The severed railway connection between Bosnia and Herzegovina (BiH) and the Croatian port of Ploce is now visibly impacting industrial production and the country's GDP. Just a week after the disruption, over 400,000 tons of goods destined for BiH have accumulated at the Ploce port.

The tragedy in Jablanica last month, when a landslide of rocks and water devastated a neighbourhood and claimed multiple lives, also brought significant economic repercussions. The landslide wiped out 200 meters of the main railway artery, a vital link for BiH’s industry, Vecernji.ba reports.

According to the Federation entity’s Railways, daily losses from reduced freight and passenger revenue amount to approximately €140,000, with indirect damages to the economy running into millions. With a recovery time projected at a minimum of two months, losses are expected to continue accumulating over the coming weeks and months.

BiH’s supply chain relies heavily on the railway link to Ploce, which has been a gateway for imports for decades. Annually, more than 2.3 million tons of goods travel from the port into BiH, accounting for roughly 35% of the Federation's rail transport. In the first nine months of 2024 alone, up to 7,000 tons of goods were moved daily along this corridor, supplying metals, construction materials, and other essential industries.

With over 430 ships docking in Ploce annually, primarily for the BiH economy, companies throughout the country are now feeling the strain as shortages of raw materials, fuel, and other critical supplies grow. The dependency is clear: over 60% of the goods through Ploce move by rail, while only a portion is transported by road. The disruption is forcing companies to find alternative routes, increasing truck transport, shifting to other Adriatic ports, and even considering cargo transfer through the river port of Brcko on the Sava.

Normalcy and an end to financial losses along the supply chain will only return with the railway’s reopening. Ploce’s strategic significance to BiH remains high, as the port serves as a critical link in the economic infrastructure.

The port’s control has long been a contentious issue between BiH and Croatia. After the termination of special agreements between Croatia and the Federation of BiH in 2001, previous agreements on Ploce and free passage through Neum became obsolete, particularly after the construction of the Peljesac Bridge provided an alternative route for Croatian transport, reducing the relevance of Neum access.

Despite these political complexities, Ploce continues to be essential for BiH’s economy. Looking forward, focusing on transportation infrastructure to connect BiH’s interior to the port would have been more effective than aiming for unrealistic control over the port. Improved infrastructure could mitigate multimillion-euro daily losses in situations like the current railway disruption.