by Thai AirAsia at 1.34 million and China Southern at 1.25 million. Singapore ranks as Thailand’s second largest market, followed by Hong Kong.

CHINA

DHL Express Builds New State-Of-The-Art Hub At Copenhagen Airport

China’s Aviation Industry Embraces Digital Era

With new state-of-the-art automated systems, DHL will be able to handle nearly 37,000 packages per hour, 24 hours a day, in the 26,172 m² building, which also includes offices.

With €134 million investment raises DHL operations to new heights. Hub will be ready in 2023 and able to handle five times as many packages as today DHL Express will make its largest ever investment in Denmark and the Nordic countries with a new hub at Copenhagen Airport. The hub will significantly improve the speed and quality of DHL Express’ activities in the region. With new state-of-the-art automated systems, DHL will be able to handle nearly 37,000 packages per hour, 24 hours a day, in the 26,172 m2 building, which also includes offices. The company, which was voted Denmark’s best workplace in November 2018, therefore expects to add 100 new jobs.

China’s civil aviation industry is accelerating its advance into the digital era, with major players sending clear signals of new opportunities worldwide.

Already this year, China Southern Airlines has started online seat selection for all domestic flights and paperless e-boarding passes. As well as being more convenient for passengers, it is a major step in responding to initiatives in environment-friendly travel. In the first week, about 75 percent of passengers on domestic routes opted to select their seats via digital devices, said China Southern.

China Southern operates the largest fleet in Asia and the third biggest worldwide. In 2018, it recorded 139 million passenger journeys. Rising cost pressures and safety concerns are affecting the industry worldwide. Digitalisation is seen as key to improving operational efficiency, upgrading services, and reshaping development modes.

“It is widely recognised that digitalisation is a new value-growth point. Alongside dramatic growth in China’s civil aviation sector, civil aviation authorities, domestic aviation manufacturers and technological giants are eying digitalisation,” said Xu Jun, vice president of Asia-Pacific OEMs of Honeywell Aerospace. At the 2018 China Airshow, Hainan Airlines announced a partnership with Honeywell that would see Honeywell supply auxiliary power units (APU) and aftermarket support to the airline’s fleet, including its GoDirect connected maintenance services, a predictive technology based primarily on data. With Internet-based predictive maintenance technology, APU maintenance and malfunction data is downloaded from existing data on the aircraft. It allows prediction of imminent hardware malfunctions or other potential problems with a high degree of precision.

GLOBAL NEWS

DENMARK

37

INFRASTRUCTURE

BUSINESS MIRJANA ČIZMAROV, DIRECTOR OF THE CIVIL AVIATION DIRECTORATE, AND PREDRAG JOVANOVIĆ, DIRECTOR OF THE SERBIA AND MONTENEGRO AIR TRAFFIC SERVICES (SMATSA)

SAFE SKIES Are Our Priority Aviation is one of the branches of industry that changes the most and the fastest, and which is always confronted by new challenges. Speaking about this, but also efforts that are exerted to maintain an enduring reputation and image built over many years, are the leaders of civil aviation and commercial flight control of Serbia and Montenegro

S

erbia’s Civil Aviation Directorate has been receiving increasingly more positive reports and acknowledgements from international aviation institutions year after year, along with the flight controllers of the Serbia and Montenegro Air Traffic Services, which is a synonym for a successful, modern and respectable service provider in aviation navigation.

Safety is the priority of civil aviation... Are our skies and our airports safe?

- Mirjana Čizmarov: The sky above Serbia and our airports are absolutely safe, which is confirmed each year with numerous positive reports from international aviation institutions. The standardised inspections of the European Aviation Safety Agency (EASA) regularly monitor and control our work and confirm that the level of standardisation in Serbia is higher than in many European Union member states.

what’s been achieved, and at the same time extremely grateful to all those who contributed to our successes, primarily the Government of the Republic of Serbia, the Ministry of Construction, Transport and Infrastructure, other ministries with which we’ve cooperated successfully, bodies and organisations in the Republic of Serbia, aviation companies etc.

I expect that, with the support of our government, as soon as possible, we will take Serbia into the European Common Aviation Area, that we will become a full member of EASA, participate even more actively in the work of all international aviation organisations, intensify and further enhance cooperation with civil aviation authorities in the region and in this way ensure our development of safe and secure civil aviation.

How would you rate the past year?

- Predrag Jovanovic: In the area of the jurisdictions of SMATSA it’s been marked by constant in traffic, such that several historic results were achieved in 2018. We served more than 700,000 civil aviation flights that fly according to the rules for instrumental flight, while in July and August we repeatedly served more than 3,000 flights per day, and in the most heavily burdened hour had over 220 flights.

SMATSA also provides services for the flights of military aircraft in the airspace of Serbia and Montenegro and provides services for eight airports in the two countries, four of which are international. We are one of the initiators of the Southeast Europe Common Airspace Creation (SECSI) project, which has been applied in sic countries from Austria to Bulgaria, and for which SMATSA received recognition at the World Air Traffic Management Congress, held in Madrid from 12th to 14th March.

According to the assessments of global experts, in Serbia – thanks to to adequately trained and highly professional staff – the highest standards are applied in the field of aviation safety

How is Serbia’s progress in terms of European integration when it comes to the field of air traffic?

- Mirjana Čizmarov: viewed from the perspective of aviation, Serbia has long since been in the European Union. The high aviation standards that we fulfil resulted in the election and re-election of the director of the Civil Aviation Directorate of Serbia as the Vice-President of the Provisional Council of Eurocontrol, and we’ve just completed the Republic of Serbia’s Presidency of the Standing Commission of Eurocontrol. Also confirming that we’re on the right track was the inspection of the Federal Aviation Administration of the U.S.A., which classified Serbia in so-called “FAA Category 1”, which enabled our national airline to establish direct air transport with the U.S. We are extremely pleased with 38

INFRASTRUCTURE

39

INLAND WATER TRANSPORT

More Goods On Rivers With New Investments

Serbia will invest more than 200 million euros in the development of river infrastructure until 2023, with the reconstruction of the dam-traversing ship locks “Đerdap 1” and “Đerdap 2”, expansion of the capacity of the Port of Smederevo and the regulating of the waterways of the rivers Sava and Danube. Plans also include the construction of a new port in Belgrade and the expansion of the capacities of ports in Novi Sad and Sremska Mitrovica. The aim of these investments is to ensure the Danube and Sava are navigable year-round and to double the participation of river transport in total goods transports.

INFRASTRUCTURE

VELJKO KOVAČEVIĆ PH.D. ASSISTANT MINISTER OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE FOR INLAND WATER TRANSPORT

INTERVIEWS

Once the most neglected branch of transport, water transport is today an integral part of the new investment cycle for infrastructure. Investing in the development of ports and river infrastructure will enable Serbia to fully utilise its strategic position in the region and the Danube's potential as a European transport corridor

Serbia Will Have The Region's

MOST MODERN PORTS

U

ntil the end of the 1980s, Serbia was Europe’s leaders in river transport. Around 20 million tonnes of goods were transported annually via the Danube and nearly five million tonnes via the Sava, while Serbian ports handled nearly 12 million tonnes of cargo reloading annually. After this period the wars of the ‘90s, sanctions and international isolation have followed, while the period between 2000 and 2010 has been marked by privatisation with catastrophic consequences for the overall development of inland water transport.

After almost 25 years, the neglect and decline of this mode was halted, with investments again being made in this mode of transport. In order to ensure this process was irreversible, it was necessary for it to be defined and guided in a systematic and organised manner. In line with this approach we first adopted the Strategy for the Development of Water Transport of the Republic of Serbia 2015-2025, which provided the basis for us to define the Action Plan for implementation of the most important strategic goals during 2016. Under the scope of the Action Plan, we defined a list of the most important projects and after that

42

a work on the preparation of technical documentation and the securing of funds for their implementation has been initiated.

A proof of the extent to which the approach to this mode of transport has changed is the fact that the total value of planned and implemented projects in water transport in the 2000 to 2014 period amounted to €18.5 million, while the value of projects that have been launched or are planned for implementation in the period from 2014 to 2025 totals 202.5 million euros.

In addition to approving grants from the EU’s IPA and CEF funds, there has also been ratification of the Financial Agreement for the Development of River Transport Infrastructure with the European Investment Bank, worth a total of 100 million euros, which will be used in combination with other sources of financing.

PROJECTS IN WATER TRANSPORT After three years of programming and contracting, during 2017 we started implementing two important projects aimed at improving navigation conditions in the Serbian section of the Rhine-Danube Corridor. Work began in 2018 on the project “River

INFRASTRUCTURE

training and dredging works on Danube”, while by the beginning of April 2019 we will fully realise the project “Development of Navigation Monitoring System on the inland waterways (AtoN)”.

These two projects have a total value of 18 million euros and are financed from the IPA 2013 programme.

One of the most important projects we’ve launched is “Upgrade of the Iron Gate 1 Navigational Lock”, which has a value of 28.5 million euros. This project is of huge importance, because the unhindered functioning of water transport on the Danube in Europe is dependent on the functioning of these locks. Tenders have been conducted for the selection of works contractors and supervision, so we expect to close the locks in September in order to launch works, with a December 2020 deadline for completion of works.

Moreover, by 2022 we will also implement the project “Removal of the sunken German World War II fleet” located near Prahovo. The estimated value of this Project is 23 million euros and should also ensure the extending of the fairway at this section to the prescribed width of 180 metre from the currently narrowed 100 metres.

During the project “River training and dredging works on Sava”, works were conducted during 2017 on the critical sector “Kamičak”, while in 2018 the same was done at the critical sector “Šabac” and in 2019 we are planning to complete works at this sector. Remaining after this will be works carried out on three more critical sectors of the Sava, in “Sremska Mitrovica”, “Klenak” and the “Drina and Sava Confluence”. The value of works on all critical sectors of the Sava totals nine million euros.

utilised for the economic development of this region of Serbia.

As such, investments in this port encompass the construction of a terminal to enable the transshipment of around five million tonnes of various types of goods. Furthermore, the construction of a new port in Belgrade will create the first large multimodal hub in the Western Balkans. The port will be designed to include a container terminal, a terminal for the loading and unloading of cars and haulage vehicles (ro-ro) and an oil terminal (including a smaller LNG terminal), as well as bulk and general cargo terminal, while it is also planned to construct an industrial park in the hinterland of the Port of Belgrade .

Alongside these two major projects, the Ministry of Construction, Transport and Infrastructure also plans to expand the capacity of the Port of Bogojevo on the Danube, which should result in the construction of new port capacities for the handling of agricultural products.

Likewise, in conjunction with the World Bank, we are planning to secure loans through the Integrated Development Programme for the Drina-Sava Corridor, in the amount of 20 million euros, in order to expand the capacity of the Port of Sremska Mitrovica with the construction of an oil and bulk cargo terminal, as well as expansion of the container terminal.

Finally, following the transferral of port land and port infrastructure under the property assets of the Republic of Serbia, the process of privatising the port operator of the Port of Novi Sad is now underway. Through this privatisation process, the Republic of Serbia will earn about eight million euros from the basic sale of property included in the privatisation (cranes, warehouses and administrative buildings), while the new port operator will be obliged to invest in the development of the port’s infrastructure and suprastructure in an amount exceeding 15 million euros, while we estimate that the new operator’s investments will be double this specified amount. As a result of measures already taken, over the last three years the Republic of Serbia has recorded constant growth in the volume of goods transported along the Danube, Sava and Tisa rivers. From a total of 5.6 million tonnes of goods in 2014, more than 10 million tonnes of goods were transported along inland waterways of the Republic of Serbia in 2016, while in 2018 we recorded nearly 11 million tonnes. As a result of planned investments, we expect the volume of goods handling at Serbian ports to increase from the current level of 7.5 million tonnes to more than 14 million tonnes by 2023.

The total value of projects in water transport in the 2000 to 2014 period amounted to €18.5 million, while in the period from 2014 to 2025 it will total 202.5 million euros

MODERNISATION OF PORTS Following several decades of the state’s absence from the port sector, due to the lack of an adequate legal framework that resulted in the implementation of completely inappropriate privatisations until 2012, the Republic of Serbia plans to invest more than 170 million euros in the construction of port infrastructure over the next four years. Here we are primarily referring to the construction of port infrastructure for the Bulk and General Cargo Terminal of the Port of Smederevo, worth a total of 43 million euros, then around 90 million euros for the construction of port infrastructure at the new Port of Belgrade, as well as the expansion of the capacities of ports in Sremska Mitrovica and Bogojevo, but also new investment at the Port of Novi Sad. The positive geographical position and developed hinterland of the Port of Smederevo is still inadequately

43

GLOBAL NEWS

INFRASTRUCTURE

AUSTRIA

NETHERLAND

The 10th International Conference On Bridges In Danube Basin

Port Of Rotterdam Bracing For Operations Under Brexit

The Danube River is an international waterway flowing 2860 km across Europe from the heights of the Schwarzwald down to the Black Sea delta. In its passage, the second longest European river crosses 22 geographical meridians, joining 10 countries: Germany, Austria, Slovakia, Hungary, Croatia, Serbia, Romania, Bulgaria, Moldova and the Ukraine. The Danube drainage basin extends into nine further countries of Danube region.

The International Conference on Bridges in the Danube Basin has become a traditional international event in bridge engineering and organised periodically each third year in different Danube countries.

The tenth International Conference on Bridges in Danube Basin will take place in Vienna in September 2019, aiming to analyse present trends in bridge construction in every Danube country.

VIENNA BRIDGES WORLD

Global Barge Transportation Market To 2025 The global barge transportation market size is anticipated to reach USD 140.62 billion by 2025, rising at a CAGR of 3.4% during the forecast period.

The market is projected to witness significant growth over the forecast period, thanks to growing intermodal transportation in several industries including petrochemicals, crude oil, and food processing. Several initiatives undertaken by various governments to encourage inland water transport and continued investments being made by various governments to develop inland water transport infrastructure.

Barge transportation can be considered a cost-effective and high-capacity mode of transportation as compared to other modes of transport, such as road, rail, and air.

Barges can support higher loads and ensure safety, particularly when it comes to transportation of large volumes of cargos. As a result, adoption of barges is expected to increase over the forecast period.

JAPAN

New Software That Helps With Ship Berthing Japanese shipping company NYK has, together with Monohakobi Technology Institute (MTI) and Japan Marine Science (JMS), developed a system that assists with vessel berthing. As explained, the system — patent pending — assesses a vessel’s controllability and visualises the risk in the berthing operation to reduce the burden on the operator and eliminate accidents caused by human factors.

Trials on actual vessels have been conducted, and NYK plans to gradually introduce the system to its managed ships. JMS will offer it for sale within the industry.

44

Dutch authorities are taking steps to minimise delays caused by additional customs formalities at ferry and shortsea terminals should the UK leave the European Union.

Additional customs formalities, required for so-called third countries, would mean more intensive passport checks and inspections, leading to longer processing times at terminals.

Steps taken would allow the Port of Rotterdam,

Europe’s largest port, to better cope with customs documents that have not been properly prepared for maritime crossings to the United Kingdom (UK).

Of the approximately 54 million tonnes of freight that is traded annually between the UK and the Netherlands, around 40 million tonnes passes through the port of Rotterdam, and in particular via ferry and shortsea crossings.

INFRASTRUCTURE

SERBIA

Taking Measures In A Positive Direction Serbian flag vessels transport only 20% of waterway cargo, while more than half of goods are carried by Romanian and Ukrainian ships. As a continental country with no maritime harbours, Serbia relies on inland waterways and its neighbours’ sea harbours (Bar in Montenegro and Thessaloniki in Greece). Two international rivers, one interstate river and a canal system account for the majority of available waterways. The Danube, as a Pan-European corridor, helps Serbian ports achieve an annual total turnover or nearly nine million tonnes. Although water transport is economical, secure and ecological, it only accounts for around 5% of total transport in Serbia, while the EU average is 15%. Nonetheless, Serbia has taken steps in a positive direction. Thanks to the rivers Danube, Sava, and Tisza, a Master Plan for the development of waterways in Serbia until 2025 has been adopted. It will ensure river transport quadruples in size, with the aim of reaching a 30% market share. Serbia is actively pursuing new markets, modernising its fleet, investing in human resources and ensuring adequate infrastructure. The most important infrastructure challenges include demolishing hydro projects on six spots along the Danube.

CHINA

Largest Cruise Ship In The World

Cosco Introduces Bulk Shipping Platform

In addition to being the biggest cruise ship ever built, the Symphony of the Seas is also Royal Caribbean’s newest vessel. The company describes Symphony of the Seas as follows: “Clocking in at 362 metres long and with 18 total decks—about the height of the Leaning Tower of Pisa—this ship dominates with the title of the largest in the world.”

The Symphony of the Seas took the title for largest ship from its sister, the Harmony of the Seas, built two years earlier. It clocks in at roughly 1,000 tons larger. While this is the equivalent of 500 normal automobiles, it represents about 0.05% of the ship’s total weight.

Symphony of the Seas has a gross tonnage of 228,081 across 18 decks. She is able to accommodate 5,518 passengers at double occupancy up to a maximum capacity of 6,680 passengers, as well as a 2,200-person crew.

It was built at Chantiers de l’Atlantique, SaintNazaire, France, one of the world’s largest shipyards.

Cosco Shipping Technology, the shipping technology development unit of China Cosco Shipping, has introduced a new third party digital platform for domestic coastal bulk shipping.

The platform, named Chuan Huo Yi, will mainly offer market data and cargo-toship matching services. The company also plans to add financial, procument as well as SaaS solutions at a later stage.

It is very rare for a shipowner set up an open digital shipping platform, and Cosco Shipping Bulk has joined the platform as its first user.

According to an official at Cosco Shipping Technology, the platform will help build a sustainable market environment and facilitate the cooperation and healthy development in the industry.

GLOBAL NEWS

US

VIET NAM

Keeping Maritime Transportation Sector Afloat Although there have been some positive signs in recent years, Viet Nam’s sea transport sector still face difficulties with many enterprises suffering heavy losses. The maritime industry is proposing support mechanisms to help the sector out of its stagnant state.

In 2018, Vietnam National Shipping Lines (Vinalines) recorded strong growth in sea transport volume with an increase of more than 13 per cent, reaching 24.3 million tunes. This figure shows solid growth from when sea transport hit its floor a few years ago.

However, acting general director of Vinalines Nguyễn Cảnh Tĩnh said the sector still faced challenges because, due to shipping supply surpluses, freight rates were only one-tenth of what they were in 2008.

45

INFRASTRUCTURE

BUSINESS

VUK PEROVIĆ, DIRECTOR OF THE PORT GOVERNANCE AGENCY

Ports Generate GROWTH In just five years of operations, the Port Governance Agency has initiated a dialogue with all stakeholders in water transport, launched action on the issue of environmental protection, opened three new international passenger terminals and started a cycle of investments in port infrastructure and the expansion of existing port areas

A

to-date records on the movements of cargo and passengers along the rivers in Serbia, and it is important to note that we were among the last countries in Europe to introduce charges for port and terminal dues, and that we determined these amounts should be minimal.

The Port Governance Agency was established with the aim of regulating and improving the port sector. How would you assess your first five years of operations?

- Standing behind every good result are people who invested their effort and knowledge. The greatest success of the Port GovernanceAgency was to form a young and professional team, which approaches every challenge and task with unabated enthusiasm. For some colleagues, working at the Agency was their first job after completing their studies, because we wanted to provide an opportunity for new personnel to acquire knowhow and advance in this specific area of water transport. Furthermore, we provide the opportunity for everyone in the team to undergo further training and education. With the professional and proactive approach of all employees, we managed to change the perception of the Agency as just another institution burdening citizens. Today we are a port authority that, at the level of Serbia, invests surplus revenue in development projects and returns resources to the national budget.

We’ve established an effective system for charging port dues, on the basis of which the Agency has relevant and up-

Ports are known as economic drivers in every country, but ours were left completely neglected. What challenges did the Port Governance Agency face initially? What were the biggest problems that you solved successfully?

- Port activity and water transport are areas that haven’t seen investment in more than half a century.

The first move towards reforms was made in 2010, with the adoption of a new Law on Navigation and Ports on Inland Waterways, which envisaged - among other things – a change to the business model of ports.

Immediately upon its establishment in 2013, the Agency was confronted by unfavourable conditions for the development of port activities, primarily due to a lack of adequate urban planning documentation, which is the main precondition for determining port areas, and a lack of funds for maintaining and constructing port infrastructure. With the aim of overcoming many obstacles, we launched intensive cooperation with the relevant ministries and local governments, in order for us to encourage local self-governments to produce all the necessary documentation, while we developed programmes and investment plans with the Government of Serbia and from European funds.

lready for the fourth consecutive year there has been significant increases in volumes of cargo handling and a record amount of transhipped cargo. We recorded an increase in the first quarter of this year compared to the first quarter of 2018, so we can expect 12 to 13 million tonnes of cargo, reveals Vuk Perović.

The most significant results of the Port Governance Agency during the past five years have been resolving real estate ownership issues, defining port areas and issuing the first ever port licenses

46

INFRASTRUCTURE

How many port areas does Serbia have today? To what extent are their capacities utilised?

- There are 12 ports on rivers in Serbia – nine on the Danube, two on the Sava and one on the Tisa. At the proposal of the Port Governance Agency, the Government of Serbia has to date adopted 21 regulations on the establishing of port areas, international passenger terminals, terminals for special purpose and terminals for own purposes. Among the regulations adopted, eight relate to international passenger terminals, while the Agency has so far opened six. We have clear indicators that a need exists to expand the existing capacities of individual ports in Serbia, as well as to construct new terminals.

Which type of cargo is most often handled at Serbian ports?

- The Port Governance Agency recorded its best results to date in cargo handling last year. Some 11.8 million tonnes of cargo was transhipped on rivers in Serbia, or 11.5 per cent more than in 2017, and that was mostly gravel, sand and stone aggregates.

A novelty of last year was the leap in transported quantities of oil and oil products to second place, while ores are ranked third and grains occupy fourth place in total cargo handling. Over the past two years, ores have displaced grains from second place, due to increased activity at the Port of Smederevo.

One of your priorities is to develop passenger transport.

How would you rate last year’s nautical tourism season?

- International passenger transport has been marked by a steady growth trend year-on-year. According to the Agency’s data, during last year’s nautical tourism season, the six international passenger terminals in Serbia recorded 1,150 port calls and over 157,000 embarked and disembarked passengers. Compared to 2017, the number of port calls was up 15%, while the number of embarked/disembarked passengers was up by a fifth.

The international passenger terminal in Belgrade is still the most attractive to foreign tourists, with more than half the total number of port calls and about 80,000 tourists, while it’s followed by the terminals in Novi Sad and Donji Milanovac. We opened a terminal during Easter last year in Golubac, which completed the nautical season successfully with 44 port calls and more than 6,000 embarked and disembarked passengers.

The Agency’s plan is to open two new international passenger terminals in the period ahead, in Zemun and Ram. Will the project “Awake the Danube”, which you’ve launched together with UNDP, contribute to the development of cruising at international passenger terminals on the Danube?

- The Port Governance Agency has, in cooperation with UNDP, successfully implemented a project to promote passenger terminals in the east of Serbia. Throughout the duration of the project’s activities, three new international passenger terminals were opened - in Smederevo, Kladovo and Golubac. During 2018, we also launched a continuation of the project “Awake the Danube” and expanded it to northern parts of Serbia. We selected five municipalities – Apatin, Banoštor, Novi Sad, Sremski Karlovci and Zemun, in order for us to bring all the potential of the Danube closer to tourists. The promotion of the natural resources of the Danube river basin in Serbia will enable the development of the eastern and northern parts of our country, and river-based passenger transport in Serbia.

Our aim is to include the cities of this region into the tourist map of Europe and for Serbia to be ranked among the leaders in passenger transport.

To what extent has the upgrading of ports contributed to the development of the cities in which they are located?

- Ports, as strategically important nodes of a country, generate numerous economic activities - production, trade etc. As such, in the port hinterland , industry is stimulated and new jobs are created, which contributes to the economic empowerment of local self-governments.

Passenger terminals also play an important role in the development of cities. Apart from representing our reflection in the world and bringing Serbia closer to foreign tourists, terminals also boost local revenues through hospitality establishments, visit to sights and the handicraft items of the local population.

Another new jurisdiction of the Port Governance Agency is marinas, as so-called small nautical facilities. Marinas have great potential for tourists who would visit Serbia while voyaging on their own boats or leased vessels, which would also help develop other forms of themed tourism - hunting, wine, religious, rural – and are important for the Podunavlje District’s undeveloped municipalities.

Cruising is a “flourishing industry”, and the Danube represents a real magnet for tourists that attracted nearly 1.3 million passengers in 2018 alone

47

INFRASTRUCTURE

48

INFRASTRUCTURE

ELEKTROMONTAŽA

BUSINESS

RELIABLE Partner Ever since it was founded in 1963, Elektromontaža has been continuously building its reputation as a reliable business partner for delivery of electric power infrastructure solutions

I

With the purpose of meeting indin the course the last 10 years alone, During the last couple vidual needs of our clients and reaching Elektromontaža has built and constructed more than 1500 power transformer of years, we have expanded sustainable development of our company, stations, more than 850km power lines, our business operations we expand the scope of our business adapt it to contemporary electric and voltage networks of over 1000km. abroad, trying to establish and power trends, respecting environmental Due to our accumulated knowledge, Elektromontaža as an protection challenges, human and ethical we have been involved in some of the biggest ongoing projects in Serbia in international company standards and social responsibility to global community. the areas of electric power distribution During the last couple of years, we have expanded and transmission, hydro and thermo power production, our business operations abroad, trying to establish renewable energy, traffic management, automatisation, Elektromontaža as an international company. city lighting and environmental protection.

49

CONSTRUCTION

Reforms As A Driver Of Investment And Economic Growth

Thanks to reforms implemented in all segments, the legal environment for investment in the construction and real estate sector has been created. The introduction of e-permits was declared the “reform of the decade� and led to Serbia being ranked among the world's top ten countries on the list of the World Bank, where it today competes with the world's most developed countries.

Construction has grown over the course of a few years from a position of complete collapse to again become the main driver of Serbia's GDP growth.

The new investment cycle, coupled with the continuation of cadastral and spatial planning reforms, will contribute to it maintaining this position in the years ahead.

INFRASTRUCTURE

JOVANKA ATANACKOVIĆ, ASSISTANT MINISTER OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE FOR CONSTRUCTION

INTERVIEWS

The results of reforms in the construction industry are visible through an influx of new investments, construction growth in the number of construction permits, active construction sites, the value of construction works and, most importantly, GDP growth

Construction Drives ECONOMIC GROWTH

T

he construction sector, and construction activities worldwide, represent one of the main drivers and pillars of countries’ economic development. The economic growth and development of construction is influenced in many ways: whether through the direct or indirect employing of a large number of people with different educational profiles, through the construction and improvement of infrastructure without which a country cannot develop, through impacts on the development of the construction materials market and quality, or through the actual value of implemented works that impact directly on gross domestic product (GDP).

Problems that have accumulated in the Serbian construction sector since the 1990s led to the construction industry facing collapse in 2013, with construction companies in debt and only a few cranes and a few hundred construction sites active across the whole country.

There is an existing opinion that suggests people are driven by two things: the intolerability of their current situation or an idea, vision or goal that is challenging enough to drive them in a direction that they think will bring them a life worth living. The

52

situation reached in the construction sector in 2014 imposed both need and vision. It was necessary to introduce modern technologies and e-governance to this field, but simultaneously to believe in the indispensable role of people with vision. That’s because it is precisely vision that sets successful people apart from those who are average and unsuccessful.

E-PERMITS AS A MODEL OF SUCCESSFUL REFORM The situation imposed a need for decisive and comprehensive reforms in the construction sector, which implied painful cuts and breaks with bad habits acquired. In that sense, the Ministry of Construction, Transport and Infrastructure implemented radical changes in all areas in the period from 2014 onwards, in order to ensure the comprehensive improvement of the construction sector. The reforms that we implemented weren’t only in the domain of infrastructure projects, without which it would not be possible to raise the level of the construction industry, rather it was also necessary to create a legal framework that enables the influx of new investments, which provides legal certainty and introduces clear and simple procedures aimed at ensuring a legal approach.

INFRASTRUCTURE

Thus, when we first mentioned that a construction permit could be issued within a period of five days, instead of the then norm of 264 days, that an investor no longer need walk from counter to counter, sometimes visiting dozens of different institutions in order to acquire conditions for a location, in order to be able to increase the number of construction sites from several hundred to tens of thousands, in order for property rights to be able to be registered electronically, and in order for the construction industry to again become a driver of economic and business growth, we didn’t yield in the face of the unbelieving and passive attitude of many who were discouraged by the long years in which every form of progress was impossible. However, we knew the Serbian proverb “fields need hoes, and not hopes”, and instead of accepting the “immutability of the situation” we didn’t waste energy on fears, rather we used it to work and persevere to ensure progress.

The greatest achievement and example for other reforms was certainly the introduction of electronic construction permits. In the 2015 report of the Doing Business Index, Serbia was ranked 186th worldwide in the area of construction permit issuance. At that point we were only ahead of countries for which the World Bank had no data or countries that were then at war (Eritrea, Libya and Syria). In a period of just three years, we managed to enter the world’s top 10 and are today competing with the world’s most developed countries.

SINGLE-WINDOW SYSTEM IN REAL ESTATE REGISTRY Investment in transport infrastructure, coupled with simplified procedures and better operating conditions, resulted in the construction sector again becoming the carrier of GDP growth after a break of many years, and this happened in 2018, when real GDP growth totalled 4.4% - the highest in the preceding 10 years.

The value of completed construction works increased by 140 billion dinars (1.2 billion euros) from 2013 to 2018, i.e. from 189.5 billion to 332 billion dinars.

Proof that things are progressing in the right direction and that the results of reforms are evident and felt in real life is provided by the fact that we have advanced in just a few years from only a few hundred construction sites to more than 39,000 active sites. In the real estate sector, during the previous period we resolved problems inherited from the past (including the issuance of construction permits, conversion and legalisation). With the 2015 adoption of the new Law on the Legalisation of Properties, through the legalisation of buildings constructed unlawfully, 210,000 decisions on legalisation have been brought, which is more than in the previous 15 years combined - when, on the basis of all previous laws regulating the area of property legalisation, a total of only around 151,000 decisions on legalisation were brought.

One of the most important reforms we are currently implementing is cadastral reform, which last year resulted in the launch of a completely new system for registering property rights, with which

we revoked the previous need to “wander” between five counters by introducing a “one-stop-shop” system, which starts and ends for citizens in the office of a public notary. Implementation of this law to date has proven very effective, as evidenced by the average period required to make a cadastral entry, which totalled 5.24 days in the third quarter of 2018 and 4.88 days in the fourth quarter.

E-GOVERNANCE FOR PLANNING DOCUMENTATION TOO We have also adopted a unique Law on Construction Products for the first time, which is harmonised with EU standards. This law should ensure the better quality of facilities to be constructed, in terms of stability, security, accessibility, greater energy efficiency, energy savings and the sustainable use of natural resources.

Moreover, we are also beginning implementation of the new E-Space reform, which should ensure a completely electronic

procedure for the drafting of planning documents, thereby speeding up the process, rendering it transparent to all participants and improving the actual issuance of acts based on these plans.

Alongside all commenced reforms, we are also awaited by the future development of the “smart cities” concept, which implies – among other things – the implementing of sustainable technological solutions, renewable energy sources and modern construction materials, in which energy savings and pollution reduction represent contributions to energy security and environmental protection.

Thus, we are awaited by new challenges, new reforms, new projects and the struggle for a better tomorrow. With an awareness for the real roles of our lives, we are committed to acting responsibly towards the lives of those who will continue where we stop - the children we have, those who are yet to be born and who will, like us, one day ask how their ancestors lived and whether they left them a society that was better than the one they inherited.

The new system for registering property rights revoked the previous need to “wander” between five counters by introducing a “one-stop-shop” system, which starts and ends for citizens in the office of a public notary

53

GLOBAL NEWS

INFRASTRUCTURE

ROMANIA

NORWAY

Chinese-Turkish Consortium Won Tender For Motorway

Europe’s First Underwater Restaurant

Out of five consortiums that expressed an interest in building a €1.4bn public–private partnership (PPP) motorway in Romania, only one has actually entered a bid.

The team, consisting of China Communications Construction Company (CCCC) and Istanbulbased contractor Makyol, is now the sole contender for the 110km Ploiesti–Brasov highway, according to Romanian website Economica.net.

The four other consortiums that entered bids were a Chinese team made up of Sinohydro and Power China Roadbridge, ERG Insaat Ticaret of Turkey and Sauerwein & Schaefer Bau of Switzerland, Austria’s Strabag and IC Ictas of Turkey, and Spanish duo Acciona Concesiones and FCC. The team winning the project will fund the work and receive annual payments from the Romanian government over the 24-year period of the concession, as well as a toll of €6.3 per 100km.

SAUDI ARABIA

New Projects Worth $23bn For Riyadh The Kingdom of Saudi Arabia is to spend $23bn on four projects for Riyadh, in an effort to make it “one of the world’s most liveable cities”.

The projects are: King Salman Park: Located in the heart of Riyadh; Sports Boulevard: Designed to encourage exercise, including 48 green and open spaces; Green Riyadh: The plan to increase air quality and reduce temperatures and Riyadh Art - Described as the “world’s largest government investment in public art”, the project will create 1,000 installation artworks and landmarks, including institutions such as museums and theatres, to be created by local and international artists across public spaces in Riyadh.

The four projects will meet the UN’s sustainable development goals and will create 70,000 jobs, and generate investment opportunities worth $14bn to local and foreign investors. Work on them is due to begin in the second half of 2019.

RUSSIA

Russia Completes Its Part Of First Railway Bridge To China Russia laid the final steel beam on its section of the first cross-border railway bridge over the Amur River to China, meeting the Chinese section that was finished in October last year.

Billed as a boost for China-Russia trade, the some 2,200-metre-long bridge provides a faster link between the Chinese city of Tongjiang and Nizhneleninskoye in Russia’s Far East, over the river which is called the Heilongjiang in China.

Construction began on the Chinese side in 2014 after for than 25 years of negotiations.

It is the first fixed crossing between the two countries on this section of the border, and is expected to enhance the region’s economic development by ending reliance on ferries or lengthy round trips.

Russia will use the bridge to export iron ore, coal, fertilisers, lumber, and other goods to China.

56

Europe’s first underwater restaurant, designed

by Olso-based architect Snøhetta, has opened in Lindesnes on Norway’s southernmost tip.

The “Under” restaurant takes the form of a 34mlong half-submerged monolith, with metre-thick concrete walls.

The structure is designed to age over time, with the rough concrete transforming into a reef for creatures such as limpets and kelp.

Visitors descend through three levels. From the entrance, where the tide pool meets the

sea, they enter the cloakroom area. They then go down a level to the champagne bar, which marks the transition between the shoreline and the ocean. From the bar, guests can look down at the seabed level, where two long tables and several smaller ones are placed in front of a panoramic window.

“This will offer you new perspectives and ways of seeing the world, both beyond and beneath the waterline,” said Kjetil Trædal Thorsen, Snøhetta’s founder.

INFRASTRUCTURE

ITALY

China And Italy Sign €2.5 Billion Deals Following meeting Italian Prime Minister Giuseppe Conte and China’s president Xi Jinping in Rome, two sides have signed preliminary agreements for trade and infrastructure worth €2.5 billion. The two leaders signed a formal MoU, while companies, ministries and public bodies from both countries signed almost 30 deals, according to Reuters. Two of the deals signed concern Italy’s ports and COMMERCIAL HARBOUR OF THE NORTHEASTERN have come under intense scrutiny on both sides of the Atlantic.

CITY OF TRIESTE, ADRIATIC SEA Chinese Communications Construction Company (CCCC) has signed agreements with the Italian authorities responsible for the ports at Genoa and Trieste. CCCC, an infrastructure group owned by the Chinese state, has made the deals as part of China’s Belt and Road Initiative (BRI), which aims to establish infrastructure connecting Asia, Africa, Europe and the Middle East.

EGYPT

Construction In US Slows

Concrete Solution For Africa’s Tallest Tower A concrete solution that is said to be unique to the Egyptian market has been used on the Iconic Tower in Egypt by LafargeHolcim.

The cement solution is said to have higher slag contents to meet the contractor’s specifications and provides an extended lifetime of more than 100 years thanks to its higher durability and strength, essential for a structure of this size and weight.

LafargeHolcim was the exclusive cement supplier for the tower’s base construction work. In February this year it poured concrete nonstop for 48 hours, the country’s longest-ever concrete pour.

When complete the tower will be 385m in height, making it the highest tower in Africa. The tower will be just one element of Egypt’s new administrative capital, which is being built 45km to the east of Cairo.

Construction employment decreased in 33 US states between January and February of this year, according to information released by the Associated General Contractors of America (AGC). Although the number of construction jobs in the US increased in 37 states between January 2018 and February 2019, this latest drop in figures has highlighted the country’s lack of skilled construction workers.

Only 16 US states saw an increase in the number of construction jobs between January and February of 2019. AGC officials said the growing shortage of qualified workers, coupled with recent severe weather, was responsible for the industry’s slowdown.

GLOBAL NEWS

US

UK

Rejection Of Approval Foster + Partners’ Tulip Tower City of London decision makers should reject planning officers’ advice to approve Foster + Partners’ Tulip tower because of the harm it will do to the capital’s heritage, the chief executive of Historic England has said.

In an unusually direct attack on a development proposal, Duncan Wilson said the 305m tourist attraction was “a lift shaft with a bulge” that would have a detrimental effect on views of the capital. His comments come as the City of London prepares to make a decision on whether to give the scheme the green light or not. Historic England said it was opposed to the scheme – created for Jacob J Safra, owner of the neighbouring Gherkin building – in December last year, primarily expressing concerns over its impact on views of the Tower of London, which is a UNESCO World Heritage Site.

57

INFRASTRUCTURE

BUSINESS

DANKA SELIĆ, GENERAL DIRECTOR OF THE BELGRADE FAIR

We Have Always Been BUILDING THE FUTURE Thanks to good organisation, the Building Trade Fair is the best and most representative of this year's gatherings of building trade entrepreneurs on a wider European scale, as evidenced by more than 600 participants from some 30 countries, with 40,000 visitors expected

O

ur strongest plans for Belgrade Fair are reflected in the fact that we are worthy of our own history and better than any surprises that the future will bring.

All of our concrete plans, and we have many, are just small practical steps on this great road, says Danka Selić.

More than 600 reported exhibitors are talking about this, of which at least one third are foreign, from around 30 countries. We expect about 40,000 visitors, among which there are growing numbers of those with well-established credentials.

Have you again this year been able to gather the most relevant domestic, European and global companies in the field of construction?

- We have. According to the logic of things, our business obsession, some would say our mission, is reflected in the fact that the best can be found at the Fair, that they offer and introduce the best of what they have and know, to make this year’s best promotions and breakthroughs in their activities and specialities precisely at our Fair. Our goal is to jointly make this Fair the best and most representative year-round gathering of “builders” even on a wider European scale. It may sound immodest, but the initiative for gathering and appearing at the Fair is increasingly coming from these top companies, aware of their professional and business interests, even without our efforts as organisers.

Thanks to us, promising but not well-known companies feel equal and competitive in the company of the best and globally established, which is flattering for both, to the benefit of the event and the profession.

Can construction be a driver of economic development, are new knowledge and innovations on their way to make technological progress in construction?

- Under the slogan “Building the Future Now”, new technologies and knowledge are included in the demand for innovation and progress in all fields, whether it’s entirely new building materials or building technologies. This is especially true for IT, digital and communication technologies, all kinds of innovative, specialised and applied software that has long been in the construction industry is nothing exclusive, but an accompanying element and logical need.

Such an attitude towards the new and the innovative is one of our little “God’s commandments”, because that is the only way we can remain an indicator of what we as organisers should suggest to the decision-makers in the construction industry as the decisive factors, and to what extent we should transfer their experience to others during the fair.

All this is connected with our desire and intention to be maximally multi-sector and multidisciplinary. In addition to

Exhibitors have the greatest benefit from participating in the Fairs, since for each euro invested in participation they earn at least two euros while the Fair lasts, and after the end of the Fair this ratio reaches eight euros to one

58

INFRASTRUCTURE

everything meant by “classic” exhibition stands at a Building Fair, this year we are further developing new branding groups that we introduced last year - “Real Estate - Investments” and “Architecture - Urbanism”. We are doing everything to present companies engaged in construction, real estate agencies and architecture bureaus that have investment projects in which local and regional builders can find opportunities.

At this year’s Building Fair, will Belgrade Fair also try to raise the quality of communication in the business environment and to also support companies in agreeing new deals?

- Since our business initiatives are respected and effective internationally, as there are more and more diverse exhibitors, and since business partners return to us with more and more enthusiasm and expectations year after year, the logical consequence is the continuous increase in the number of business visitors, global promoters or large customers, who in today’s fair business are an unavoidable factor. For several years now, we’ve adapted almost all of the company’s business philosophy to them.

At this year’s building fair, we are continuing to improve the quality of communication in the business environment, primarily by improving the application of B2B programs, in support of information, business and agreeing new deals.

This way we strive to raise the business segment to a higher level and offer participants the opportunity to reach potential business partners even before the event itself, to schedule business meetings... We have created special packages for business visitors and guests who can receive numerous “technical privileges” to facilitate work and communication - from purely business and organisational to “recreational”, accessing the Business Lounge, free Wi-Fi, securing a place for short business meetings, helping to arrange meetings, using computers, printers and other benefits and services.

- Two years ago we received the information that we are in fact much more important for Belgrade, Serbia, the economy, society, in fact much more important than we are in our own self-confident and optimistic perceptions.

In addition, I will not even mention the key issue - total tax revenues, which are the most direct benefits for the state and its budget from the company. And at that time, that was

an interesting confirmation for us of what we had so far only assumed, that every dinar made by the Belgrade Fair‘s operations is almost instantaneously multiplied three to four times, and in the national economy even 11 times.

It turned out that, during 2016, exhibitions of the Belgrade Fair attracted 70,000 foreign and domestic guests to Belgrade and its hotels, and they all together spent around one billion dinars. This means that every tenth Belgrade guest that year, business or tourist, came to Belgrade especially because of some Fair event. It is understood that these figures for the Belgrade Fair are more favourable today than in 2016.

It is important that we remain a real driver of economic development, not just through activity in the construction industry, but through all the interlaced and networked economic sectors as a whole

You have done a lot of things to bring back the old glory to the Belgrade Fair. With what plans did you start your ninth decade of operations?

- Without any hesitation I can say that the fame of the Belgrade Fair never, at any time of its history, was shaken, especially not by its own fault. Only the times, states, circumstances for survival and doing business have changed. The task of new generations is to maintain this glory, give it new splendour and more modern meaning. We believe we are doing it successfully.

In cooperation with the Economic Institute from Belgrade, you have completed a professional analysis of the impact of the Belgrade Fair on Belgrade and Serbia. What came out of that?

What is the biggest value of the Fair? The exhibition halls?

The position of Belgrade as a regional centre? Its location?

- It seems to me that the answer to this difficult question is very easy - in everything you have listed and in everything you have not. I have a clearer and more concrete impression that the Belgrade Fair is actually a universal value, which includes the undeniable value of the brand, and the labour of past generations, as well as the historical aura.

59

INFRASTRUCTURE

BUSINESS

OLGA ĐURIĆ PERIĆ, DIRECTOR OF ASMEC CONSULTANTS D.O.O. (LTD.)

We Are A ONE-STOP SHOP Asmec Consultants d.o.o. (Ltd.) is a company that designs residential buildings, hotels, offices, sports facilities, factories, warehouses, bridges and other structures, as well as providing supervision and project management services... From its inception, the company's aim has been to design projects that are economical, safe and durable

W

hile road and rail infrastructure are important, the Asmec Consultants team believes that they are interconnected and must go hand-in-hand with improvements to social infrastructure. Expertise, quality and respect for deadlines are the best recommendations for them.

Are expertise, quality and respect for deadlines the best recommendations for you?

- Correct. Within its portfolio, Asmec has of all these qualities.

We also have capacities in designing hospitals, schools and bespoke structures for online shopping companies.

Our forte is in design and project management, while we have limited experience in site supervision. We are proud to say that we receive positive feedback from our clients regarding the quality of our work and our respect for deadlines.

Furthermore, we believe that another important recommendation is that we are a “one-stop shop”, given that we are a multidisciplinary company that comprises structural, mechanical, electrical and telecommunications engineers, as well as sprinkler and environmental specialists.

Finally, we believe that a significant recommendation is that we encourage our team to create innovative solutions.

Highway E763 in collaboration with companies ProInzenjering and CPV. During the design stage, one of the challenges was to come up with structures that are durable and require low maintenance during operations. This was achieved by using integrated/frame structures. Furthermore, in order to improve buildability on site, we applied a standardised approach to the bridge structure where possible. We went further on the Kolubara bridge, with the challenge of streamlining construction by working closely with the contractor to customise the design according to their specialised methodology.

You are part of the “Arup” team for the Road Rehabilitation and Safety - Technical Assistance Project, which is responsible for bridges. Could you tell us more about this project?

- This project encompasses the entire road network of Serbia, around 1,100 km. It aims to enhance road safety by improving road design and renovating existing roads and bridge structures. Technical assistance covers all phases of the project, spanning from inspections of the existing network to evaluation reports of works undertaken.

Furthermore, Arup is involved in introducing environmental and social safeguards to the project: for example, conducting road safety surveys around schools.

While road and rail infrastructure are important, we believe that they are interconnected and need to go hand-in-hand with improvements to social infrastructure. Asmec is working on projects to upgrade the energy efficiency of schools, libraries, clinics and health centres.

We are proud to be involved in renovating these public buildings to make them part of a more sustainable future

You’ve worked on projects for a bridge over the Kolubara river and several smaller bridges along Corridor 11. What were the greatest challenges of these projects?

- Asmec designed bridge structures along Sector 1, Section 3 of 60

INFRASTRUCTURE

61

INFRASTRUCTURE

BUSINESS

DRAGAN GAVRILOVIĆ, GENERAL MANAGER, SIKA SERBIA D.O.O. (LLC)

Sika - A Symbol Of INNOVATIVE POWER Sika's model as a company is synonymous with enduring, successful and profitable growth. Over the past 10 years, Sika has achieved significant growth globally, such that it today operates directly in 105 countries around the world, where a permanent contribution is provided by more than 20,000 employees

S

- Sika’s company model is synonymous with enduring, successful and profitable growth. Successful implementation of strategic goals for the 2015-2020 period – based on five basic principles (Market Penetration, Innovation, Emerging Markets, Acquisitions and Values), along with the parallel implementation of the Sustainability Strategy and the Strategic Target Markets Strategy – is for now yielding the expected contribution to results, whilst at the Last year was one of the most successful for Sika at the same time securing an excellent base for future growth global level, but also in Serbia. To what extent does the and development. fact that you’re part of such a large and successful system The greatest challenges in the work we do are related ease your work in Serbia? to preserving profitable growth while - xGrowth of 13.6 per cent was achieved at the global level during 2018, with Despite certain difficulties, retaining a continuous commitment to the users of Sika’s services, syswhich Sika’s total turnover exceeded the application of modern the magical figure of seven billion tems and materials, and including Swiss francs. Growth in profits of 5.9 and advanced methods and all stakeholders in the realisation per cent, four new acquisitions, 85 new of projects, from initial idea to end technologies is happily patents, energy consumption reducuser, with a special emphasis on our partners who directly install tion of 5.8 per cent, 11 new factories, accepted in Serbia and our systemic solutions or individual 16.8 hours of guidance and training per Montenegro, so we can be materials. Considering that Sika has, employee, all in just one year, 2018. This very indicatively points to the strength ranked among the world’s best since its founding, been a symbol of of the company and its growth. according to that parameter innovative power and technology, the placement and implementation Sika Srbija realised growth of 16.3 of new technologies, materials and solutions on the per cent in the last year, achieving a turnover of more than markets of Serbia and Montenegro represents a special 4.5 billion RSD, which ranks us among the very successful challenge for our employees.

Sika companies and makes us very proud.

Common obstacles to these endeavours include local habits and, to an even greater extent, local regulations Since the emergence of the company, Sika has operated and standards that have not yet been fully aligned or according to the principles of continuous development, harmonised with the standards and regulations of EU in order to ensure successful responses to all current and member states, although the situation is much more future market demands. What are the greatest challenges unified today than it was 10 or 15 years ago. in your line of work? ince its founding, Sika has been a symbol of innovative power and technology, which is why the placement and implementation of new technologies, materials and solutions on the markets of Serbia and Montenegro represents a special challenge for our employees, reveals Sika General Manager Dragan Gavrilović.

62

INFRASTRUCTURE

Is your business policy best reflected in the slogan “From floor to roof”?

- Apart from Sika’s official global slogan, “BUILDING TRUST”, another of Sika’s slogans is “Roof to Floor”. This should illustrate the ability and intention of Sika to offer a very wide array of possible systemic solutions at all stages of construction and for a more than wide range of purposes.

Particular importance has been given in recent years to a stronger presence in the construction of housing, in the field of finishing works for the construction industry. In order to implement these goals at the highest, corporate level, a special sector – BUILDING FINISHING – has been established and is operating successfully, which realises its full worth via the sales distribution network (DISTRIBUTION) and which is increasingly successful in providing more complete and better support to our partners. Like in many other areas, Sika Srbija d.o.o. is also one of the most successful Sika countries in this area, as well as a major driver of growth.

Sika is also a world leader in the area of bridges repairs. Have you had a opportunity to cooperate with the Serbian Ministry of Construction, Transport and Infrastructure?

- Sika Srbija initiated cooperation with all relevant stakeholders in this field from its very founding in 2002.

We’ve organised several very successful seminars on the topic of the bridge structure solutions that Sika offers. During the past 15 years, we’ve participated in strengthening the structures of more than 150 bridges in Serbia and in Montenegro, as well as in the construction (applying some of Sika’s solutions) of probably all new bridge structures implemented during that period.

reconstruction and continued construction of the Clinical Centre of Serbia, the Kostolac TPP project, the ‘Čortavci’ tunnel project on a section of the Belgrade-Budapest high-speed rail link, as well as many other infrastructure, industrial and residential-office facilities. It is especially important for us to maintain our full commitment to projects that are not as impressive, in terms of their size or importance, but which are as important to us as they are to their investors and end-users.

You are increasing your participation in the field of the automotive industry and transport year on year. What are your expectations and plans for the years ahead?

- With more than 30 years of experience in the automotive and transport industry, Sika, as Tier 1, is a supplier

together with its customers, helping to create the cars, buses, road haulage vehicles and rail locomotives of the future. Sika is a leader in adhesive products, sealants, reinforced and acoustic insulation in the automotive industry.

We will be focused in the period ahead on: • Strengthening our position in the “after-market segment”, i.e. in the segment of sales of products for the repair and protection of bodywork and windscreen adhesive; • Developing cooperation with local manufacturers of buses, rail vehicles and haulage vehicle upgrades We expect the most from foreign companies that are launching production on our market, such as Siemens, in the production of trams, and the new owners of Ikarbus – Chinese company Jin Long. Both companies are our traditional partners, with which we cooperate successfully worldwide.

We are particularly proud of the results achieved and our presence in the field of bridge construction and repair, because bridges are much more than standard construction undertakings

You are present on almost all construction sites in Serbia and Montenegro. What are the biggest and most significant projects that you are working on at present?

- Growth of the construction sector in both Serbia and Montenegro, as well as the strength of Sika Serbia, have contributed to us currently being present on several thousand smaller or larger projects. It is difficult to single out individual projects, but certainly standing out in terms of their significance and scope are the Bar-Boljare Highway project in Montenegro, projects on corridors 10 and 11 in Serbia, the Belgrade Waterfront project, with all its structures, the

63

INFRASTRUCTURE

ZORAN LAKIĆEVIĆ

INTERVIEWS

STATE SECRETARY AT THE MINISTRY OF CONSTRUCTION, TRANSPORT AND INFRASTRUCTURE

The utility infrastructure projects that Serbia is implementing in the field of water supply, wastewater management and solid waste management, with the support of German development bank KfW, contribute to increasing quality of life for about two million people, or close to a third of Serbian citizens

Investments In Utility Infrastructure For SAFE WATER SUPPLIES AND A HEALTHY ENVIRONMENT

S

erbia’s wealth of natural resources, and its commitment to managing those resources in a rational and sustainable manner, define the level by which the population’s quality of life will improve, but also the level of economic growth of our country. Access to, and care for, water, as one of the most important natural resources, represents an important factor of the sustainability of Serbia’s entire economic system, and a reason for the great attention being paid to investments in improving utilities infrastructure.

A strong contribution to the development of the Republic of Serbia’s infrastructure has been provided within the scope of bilateral cooperation with the Federal Republic of Germany. The programme for water supply, wastewater treatment and sewage systems in medium-sized Serbian cities has brought numerous benefits, which are reflected in the populations’ improved quality of life and growth in foreign direct investments, but also the development of tourism and other economic branches.

Within the framework of German-Serbian bilateral co-

64

operation, via the programme for water supply, wastewater treatment and sewage systems in medium-sized Serbian cities, which is worth 142 million euros, significant support was provided to the modernisation and construction of water and sewage infrastructure in mid-sized towns in Serbia. The complete programme is implemented with the financial assistance of the Government of the Federal Republic of Germany and the European Union, via German Development Bank KfW, in cooperation with the Ministry of Construction, Transport and Infrastructure.

Priority in the programme’s implementation is given to investment programmes, the success of which is rated according to set performance criteria, which relate primarily to the economical management of assets and investment sustainability.

This programme is unique among its kind in Serbia, as it monitors results and assesses the sustainability of the operations of utility companies participating in the programme during its implementation. Since the start of implementation,

INFRASTRUCTURE

technical and institutional support has been provided for 20 cities in Serbia, encompassing a total population of 1.6 million inhabitants through five individual sub-programmes, within which over 200 individual investment projects have been completed or are in the process of being realised.

SAFE AND SUSTAINABLE WATER SUPPLY Testifying to the effects of investment in utility infrastructure is the fact that, via Programme 1, which has an investment budget of 48 million euros, the programme has secured – in Kraljevo, Loznica, Pančevo, Šabac, Smederevo, Sombor and Vršac – a sustainable and continuous supply of drinking water for the population of a satisfactory quality that’s in accordance with domestic legislation, EU regulations and WHO recommendations.

A secure water supply and sufficient quantities of drinking water have been provided, as well as extended water supplies and a sewage network through construction/reconstruction/ procurement: four water treatment plants for drinking water with a total capacity of 1420 l/s, 267km of water pipes, 3,000 household connections, 27,000 household water metres, 19km of sewage pipes, 13 pumping stations, eight wells, two water intakes, a digitalised control and water management system (SCADA system), embankment strengthening for the flood protection of sources, increased capacity of reservoir space by 9,870m3, equipment provided for the detection of leaks in the network, reductions in irrational water consumption in individuals cities of up to 12%, reduced water losses in individual cities of up to 15%, and new machinery also provided.

The Government of Serbia continues to invest in utilities infrastructure (through Programme 6 with KfW), with a special emphasis on the areas of water supply, wastewater treatment and solid waste management, which has been recognised as one of the important factors with a direct impact on the economic growth of the Republic of Serbia.

It is estimated that it is necessary to invest around 1.3 billion euros in the area of wastewater management alone, for the construction of infrastructure for wastewater treatment plants, and 2.5 billion euros for collectors and the sewage network. Agreement has been reached that in the framework of bilateral cooperation between the Republic of Serbia and the Federal Republic of Germany, investment and institutional support will be provided to another eight cities and municipalities that lack appropriately advanced collection, disposal and treatment of wastewater. The investment budget totals 50 million euros.

housing solutions and improving physical infrastructure in Roma settlements”, financed from the IPA 2013 grant scheme and being implemented in 13 municipalities and cities in the Republic of Serbia, which has a total value of 9.5 million euros, 123 housing units have been built or reconstructed to date, housing close to 600 people, including more than 250 children (in Odžaci, Lebane, Ub and Svilajnac).

The basic aim of the project is to increase the social inclusion of members of the Roma population, while the tangible objectives of the project are to improve the infrastructure in substandard Roma settlements, build social housing for evicted Roma people, and reconstruct or upgrade facilities owned by private individuals.

Also being launched is implementation of the IPA 2014 project for improving the socio-economic living conditions

of the Roma population. The planned results of this project relate to the development of currently substandard Roma settlements through the development of technical documentation and urban plans for a maximum of 100 substandard Roma settlements in Serbia and local level capacity building for the inclusion of Roma populations. Also under preparation is new programme from IPA 2018 for housing and communal infrastructure in Roma settlements that’s worth 20 million euros.

The noted projects illustrate the Serbian Government’s commitment to improving the situation for Roma people, which is why we’ve formed a special Coordination Body tasked with consolidating the efforts of state institutions, civil society and the Roma community. The results achieved clearly show that these are not just strategies and stories. Everything we do is seen in action and contributes to improving the everyday lives of Roma people, whether that relates to paved roads, resolved sewage issues or a new building in which they will live.

The Government of Serbia is also working to improve utilities infrastructure and housing in Roma settlements, in 9.5 million euros is being invested through the IPA 2013 grant scheme

IMPROVING INFRASTRUCTURE IN ROMA SETTLEMENTS The Government of Serbia is simultaneously also working to improve utilities infrastructure and housing in Roma settlements. Within the scope of the project “Implementing durable

65

INFRASTRUCTURE

BUSINESS

MIĆA MIĆIĆ, CEO OF CONSTRUCTION COMPANY MPP JEDINSTVO SEVOJNO A.D. (JSC), SEVOJNO

Seven Decades AT THE TOP The latest equipment, preparedness, expertise and readiness to implement the most complex undertakings in the field of construction projects, as well as an exceptional managerial team and employees, form the basis of the success of MPP Jedinstvo Sevojno. That was the case way back in 1947, and it's still so today

O

ver the past 30 years, “Jedinstvo” has implemented works on the most important construction projects in Russia, while it has been engaged in the largest infrastructure projects in Montenegro, Serbia and Srpska Republic for the last 10 years and no major state project in Serbia can even be imagined without it.

vehicle maintenance and repair, we manage to realise a total consolidated annual turnover of around 80 million euros.

You’ve been present on the territories of the countries of the former USSR since 1988, while your engagement on the Russian market have been growing in recent years.

Considering that it’s a huge country, are the jobs also big?

- Over the past 30 years of operating on the Russian The core activity of your company, which was founded way market, Jedinstvo has implemented works on the most back in 1947, is the design and implementation of hydro, important structures in Russia, such as the Central Bank thermal and gas installations. What does your service of the Russian Federation in Moscow, encompass today? the Krasnodar Regional Court, the - MPP Jedinstvo Sevojno is an open Jedinstvo acquired 100% of residences of the Russian Patriarchate joint stock company with an enviable business tradition dating all the shares of company Novi in Divnomorsk and President Putin in Jedinstvo also participated in the way back to 1947. We’ve spent Pazar Put, which is one of the Valday. the construction of almost all facilities more than 70 years as one of the leading companies in the field of leading enterprises in the road for the needs of the Sochi Olympics.

Over the last two years, with company hydrotechnics, water management, construction sector, and Putevi Užice, we’ve carried out works gasification, installations of heating Livnica [foundry] Požega on the Skolkovo Institute of Science and drinking water supply systems, and Technology in Moscow. industrial wastewater management, the construction of external installations, all kinds of Your company has invested more than 15 million euros construction works and steel structures, which testifies of your own reserves over the last few years in order to to responsible and professional work. purchase equipment, construct production facilities and Given that Jedinstvo is also the majority owner of compurchase other companies... Do you plan further expansion? panies Novi Pazar Put [roads], Jedinstvo – Metalogradnje - The tendency of Jedinstvo for many years has been to A.D. (JSC) Sevojno [steel structures], Užice-gas A.D. (JSC) invest two or three million euros each year, to ensure that [gasification], Zlatibor-gas, Livnica Požega [foundry], and we have the latest equipment for all types of activities that the group’s other activities have been extended to from our branch. In addition to this, significant funds include road construction, gas distribution, iron casting,

66

INFRASTRUCTURE

have been invested in the development of gasification activities in Užice and Sevojno (€6 million) and Zlatibor (€2 million).

To what extent are you involved in the construction of capital infrastructure facilities in Serbia? Is the State a good investor?

- Jedinstvo has always had good business cooperation with the government ministries for which it has carried out works on capital facilities in Serbia. The State was one of our largest investors in 2018 and 2019, with facilities such as the Water Factory in Užice and the construction of water supply systems and plants in Vranje, Pirot, Kruševac, Aranđelovac, Zlatibor and Kopaonik.

- Within the composition of the company are multiple subsidiary enterprises that have more than a thousand permanent employees and 350 workers on temporary contracts, and it is thanks to this that we are able to carry out the most complex operational undertakings.

The greatest attention is paid to the continuous training of employees, investments in their standards, high-quality conditions for their accommodation, food and transportation. We pay jubilee awards [bonuses for time served], solidarity assistance, scholarships for employees’ children and recruits, while salaries and shareholder dividends are paid without a single day’s delay.

Considering all of this, I believe the motivation exists for our workers to achieve top results and that’s the key pre-

Your company was extremely sucOur workers are motivated condition for the success of our comcessful last year. What do you have pany. Investing in personnel has been, to achieve top results and to thank for that? and remains, our basic commitment.

- The fact that we are ready to implement that’s the key precondition the most complex undertakings in the recently also conquered the Monfor our company’s success. You field of construction, that we have the tenegrin market, where you’re buildspeed to realise any job, and an exceping a water factory on Lake Skadar Investing in personnel worth 17 million euros. On the tional managerial team and employees, has been, and remains, our that’s basis of this project, can you rely on represents the basis of the company’s basic commitment the awarding of other works on the success. The most important project Montenegrin coast? we’re currently working on, with our con- We’ve been present on the Montenegrin coast for more sortium partner MHPS from Japan, is the flue gas desulfurisation than 10 years and have to date carried out works on the facility at the Nikola Tesla Thermal Power Plant in Obrenovac, following facilities: the Mojdež plant in Herceg Novi, the the contracted value of which is 95 million euros. Together with water factory on Lake Skadar, with a capacity of 2,000l/s, company SMB construction, we are working on the Zvezdara for supplying the entire Montenegrin coast, and rehabilitashopping centre and the new building of RTV Vojvodina, while on Mount Zlatibor we’re engaged in the construction of a cable tion of the Budva-Tivat-Kotor regional water supply system. car system and a waste water treatment plant.

The high quality of implemented works has also secured engagements for us in the current period, with construction You employ between 800 and 1000 workers. Do you have of the water supply and sewage system in Bar and the water enough expert, qualified and motivated workers? supply project for Kotor, Tivat and Cetinje.

67

LOCAL INFRASTRUCTURE

Precondition For Serbia’s Economic Development

Local infrastructure is a precondition for local development, and local development is a precondition for the development of general economic opportunities in the country. Municipal development is therefore as important as large infrastructure projects.

The goal is to create the conditions for a better business environment, alone or with the help of the state, through strengthening local communities and renewing and improving local infrastructure. The state, in turn, must pay attention to the infrastructure problems faced by local authorities, and help when needed.

In recent years, local governments have paid great attention to building infrastructure to attract new investment, and this has contributed to the overall development of the Serbian economy.

INFRASTRUCTURE

BUSINESS

MILUN TODOROVIĆ, MAYOR OF THE CITY OF ČAČAK

We've Become A Real ECONOMIC CENTRE In terms of the amount of funds allocated for active employment policy measures, Čačak is without competition. Everything is done in a planned way, studiously and thoroughly, in cooperation with the City Committee for Strategic Issues and business leaders who adopted the platform “Pillars of Development of Čačak”

T

he opening of Morava Airport in Lađevci will enable the arrival of at least 150 foreign tourists per week, annual revenues of at least five million euros, increased interest among foreign investors and better conditions for the operations of all Čačak-based companies Apart from foreigners, local businesspeople are also interested in plots within the industrial zone in Preljina. How do you encourage them to expand their existing operations and establish new firms?

- The City of Čačak is a champion in terms of the amount of funding allocated for active employment policy measures, primarily for programmes in job creation, self-employment and professional work experience practise for young people. During this year we’ve set aside 40 million dinars for this purpose, while we are among the first in Serbia to adopt the Economic Development Programme, and we have planned to allocated an additional 10 million dinars for its implementation this year.

The equipping of the two industrial zones, in Preljina and Konjevići, in terms of infrastructure in 2018 has already yielded results. In Preljina, German company Vorwerk is finalising the construction of its 43,000 square-metre production plant, where more than 1,000 workers will be employed, while in Konjevići there are numerous companies that are expanding their existing capacities and building new facilities. For this year we’ve planned to adopt planning acts that will enable us to expand both industrial zones, furthering the continuation of works and the opening of new companies.

70

The speed of securing a location and qualified workforce for Vorwerk represents a great advantage of your city. Can you also offer this to other investors?

- Speaking on the occasion of the laying of the foundation stone for the Vorwerk plant, company owner Peter Collen said: “I’ve built a lot of factories around the world, but we’ve never seen the kind of support and efficiency that we’ve had in Čačak”. This encourages us, but also obliges us to provide the same support to every future investor, both foreign and domestic. We had huge support from the state for this job.

The city was reinvigorated following the opening of the section of the highway from Ljig to Čačak. How much will the opening of the entire highway between Obrenovac and Čačak mean to you?

- Completion of the route of the Ljig-Obrenovac section will certainly contribute to the even faster development of Čačak, but also Western Serbia as a whole. The announced upcoming completion of these works, as well as the positive experiences of companies building their facilities or already operating in Čačak, are certainly among the reasons why there is great interest and numerous potential new investors. If we take into consideration the launch of works on the Preljina-Požega section, the announced construction of the Preljina-Pojate highway and the opening of Morava Airport, the position and importance of Čačak as a transport and economic hub of Serbia will be incalculably greater.

This will all be to the great advantage of citizens and entrepre-

INFRASTRUCTURE

neurs. We will employ our fellow citizens, but we also expect a large number of young, educated and professional people from surrounding areas to come to our city and contribute to overall development. We also hope that some Čačak natives who have left the city will recognise reasons to return.

You’ve dealt with the construction of gas pipelines, electric transformer stations, power supply networks, service roads through the industrial zone, the installation of fibre optics etc.

What does the city still lack?

- Here I’d add the project for the construction of the “Arilje - profil Svračkovo” dam and reservoir, the 2023 completion of which ensure a safe and high-quality supply of water for the cities and municipalities of the Morava district and parts of the Zlatibor district, but potentially also the wider area. State support in all of these projects is immeasurably important.

We also expect support for the expanding of education capacities in our city, increasing the number of colleges and expanding the range of educational profiles, as well as on the continuation of activities launched in the field of dual education. However, for the further realisation of all these activities it is first necessary to preserve peace and stability throughout the entire country, as well as an increasingly better international political position, because without that there is no investment, development or progress.

One of your priorities is to develop the Čačak Science and Technology Park. Could it represent the basis for retaining young people in the area and establishing new IT firms, which are the quickest when it comes to providing a return on investment?

- The future certainly belongs to the youth. It is our duty to create the best possible conditions for them. The Science and Technology Park in Čačak was actually established with the basic aim of enabling cooperation between the economy, science and research through the development of new ideas aimed at increasing the competitiveness of our regional economy.

Via the public call of the Cabinet of the Minister without portfolio responsible innovation and technological development, we launched implementation of this project and the construction of the Start-up Centre of the Čačak Science and Technology Park. The city allocated for this project an area of 621 square metres in the city centre, in the Culture Centre, while the Government of the Republic of Serbia approved 46 million dinars for this project. In this way, the Start-up Centre will become a place for the development of business ideas and start-up teams that have a vision and that want to apply their ideas in the business environment, thereby participating in the creation and development of an innovative and economic ecosystem for our city and region, through increases in employee numbers and high-quality, professionally-orientated

young people, primarily in the IT sector – as the branch that grow the fastest and generates significant profits.

How much will the opening of Morava Airport, announced for 28th June this year, mean to Čačak-based businesspeople, but also citizens?

- One of my first activities after the mayoral election was to form the Committee for Strategic Affairs of the City of Čačak, which is composed of nine eminent figures and experts from different fields. The Chairman of the Committee is Đorđe Đukić Ph.D., professor at the Faculty of Economics in Belgrade. One of the basic issues that this Committee dealt with was the conversion of the Lađevci military airport into the Morava mixed-used military-civilian airport. This initiative was also defined as a priority among Čačakbased businesspeople in their “Pillars of Development of Čačak”

platform. According to one analysis, it is estimated that the work of local airports increases local GDP – independently of other elements – by two per cent annually.

This equates to an annual increase in net earnings at the level of the City of Čačak of at least 2.6 million euros.

The competitiveness of local companies will be increased through the work of the airport. Interest in investing in Čačak will increase among domestic and foreign investors, and with that the value of land and real estate in Čačak, while we also hope to halt the trend of young people emigrating from Čačak. This problem has also been seen in EU countries, where the opening of small airports represented one of the models for retaining the population.

I am convinced that the importance of opening Morava Airport in Lađevci is immense for Čačak’s citizens and businesses, but also for the wider region – where more than a million people live and work. Otherwise, this will be a state airport, so local governments will not have any financial obligations.

We have excellent cooperation with all business associations, have formed the Council for the Economy, while in the City Council we also have representatives of the economy, which contributes to more effectively realising our goals

71

INFRASTRUCTURE

BUSINESS

DARKO BULATOVIĆ, MAYOR OF THE CITY OF NIŠ

NIŠ - The City Of The Future The City of Niš is listed among the most promising cities, on the basis of evident growth in foreign investments and the high-quality support provided by the City to local economic development, while as a nursery of technological and innovative processes Niš represents one of the pillars of the digitalisation of the Serbian economy

O

f the 175 investors who’ve come to our city, 46 investments with a total value of 362.5 million euros have been implemented successfully, while another 19 investments – worth 323 million euros – are currently in the implementation phase, and we are certain that there will be more, reveals Niš Mayor Darko Bulatović.

will boost the Science technology park development.

We owe a great debt of gratitude to the Government of the Republic of Serbia, which recognised the city’s potential and enabled financing with the support from the European Investment Bank.

The first phase of this project was establishment of the Start-up Centre Niš at the Faculty of Electronic Engineering, Today, after Belgrade and Novi Sad, the City of Electronics which has been fully realised and serves as the main Start-up is also receiving its own science and technology park. How is and innovative entrepreneurship pillar in the region. The second construction progressing and what will this complex mean for phase is the construction of the Multipurpose laboratory lamella, Southern Serbia and the country as a whole? as a part of Faculty of electronic engineering. This is about - As a way of supporting local economic development, the City the creation of an open space for the realisation of projects of Niš brought together all the most of students, teachers and businesses, important stakeholders to realise the as well as for supporting student and In the City of Nis, the project Science and Technology Park Niš, teacher entrepreneurship. This project implementation of every that represents the next step towards is worth more than 5 million euros and investment is monitored by the it is expected to be completed in 2020. realising the vision to become again regional centre recognised as the City of City of Niš, from initial contact Advanced Technologies.

City of Niš is investing great efforts to the opening of a factory. This The The project aims to provide infrastructo foster economic development. What kind of work has yielded visible is encompassed in those efforts? ture, services and specific equipment to help innovative companies in the high - During the previous period, the City and measurable results technology market, not only in Niš, but of Niš implemented measures to improve business environment, for both domestic and foreign throughout this part of Serbia. companies, and to cause a significant shift in the economic The initiator of this project, which is worth more than 15 progress of the region. million euros, is the City of Niš, while it is being implemented Testifying to how successful we’ve been are several facts in cooperation with the Ministry of Education, Science and and figures. Unemployment figures have fallen from 33.242 Technological Development and the Office of the Minister in June 2015 to 24.000 at the end of 2018. During the same for innovation and technological development. We expect it period, number of active companies grow from 2.995 to to be completed during 2020, and the City of Niš is dedicated 3.718, while number of active entrepreneurs grow from 7.614 to create proper innovation and start-up ecosystem which

72

INFRASTRUCTURE

to 9.513. In the same period we had significant increase in tourist inflow, since number of arrivals growth from 85.048 in 2015. to 122.839 in 2018. And numbers of nights grow in the same period from 160.947 to 211.914.

One of major successes is the growth of Nis airport number of passengers, which grow to 350.000 in 2018. and number destinations which are directly connected to Nis which wil be more than 20 starting from summer 2019.

Of the 175 investors who’ve come to our city, 46 investments with a total value of 362.5 million euros have been implemented successfully. The largest among them are Philip Morris, Yura Corporation, Shinwon, Leoni, Johnson electric, Aster textile, Zumtobel and IMI, while another 19 investments, worth 323 million euros, are currently in the implementation phase.

With the support of the State, infrastructure projects worth more than 500 million euros are being implemented in and around the city, such as highways linking to Macedonia, Bulgaria and Albania, a railway bypass around Niš, a wastewater treatment facility, Clinical centre. These projects are of huge importance not only to the economy of the Niš, but to the whole of Serbia.

The City of Niš also recognises the importance of local

SMEs and we provided grants to support local enterprises, , increased amounts significantly since 2017. These are nonrefundable grants intended to provide direct support to the economy of Niš which were almost 1 million euros in 2018.

UK publication The Financial Times ranked your city on the list of European cities of the future for 2018/2019. What were the criteria that you satisfied to qualify for this significant recognition?

- We qualified for this recognition on the basis of our financial, economic and business potential.

Behind this prestigious acknowledgement stands the continuous work of the Office for Local Economic Development and Projects and local self-government institutions, as well as significant support from the national government.

The City of Niš, thus, is officially ranked seventh among the small European cities of the future for 2018/2019, while – as a region – Niš is ranked third among small European regions in the category of attracting foreign direct investment. The jury also took into account the size of cities and regions, while there were many criteria covering all spheres of economic potential.

OFFICE FOR LOCAL ECONOMIC DEVELOPMENT AND PROJECTS – AN EXAMPLE OF GOOD PRACTISE Office for Local Economic Development and Projects, was established in in February 2009. as a part of Mayor’s Office.

Its formation was supported by USAID’s MEGA and LEDIB programme, and since 2017 this Office started operating as a independent body of the City, covering all aspects of local economic development with 35 employees.

The Office for Local Economic Development and Projects works on measures for encouraging the competitiveness of the local self-government including investments promotion and support to investment implementation, improving business environment as well as providing support to the local business community. Office is managing strategic planning processes for the development of the City, as well as preparing and implementing

all development and infrastructure projects with external financing.

The Office for Local Economic Development and Projects has works also on implementation and manage various infrastructure projects. The most important of these at present are the construction of a wastewater treatment plant, which will be financed with grants worth 43 million euros from the EU, development of the Science and Technology Park, infrastructure development projects co-financed with various ministries.

In the domain of culture, projects cover the regulating of the Fortress, Summer Stage, Medijana Archaeological Park, as well as renovating the facades of public buildings in Niš, while sport also hasn’t been forgotten.

Reconstruction of the park in Niška Banja will represent the Office’s contribution to the

development of tourism. Work is also being carried out on the preparation of strategies, studies and project design/technical documentation for capital projects in the city, such as the Logistics and Development Zone at the Airport, the Congress-Fair Expo Centre, the Multifunctional Cultural Facility, the National Museum etc.

The Office for Local Economic Development and Projects has become an example of good practise that’s recognised at the national and international levels, while all the results achieved to date send a clear message that Niš is a city that cares about its future and is on the right track to become the economic hub of this part of region.

73

INFRASTRUCTURE

BUSINESS

DUŠANKA GOLUBOVIĆ, MAYOR OF THE CITY OF SOMBOR

INVESTMENT LEADER In Vojvodina The priorities of the City of Sombor include improving the economic environment, developing agriculture and strengthening cooperation between the administration and investors. The local government’s success in this is best described by the flattering title "Investment Leader" of which they are especially proud

B

esides our excellent geographical location bordering two EU member states, investors are attracted by an industrial zone with complete infrastructure, proximity to the most important roads, and an efficient, rapid and professional city administration.

invested in Sombor to the satisfaction of both parties.

How did you attract them? What are your plans for attracting new investors?

- I am proud that there are several world-famous companies operating in Sombor, among them are: Lactalis Groupe, the Italian Ferrero, which has planted almost 700 hectares of hazelnuts, Calzedonia fashion brand...

Of course, the list of active companies does not end here.

Investors who decide to invest capital in Sombor can expect a range of incentives from the local government, such as relaxation of fees and local tax benefits, financing of programmes in the Local Action Plan for Employment, and help in accessing incentives and subsidies granted by institutions of higher-level authorities.

Sombor is one of the cities that bear the title “Investment Leader of Vojvodina”, awarded under the project Promotion of Investment Potentials of Towns and Municipalities Tailored to Business. What has that award brought you?

- The city of Sombor gained the title of Vojvodina Investment Leader because it fulfilled three basic conditions: it has adopted a long-term strategy for the development of the city, which Sombor is one of eight shows a clear plan of measures decities in Serbia that have Sombor will have a new business signed to create a competitive busizone worth several million euros ness environment; it has formed a successfully passed this year. What will be in it? functional office for local economic development that participates in the recertification under the BFC SEE - We have fully equipped the infrastructure of this industrial zone that design and implementation of the programme to improve lies just three kilometres from the development strategy and promotes the quality of services and centre: from water supply, electricity, the investment potential of the city; information provided by local gas, broadband internet, to internal and thirdly an Economic Council has been formed, sending a clear message governments to businesses roads – all this fulfils the conditions for a customs free zone that will that we are ready to hear the voice and investors speed up import-export procedures of business and cultivate partnership and make such businesses efficient. relations, making it easier to pass So far we have equipped a total of 40 hectares in the inobstacles that stand in the way of economic developdustrial zone, which we want to present to investors in the ment. What distinguishes us as a local government is fields of food processing, textiles and the auto industry the fact that we have achieved a high level of efficiency in the form of greenfield locations, given the industrial and have become the best and fastest at issuing building heritage of the city and the fact that companies that make permits in Serbia. up a stable raw material base operate here. Together with the republic and provincial institutions, we are working The backbone of economic development in your city is intensively to bring investors right into this zone. made up of world-famous brands and companies that 74

INFRASTRUCTURE

JAGODINA CITY ASSEMBLY

BUSINESS

Jagodina Is A SAFE PLACE TO INVEST Thanks to its unique offer for investors, several foreign investors per day have been coming to Jagodina since 2004, expressing their interest in investing in the capital of the Pomoravlje District. Many factories have been opened, while many are still being built

W

e’ve organised the visits of more than 20 business delegations from across Serbia to Russia, the U.S., Austria, Germany, France, Italy, Greece, Bulgaria, Turkey and Egypt, which has resulted in concrete investments and the signing of numerous contracts. We don’t wait for investors, we bring them here.

It was 14 years ago that Jagodina created a unique model for attracting investors. You firstly opened a fully adapted and equipped industrial zone near Highway E75, then new companies started opening. How many investors have you brought?

- Construction of the Jagodina Industrial Zone was part of the long-term development plan for Jagodina. The idea of Jagodina City Assembly President Dragan Marković ‘Palma’ was to lease land at a reasonable price just 500 metres from the Belgrade-Niš highway, utilising land that isn’t fertile and can serve to hold the foundations of economic development.

Our priority was job creation and, thanks to the political stability that has existed with us since 2004, foreign investors recognised Jagodina as a safe place to invest.

The City of Jagodina signed a contract back in 2007 with Austrian company Porr, with which the City is still cooperating successfully today. In addition to Italian factories Andrea Confezioni, Aunde, Vibac and Gruppo Turi, which constructed production facilities, there are several other foreign investors whose factories are in the process of being constructed or who operate in temporarily leased premises until the completion of their own facilities(Savio Firmino, Officina etc.).

- When it comes to Jagodina, what’s particularly important for investors is its good geographical position, proximity to the highway and railways, a professional workforce and the incentives provided by the City. The capacity of the industrial zone, which covers an area of 150 hectares, is sufficient to cope with investments of potential new investors, while we also have another Industrial Zone that’s located on Vinorački Road just two kilometres from the city centre. Moreover, the Jagodina Industrial Zone also has a cargo centre, i.e. a production-warehousing and business centre. There are also several Chinese businesses operating in Jagodina, one of which is China’s Lienhe factory.

Are Jagodina’s advantages reflected in the fact that you provide land free of charge, issue permits in the shortest possible time and charge taxes only when a factory begins generating revenue?

- We provide land with complete infrastructure free of charge, while the investor is obliged to employ a certain number of workers per hectare. Investors also seek an efficient city administration, and with us in Jagodina issuing the required documentation and permits takes only two to three days.

It should also be noted that, with the constructing of the tourist complex comprising the Jagodina Zoo, Aqua Park, Waxworks Museum and Potok excursion area, the conditions have been created to build new shopping centres in its immediate vicinity, with the retail outlets of many world-renowned companies.

Politicians must first and foremost be managers, which is the basic currency of Jagodina City Assembly President Marković, and to develop tourism, sport, culture, education etc. by developing the economy. Without that a city can have no development and prosperity.

Investors are exempt from paying property tax until the moment their factory starts generating revenue, while our local self-government also covers their accommodation and transport costs until the final realisation of the investment

What are the advantages of the Jagodina Industrial Zone?

What are its capacities and are they sufficient to cater for potential new investors?

75

INFRASTRUCTURE

BUSINESS

BOGDAN LABAN, MAYOR OF THE CITY OF SUBOTICA

The Free Zone EXPANDS Thanks to the support of the Government of Serbia and the Ministry of Construction, Transport and Infrastructure, the ring road around Subotica, which was started three decades ago, will finally be completed

T

his will further accelerate economic development and improve the living conditions of Subotica’s inhabitants.

The German company Boysen will produce exhaust pipes in the Mali Bajmok commercial zone. It will invest €65 million in building a production facility of 35,000 square metres, employing 507 workers. This is the largest foreign investment in our city, says Mayor Laban Owing to a large increase in the production volume of companies operating in the Free Zone Subotica regime in the Mali Bajmok commercial zone, and to future investors, you have opened a new customs terminal. How important is that?

- The new customs terminal, opened by Minister of Finance Siniša Mali in early July 2018, will improve the level of operations of companies operating in the Mali Bajmok commercial zone and speed up customs clearance procedures, while the Free Zone Subotica will become an even safer partner in business. The construction of the new customs terminal will create conditions for further expansion of the Free Zone, and therefore the creation of new jobs. Funds for the design and construction of this modern facility of 50 million dinars were provided by the Government of the Republic of Serbia.

The new ring road has connected the Kelebija border crossing and the industrial zone with Corridor 10. This route is also important for Subotica, but also for the whole of Serbia. Does this mean that thanks to the help of the republic and provincial authorities, Subotica is no longer a city of started but unfinished projects?

- Work on the ring road around Subotica, the 24km-long so-called Y branch, continued in November 2016 thanks first and foremost to the support and resolution of the Government of Serbia and the Ministry of Construction, Transport and Infrastructure, so that by the end of 2019, this very important project, which had started nearly three

decades ago, will finally be completed. In mid-December 2018, a 12-kilometre section was opened to traffic from the circular intersection with the Sombor road to the Horgoš-Novi Sad motorway.

About 100 billion dinars were invested in the construction of this road. Work on the ring road will Soon continue: sections from the Kelebija border crossing to the circular intersection with the Sombor road, a length of 12.8 kilometres. To realise this investment, the Government of Serbia has earmarked 1.4 billion dinars in 2019.

In addition to the continuation of the Y branch, will there be any other infrastructure projects implemented in Subotica this year?

- To the delight of all its people, Subotica will also in 2019 be one big construction site. In addition to the Y branch, the adaptation, reconstruction and upgrading of the National Theatre building will continue, and the project ‘Protection of the Biodiversity of the Palić and Ludaš Lakes’ will begin, for which the German development bank KfW has provided a donation of €6.5 million. In mid-December 2018,

After the construction of the Y branch, heavy goods traffic will be moved out of the city centre, while the Kelebija border crossing and the Mali Bajmok commercial zone will be connected to Corridor 10

76

we laid the foundation stone of a spa centre and aqua park in Palić. One billion and 59 million dinars, more than €9 million, will be invested in this project, which will be jointly financed by the Government of the Republic of Serbia, the Provincial Government and the City of Subotica. In Subotica, the German company Boysen will invest €65 million in building a production facility of 35,000 square metres that will employ 507 workers.

INFRASTRUCTURE

VIDOJE PETROVIĆ, MAYOR OF THE CITY OF LOZNICA

BUSINESS

We Invest In Everything THAT HAS POTENTIAL The investments of China's Mint and American-Belgian concern Adient, the announced arrival of Rio Tinta and the opening of a business hotel represent huge development opportunities for Loznica, Western Serbia and the country as a whole. This has motivated the City to invest even more in local and national road and rail infrastructure.

B

y the end of this year and the beginning of next, according to the expectations of the mayor of Loznica, around 2,500 of his fellow citizens will find employment. The biggest boost to reviving this part of Serbia will be the opening of the lithium and boron mine, which has been awaited since 2004.

You are expecting the arrival of China’s Mint, while they are also interested in a greenfield investment in the hotel sector. How far have they progressed with plans?

- The investment of Chinese company Mint amounts to 100 million euros and has been declared an investment of national importance, as it will employ a minimum of 1,000 workers, including around 300 highly educated personnel.

The laying of the foundation stone is expected in the first half of April, with the completion of construction of the first production plant and the launch of production expected during the last quarter of this year. Given that Mint is also engaged in the hotel business, it will build a business hotel in parallel, thereby also contributing to the development of the tourist potential of our city and this entire region.

of the year. One of the most important investment projects since 2004 is linked to company Rio Tinto and research showing that 10 per cent of known world reserves of lithium and boron are located in this part of Serbia. The opening of mines and the construction of processing capacities represents a development opportunity for our city, for Western Serbia, and for the country as a whole. It is also important for us that the construction of a mine will accelerate the construction of the Loznica-Valjevo railroad.

How important for Western Serbia is the establishing of a rail transport link along the Loznica-Šabac-Belgrade route?

- Project documentation is being finalised for the construction of the Loznica-Šabac high-speed road link, i.e. the Šabac-Ruma-Novi Sad Highway, and we expect works to commence in the second half of this year. This roadway will connect our region, and Western Serbia as a whole, with Corridor H, and is crucial to our economic development. By investing funds in the reconstruction of the Loznica-Šabac railroad, or the Zvornik-Šabac section, the State has enabled the faster transporting of freight and the re-establishing of passenger transport after a break of 13 years.

China’s Mint is ready to grant scholarships to 300 students from Serbia within the scope of the programme and fund implemented by this company

There is also mention of the arrival of Rio Tinto, with projected investments of a billion dollars, and American company Adient.

Does Loznica have the infrastructure capacities to handle this?

- In addition to company Mint, American-Belgian company Adient has also arrived in Loznica, which also operates in the sector of the automotive industry and which has an investment valued at 20 million euros. They have already hired around 360 people within the scope of their brownfield investment in a training centre opened in Banja Koviljača, while over the next five years they will employ at least 1,500 workers. Preparatory works for the Industrial Zone started in March, while the construction of production facilities begins in April. The plan is for everything to be completed in the next seven or eight months, and for production to start at the plant by the end

A lot is also being invested in road infrastructure, with construction of the Šabac-Loznica Highway beginning this year. What else is planned?

- Loznica has been investing significant funds in road, utilities and energy infrastructure for years, while we also have the support of the Government of Serbia when it comes to investments in healthcare, culture and sport. The reconstruction of three departments of Loznica Hospital is ongoing, while preparations are underway to complete the gynaecological-surgical block, the construction of which was launched a long time ago. Interestingly, our city is one of six in Serbia where football stadiums that meet UEFA 4 standards will be built.

77

INFRASTRUCTURE

BUSINESS

NIHAT BIŠEVAC, MAYOR OF THE CITY OF NOVI PAZAR

Local Entrepreneurs ARE A GREAT POTENTIAL Preparing the civilian airport in Lađevci for use and the highway that will pass through Duga Poljana will greatly facilitate the arrival of direct foreign investors in Novi Pazar.

The Local government is expecting foreign investors, and at the same time it helps local entrepreneurs who have the highest production potential

N

The local government has worked and still works on providing support to the textile industry in cooperation with domestic and foreign donors, ministries, embassies, national, regional institutions and the city of Novi Pazar is the leader in providing support or partnership to these institutions and organisations.

So far, in line with the needs of the textile industry, we What infrastructure are you missing, and can you count have worked on solving the problems of waste water, local on the help of the state for the arrival of foreign direct infrastructure, harmonisation of education programmes investors? in vocational schools with labour market needs, procure- For the direct arrival of foreign investors Novi Pazar is preparing the conditions. A good geographic location ment of complete equipment and specialised software helps us but the infrastructure is bad and considerable for practical teaching in the Secondary Vocational School investment is needed, despite everything that has been for textile and clothing design, clustering - joining of and is being invested. capacities of representatives of the textile industry, Preparing the civilian airport at Lađevci for use and the participation in fairs for monitoring technological trends highway that will pass through Duga Poljana will greatly on the market, promotion and meetings with business facilitate the arrival of foreign direct partners, additional qualification, investors into our city. This will open retraining and professional education Novi Pazar is a city with Novi Pazar even more to the world, for specific profiles (tailor, seama tradition in production and stress, designer) and so on. facilitate product placement and reduce transport costs for domestic trade that we sincerely believe entrepreneurs. The Government of Serbian President Aleksandar Vučić the Republic of Serbia strategically is expecting much better days and Turkish President Recep Tayyip solves the problems, but I do not expect Erdogan have made a big step forward everything to be solved in one year. Preparing an airport for in improving the cooperation between our two countries. use and building a highway requires time and money, but Will this result in the arrival of Turkish investors in Novi this is a problem that will be solved in the coming period.

Pazar, which is considered the fifth best local government in the volume of investment?

- The effects of cooperation can already be seen, the isIn the 1990s Novi Pazar did not feel the crisis like the rest of the country thanks to the textile industry. Are you sue of intercity roads is being taken care of, and the Novi one of the few local governments that still put emphasis Pazar – Tutin road, the marked route of the motorway as on support for local businessmen? the main infrastructure project, will to a great extent solve - Of course local entrepreneurs are the biggest producour problems. Procedures for expanding the capacity of another kindergarten, restoring one of the oldest hamtion potential we currently have, but with the solution of the infrastructure issue, we expect the arrival of foreign mams in the Balkans, and the complete reconstruction of investors that will strengthen the economy of our town. the old sports hall are also being completed. ovi Pazar is indeed one big construction site at this moment, but regardless of the wishes and the use of all available capacities, some things take time, and I expect to see effects of current work in the near future, says mayor Biševac.

78

INFRASTRUCTURE

ČEDOMIR JANJIĆ, MAYOR OF THE CITY OF ZRENJANIN

BUSINESS

Banat Is Now THE HEART OF SERBIA In the presence of top officials of the Republic of Serbia, representatives of the Embassy of the People's Republic of China, senior management of Shandong Linglong Tire Co., leaders of AP Vojvodina and the City of Zrenjanin, the realisation of the largest greenfield investment in Serbia and the largest investment ever in the economy of Zrenjanin commenced

C

onstruction of the plant of Chinese tyre manufacturing company Shandong Linglong Tire is a job worth 990 million dollars that will bring 1,200 new jobs to our city.

Testifying to the kind of investment that this relates to is the prognosis that the revenue generated will total around 600 million dollars, notes Mayor Čedomir Janjić.

The date of Saturday 30th March 2019 will remain remembered as one of the most important dates in the recent history of Zrenjanin...

- Yes, that day saw the laying of the foundation stone of the factory that will be named “Linglong International Europe” d.o.o.

(Ltd.) Zrenjanin. The Serbian delegation was led by Serbian President Aleksandar Vučić, while leading the Chinese was Linglong company president Wang Feng and the Ambassador of the People’s Republic of China to Serbia, H.E. Chen Bo, while the ceremony also included the participation of Economy Minister Goran Knežević and myself, as the mayor of Zrenjanin.

Best illustrating the importance of that day for both Zrenjanin and Serbia are the words of President Vučić, so I will quote him: “This is what you live and work, and today, here in Zrenjanin, history is being written, but also the future of Banat and Serbia, because this is a great success for Serbia. This is happiness for our people, especially in Banat, which for decades hasn’t seen such a big and important plant that will bring success and progress. I’m particularly happy that we reached this point via a thorny path, as Chen Bo said. Serbia was not on the list of choices, and when I first met Mr Wang I told myself that this is a very energetic and ambitious man, but very tough for negotiations and discussions. We were persistent and struggled day after day to prove to him that Serbia is the right choice for Linglong, but also Serbia for him.”

And you experienced the laying of the foundation stone as one of the most important moments in your career. What did you say to your fellow citizens at the time?

- I told them that we first welcomed our friends from China in June 2017, in the same field where now, after just two years, and thanks primarily to President Vučić, who led negotiations personally, the plant of the largest company is now sprouting up. I said that nothing will be the same after that day, and that Zrenjanin will again be among the leading industrial cities in Serbia. I said to Mr Wang that I am certain that, in five or 20 years, he will say that coming to Serbia, to Zrenjanin, was an excellent business move.

However, it looks like we won’t have to wait that long, because the president of Shandong Linglong Tire, Wang Feng, immediately thanked us for our attention and support of their work.

He highlighted the good relations between the two countries and the efforts of the president in realising this investment, while he also emphasised that the project in Zrenjanin is their second largest abroad in terms of volume.

The factory in Zrenjanin will primarily produce high -performance radial tyres for passenger cars, lorries and buses, agricultural tyres and tyres for off-road use

Is the opening of this factory the only major job that you can boast of having achieved?

- Not at all. We are really working. With preparatory works, the driving of massive pylons, excavating of foundations for pillars and approaches to the riverbanks, construction of the bridge over the Begej has begun, representing the most demanding structure on the entire route of the main transit bypass road around Zrenjanin. This investment has a total value of 423 million dinars. So, after a gap of 27 years, Zrenjanin has started building a new bridge over the Begej. This will be the eleventh bridge across the river or lake in the city centre and the sixth bridge for the transport of motor vehicles, alongside three that are exclusively for pedestrians and one rail bridge.

79

INFRASTRUCTURE

BUSINESS

DR PREDRAG TERZIĆ, MAYOR OF THE CITY OF KRALJEVO

Our Industrial REVIVAL HAS BEGUN The arrival of large investors in Kraljevo contributes not only to employment, but also to building infrastructure, and in this sense special importance belongs to the Morava Corridor that will join Corridors 10 and 11 and facilitate the transport of goods

T

he opening of Leoni and Eurotay shows a real industrial revival of the city on the Ibar, so I am sure that the citizens of Kraljevo can expect better days, which is something they are fully aware of, says mayor Dr Predrag Terzić After 30 years, Kraljevo is returning to the industrial map of Serbia thanks to the Leoni factory? Are the people of Kraljevo aware of the size and importance of this investment?

- In the period between the two world wars an aircraft factory and a railway rolling stock factory were built in Kraljevo, and after the Second World War the industrial boom of the city began. Magnohrom was built, which employed 5,500 workers, 4,200 people from Kraljevo found work in rolling stock factory, 3,000 in Kablar, 2,500 in Jasen and 1,500 in Autotransport. Unfortunately, in the transition period all these factories ceased to exist, and a large number of our people lost their jobs.

When we came to power in 2012, there were as many as 14,000 on the records of the Kraljevo Branch of the National Employment Service. Today, 10,450 are unemployed, which still makes us one of the cities with the highest unemployment, but thanks to Serbian President Aleksandar Vučić two large factories will be built in Kraljevo – Leoni, which will employ as many as 5,000 people, and Eurotay, in which 2,500 of our fellow citizens will find work. This is a real industrial revival of the city on the Ibar and I am therefore sure that the citizens of Kraljevo can expect better days, which is something they are fully aware of.

construction of the Belgrade-Čačak and Preljina-Pojate motorways. Does the arrival of other investors depend on building the Morava Corridor?

- These two factories will contribute not only to the employment of inhabitants of Kraljevo, but also to building infrastructure. In order for factories to deliver raw materials and to export their products from Kraljevo, good infrastructure is also needed.

In this sense, the construction of the Morava Corridor will mean a lot to people, and it will also enable the development of these two factories and all other companies from Kraljevo.

We are also using the construction of two factories for other infrastructure works that are of importance to both foreign and domestic investors. Elektroprivreda Srbije will build a 16 MW substation, 8 MW will be used by Eurotay, and 8 MW will be used by domestic Kraljevo businesses located near the Turkish factory.

The construction of the free zone will include Eurotay in the first phase, but in the second it will also enable the Kraljevo businessmen to use all the benefits of the free zone.

We have a large number of companies that are almost completely export oriented such as Radijator which produces boilers for solid and liquid fuels, and GIR, which produces furniture

Leoni did not ask for subsidies to build its factory, but they have asked for better infrastructure, primarily the 80

The opening of the Eurotay textile factory, which will employ a total of 2,500 people, should be attended by Turkish President Recep Tayyip Erdogan. When do you expect this important guest and the start of operations in the factory?

- We expect that President Aleksandar Vučić and President Recep Tayyip Erdogan will arrive in May to open the factory that will greatly affect the citizens of Kraljevo and that will employ a large number of predominantly the women of Kraljevo, and not just young women. Serbian President Aleksandar Vučić is providing an important help to Kraljevo, he has been a guest of our city four times in the last nine months alone. His help in building the two factories is immeasurable.

INFRASTRUCTURE

VLADICA DIMITROV, PRESIDENT OF THE MUNICIPALITY OF DIMITROVGRAD

BUSINESS

We'll Utilise OUR CHANCE Thanks to good infrastructure connectivity, favourable labour and construction land prices, an absence of export barriers, state and local financial incentives, Dimitrovgrad is a desirable location for investments in production intended for export to Bulgaria and the EU

A

new epoch has begun for our municipality. The highway, Free Zone, railway line and future gas pipeline route are our greatest advantages compared to other municipalities of our region. We hope that this enormous state investment in infrastructure will reduce unemployment significantly.

Corridor 10 is expected to be a lifeline for Dimitrovgrad.

What will this roadway bring you, given that you’re a border municipality?

- Corridor 10’s construction is the largest single investment in the country in the past decade, and that in itself testifies to its significance and expected positive effects for the Serbian economy. When it comes to our municipality, paradoxically, we were at one point more interested in the construction of the motorway taking as long as possible, as a significant number of our citizens were involved in the construction of the motorway, tunnels, bridges, access roads, as well as the fact that significant funds were paid to citizens in compensation for the expropriation of land along the highway’s route.

Today, following the construction of a warehouse around Dimitrovgrad and the near completion of the entire route from Niš to the border with Bulgaria, we expect Dimitrovgrad to be more accessible to the rest of the country, and – following completion of the section from the border to Sofia – we’ll also become closer to Sofia, which, under conditions of the free flow of people, goods and capital, has great significance to Dimitrovgrad’s further economic development.

- All of that is our advantage over other municipalities of our region, which are currently at the same level of development, but are not on the route of the corridor. Dimitrovgrad can’t significantly reduce unemployment from the privatisation of large social enterprises, like most municipalities in southern Serbia, and this huge infrastructure investment, which increases the attractiveness of our location, contributes to finally improving this situation. It is up to us to use this positive circumstance by understanding the needs of both domestic business and foreign investors, and to realise the advantages given to us as soon as possible. Plots sold in the Beleš Work Zone and the launch of the construction of manufacturing plants are ample evidence that things are heading in the right direction.

Increasing economic cooperation between our country and Bulgaria, the greater flow of people and goods through the built corridor, is also a great development opportunity for Dimitrovgrad

Will the new highway, free zone, railway line and future gas pipeline route revitalise the municipality?

It was over a year ago that the leadership of our country and Bulgaria discussed major joint infrastructure projects, improving cooperation in rail transport and reaching foreign trade exchange of 3.5 billion euros. Has the realisation of these jobs since started?

- Bulgaria is also constructing the Corridor 10 highway from Sofia towards Dimitrovgrad, without which investment from this side of the border makes little sense. As for our municipality, economic cooperation exists in several directions. A certain number of Dimitrovgrad residents work in Bulgaria and travel daily to Dragoman, Kostinbrod and Sofia, while another type of real economic cooperation is greenfield investments from Bulgaria in our Beleš Work Zone. We have signed contracts with two companies that purchased land and production facilities are under construction. The only official, more significant foreign trade exchange is that of a textile company which until a year ago sold its entire production in Bulgaria.

81

INFRASTRUCTURE

BUSINESS

NIKOLA NIKOLIĆ, PRESIDENT OF THE MUNICIPALITY OF DESPOTOVAC

We Readily AWAIT INVESTORS Thanks to good plans, and with the help of the Public Investment Management Office, or the Government of the Republic of Serbia, some of the most important facilities in Despotovac are being reconstructed after a break of three decades. An industrial zone has also been arranged and investors are now being invited

T

estifying to the claim that everything has finally started improving is the fact that Despotovac is visited each year by an ever increasing number of people from all over the world, both thanks to the rich cultural and historical legacy of Despot Stefan Lazarević and thanks to its natural beauty, says Municipal President Nikola Nikolić.

There have been no investment in Despotovac for decades. What can you boast of today in this area? What are all the things that you’ve done in a short period of time?

- The construction of a primary school and sports hall were the last major projects that were realised, with the help of the State, in the municipality of Despotovac. The school opened in 1997, with the sports hall opening several years later, and after that – apart from some of the most urgent activities on the maintenance of existing facilities and systems – there have been no major projects.We have available a modest budget that barely covers the most essential costs of municipal enterprises, institutions and local communities, and that doesn’t leave much room to invest in developmental projects and other infrastructure works.

This, among other things, is one of the reasons for the stagnation of the previous period, while that was also influenced by unstable political circumstances, an inability to reach agreement and a lack of adequate project documentation.

With an awareness of these facts, we devised a realistic plan of priorities at the start of the mandate, compiled design projects for the reconstruction of several important facilities, and then applied for and received significant funds, so that today we are finalising the reconstruction of the high school, health centre and culture centre – institutions that we will again use at the end of the year. Apart from that, we have established stronger cooperation with public companies Srbijaput [roads] and Srbijavode [water supply, thanks to which we’ve reconstructed

17 kilometres of the Medveđa-Vodna regional road and the Despotovac-Manasija road, with a 1.5km pedestrian-cycling lane, while we’ve embarked on the major works of consolidating and regulating of the Resava river basin.

Investments worth six million euros will be realised by the end of this year, in cooperation with the Public Investment Management Office. How and on what will these resources be spent?

- Via the Public Investment Management Office, or the Government of the Republic of Serbia, we are implementing the most investments. Alongside the health centre, in which more than two million euros will be invested, and the Technical school, the reconstruction of which costs more than a million euros, the Office will invest almost 1.5 million euros in the Municipality of Despotovac for the construction of a biomass heating plant, the first of its kind in Serbia. Construction will start in April or May in the yard of the Technical School, in order for all institutions to be supplied with heating energy. There is also the prospect of increasing the capacity to enable citizens to be connected to this heating system, which is much cheaper than existing systems.

The Office has invested more than 600,000 euros in the renovation of several bridges, which – along with other investments – amounts to six million euros that we wouldn’t have been able to secure on our own. The living and working standards of citizens will increase significantly, for which I am grateful to all state bodies that supported our projects.

With the help of the Ministry of Defence and company Jumco, we’ve also established a clothing factory in Resavica that currently employs 60 workers

82

Are you satisfied with the level of interest among potential investors in your Industrial Zone, which covers an area of 7.5ha?

- We haven’t had any serious offers to date and – considering that this is a good space and location – I am also hereby inviting all interested parties to come to Despotovac and launch production operations. We will, I hope, offer them the best conditions.

INFRASTRUCTURE

SLAĐAN MANČIĆ, PRESIDENT OF THE MUNICIPALITY OF RUMA

BUSINESS

Investors BELIEVE US Best testifying to the idea that a favourable geographical position doesn't mean anything in and of itself is the example of the municipality of Ruma, which stagnated for years. Its accelerated development is the result of the good organisation of expert services, investments in work zones and friendly relations with investors

J

ust a few years ago we had a large number of unemployed citizens, while employers in our municipality are today seeking workers in the surrounding towns, but also further afield.

This will also continue in the future, because newly-opened companies are announcing the expansion of their production facilities, announces Ruma’s municipal president Slađan Mančić.

Ruma is located 50 km from Belgrade and 35 km from both Novi Sad and Nikola Tesla Airport, while it is also traversed by Highway E75. Were these facts sufficient to ensure the arrival of investors, or was that preceded by investments from the budget of the municipality, the province and the state?

- Perhaps my best response to your question would be to state that we’re not the only local self-government with such a position, and that we haven’t only been in such a position over recent years – when we’ve been recording economic growth – but rather for decades.

It’s not enough just to have a good position, close to an airport or a motorway, because those are just preconditions that have not been utilised in the right way over the course of time. You have to create a favourable business atmosphere that instils trust among investors and a sense of security in their investments. We’ve achieved that through the good organisation of our expert services, investments in work zones – with the great support of the Government of the Republic of Serbia – and a friendly attitude towards investors, with which we confirm our willingness to always go out of our way to meet their needs and assist them.

ments of all investors. The “Rumska petlja” [Ruma Loop] work zone is among the best work zones on the territory of Southeast Europe in terms of it being completely equipped in terms of infrastructure, with capacities to handle the largest companies. Apart from work zones themselves, the investment climate in Ruma is also something that ranks Ruma among the leaders in Serbia. When it comes to newly-opened companies in industrial zones, it is important to note that they all began expanding their production facilities after implementing the investment cycle they’d originally planned.

Some 5,000 jobs were created in Ruma in just a short period of time, following the arrival of between 100 and 150 million euros of investments on the territory of the municipality. Have you reached a situation where you are seeking workers from neighbouring municipalities and around Serbia?

- Just a few years ago, the municipality of Ruma was home to a large number of people registered with the National Employment Service, with ruined economic activities and an unfavourable situation for both employers and employees. Thanks to the support of the Government of the Republic of Serbia, the situation has now changed drastically. We today have a low unemployment rate, with jobs in Ruma taken by workers from the territories of surrounding municipalities and further afield. We are exerting efforts to create better conditions to improve citizens’ quality of life. With consideration for the future, we wholeheartedly support the efforts of vocational schools to introduce new educational profiles that are aligned with the needs of Ruma’s economy, we enable the retraining of existing workers and the hiring of categories of people who find it more difficult to secure employment. Ruma is today a large construction site that offers people the prospect of returning to their hometown after completing their studies, where they can find work and form families, thus enabling us all to take a step towards a better future together.

Ruma has received numerous acknowledgements and awards in recent years that serve to confirm its epithet as a municipality with a favourable business environment

Ruma has seven industrial zones, some of which can be classified as being among the most attractive in Vojvodina, and even Serbia as a whole. What makes them so attractive to investors?

What are all the things that the local self-government does to make it easier for new companies to do business?

- We have built modern work zones that can satisfy the require-

83

INFRASTRUCTURE

BUSINESS

DAMJAN MILJANIĆ, PRESIDENT OF THE MUNICIPALITY OF KULA

WELCOME TO KULA, Welcome To The Heart Of Bačka Kula is a multinational and multicultural environment known for the highest quality arable land in this part of Europe, for Jaffa sweets, Krstur peppers, the first wind farm in Serbia, cultural and sports events and much more

T

tional port of Bogojevo are 38 km away and connect Kula he long-standing efforts of the local government with 10 European countries. The nearest international to bring investors have paid off because now there airport is in Croatia, at Osijek, which is only 79 km away, are several companies in the industrial zone in while the Nikola Tesla airport in Belgrade is 129 km away.

Kula, and new domestic and foreign investors are Kula is increasingly recognised for one of the best also expected. In the next period, the focus will be on the equipped industrial zones in Serbia that offers ideal possibility of producing energy from renewable sources conditions for all investors who want to start or expand The Municipality of Kula is located in the fertile their business in Southeast Europe.

Vojvodina plain, at a crossroads between three big In the Kula industrial zone, the Dutch investor Sevecities - Novi Sad, Sombor and Subotica. It is close to plant, which operates as part of the Dutch company the border with two countries of the European Union Verbek, is one of the largest producers of planting ma(Croatia and Hungary) and at a strategic point between terial in Europe. The Italian companies Fiorano, one of two large pan-European corridors, the Danube (Corridor the leading global lingerie producers, and Euroin, which 7) and the E75 (Corridor 10). produces footwear for renowned fashion houses, have The Pan-European Corridor 10 (the E75 motorway) is also built their production facilities here. only 17 km of state B category road away, and it connects The German Witzenmann, which Kula with the countries of central produces flexible metal elements and northern Europe at one end, and In the Municipality of Kula, for the automotive industry, also Southeast Europe and Asia at the they are proud of issuing intends to build a factory in the Kula other.

The international railway station building permits to interested industrial zone, which will host the first workers in September this year. is close to the city, just 10 km away, investors in the shortest The goal is approximately 300 jobs, the EU’s main waterway - the Danube and depending on the work load, it is River (Corridor 7) and the internapossible time

84

INFRASTRUCTURE

likely that even more workers will Kula is well connected with 2014-2020 defines the direction of development in other areas of the be hired. The local economy relies mostly on agriculture, mainly on crop the entire region of Southeast local economy in which we will invest in the following period. farming, which is not surprising since Europe, which makes it Kula municipality recently rethe municipality has over 40,000 a very attractive investment ceived a study of a potential spa site, hectares of the best arable land. destination which is a comprehensive analysis of The possibility of producing enthe potential of a natural healing facergy from renewable sources, with a tor, which, in addition to groundwater, includes medicinal special emphasis on biomass processing, is of strategic mud, gas and the climate. The subject and scope of the importance for the Municipality of Kula. In addition, research involved a multidisciplinary team of experts. the sustainable development strategy for the period

85

INFRASTRUCTURE

BUSINESS

VLADAN KOCIĆ, PRESIDENT OF THE BELGRADE MUNICIPALITY OF RAKOVICA

We're Building AND HIRING Even before taking responsibility for exercising authority, the current leadership of the Municipality of Rakovica had a clear development vision. Testifying to them taking advantage of their development potential in the best way is the opening of 'Capitol Park Rakovica' and as many as two Lidl superstores

T

he City of Belgrade included our future businesscommercial zone in the official ‘Investor Guide’ bilingual brochure, as one of five locations available in the capital for the building of industrial zones. We will be capable of utilising that, announces Kocić.

You’ve turned the Municipality of Rakovica into one of the most prosperous parts of Belgrade, which – judging by the plans – is only just developing. Have you had a vision from the start?

- Evening during the time before we came to power, we recognised the development potential of Rakovica, primarily its favourable strategic position, access to the Belgrade Bypass, the Ibar national road and international motorways, but also the lake in Resnik as unexploited tourism potential. We began working on realising our vision from the moment we assumed responsibility for exercising authority.

Today we have detailed regulatory plans adopted for the Lake in Resnik and the part of the Belgrade Bypass earmarked for the construction of a business-commercial zone. The businesscommercial zone would encompass an area of 140 hectares. The City of Belgrade has recognised the potential of this project, so this site was included in the official ‘Investor Guide’ bilingual brochure, as one of five locations available in the capital for the construction of business-commercial and industrial zones.

that Rakovica has created a favourable business environment for the implementation of such a large investment. The offer itself, which previously didn’t exist in Rakovica, includes a large number of small shops, major supermarkets, cinemas and other facilities, and that has really improved the quality of life of citizens. The most important thing for us is that the construction of Capitol Park Rakovica has led to more than 400 people being employed, and also led to a large number of people from Rakovica, Čukarica and even Voždovac coming here to Rakovica instead of going into the city centre. Otherwise, Rakovica is also one of the few Belgrade municipalities where Lidl has opened two supermarkets, which is something of we are also very proud.

Have conditions finally be created for the arrival of interested investors who would develop sporting fields and various other tourist facilities on the abandoned lake in Resnik?

- When it comes to the lake in Resnik, we have a great job behind us that was completed over the past few years. A detailed regulatory plan – as the basic document without which construction or the arrival of investors is unimaginable – was adopted by the Assembly of the City of Belgrade. Prior to that, the Municipality of Rakovica conducted a feasibility study, while there is an existing project to clean the lake and mapping has been carried out, with which the conditions for it to be cleaned were created. We also prepared a conceptual solution for a sporting-recreational complex, which formed the basis of the detailed regulatory plan. We also plan to build a road link to the lake, but only after the construction of a sewage system, a project for which already exists. There are several other jobs that need to be completed, but our vision of building a lakeside sporting-recreational centre in Resnik is moving ever closer to realisation.

Prior to the arrival of any investor, we plan to enrich the area of the lake in Resnik with specific contents, such as a pedestrian walkway, rest spots and a jetty on the lake itself

The retail centre Capitol Park Rakovica sprouted up on the site of the defunct Rekorda, with a total of 30 million euros invested in making Rakovica the new shopping ‘mecca’ of Belgrade. How much has this improved the lives of Rakovica residents?

- The construction of Capitol Park Rakovica is primarily evidence 86

INFRASTRUCTURE

STANA ĐEMBER, PRESIDENT OF THE MUNICIPALITY OF ČOKA

BUSINESS

We Will REVIVE THE ECONOMY After a number of years spent only on reviving infrastructure and culture, the current leadership of Čoka is focused on strategically important projects, setting up an industrial zone, attracting investors and growing the economy

W

e strive to develop an efficient municipal administration that will create the best conditions for education, treatment, cultural upbringing, for the life and work of our residents. I hope that people, economic entities and agricultural producers will see our sense of responsibility as their own benefit, says Stana Djember.

Until two decades ago, the Čoka meat industry was the backbone of the economy in your municipality. Is there a chance for its revival?

- The Čoka Meat Industry was the backbone and main driving force of the economy of our small municipality, which proved to be a very bad thing. After the collapse of the meat industry, the municipality of Čoka fell into a sharp decline, from which we have not yet fully recovered. Bankruptcy proceedings have been lasting for nine years and we don’t know when they will end. The revival of the meat industry and the start of some form of processing will be possible only after the completion of this procedure, so we would like this problem to be solved a little faster. The situation is complicated and demanding, but as a responsible municipality we are hoping for improvement.

The greatest economic potential of your municipality is agriculture and existing businesses that could be far more successful with some support. What should be changed for those potentials to be used?

- As a small and undeveloped municipality, Čoka faces the same or similar problems and challenges as other municipalities in Serbia. We are working on changing awareness and accepting problems as challenges. We are aware of the fact that the municipality should be the driving force and an incentive to overcome the challenges that both agriculture and business in our community are facing.

The revival of the Čoka Meat That is a long-term process in which the municipality should be established Industry and the start of some as a socially responsible entity of the form of processing will be whole community and that is why possible only after the we direct our capacities towards it.

We hope that economic entities and completion of this procedure, individual agricultural producers will see our sense of responsibility as so we would like this problem their own benefit. to be solved a little faster

Republic and provincial authorities have provided capital investment funds, but final solutions and projects are needed by the ministries. Are you working on preparing them?

- Čoka Municipality has been working intensively for over two years on infrastructure projects to begin the reconstruction of schools, health facilities, streets... We are trying to provide capital projects for every inhabited place in our municipality according to the needs of the locals, and we have great support from the ministries.

87

INFRASTRUCTURE

BUSINESS

MIROSLAV NIKOLIĆ, PRESIDENT OF THE MUNICIPALITY OF KNIĆ

Export Grows, SURPLUS GROWS Knić is located near the airport, important roads and major cities - Kragujevac, Kraljevo, Čačak and Gornji Milanovac - making it ideal for all industries

T

he Mayor says that everyone is welcome - fruit growers, farmers, tourists, nature lovers, but also those who would like to start a business.

We are creating the conditions for a better life.

We are developing the infrastructure ourselves because it is in our interest that companies operate successfully. Only in such circumstances can they create jobs for our workers and young professionals who should stay in their home towns and make their own families here.

Knić municipality has recorded excellent economic growth in recent years. You listen to the needs of fellow citizens, learn, prepare projects, what are your advantages, what can the municipality of Knić offer?

- Knić Municipality has an exceptional strategic position for the development of business and agriculture. We are the centre of Serbia, we are located near large cities, Kragujevac, Kraljevo, Čačak and Gornji Milanovac, we have all the advantages of a city, but we have preserved the warmth and intimacy, family values and togetherness inherent to smaller communities.

Knić municipality is at a crossroads.

Just 15 kilometres away lies the Morava airport, there are two motorways nearby, and the Kosovo Polje - Lapovo railway passes through Knić, which are enormous advantages, because we can deliver raw materials and export products from the territory of our municipality quickly and cheaply. Agriculture is the main activity here, but there are more and more small and medium enterprises, family businesses. The local government encourages the development of entrepreneurship, subsidises employment, procurement of equipment.

In 2018 exports of €23 million were realised, 51 per cent more than in 2017, and a surplus of €10 million, 2.7 times higher than in 2017. Foreign companies from Norway and Italy are already

successfully operating on our territory, and we also have former industrial plants, some mini industrial zones suitable for fast start up businesses.

You are one of few municipalities that successfully brings young people back to the country, you pay special attention to families, especially women ... What kind of benefits do you offer?

- Everything we do, we do for the young, so they can stay or return to their home town. We have renovated schools and kindergartens, we have introduced new educational profiles for high school students. In addition to the existing Business Faculty, we are opening a master programme for agro-economists with the University of Kragujevac. Farming is the primary sector, but there are more and more modern orchards as can be seen in the most famous fruit growing regions. Together with our farmers we develop farms and orchards. Over the last two years, we have subsidised more than 700 farms from the municipal budget. We invest significant funds in healthcare, social and population policies and we have seen an increase in the number of births. We are restoring the existing infrastructure and building new to improve living conditions and attract investors.

We are creating conditions for young people in the Knić municipality to live in the town and work in the most developed regions of Europe

88

Knić municipality also has tourist potential. Do you plan to invest in this field?

- Our region has a true cultural and historical treasure. Excavations at the Grivac locality testify to life in this area 6,000 years ago during the Neolithic age, and we also have the two medieval towns Čestin and Borač, as well as the monastery Kamenac from the 15th century. Knić is also known for its natural phenomenon, the Borački krš, the volcanic rocks in the middle of the Gruža valley, at the foot of which is a church from the 14th century. Every spring, an international photo safari is held here. Our Gruža lake has excellent conditions for hunting and fishing tourism and water sports. We are known for rural and ethno-tourism.

INFRASTRUCTURE

DR NEBOJŠA MARJANOVIĆ, PRESIDENT OF THE MUNICIPALITY OF BOLJEVAC

BUSINESS

OUR INVESTORS Are Broadening Their Operations Along with the creation of a good economic environment, the Municipality of Boljevac has for years been focusing on capital investment. In the last few years much has been invested in the regulation of road infrastructure and the construction of a water supply network in villages in the municipality, but that will not be the end

T

4,000 square metres that will be completed this year, so there will be vacancies for hiring new workers.

This factory is our partner in dual education, so high school graduates will find themselves behind some of the modern machines in the factory instead of on the labour market. Agromehanika is a partner of the Indian company Sonalika, which has entrusted part of its programme for assembling Solis tractors to the factory in Boljevac. The Behind you lie a few successful years marked by capital tractors have entered the EU’s IPARD program and farmers investments - arranging the road infrastructure and can obtain them with good subsidies. building a water supply network. Have you done all this As for the Bioenergy Point plant, it has been successful from your own funds? for ten years in selling high-calorie pellets on both domestic - For years, we have been working successfully on developand foreign markets. This year, a cogeneration plant will be ing road infrastructure and building water supply networks completed, which will produce heat in villages all around our municipality. and electricity, and another ten new One of the key projects that we started The state is helping us jobs are planned at the plant. About last year is a water supply to the village prepare documentation to 10 million euros were invested in new of Podgorac, the largest village in our municipality. For this investment, we regulate the river bed, which is capacity. secured a donation of 150,000 euros extremely important to us all Boljevac is the first municipality to from the Mormon Community in Serbia implement the project Development and 240,000 euros from the municipal both for the sake of our of Physical Infrastructure and Reconbudget. The water supply system has reached the village school and health centre, and this year struction of Streets in the Roma Settlement. Are you proud we will continue to build the network, also with the financial of the new paved streets, water and sewage networks? support of the Mormon Community. Over the past years - This settlement predominantly inhabited by members we have built new waterworks in other villages. of the Roma community has been a priority in infrastructure renovation in recent years. We invested first in the The two largest companies on the territory of Boljevac, construction of a water supply and sewerage networks, FPM Agromehanika doo, one of the largest manufacturand then we also paved many of the streets. We comers of agricultural machinery in Southeast Europe, and pleted the arrangement of infrastructure in the Roma Bioenergy Point, have announced expansions. Will there settlement and became the first municipality in Serbia be new jobs? to successfully implement such a project. Its total value - The new owner of FPM Agromehanika has invested is about 170,000 euros. We can proudly say that we are a more than 10 million euros in expanding its capacity and municipality with the most developed Roma settlement modernising production, with another production hall of in this part of Serbia. hanks to its privatisation, FPM Agromehanika is the cornerstone of economic development in our municipality. They are our partners in dual education, so high school graduates will soon be found in the modern installations of this factory instead on the labour market, says optimist Dr Nebojša Marjanović

89

INFRASTRUCTURE

BUSINESS

GORAN MILJKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF BELA PALANKA

Tourism Is OUR CHANCE Bela Palanka, one of the smaller municipalities in southeast Serbia, measures up to developed municipalities successfully when it comes to the infrastructure of equipped industrial zones, and in activities on the development of tourism, as its greatest potential, it has also outdone some cities

W

e’ve laid solid foundations in previous years and it is certain that 2019 will be a successful year for Bela Palanka. The goal we are targetting is the economic development of Bela Palanka and the creation of a better environment for the life and work of our fellow citizens, especially young people, says the President of Bela Palanka Municipality, Goran Miljković.

The development of tourism occupies an important place in all strategic documents of the Municipality of Bela Palanka.

On what do you base your plans? Have you applied for funding from the relevant ministry and EU funds?

- The Municipality of Bela Palanka actively implements all measures aimed at improving economic development, and we have singled out tourism as a driver of development, because we have lots of potential. Testifying to the seriousness of our intention to work continuously on the promotion of our tourist offer is also the fact that we are the second municipality in Serbia to have created a four-year Tourism Development Programme. It is aligned with strategic national and European documents, and opens the doors to ministries and EU funds for Bela Palanka. With the development of this programme, Bela Palanka has become more competitive than other places in Serbia, and tourism development can also be based on agriculture, protected treasures like Sićevac Gorge and Suva Planina, the promotion of traditional products, as well as tangible and intangible cultural heritage.

With the further reconstruction of the “Remezijana” archaeological site, we will improve the tourist offer of our town, which is why we competed for funding with this project at the Ministry of Trade and Tourism, which has actually been the patron of our biggest culinary-tourist event, “Days of banica”, for many years. The complete ecological and recreational landscaping of the “Banjica”

centre is planned, and under the auspices of the Serbia-Bulgaria IPA cross-border cooperation programme we’ve competed with the project “Tourism as an Initiator of Regional Economic Development”.

Can the development of tourism lead to the development of other economic sectors, such as agriculture and entrepreneurship, and improve the standard of living of all citizens?

- Tourism is one of the most promising branches of the economy that is of benefit to all citizens. We want to encourage people to engage in rural tourism, which is why we will provide subsidies to citizens who want to start their own business in this area.The tourism development plan has defined extremely ambitious tasks for the development of this area, and achieving them leads to increases in revenue year-on-year. We are recording constant increases in tourist numbers thanks to the “Days of banica” event, which was attended by around 30,000 tourists in 2018, generating revenues exceeding a million euros.

The Municipality of Bela Palanka’s priorities for 2019 include investments in developing tourism infrastructure, the development of rural tourism and the adaptation of accommodation facilities

90

You have shown that you’re proactive with the opening of an industrial zone in the vicinity of Corridor 10. Are there any potential investors?

- Equipping industrial zones in terms of infrastructure is a long process that requires the compiling of planning documents, the construction of access roads and water supply and sewage networks. We have fully equipped the “Murica 1” industrial zone, covering 8.5 hectares, and are continuing to procure land. Negotiations are underway with serious investors regarding the construction of factories, while we are also working on brownfield investments. For the “Murica 2” industrial zone, covering an area of 4.5 hectares, we’ve compiled a Detailed Regulatory Plan and are working on a project for infrastructure equipment, and our priority when it comes to greenfield and brownfield investments is the creation of 500 new jobs by year’s end 2020.

INFRASTRUCTURE

MILORAD MILINKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF VLADIMIRCI

Vladimirci is an excellent example of how all investment in infrastructure is a first-rate stimulator of economic growth and regional cooperation. In the municipality we now work, build and live better

WE ARE BUILDING More Than Ever

D

uring this year we shall work on boreholes for the thermal water under our municipality, raising the baths and spa centre for health and recreative tourism. This will be the new engine of growth.

Minister prof. Dr Zorana Mihajlović declared that Vladimirci is an example of good local government. How have you deserved this praise?

- Over the last decade the fastest economic growth has been made by municipalities that have used their geographic potential and vast surface of uncultivated land to make industrial zones, and Vladimirci is among them.

In a very short time, residents will be able to obtain their documents by the complete application of e-ZUP, and we are in the final phase of the student home where there will be work for 30 staff and accommodation for around 200 students attending our secondary school.

You are one of only two municipalities where building permits can be issued in just one working day. How has that affected building activity?

- In the municipality of Vladimirci the issue of building permits has been increased by over 50 percent, which has drastically improved the conditions for attracting investment. Among other things, we have had calls from companies from Palestine, Italy, Turkey and other countries who are interested in investing in our municipality. I hope that we shall soon see results from some of the negotiations and in this way secure a large number of jobs.

BOBAN JANKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF MIONICA

Mionica has come a long way and the arrival of investors from Germany is a guarantee that in the coming years it will stand shoulder to shoulder with Serbia’s most advanced municipalities

THIS IS THE YEAR Of Development

W

e are planning to halt economic migration, create new jobs and all the other conditions required for a high-quality life for our people – promises Janković.

The Municipality of Mionica has been a major construction site for the last few years already. Have you secured your spot among Serbia’s most developed local self-governments?

- A positive future is ahead for Mionica, given that we intensified activities aimed at strengthening the economy in Mionica during last year and this. The result of that is the arrival of German company Auto-Kabel, which will hire 400 workers in the coming period, and interest being expressed among several other German companies that want to expand their capacities precisely in our municipality. By bringing investors and investing in infrastructure, we are quickly stepping into a position of being side by side with the most developed municipalities in Serbia.

You secured more than two billion dinars for the renovation of local infrastructure via the Public Investment Management Office. What is the key to development and what have you planned for the next period?

- That Office is a product of the policies of President Aleksandar Vučić and the Government of the Republic of Serbia, and its objective is to take care of the construction of facilities of public importance in small municipalities like Mionica. Thanks to the Office, a large number of projects have been implemented in our municipality and many more await us, such as – for example – the reconstruction of the school and the construction of a heating system in Mionica, the construction of a therapeutic centre for the treatment of Multiple sclerosis, and the installing of a wastewater collector in Banja Vrujci. We are continuing to build Mionica, develop the economy and invest in tourism.

91

INFRASTRUCTURE

BUSINESS

SAŠA JOVANOVIĆ, PRESIDENT OF THE MUNICIPALITY OF MEROŠINA

One Investor CHANGES EVERYTHING The great economic potential of Merošina is based on the industrial zones of Jugbogdanovac and Mramorsko Brdo, the close proximity of the airport in Niš and the Corridor 10 highway, but also on the announced construction of the Niš-Pristina Highway, which would connect businesses with the Albanian Port of Durres

B

y enticing one major foreign investment, we would solve the problem of unemployment completely and help retain young people in the villages. Restoring the operations of cold storage units would resolve the problems of cultivators of sour cherries and their placement on the market,” says Merošina municipal president Saša Jovanović.

water sources on the territories of the villages of the South Morava Basin. Moreover, this June will see the launch of the reconstruction of the primary school in this settlement, which is the fourth school building that we are reconstructing – all that remains is the reconstruction of the central home school in the settlement of Merošina, which we intend to do in the period ahead.

Your municipality is among the country’s top producers What is your current priority when it comes to roads, of cherries. Is that your greatest potential? How can you water and sewage networks, and the renovation and revive the economy; how can you employ the people? construction of facilities?

- The sour cherry has become a brand and certainly rep- Our priority is the reconstruction of another 20 kiloresents the basic economic potential metres of asphalt roads through our of our municipality. By restoring the settlements. Over the past few years It is essential that we operations of cold storage units we we’ve already reconstructed 37 kiloreconstruct the National would resolve the many problems of metres, so with this we would roundoff the entire process. Technical Library and nursery school, growers – who’ve been struggling for years with the low price of sour documentation has been completed as well as the motel beside cherries – and their placement on and we are now awaiting assistance on realisation, primarily financial asOblačina Lake, in order for us the market.

Some of the factories in Niš, sistance from the relevant ministries. to improve the municipality’s Prokuplje and Malošište that have When it comes to the water supopened thanks to the Government ply, the priority is to expand water tourism potential and President Vučić have already intake capacities and revitalise the yielded results and halved the number of unemployed Krajkovac Lake project, the implementation of which would citizens. fully meet the drinking water needs of the population Just one major investment in the municipality of and industry. Another priority is the construction of a Merošina would help keep young people in the villages, container-style collector for the treatment of wastewater, improve the standard of living and secure a certain future with that investment valued at about 50 million dinars, for citizens. We would like foreigners to invest precisely and we are already in negotiations with the Ministry of in the “Voćar” cold storage facility, because in that way Environmental Protection. they would help cherry producers and employ a large The construction of a secondary sewage network in number of workers in fruit processing and (why not?) in the settlement of Balajnac is currently underway, which the production of finished products made from cherries. would prevent the further polluting of rivers and drinking 92

INFRASTRUCTURE

NENAD BESEROVAC, PRESIDENT OF THE MUNICIPALITY OF BOGATIĆ

BUSINESS

MAČVA IS MORE Than A Raw Material Base The municipality of Bogatić has always, due to its natural potential, relied on agricultural production, the improvement of which the local self-government has been working on intensively for several years, along with working to entice domestic and foreign investors

A

t present, estimates the president of the Municipality of Bogatić, we are most in need of a processing plant that would be able to process agricultural products into semi-finished or finished products, in order for Mačva to cease to be only a raw material base Only two municipalities in Mačva, Vladimirci and yours, don’t have any foreign or major domestic investors. How can you change that?

- Unfortunately, our municipality didn’t have an overly developed economy even during the time of the former Yugoslavia, but there were several enterprises, such as Mlinska industrija [milling industry] “Lala Stankovic”, “1. May”, “Zorka plastike” and “Ogleda”, which employed between 100 and 150 workers. Had we saved that, which we didn’t due to catastrophic privatisations, our production halls wouldn’t have been converted into sports terrains and halls for festivities, nor would we today need a major investor today.

Our advantage – in terms of what might attract both domestic and foreign investors – is reflected primarily in a favourable geographical position. We are border municipality, with access to the rivers Sava and Drina, located close to the highway and the airport, while we have vast natural resources – both groundwater and geothermal water, more than 200 sunny days per year, natural minerals, gravel and sand.

The municipality also has 12 hectares of construction land suitable for conversion into a work zone and possible greenfield investments, while one 4,000-square-metre production hall has been preserved. It is suitable for a brownfield investment, so we’re seeking and expecting investors in the coming period, and we believe that there would be interest among workers in gaining factory-based employment, because about 450 of our citizens travel to Šabac to work for Jazaki.

Research on the possibilities of utilising hydro-geothermal energy lasted more than three decades, but then major strides were taken last year...

- To date, around a dozen exploratory geothermal wells have been drilled Mačva, including an exploration well in Dublje (IEDB-1).

At the end of 2016, the “Study of the possibilities of utilising hydro-geothermal energy for the needs of district heating for public facilities in Bogatić” was conducted at the Belgrade Faculty of Mining and Geology, which showed that implementing this project would be justified. Works on the district heating system via the BB 1 well began on 16th July last year.

This is a unique project and the first of its kind in our country, as it reduces investment costs almost threefold. A million euros has been invested in the project - 75 per cent from a loan, with the rest coming from the municipality’s own funds. The completion of works is expected in the next month or month and a half.

It is important for 25 litres of water per second with a temperature of 55 degrees to remain at the exit point, which offers unprecedented possibilities for further use.

The new heating system for the municipality Bogatić will generate annual savings of between 12 and 18 million dinars, whilst it will also reduce air pollution levels

In placed in the function of agricultural development, could these hydro-geothermal resources represent a capital asset of the Mačva District, enabling farmers to have several harvests per year?

- The study showed that the heating of greenhouses, which can be built on 16 ha of land near Well BB 2, requires 15.2 MW of heating energy.

Existing estimates indicate that, with the geothermal energy of thermal waters located within the municipality of Bogatić, intensive agri-aquaculture production can be achieved, particularly of organic food, according to the most stringent world ecological standards.

93

INFRASTRUCTURE

KENAN HOT, PRESIDENT OF THE MUNICIPALITY OF TUTIN

When it comes to attracting investments, the Municipality of Tutin's greatest advantage is reflected in the fact that it is located in the triple border area between Serbia, Montenegro and Kosovo, but also the fact that the announced route of the future highway passes through the Pešter plateau

94

DRAGAN TOŠIĆ, PRESIDENT OF THE MUNICIPALITY OF BEČEJ

Since the local government invested over 500 million dinars in equipping the infrastructure of the industrial zone that covers 437.4 hectares, many companies have shown an interest in investing and opening factories with new jobs in Bečej

WITH ROADS Come Investors

KWS Has Given Us STRENGTH

he municipality of Tutin has a fragile economy, but also the firm determination to utilise its potential in wood processing, furniture production and the development of the construction industry, tourism and agriculture, but also in the use of renewable energy sources.

T

W

Can government incentives for investment projects help you when it comes to enticing foreign investors?

- Unfortunately, poor infrastructure connectivity, a lack of key energy sources and poor cross-border cooperation with neighbouring municipalities additionally slow our development.

We have a project for the development of tourism that has started and which – apart from Tutin – includes Zubin Potok, Rožaje, Petnica and Istok, because Mokra Gora extends over the territories of all five municipalities. Gazivoda Lake, which is located on the territory of the municipalities of Tutin and Zubin Potok, could also become a tourist oasis.

Bečej municipality was the first in Serbia after 2000 to host foreign investors, the German company Linde. Did that put ‘wind in your sails’?

- The business recovery of Bečej municipality is connected to 2012 and the opening of the KWS processing centre, an investment worth over 30 million euros that was the largest business investment of the last few decades. The opening of KWS was experienced as a symbol of Bečej’s newfound strength, and after that many other investments followed that contributed to the development of the economy.

Reconstruction of the Novi Pazar-Tutin state road is expected to be completed soon. How much will this new roadway mean to Tutin’s businesses and citizens?

- This road is very important to us, both due to citizens and to businesses that use it to transport their products on a daily basis.

Serbian President Aleksandar Vučić confirmed during his visit to Tutin that the route of the future highway will pass through the Pešter plateau, which is very important for us. The Novi Pazar-Tutin road, apart from representing a direct link to the future Corridor 11, is also located alongside our industrial duty-free zone, which covers an area of around 200 hectares and for which we possess all documentation, including design and construction permits.

You have completely equipped the industrial zone with infrastructure. Are there any interested investors?

- In the period 2012-18, investment began to be carried out by the companies Quivogne, the Serbian-American TechnoSoft and KWS, whose greenfield investment was a processing centre complex equipped with the most modern plant and technology. We also have the Hungarian company Multitest, the company Tisza Automotive, and after that the Croatian company Kostel Automotiv opened.

We shall probably see some greenfield investments: the zinc plant Knott Autoflex Yug, and a contract is now being signed with the Italian company Norman group.

e are working thoroughly to improve business conditions in Bečej municipality with the goal of attracting new investment, since this plays a strategic role in the development of the local economy. This is the only way to increase the number of jobs and the quality of life for our inhabitants.

INFRASTRUCTURE

NENAD KRSTIĆ, PRESIDENT OF THE MUNICIPALITY OF TRGOVIŠTE

BUSINESS

We Now Have SOMETHING TO OFFER Over the last two years, the Municipality of Trgovište – one of Serbia's least developed municipalities – has slowly started awakening. Two companies are already operating in its industrial zone, with 45 new jobs expected to be created in the next two months and, with the promised assistance of the state, there will be more to come

L

ast year, for the first time, the Municipality of Trgovište allocated 30 million dinars from its modest budget to grant subsidies to private enterprises and entrepreneurs for the creation of new jobs, while the same amount is planned for this year, says municipal president Nenad Krstić.

The municipality of Trgovište is among the countries most undeveloped areas, but significant progress has been recorded in recent years. What can you boast of having achieved?

- The municipality of Trgovište is indeed one of the least developed in the Republic of Serbia, but the leadership of the Municipality is exerting great efforts to change that status. In 2017, the Municipality bought from bankrupt state enterprise Pčinja the ‘Pak Centre facilities in Donja Trnica, which leases to interested companies, and in 2018 we purchased the facilities of the former Simpo AD (JSC) Vranje Carpet Factory in Donji Stajevac. The adaptation of facilities and their reassigning for the purposes for the confectionery industry are underway, so the launch of production and employing of around 45 workers is expected to start in the next two months.

Last year, for the first time, the Municipality of Trgovište allocated 30 million dinars from its modest budget to grant subsidies to private enterprises and entrepreneurs for the creation of new jobs. Likewise, 30 million dinars for subsidies to private companies and entrepreneurs have again been al-

located this year, while the announcement of a public invitation is expected in the coming days.

You managed to revitalise your Industrial Zone, where plastics and bee-keeping products are now being produced. Is there room for some other companies?

- From the former Pak Centre of State Enterprise Pčinja, which was bought by the Municipality, and an area of about five hectares that was under state ownership and has been made available by the Government of the Republic of Serbia, we formed the Donja Trnica Industrial Zone. Two companies now operate in this industrial zone, while there is a vacant facility covering about 900 square metres. This zone also has construction land available for the construction of new production facilities.

The Municipality raised a loan of 100 million dinars in the past year, with all funds intended for utilities infrastructure projects that will improve the quality of life for all citizens

Do you have plans and funds to invest in utilities infrastructure?

- There is an abundance of plans for the construction of utilities infrastructure...

We have completed project design/ technical acts, and documentation in the final phase for projects worth a total of around 800 million dinars, but we don’t have the funds to implement all projects immediately. The Municipality raised a loan of 100 million dinars in the past year, with all funds intended for utilities infrastructure projects. We expect great assistance from the leadership of the Republic of Serbia in securing the lacking funds, but also from ministries and local and foreign donors.

95

INFRASTRUCTURE

BUSINESS

NEBOJŠA NENADOVIĆ, PRESIDENT OF THE MUNICIPALITY OF BOJNIK

Our Agribusiness Zone Is OUR ADVANTAGE New jobs and employment are one of the priorities of the Municipality of Bojnik, which is why the local self-government is exerting a lot of efforts to reduce unemployment. This goal was partially achieved with the opening the first plant after a gap of many years

W

- We offered the best project within the EU PRO funding contest and received an incredible million euros to pay for infrastructure for an agri-business zone covering an area of 53 hectares. I am very pleased, because now we have something to offer potential investors.

We’ve had interested businesspeople who were seeking just such a zone, but we didn’t have anything to show them regarding what we have to offer, but that Will the opening of the factory of Greek company Autos has now changed.

Top help to “lure” other investors that the municipalApart from the cultivation of agricultural crops ity offers free land with complete infrastructure? in the agribusiness zone, it is possible to build ca- The plant of Greek company AutosTop was opened pacities to accommodate agricultural products, as on the premisesof the former “21. May“ factory and in well as industrial plants for the processing of primary its current 55 workers produce artificial leather and agricultural products. The construction of these faciliupholstery for Toyota and Renault, ties would definitely increase the as wellas tarpaulin trailers for the number of citizens employed in our We will encourage other Danish market. It is expected to municipality. open a new facility in August, while investors to open their plants it plans to hire up to 200 workers in in our municipality, where they The development potential of the the next year or two. of Bojnik primarily lie will always have the support municipality The Municipality will provide in the empowerment of agriculture of the local leadership every kind of assistance to the inand tourism, and you have detailed vestor, given that no factory has regulatory plans prepared for Lake been opened in the village for many years.

Brestovac and the Radan tourist complex. How can We hope that, with the opening of this factory, we you advance from plans to realisation? will encourage other investors to open their plants - It is necessary to attract investors who would invest in in our municipality, where they will always have the the realisation of these plans by building accommodasupport of the local leadership. tion capacities in these areas. The rich flora and fauna, as well as medicinal plants, of the Radan Mountain area You received a million euros for infrastructure develrepresent a good prerequisite for the development opment of the agribusiness zone in the nearby village of recreational and hunting tourism. Increasing the of Kosančić via the EU PRO funding drive. How much number of tourists would also increase the need for could this contribute to increasing employee numbers? agricultural products originating in this area. e have equipped an agribusiness zone where, we believe, the first investors will soon arrive, and we have serious plans for the development of tourism in the Radan area. I believe in a better future for the municipality, which is why I tell my fellow citizens “stay here”, says Bojnik municipal president Nebojša Nenadović.

96

INFRASTRUCTURE

MARIJA CVETKOVIĆ, PRESIDENT OF THE MUNICIPALITY OF GADŽIN HAN

BUSINESS

We Have GREAT PLANS Despite having good climatic conditions, a low level of pollution and diverse land – making it an ideal place for both tourism and agriculture – Gadžin Han remains among the ranks of undeveloped municipalities with high unemployment

T

the Zaplanja watercourses, but we lacked the funds to procure equipment needed to reduce the risk of floods and prevent their occurrence, so we applied for the Interregional IPA Bulgaria-Serbia Cross-Border Cooperation Programme, in partnership with the Republic of Bulgaria’s Municipality of Dupnica.

Prior to the expiry of the Strategy for the Sustainable Development of the Municipality of Gadžin Han, much more can be done – despite only a short period of time remaining – in all areas of strategic priority as listed in the document. We can and want to deal with road infrastrucSmall and impoverished municipalities like yours are unture, the regulating of industrial zones, the construction of water supply and sewage networks, and the development able – due to a lack of budget funding – to compete for of tourism and agriculture.

European IPA projects, and those funds would mean a lot I must emphasise that – when it to you. Can the Serbian Government comes to road infrastructure, water help you?

The municipality of Gadžin supply and sewage networks – the - Our municipality is very dispersed, Han was once known for the Municipality of Gadžin Han has desprawling over an area of 324km2 and encompassing 34 villages. As a cultivating of tobacco, while veloped technical documentation that small and undeveloped municipality, will ease the realisation of projects in today ever more families are these areas. resources from IPA funds would, of course, mean a lot to us, as would as- opting to grow medicinal herbs Construction and Infrastructure sistance from the national government. that don’t require large Minister Zorana Mihajlović has anWe can’t do a lot with our budget, but investments we hope that the relevant ministries, nounced that reconstruction of the each within their own area of compeold motorway near Gadžin Han will be carried out this year. How important is that for your tence, will help improve living and working conditions for area’s development? the residents of our municipality.

- The renovation of the old motorway is very important for Gadžin, as it connects our municipality with the cities The Strategy for the Sustainable Development of the of Leksovac and Niš, which is also very important for the Municipality of Gadžin Han for the 2012-2020 period development of tourism, as well as attracting investors. was adopted seven years ago. What else can be done Without good roads and regulated infrastructure, we can prior to it expiring? expect neither investors nor tourists, and so we will – as - We implemented a major and important job for all citizens, I noted in the previous answer – work towards creating a and particularly for farmers, during the previous period. stimulating ambiance.

The Municipality financed a flood protection project for he leadership of the municipality hopes that, with the help of the Government of Serbia, it will be able to create better conditions for life and work.

“We would like to create the conditions for the employment of young people, in order to put an end to their departures, but also older citizens, who represent the majority. We have great potential for the development and improvement of agriculture, but also tourism, though we cannot exploit that potential by ourselves,” says municipal president Marija Cvetković.

97

INFRASTRUCTURE

BUSINESS

BOBAN MILIČIĆ, PRESIDENT OF THE MUNICIPALITY OF LAPOVO

We're Creating A FAVOURABLE BUSINESS CLIMATE Emanating from the Municipality of Lapovo are new ideas and a willingness to cooperate with state institutions and potential investors, as evidenced by the numerous projects launched and implemented in 2018 and since the start of this year

F

or municipal president Boban Miličić, the planning of Lapovo’s sustainable development is essential to achieving the goals that have been set and will be pursued in the period ahead, in order to secure new jobs for citizens, a better standard of living and a better future.

“The Municipality of Lapovo – as a municipality with a favourable geostrategic position and a wealth of natural resources, which is traversed by pan-European Corridor 10, National Road I and Highway E-75, the Belgrade-Niš-Skopje-Athens international railroad and the Great Morava river – has exceptional potential to achieve continuous sustainable development, create a favourable business climate and achieve a high standard of living for all residents.

“We are working continuously to improve the standard of living for citizens and to improve the business climate, as evidenced by projects that have been launched and implemented: “The renovation of King Aleksandar Obrenović Square, in cooperation with the Ministry of Public Administration and Local Self-Government; the reconstruction and energy rehabilitation of the building of the Municipality of Lapovo, in cooperation with the Ministry of Mining and Energy; the completion of project documentation for the reconstruction and rehabilitation of the Svetozar Marković Primary School (including the school building and sports hall) and the reconstruction and rehabilitation of the building of the health centre (both projects via the Public Investment Management Office); the inter-municipal project (Topola, Lapovo, Rekovac) “Good Asset Management - Exchange 5” - compiling an inventory of assets and legalising water supply and sewage facilities; reconstruction of the station houses of Lapovo and Lapovo Village on the Belgrade-Niš railroad; a public-private partnership to replace all existing street lighting with LED lights; the procurement of equipment for the Lapovo Health

Centre and the Naša Mladost Nursery School via the Ministry without a portfolio; preparation of project documentation for the recultivating of the old landfill site and faecal collector, in cooperation with the Ministry of Environmental Protection; the project to complete the main water pipeline and reservoir R-5; reconstruction of the 110 kW power stations - two MBTS ‘Stara milicija’ and ‘Solunska’, in cooperation with the Public Investment Management Office; reconstruction of the water supply and sewage network at the Naša Mladost Nursery School, in cooperation with the Ministry of Justice.

“Aware of the need to create new jobs and attract investors, the Municipality of Lapovo clearly defined four business zones covering a total area of around 1,200 hectares. The first zone is equipped with infrastructure ais already home to companies Kronošpan, Baki, Trnava Promet and Todorović Co. The construction land of the other three business zones is still under private ownership and we are currently unable to purchase and adapt it to purpose. We expect assistance from the relevant ministries and the Government of the Republic of Serbia in order for us to be able to take maximum advantage of our geographical position and utilise the potential of our municipality in the best possible way. During the course of this year, we plan to purchase part of the land from our own funds, and we expect the relevant ministries, as has been the case to date, to go out of their way to help us in securing the necessary infrastructure.

As a highly-developed municipality, Lapovo is environmentally healthy and is fully ordered in a utilities sense, as a community that respects the principles of sustainability and environmental protection. New jobs are continuously being created in Lapovo thanks to an effective policy of attracting investors based on the utilisation of our competitive advantages that are a result of a favourable geostrategic position along Corridor 10.

Our priority in the period ahead will be the construction of sewage network, a rainwater drainage network and preventative flood protection

98

INFRASTRUCTURE

SREMSKA MITROVICA

The New And Beautiful FACE OF SREM Sremska Mitrovica residents really have something to lift them – new factories, schools, a swimming pool and sports fields, reconstructed roads, streets and nursery schools, while this year sees the launch of the reconstruction of the Railway Station, but also health institutions and culture centres in rural settlements. Well done!

T

his city on the Sava is eagerly awaiting August and the opening of its first retail park, Stop Shop while the local self-government is constantly exerting efforts to improve the quality of life of Sremska Mitrovica citizens.

The city of Sremska Mitrovica is developing at an accelerated pace, both in terms of infrastructure and in an economic sense. We can state unreservedly that, in recent years, the entire city of Sremska Mitrovica has been a building site.

Among the facilities constructed are schools, a swimming pool, sports fields and facilities, a traffic underpass, as well as reconstructed roads, streets and nursery schools. Works are continuing with the same dynamics in 2019, with work underway on the reconstruction of the Railway Station, the construction of a school and the renovations of health institutions and culture centres in rural settlements.

One indicator that the city is developing at a high speed is the arrival of retail chains and outlets. The beginning of March saw the laying of a foundation stone in Sremska Mitrovica for the Stop Shop retail park of Austrian company Immofinanz, which is being erected on the site of the former Fudin furniture factory.

This new retail park will encompass an area of 7,000 square metres. It is expected to house more than 20 domestic and international companies, thus making available to the citizens of Sremska Mitrovica many fashion and cosmetics brands, home furnishing brands, various accessories and numerous services.

99