Rijeka-Karlovac Railway Line Heading for Chinese or EU Hands?
As the Chinese show greater interest in various Croatian strategic projects, the EU and the EC become more and more uneasy at the thought of such a heavy Chinese business presence in Croatia. As the EC changes its attitude towards some Croatian projects to which it reacted negatively in the past, has the Chinese influence rendered this change of heart senseless?
As Novac/Kresimir Zabec writes on the 13th of April, 2019, Croatia wants to finance the construction of the railway line from Karlovac to Rijeka, covering a length of 170 kilometres with EU funds, because that's more favourable to Croatia than doing it through a concession, stated Croatian Minister of Transport Oleg Butković at the construction site of Pelješac bridge recently.
Ironically much like Chinese whispers, it began to circulate in the media that everything had already been agreed with the Chinese, and that China's CRBC which is already building Pelješac bridge would construct the railway line via a concession model. Economy Minister Darko Horvat has thus announced giving the Chinese company a fifty year concession. However, Butković has very clearly stated that there has been absolutely no direct agreement with the Chinese and that everything will go through a tender, as usual.
''If we decide on a concession tender, then Chinese companies can also apply. If the line is built using EU funds, Chinese companies will be able to bid to be the contractors for the project,'' said Butković.
EU funding for the project is much more favourable for Croatia because it doesn't affect the growth of public debt. Should the case result in giving a concession to a Chinese company, they would build and finance it, but with government guarantees amounting to 1.7 billion euros, which is something the state can ill afford. According to current projections, the entire line should be completed by 2030.
Of the 270 kilometre of railway line from Botovo on the Croatian-Hungarian border, to Rijeka on the shores of the Northern Adriatic, the section from Karlovac to Rijeka is currently not covered at all by any form of EU co-financing.
A few years ago, the European Commission told the Croatian Government quite clearly that they would not finance that part of the line from Karlovac to Rijeka because it was too expensive and it just doesn't pay off. After that, the Croatian Government turned to the Chinese who were constantly showing interest in constructing that section. Now that the negotiations between China and Croatia have entered a much deeper and more serious phase, signals from Brussels, more specifically the European Commission, have been arriving which indicate that they are, despite all, still interested in the project.
Although that railway line is not officially part of the trans-European transport network, senior officials of the European Commission's Directorate General for Transport have openly told reporters that the Commission is ready to co-finance this project, and that it is a very important part of the European budget planning in the period commencing in 2021. Quite a turnaround, no?
In addition, this railway line is part of the line from Rijeka to the Hungarian border, which the European Commission has invested around 400 million euros into the modernisation and construction of, and that obviously doesn't quite sit well with the idea of the entrance of the Chinese into this project. According to statements, the ultimate goal of the overall project is to build a new bridge to the island of Krk and to build a new port on the island for container transport, which is an idea that the Chinese are also very interested in.
What stage are the works in?
Rijeka - Zagreb
The railway line from Rijeka tp Zagreb to the Hungarian border is part of the international Mediterranean Corridor connecting southern Europe with Central and Eastern Europe. The modernisation of this line would be of great importance to the Port of Rijeka. The modernisation and the construction of these lines are all in different stages of execution.
Botovo - Koprivnica - Križevci
In 2016, the European Commission approved 240 million euro for Croatia to build this section, but the contractor for the job hasn't yet been selected. A tender is in progress, but it has been stopped once again due to an appeal lodged by an Italian company.
Križevci - Dugo Selo
This is the only section of the track where works are ongoing. The European Union has invested about 180 million euros in this project, but works began a year and a half late because of contractor issues.
Hrvatski Leskovac - Karlovac
The design of this part of the line was co-financed by the EU in the amount of about 6 million euros. It is expected that tenders will be announced to modernise the existing works and build another track. The value of the works is estimated at 315 million euros and is planned to be funded through EU funds.
Karlovac - Oštarije
An entirely new two-track railway would be constructed on this part of the track, and the value of the works would be estimated at about 400 million euros. Project documentation has been produced, which has been paid for by the EU in the amount of 9 million euros.
Oštarije - Škrljevo
This, which is considered to be the most challenging part of the line, hasn't yet been fully defined, and technical documentation is being prepared by the EU, for which it has paid nearly 6 million euros. The value of the works on this section is estimated at as much as one billion euros.
Škrljevo - Rijeka - Jurdani
Project documentation was produced by the EU at a cost of 8.5 million euros. The value of the works is estimated at 270 million euros in total.
Make sure to follow our dedicated business and politics pages for more on Chinese-Croatian relations, doing business in Croatia, the investment climate in Croatia, Croatian companies, products and services, government policies and much more.
Click here for the original article by Kresimir Zabec for Novac/Jutarnji
Salma Hayek and Hollywood Co-stars Reveling in Rovinj (PHOTOS)
April 13, 2019 - As you may already know, “The Hitman’s Wife’s Bodyguard,” which is the sequel to the 2017 action comedy “The Hitman's Bodyguard,” began filming in Rovinj at the beginning of the month. The film, which is directed by Patrick Hughes, features Hollywood stars Ryan Reynolds, Salma Hayek, and Samuel L. Jackson to name a few. Set to debut in 2020, it is one of the largest film projects Croatia has seen, reported Jutarni List at the beginning of April.
“The filming in Croatia, which is planned for 49 days, will last until the end of May. In addition to Rovinj, locations in Zagreb, Rijeka and the surrounding area of Karlovac will be used for the film,” said the producer of the film, Igor A. Nola, from MP Film Productions.
Our locations, Nola adds, play Italy, the Mediterranean, as well as Croatia. More than 220 Croatian film professionals are part of the production, and more than 760 extras will be engaged.
As the Croatian Audiovisual Center (HAVC) points out, the project was reported as an incentives program to encourage investment in the production of audiovisual works, which was carried out by HAVC in cooperation with the Ministry of Culture.
The famous cast hasn’t been shy about sharing the beauty of Croatia on their Instagram pages. Notably, Hayek has managed to share a photo every day from the Rovinj film set to her 9.7 million followers.
Hayek called Rovinj a “magical location”, and was even seen grocery shopping on Friday. Namely, one of the scenes was filmed at a market located at the entrance to Rovinj’s old town center.
Some of the local products even caught the actor’s attention. You can see the photos on T.portal.
Hayek also shared a new friend she made in Croatia, which you can see below.
Samuel L. Jackson also couldn’t help but share the beauty of Rovinj with his 5 million Instagram followers.
“This new location looks promising! Croatia is lovely at first glance,” Jackson wrote.
The crew is excepted to visit Croatia’s capital on May 1.
"The Hitman's Wife's Bodyguard" should hit cinemas in the first half of 2020.
To read more about lifestyle in Croatia, follow TCN’s dedicated page.
Why Do The Chinese Really Want To Invest So Heavily In Croatia?
From the construction of Pelješac bridge to planning to build a car factory in southern Dalmatia's Neretva valley, to displaying interest in potentially rescuing the enfeebled Croatian shipyards Uljanik and 3 Maj, the Chinese are no strangers to showcasing their investment interest in Croatia.
Croatia has earned itself a less than positive reputation among foreign investors, alright, let's not be so politially correct and say that Croatia is a burning hot mess in the eyes of foreign investors. ABC has come to mean ''Anything but Croatia'' in foreign investment circles, and many are simply bypassing the country entirely. That's not to talk about local, Croatian investors who have been dragged through the proverbial mud twice or even thrice the amount. Given the somewhat depressing statistics, just why are the Chinese suddenly so deeply interested in investing such huge sums of money in Croatia?
While many have welcomed the money-laden offers of the Chinese, others have remained cautiously optimistic, and some have made no qualms about being vocal in their dismay at the thought of the Chinese coming and ''taking over'' by investing heavily in Croatia's many pressing strategic projects. The motives that push the Chinese towards closer and closer ties with Croatia tend to end up as mere hearsay and solacious gossip in the comment sections of various portals, but what do the experts believe?
As Novac/Marina Karlovic Sabolic writes on the 12th of April, 2019, the Chinese are truly incredible people. They come to Croatia every ten years, and the Croats immediately forget about all of the Chinese "bofl" goods they've spent their lives purchasing and throwing away. They suddenly become blissfully unaware of the dreaded "Made in China" mark that everyone gets so sick to the back teeth of seeing plastered all over basically anything. Instead, their innermost desires display blurry images of an ailing Uljanik, of Tito's rotting memorial complex in Kumrovec, of Rijeka's port, and even football stadiums, Slobodna Dalmacija writes.
Does anybody bother to ask in this country what the Chinese will ask for in return, however? Entering into the dubious and somewhat unpredictable world of Croatian shipbuilding, constructing a much needed railway line and maybe rescuing a port in Rijeka all before dinner time will come with a price tag, and likely a hefty one. The situation when that bill inevitably arrives is one that tends to be what fills the militant online naysayers with fuel, and dread.
''Don't be afraid, China will not demand that the Communist Party be established in Croatia or that it rules the country,'' prof. Dr. Vlatko Cvrtila, one of the most prominent Croatian geopolitical experts, stated. He also added that in its long-term strategic plans, China really doesn't have any sort of idea of introducing a single-party system in the countries in which it invests its money. Their interest, claims Cvrtila, is of quite another nature.
''The Chinese don't invest because they have a lot of money and they want to go around giving it out. There's no philanthropy in international relations. All they invest in is related to their global strategy of creating influence and linking the Eurasian world in a continental way. By investing in infrastructure, ports, roads and railways, they enable their goods to reach their customers more easily,'' says Cvrtila.
Such an approach, he points out, is legitimate for a country that has boasts such great economic potential at this time like China does. Their mega-project, the Silk Road, which would increase the possibility of land transport, aims to reduce overall dependence on maritime traffic restrictions.
Cvrtila notes the US administration's estimates and warnings that China will one day turn its massive economic influence into strategic power as well. This is something that United States, which is already competing with Russia, doesn't think well of. However, China is now quietly placing all of its cards on the economic side of the story.
''In order to maintain its economic growth, China must have a market. In infrastructure projects, they actually make the market more widespread. China can't stop, while it's riding the bike it needs to rotate the pedals. The Chinese are present everywhere where they can create prerequisites for the distribution of goods. In Greece, they're in the ports, in Montenegro, they're dealing with the construction of a motorway, in Croatia, they're building Pelješac bridge. This is a win win situation for everyone, because in the long run, any investment in infrastructure can improve a country's economic performance,'' says Cvrtila.
China has, therefore, created the 1 + 16 formet in Southeastern Europe where its usually large-scale investments help countries that otherwise don't have a lot of foreign investment.
''Europe has survived a difficult financial crisis and there is no "free finance" which would enter JI Europe. China's investment is actually beneficial for Europe, because along with China, the European Union has developed non-competitive but increasingly strategic economic relations, realising in time that they [the Chinese] can contribute to its economic growth,'' emphasises Cvrtila.
Croatia, according to him, is fortunate because it is strategically quite well positioned: it is closer to the heart of Europe than it is to Northern Europe. And, de facto, it is located at the intersection of the roads between the East and the West.
Unfortunately, Croatia hasn't used its geostrategic advantage yet. LNG terminal stands, as do the new train lines. It's also important to revitalise the Port of Rijeka so that Croatia can profit in the fast transport of goods to European consumers. We don't have our own investments, Europe has no capacity anymore, which is why the Croatian Government is seriously considering deals from China,'' concludes Cvrtila.
Therefore, there's no need for Croatia to be afraid of the Chinese, but rather actually use them for its own interests.
Make sure to follow our dedicated business page for more information on Chinese-Croatian relations, Chinese business plans in Croatia, and much, much more.
Click here for the original article by Marina Karlovic Sabolic for Novac/Jutarnji
Damir Mišković and Chinese Investors Make First Step for New Kantrida Stadium
The first step to constructing a new stadium in the Kantrida neighborhood of Rijeka was made in Dubrovnik.
Chinese Reveal Interest in Croatia's Enfeebled Uljanik and 3 Maj Shipyards
As Poslovni Dnevnik writes on the 10th of April, 2019, Chinese interest continues to grow as the Republic of Croatia and China opened a new, ambitious chapter of economic and trade relations on Wednesday, deepening their relationship even more after talks between the two prime ministers who both considered the talks to be a "fruitful turnaround".
Relations between Zagreb and Beijing initially reached a higher level after the Chinese company China Road and Bridge Corporation was chosen as the much anticipated Pelješac bridge builder.
The two countries readily signed six agreements, which cover the segments of rail, agriculture, digital technology and tourism. Four more will be signed on Thursday and Friday down in Dubrovnik at the 16 + 1 summit.
"We have signed a memorandum on a much more serious, transparent and easier cooperation between companies, on the transfer of capital from China to Croatia, as well as a two-way transfer, and the possibility of capital from Croatia being invested in China. This opens up the possibility of trust and a much stronger and more serious transfer, investing and manufacturing, and we've been able to talk about other large-scale structuring projects, especially given the fact that a Chinese company is building Pelješac bridge,'' said Croatian Economy Minister Darko Horvat for RTL.
He also noted that at this point in time, Croatia has a bilateral economic exchange with China which is somewhere close to the level of a billion euros, in a much larger deficit on the Croatian side.
Horvat also confirmed that Chinese companies are offering to be the ones to construct the Rijeka-Zagreb line.
"This project has to happen, the Chinese side has shown its interest. Whether that is going to come in the shape of a long-term concession agreement or in another model... Minister [Oleg] Butković is engaged in very intensive negotiations [on that matter] at the moment,'' stated Horvat.
In conversation with RTL, Horvat also revealed that they now have a clear signal that there is interest from the Chinese side to invest in Croatia's burdened shipyards, Uljanik and 3 Maj, in Pula and Rijeka.
"The real conversations are just starting, and I'm sure we will have some concrete figures tomorrow,'' he added briefly.
When asked whether or not Chinese could end up becoming the strategic partner needed to finally save Uljanik, the economy minister simply said that nobody was trying to hide the fact that the Chinese had been called upon.
Make sure to follow our dedicated business and politics pages for more information on the blossoming China-Croatia relations, why some remain suspicious, why the European Commission has raised its eyebrows at the fact that a Chinese company is building a bridge funded primarily with EU money, and much more.
HNL Round 27 & 28 Recap: A Busy Week of Croatian Football
April 9, 2019 - The 27th and 28th rounds of the Croatian First League was held from April 2 to 8, 2019, for one very busy week of Croatian football.
From Dalmatia to Karlovac and Rijeka, Chinese Eye Up Croatia
As Gordana Grgas/Novac writes on the 8th of April, 2019, if there was a European tender held solely to attract Chinese investment, the champion would certainly be Great Britain, followed by Germany, and then immediately by Italy and France. Croatia might not be anywhere near the top of China's European ''wish list'', but despite that, the Chinese interest just keeps on coming...
The countries which make up Central and Eastern Europe are low on the aforementioned European scale, even though with China, at least since the year 2012, they have enjoyed a special relationship through the China + 16 initiative, which, as a parallel diplomatic format, tends to irritate the larger, more powerful members of the European Union, as well as the European Commission itself. One of lowest on the list is Hungary with its Eurosceptic government led by Viktor Orban, and Croatia is at the very bottom, but the desire is to alter that.
This week, there is an official visit by Chinese Premier Li Keqianga to Croatia, and the eighth summit of sixteen countries of Central and Eastern Europe with China down in Dalmatia's southernmost city of Dubrovnik, and it might be the easiest thing to look at it all as part of a political show that could act as bait for investment. Whether or not this investment will really happen and what shape that might take, whether it will be done mainly through private projects, for example in tourism, or through major state projects in the rail and port sector, is not yet clear at all.
Croatia will sign nine general memoranda with China in the areas of trade, investment, agriculture, transport, science, technology and innovation, education, sport and tourism, and the most convenient customs administration protocol that will enable the export of Croatian dairy products, which are greatly loved in China. Croatia also intends to join the Asian development investment and infrastructure bank headquartered in Beijing, how much that will cost Croatia however, is not yet known.
How large European countries cooperate with China was demonstrated just ten days ago by the Italians and the French. For the visit of Chinese President Xi Jinping, Rome signed 20 agreements (and joined One Band, a one way system that connects China with the rest of Asia, Europe and Africa, and expands its trade and influence). In Paris, 15 such agreements were signed, where either contracted or announced transactions amounting to billions of euros were dealt with, covering a wide range of areas - from exports of Sicilian red oranges and French frozen chicken to the opening of Italian ports for Chinese investors, sales of 300 Airbus aircraft, energy projects, shipbuilding, etc.
After the construction of Croatia's much anticipated Pelješac bridge, which is funded primarily by European Union money, Croatia hopes for more Chinese investments in national transport projects. This regards the port of Rijeka and the entire Rijeka traffic route, including the line from Rijeka to Karlovac, as well as projects such as airports.
According to data which takes the whole of Europe into account, during the period from 2000 to 2018, almost 47 billion euros of direct investment from China was invested in Britain, Germany saw 22 billion euros, Italy saw 15.3 billion euros, and France saw 14.3 billion euros. Hungary saw a significantly smaller figure of 2.4 billion euros from the Chinese, Poland saw even less with 1.4 billion euros, Romania saw 900 million euros, and Croatia saw just 300 million euros. A stark contrast to the United Kingdom, which is by far one of Europe's most powerful nations.
In the region, the intensity is getting stronger, and in neighbouring Serbia, Chinese loans have come in handy when building transport infrastructure and energy projects and, but that medal, like any other, has two sides, and the takeover of companies hasn't always been met with welcome arms by the Serbs.
The aforementioned data report shows that the culmination of Chinese investment in the EU was reached back in 2016, largely through the take over of companies, and over the last two years, it has fallen, which is attributed to more stringent rules implemented by some EU member states, as well as increased capital controls conducted by Beijing.
For Zagreb, it was a bit uncomfortable to get closer to Communist China in the above mentioned period, as the common policy of overseeing and limiting the Chinese penetration of the ''Old Continent'', especially in strategic and technologically sensitive areas, was being undermined. That chapter however, appears to be well and truly over in Croatia's eyes.
While large investments and projects are anxiously anticipated here in Croatia (and the Chinese interest in Rijeka and the Rijeka-Karlovac line is at least nine years old), data on trade relations show that there is a deficit. State Secretary Nataša Mikuš Žigman notes that there has been a noticeable increase in the volume of trade between Croatia and China, but imports are growing more than exports are. Last year, exports of goods amounted to 133.4 million euros, an increase of 19 percent when compared to 2017, while imports amounted to 803 million euros, an increase of 15.6 percent.
Croatian companies might be able to export more to China in the future, and the business forum being held in Dubrovnik is an excellent chance to showcase some innovative Croatian export ideas, but for now, the main export products continue to be raw or semi-finished products such as stone, leather, untreated wood and polymers, while when it comes to imports, we can see the reign of traditional Chinese consumer goods, white electronics and telecommunications equipment, as well as a constantly increasing number of Chinese tourists visiting Croatia, too.
As the Chinese continue to ramp up their business in Croatia, from Pelješac bridge to Rijeka's port, more announcements continue to appear, and just recently we reported on the Chinese plan to open up a car factory tucked away among the citrus trees of southern Dalmatia's fertile Neretva valley, more precisely in the Nova sela business zone near Kula Norinska in Dubrovnik-Neretva County. While many remain concerned about Chinese influence in Croatia, many others are much more occupied and lured by the promise of an economic boost and employment opportunities.
Make sure to follow our dedicated business page for more information on China-Croatia relations and much more.
Click here for the original article by Gordana Grgas for Novac/Jutarnji
Rijeka Faculty of Maritime Studies Marks 70th anniversary
ZAGREB, April 5, 2019 - The Rijeka Faculty of Maritime Studies, the first and most important institution of higher education in the field of seafaring in Croatia, on Thursday celebrated its 70th anniversary, with President Kolinda Grabar-Kitarović attending the event.
The Rijeka Faculty of Maritime Studies was established in 1949 as a two-year college and in 1992 it changed its name to the Faculty of Maritime Studies.
More than 13,550 students from Croatia and 30 other countries have graduated from the faculty, and it has awarded more than 127 master's degrees and more than 100 doctorates.
"The Adriatic Sea gives Croatia geo-strategic importance, and Rijeka and its port are the shortest bridge to Central European countries and all the way to the Baltic. That was so in the past, when Rijeka was the most important Mediterranean port for the entire Central Europe, a natural point of access to the sea and the main maritime point of economic development," said Grabar-Kitarović, adding that this fact had not been valued sufficiently, which was why she participated in launching the Three Seas Initiative.
"We can use our maritime sector much better, primarily as a lever of overall economic development as well as a support to neighbouring and other European countries. Tourism is important but it must not be the only branch of our maritime sector," she said.
Transport Minister Oleg Butković, who also attended the event, said that maritime development and education enjoyed the unquestionable support of his ministry and the government, noting that his ministry awarded seafaring and naval engineering scholarships.
In the last five years, of a total of 370 scholarships for students of all maritime faculties, 100 went to students of the Rijeka Faculty of Maritime Studies, said Butković.
"By reforming the national maritime legislation, we are trying to improve the working and living conditions of our seamen, who are known for their professionalism and competence. With our measures we are sending a clear message of support to current and future students... and affirming the role and importance of the maritime sector," said Butković.
More Rijeka news can be found in the Lifestyle section.
Brand New Zadar-Rijeka Catamaran Line Coming This Summer
Something new is set to take to the placid waves of the Adriatic sea this summer as the Dalmatian city of Zadar and the city that flows - Rijeka in Kvarner, are set to be connected by catamaran.
As Morski writes on the 2nd of April, 2019, as of the 15th of June this year, the G&V Line Iadera will begin running a brand new daily line that will connect Rijeka and Zadar, joining Krk (Krk), Rab (Lopar) and Pag (Novalja) seasonally.
This is a new and unique line from G&V Line Iadera, which will connect Dalmatia and Kvarner by sea, enabling a person to arrive to Zadar from Rijeka (or vice versa) in only four hours, according to a report from eZadar.
190 kuna is the one-way maximum price, and the fastest ship, Melita, with its capacity of 180 passengers and an indoor air-conditioned salon will depart from Rijeka on 08:15 and from Zadar at 16:15.
The total journey time between the two coastal Croatian cities is four hours, and passengers can enjoy travelling in air-conditioned indoor areas with comfortable seating.
The line will run from June the 15th to September the 15th, and ticket sales online will soon begin.
Make sure to follow our dedicated lifestyle and travel pages for much more.
HNL Round 26 Recap: Hajduk Moves into 4th, Osijek Gets New Coach
April 1, 2019 - The Croatian First League returned for the 26th round over the weekend after the international break. It was a rather exciting weekend for Hajduk who moved into 4th place, which currently secures them a Europa League spot. However, things are not as optimistic for Osijek, after coach Zoran Zekić turned in his mandate.
