Bosnia and herzegovina Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in bosnia and herzegovina, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Select Country Guide
Infrastructure Engineering and Construction Services and Equipment
Last published date:

Overview

BiH’s transport infrastructure is underdeveloped.  At the time of this report’s publication, BiH has 136 miles (220 kilometers) of usable highways (70 miles in the Federation and 66 miles in the RS). Trunk roads and regional roads, with a total length of 5,282 miles (8,501 kilometers), represent the country’s core road network.  

BiH is focused on finishing the 209-mile (336-kilometer) Corridor Vc (“Five C”), the only major highway that connects north and south BiH in a single stretch.  Once completed, the highway will link BiH with European road networks—its final design will connect the central part of the Adriatic Sea coast and Budapest, Hungary. Corridor Vc’s central objectives are BiH’s inclusion into Europe’s main traffic flows, as well as easier access to the European marketplace.  Experts predict that the motorway will be the prime mover of economic activities in BiH and should enable connectivity to its neighboring countries and regions. Most of the construction has been financed by the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). Progress has been slow, impeded by issues concerning inter-entity coordination, the absence of a coherent strategic vision, political obstructionism, and a lack of funding. The December 2017 passage of a 9 cent per liter (KM 0.15) increase in fuel excise taxes to fund road construction has eased financial constraints on building highways in BiH.  

The BiH rail system is divided by entity, weighed down by excess employees, and hampered by poor and aging infrastructure. The total length of operational railway tracks in BiH is 641 miles (1,031 km). Major users of the railway transport system are large industrial plants (such as the chemical plant in Tuzla and the Arcelor-Mittal Steel plant in Zenica), coal mines (Zenica, Tuzla, Stanari, and Prijedor), the Aluminij aluminum plant in Mostar, and oil distributing companies (INA, Energopetrol, and HIFA). Passenger railway traffic is very limited but has been growing since 2017 when the railway companies put modern and comfortable coach cars into use. 

Rail transport in Bosnia and Herzegovina is operated by two government-owned companies: Željeznice Federacije Bosne i Hercegovine, which operates in the Federation, and Željeznice Republike Srpske, which operates in the RS. The entity companies manage the infrastructure and provide transport operations for both freight and passenger service within their borders. Priorities for the railway sector in both entities are reconstruction and modernization of infrastructure and purchase of new locomotives and coach cars. While there an umbrella organization called “Bosansko Hercegovačka Željeznička Javna Korporacija” that coordinates the activities of the two railway companies, inter-entity politics plays a large role in rail transport.  In cooperation with the World Bank, the RS railway company is restructuring to improve financial results and right-size staffing levels. The Federation railway company has recently improved its financial performance. 

Opportunities

The best opportunities for U.S. companies related to road infrastructure are the two most difficult segments of the Corridov Vc project – the 37-mile (60-kilometer) stretch from Zenica to the border with Croatia (north of Sarajevo) and the 78-mile (125-kilometer) stretch from Tarcin to Bijaca (the southern end point). The estimated cost of construction for those two segments is approximately EUR 2 billion ($1.1 billion). The southern section will include the construction of the 6.5-mile (10.5-kilometer) Prenj tunnel, with estimated completion date of 2032. The tunnel’s estimated cost to construct is around $620 million.  Most of the financing required was provided by the EBRD and EIB and procurement is in process. Procurement of construction equipment such as asphalt patchers, bulldozers, backhoes, cranes, excavators, and mowing equipment, as well as other road construction equipment, presents significant opportunities as the construction of Corridor Vc continues. An agreement has also been reached on the Sarajevo-Belgrade Highway project, planned to be built between Sarajevo and Belgrade with Turkey’s support. The project is reported to cost around $2.1 billion (1.8 billion euros). However, debate over the highway’s route is ongoing and will require continued negotiations before construction The construction of a network of expressways (“fast line roads”) in the Federation is a strategic priority, and works are currently underway on several key sections. These projects, financed by the Federation Government, EIB, EBRD, and EU grants, aim to improve connectivity within the Federation, as well as with neighboring countries and Corridor Vc.

Opportunities in rail include both design and construction or infrastructure and sales of equipment. Federation Railways bought new Spanish “Talgo XXI” passenger trains and put them into use in 2016 after completing upgrades of the rail lines. RS Railways has announced that the company is planning to significantly upgrade the existing railway infrastructure in the near term. Passenger service between Banja Luka, Sarajevo, and Mostar was revived in 2017, although the volume is still relatively small. Seasonal passenger service between BiH and the Croatian city of Ploce was restored in July 2022, with expectations that it will become year-round service. Reconstruction and modernization of rail infrastructure, such as signalization equipment and rail track upgrades, will remain the focus of both railway companies.

Resources

•    BiH Ministry of Transport and Communication
•    Road Directorate of the Republika Srpska
•    Road Directorate of Federation of Bosnia and Herzegovina
•    BiH Ministry of Transport and Communication
•    Railways of Federation of Bosnia and Herzegovina
•    Railways of Republika Srpska

×

Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

Privacy Program | Information Quality Guidelines | Accessibility