Transport Market, Albania and the Region

Albanian Daily News talked with Mr. Matej Zakonjsek, the Director of the Transport Community Permanent Secretariat, based in Belgrade, who firstly introduced the Transport Community which works on one simple but complex goal – full integration of the Western Balkan transport markets into the EU. “This means that we want to see no difference in how transport is functioning and what standards it uses in, for example, Germany or Albania,” said the Director during the exclusive interview explaining that to achieve this, they are working in two fields – transposition of the relevant EU legislation, in other words – reforms, and monitoring of concrete infrastructure and connectivity projects on the key transport network axes.

Based on the South East European Transport Observatory (SEETO), the organization was founded by the Treaty establishing the Transport Community, signed on 12 July 2017 in Trieste (Italy) and ratified by all partners (Council Decision (EU) 2019/392) and is composed of the EU and the six Western Balkan Parties (Republic of Albania, Bosnia and Herzegovina, Kosovo, Republic of North Macedonia, Montenegro and Republic of Serbia). Its key objective is to extend the EU transport market rules, principles and policies to the Western Balkan Parties through a legally binding framework.

Director Zakonjsek revealed that recently the organization published a series of recommendations for Albania as part of its two major reports to advance the integration of this country’s transport market into the EU.

One of the challenges Albania is facing regarding the adoption of the relevant EU standards in the transport sector is the authorities’ capacity to implement the needed reforms.

Touching upon the conclusions of the Transport Community that transport means continue to be in very bad shape in Albania and if such a handicap could delay its accession process to the EU, the Director said the current state of the transport market in Albania, as highlighted in the reports, is such that it can further profit and advance by implementing reforms and utilizing the opportunities offered by the new Growth Plan for the Western Balkans or the Economic and Investment Plan for the Western Balkan. “While the challenges within the transport market could contribute to delays, the overall impact on the accession process depends on the pace at which Albania addresses these issues.”     

Regarding the hesitation of Albanian authorities to publish the Network Statement for the port of Durres, he said that Albania is expected to publish the Network Statement and make necessary information accessible to rail operators this year.

Albanian Daily News: In the first place thank you Mr. Director for being a special guest for this interview with Albanian Daily News and as it is the first time we are talking with you as the head of the Transport Community Permanent Secretariat, based in Belgrade please could you tell our readers, which are the main achievements of your institution in 2023 and the targets for 2024 regarding the cooperation for the development of rail and road axes, the facilitation of border crossings and the upgrading of ports in order to improve the conditions for the movement of people and the transport of goods between the EU countries and the Western Balkans?  

Director Matej Zakonjšek: Firstly, let me introduce the Transport Community to your readers. We work on one simple but complex goal – full integration of the Western Balkan transport markets into the EU. This means that we want to see no difference in how transport is functioning and what standards it uses in, for example, Germany or Albania. To achieve this, we are working in two fields – transposition of the relevant EU legislation, in other words – reforms, and monitoring of concrete infrastructure and connectivity projects on the key transport network axes.

When it comes to the key achievements in 2023, I would like to mention a couple of them which are the result of joint efforts of the Transport Community, European Commission and EU Member States, but also the governments from the region. Firstly, that is the revision of the Trans-European Transport Network (TEN-T) which includes substantial changes for the Western Balkans, such as the Corridor VIII (rail connection between Albania, North Macedonia, and Bulgaria) and the establishment of the Western Balkans - Eastern Mediterranean European Transport Corridor. Moreover, the end of the last year witnessed the launch of the Safe and Sustainable Transport Programme (SSTP) which aims to enhance transport safety and sustainability in the Western Balkans, aligned with the EU’s Green Agenda.

When it comes to the plans for 2024, our main activity will be the Summit on Sustainable and Green Mobility to be held in Sarajevo. We will be developing the Next Generation Action Plans, a blueprint for reforms, for the period 2024-2027. We will also review the Transport Community Treaty.

Finally, after the SSTP launching, we will ensure that this year, the programme starts delivering on its promise of financing projects in the field of road safety, improvement of border crossings, and green mobility.

- How much do Balkan countries like Croatia, Greece, Bulgaria, Slovenia and Romania, which are already EU members, cooperate with your institution to facilitate the big undertaking regarding the extension of the Trans-European Transport Network in the Western Balkans?  

Not only those bordering the region, but also other EU Member States, play a key role in assisting the Western Balkans in achieving full integration of its transport markets into the EU. This is done on several levels, one of them being providing relevant training and assistance through TAIEX which is the Technical Assistance and Information Exchange instrument of the European Commission. Albania, as well as other regional partners, has already benefited from these activities. One of the examples is the recently-conducted an expert mission to enhance Albania’s and its firefighters’ capacity for emergency intervention during the transport of dangerous goods.

The more the EU Member States are involved in the work of the Transport Community, the stronger we are, and the more the region progresses to integration into the EU market. We are grateful to the European Commission and the EU Member States for their work and commitment to the Western Balkans.

- Do you find technical or other difficulties regarding the adoption of the EU standards in the transport sector for advancing the integration of the Western Balkan transport markets into the EU?

We have a clear political commitment from all the Regional Partners to adopting relevant EU standards related to transport. Our latest Acquis Progress Report acknowledges gradual progress in this regard. Anyhow, it highlights the need for an increased pace in implementation. The overall progress remains slow to moderate, indicating persistent challenges in aligning with the European transport standards. We need the region to speed up on the reforms and we hope that 2024 will be crucial for this endeavour.

One of the challenges Albania is facing in this regard is the authorities’ capacity to implement the needed reforms. We are working hand in hand with them to strengthen their capacities by providing relevant training and capacity building activities.

- How do you monitor the development of indicative Trans-European Transport Network extension of Comprehensive and Core Network in Western Balkans?

- We are doing the monitoring with three instruments. Firstly, together with the governments from the region and the European Commission, we have developed the Five-year Rolling Work Plan for Development of the Indicative TEN-T Extension of the Comprehensive and Core Network in the Western Balkans. This plan contributes to the region’s sustainable development and improves connectivity between the regional partners and with the EU, while giving due consideration to the environmental and social dimensions.

Secondly, the progress made by the Western Balkans in aligning their infrastructure with TEN-T standards is monitored through a tracking system which is conducted by the Transport Community’s bodies that produce and adopt dedicated annual reports on the development of indicative TEN-T extension of Comprehensive and Core Network in the Western Balkans.

Finally, the Transport Community Permanent Secretariat has established the Transport Observatory Database/Information System (TODIS), a cutting-edge information system that elevates the Western Balkans to the highest EU standards when it comes to the TEN-T network performance monitoring and management. Through this system, we can not only track the progress but also create forecasts for the TEN-T development in the region.

- Besides the ongoing initiative of Berlin Process launched by former German Chancellor, Angela Merkel in 2014, there are initiatives which are undertaken by regional countries like the latest one so called the Open Balkans. How do you assess such initiatives, given that some regional countries do not take part in them? Are they complementary to the work done by you, and secondly do they comply with the standards set by your institutions in the frame of the EU?

- Inclusive regional cooperation, based on EU rules, is key to bring the Western Balkans closer to the EU's single market. All the regional initiatives should follow these principles.

There are already some initiatives that emerged from the Open Balkans, such as the interoperability of tolling systems between Albania, North Macedonia, and Serbia, which are completely in line with the goals set by the Transport Community. Initiatives like this one contribute to the regional integration but also to integration of the region into the EU.

 - Reading what Albania should do to speed up full integration of its transport market into the EU in the report of the Transport Community, anyone can reach the conclusion that transport means continue to be in very bad shape in this Balkan country. According to your predictions, does such a handicap delay its accession process to the EU, and secondly, how is such a situation in other WB countries?

The current state of the transport market in Albania, as highlighted in our reports, is such that it can further profit and advance by implementing reforms and utilising the opportunities offered by the new Growth Plan for the Western Balkans or the Economic and Investment Plan for the Western Balkan. However, it is essential to recognise the fact that this is not only true for Albania. Other regional partners face similar challenges, too. 

While the challenges within the transport market could contribute to delays, the overall impact on the accession process depends on the pace at which Albania addresses these issues.

From the side of the Transport Community, we pledge to work hand in hand with all the regional partners, including Albania, in addressing these challenges and opportunities and achieving full integration of the Western Balkan transport markets into the EU as early as possible.

-How do you monitor the fulfillment of the set tasks by you when for the sake of truth corruption has hit the WB countries, especially in the field of transport?  

In monitoring the fulfilment of tasks amidst concerns of corruption within the Western Balkans, particularly in the transport sector, we adhere strictly to the standards outlined in the Transport Community Treaty. Our commitment to transparency is crucial in this regard.

The expectation is crystal clear: we anticipate all Western Balkans partners to meet the specified criteria laid out in the Transport Community Treaty. This encompasses not only legislation related to the transport sector, but also specific requirements related to public procurement. Attentiveness in ensuring compliance with these criteria represents the foundation of the EU standards.

- Albanian authorities hesitate to publish the Network Statement for the port of Durres, something demanded by the public opinion in the country and also required by you. Does the delay to do this make difficult projects in this vital maritime link of the country and the region and what will you do if such a situation continues endlessly?

- Publishing the Network Statement for the port of Durres is vital for ensuring transparency, facilitating efficient operations implementation, and offering clear visibility of opportunities for rail freight operators regarding capacities within this crucial TEN-T Core Network port, as outlined in our reports.

Releasing the Network Statement creates certainty for rail operators, allowing them to plan and operate effectively. The Transport Community Permanent Secretariat, in collaboration with the Government of Albania and its institutions, is pursuing a comprehensive approach. This involves garnering support, engaging with stakeholders, and fostering coordination among all relevant parties.

Albania is expected to publish the Network Statement and make necessary information accessible to rail operators this year. This will empower the rail operators to make informed decisions, thereby contributing to the sustainable growth of the rail sector and the overall economic development of the region.

- Mr. Director, Albania seems to be a special case where the railway system has totally been neglected creating among others handicaps for the people to travel more easily and cheaply. Why has such a thing happened (and continues) and even adopted projects are dragged on, including the link Durres-Tirana although EU institutions have provided funds many times?

- Firstly, Albania, even more than other regional partners in the Western Balkans, has historically faced difficulties in maintaining and developing its railway infrastructure. The legacy of isolation during the communist era left a lasting impact, creating challenges in connectivity that are being addressed today. The neglect of the railway system in the past is not unique to Albania but reflects broader trends in the region where railways have faced neglect over the last 30 years.

One significant factor contributing to the challenges in the Albanian railway system is the allocation of investments. Over the past three decades, a large portion of infrastructure investments in the region has been directed towards roads, accounting for approximately 80% of all investments. This emphasis on road infrastructure has, unfortunately, resulted in a relative neglect of the railway sector.

However, it's important to note that efforts are being made to revitalize and modernize rail transport across the region, including Albania. There are currently 26 rail projects in progress across the region, indicating a renewed commitment to developing and upgrading railway infrastructure. Notably, the works on Corridor VIII (such as connection Tirana-Rinas, Tirana-Durrës, and Durrës-border with North Macedonia), a crucial transnational route, demonstrate a concerted effort to enhance connectivity and trade within the region.

-Which are your expectations from the much-anticipated Summit on “Sustainable and Green Mobility” in Bosnia and Herzegovina that will take place before the summer break, and please which are some other important activities to be held during 2024?

-We have developed the Sustainable and Smart Mobility Strategy for the Western Balkans aiming to decarbonise and digitise the transport sector, mirroring EU strategies, aligning with the EU's sustainable and smart mobility goals and addressing regional realities.

The annual Green Mobility Summit aims to foster discussions on sustainable and eco-friendly transport, supporting the strategy's implementation. The summit is being prepared in cooperation with the German Federal Government and the German Development Cooperation (GIZ) and their Transformative Urban Mobility Initiative (TUMI).

The Green Mobility Summit is set to gather distinguished participants, including ministers of transport, the European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), World Bank (WB), Directorate-General for Mobility and Transport (DG MOVE), Directorate-General for Neighbourhood and Enlargement Negotiations (DG NEAR), as well as other regional organisations.

The Summit's key outcomes include, among others, initialisation of the Clean Bus and Fleet Platform and the Cycling Declaration for the Western Balkans. The event serves as a platform for collaboration on policies related to sustainable and green mobility, emphasising initiatives like environmentally friendly investments, alternative fuel infrastructure, and innovation in the transport sector.

Other important activities include our Social Forum, meetings of our Technical Committees and the Regional Steering Committee, and, of course, our annual Ministerial Council Meeting which serves as a platform for discussions and commitment on the highest political level.