A week ago, the privatization process for Yugoslav River Shipping (JRB) was abruptly canceled, and authorities have yet to provide a reason for this sudden decision. The Ministry of Economy had previously announced a public call for bids to sell the majority state-owned company, suggesting that privatization was imminent.
However, just one day after the announcement, the ministry’s website revealed that the public invitation had been withdrawn, with no explanation given. This has led to speculation that the cancellation might be due to a procedural error, or that rational arguments against the sale might have influenced the authorities to reconsider.
Efforts to obtain clarification from the relevant ministry have been unsuccessful, as no response has been received. Similarly, attempts to contact Mladen Grujić, the executive director of Yugoslav River Shipping, went unanswered.
Economist Milan R. Kovačević criticized the lack of transparency, stating, “State authorities must explain their decisions to the public. The Ministry of Economy should have provided reasons for withdrawing the call for JRB’s privatization. This situation reflects a lack of adherence to proper procedures and regulations. Furthermore, river transport is cost-effective compared to other modes of transport, and JRB’s significant fleet makes it essential for it to remain a state enterprise. Privatization could have dire consequences.”
Economic analyst and lawyer Branko Pavlović also expressed concern, noting, “It is both frivolous and irresponsible to announce and then cancel a public call for privatization within such a short time frame. The authorities must justify their actions, and it is crucial that someone with expertise advised against selling Yugoslav River Shipping, as it is strategically important for the state to retain ownership.”
For context, in February 2009, JRB was sold to the Austrian company EDDSG, owned by businessman Zoran Drakulic, for €24.5 million, with a commitment to invest €15.7 million. However, the buyer withdrew a year later, citing the economic crisis, and the Privatization Agency retained a million euros from a bank guarantee.
According to JRB’s website, the company is a leader in the domestic river transport market and ranks fifth on the Danube. The main activity of JRB is cargo transportation via inland waterways.
On July 24, the Ministry of Economy canceled the public invitation for bids to sell JRB’s capital, with the initial asking price set at €29.2 million. The reasons for the cancellation remain unclear.
