industrial market serbia.pdf

8/10/2019 Industrial Market Serbia.pdf

1/34

Serbian Industrial and Logistic MarketH2 2008


2/34


3/34

3

1.Serbia Key Facts

Located in Southeast Europe, Serbia represents central part of the Balkan Peninsula, atthe intersection of Pan European Corridors N 10 and N7, on the way from Europe to Asia. TheRepublic of Serbia encompasses an area of 88,412 square kilometers. It is divided into 29districts and the City of Belgrade. City itself is further divided into municipalities.

To the East, Serbia borders with Bulgaria, to the North East with Romania, to the North withHungary, to the West with Croatia and Bosnia and Herzegovina, to the South East withMontenegro and to the South with Albania and Macedonia.

Pan European Corridor N 10 is one of the most important European highways passing throughthe country, leading from Salzburg through Belgrade and Ni and branching to Athens andSofia. Another branch of the corridor links the Capital with Budapest.

Belgrade Airport represents the main gateway for international air transportation with JATAirways as major national courier and with 43 direct lines.


4/34

4

2.Belgrade Key Facts

The capital of Republic of Serbia, Belgrade, is situated on the confluence of riversDanube and Sava, with population of 1,576,124 according to the Census 2002.

Total Surface area of 3,222 sq km is divided into 17 municipalities; among 10 of thembelongs to the urban zone (Vraar, Stari Grad, Savski Venac, Novi Beograd, ukarica,Zvezdara, Palilula, Zemun, Rakovica, Vodovac ), and 7 of them are suburban area (Surin,Sopot, Grocka, Lazarevac, Mladenovac, Obrenovac, Barajevo).

Picture: Belgrades municipalities Picture: Knez Mihailova Street

It is one of the oldest cities in Europe and has since ancient times been an important focal pointfor traffic, an intersection of the roads of Eastern and Western Europe. Belgrade is a largeindustrial, commercial, tourist, cultural, educational and political centre and an important 1.7million-customer market.

Belgrade is investing significant resources into infrastructure and building land developmentwith the result that there is a substantial amount of building land available for all purposes. TheBelgrade local authorities support investment and enable projects to be speedily commencedand completed.


5/34

5

3.Serbian Industrial and Logistic Market

With favorable geo-strategic position offering the possibility to access EU market easily,Serbia provides remarkable opportunities for industrial and logistics developments in mid tolong term. Via strategic transportation corridors 10 and corridor 7 the country links WesternEurope and the Middle East, representing excellent location for future regional logistics centerswhich may effectively serve West Balkan Region. Due to over a decade long political instability,Serbia has lost an opportunity to become one of the most important regional logistics centres,such is for an example Hungary today. The Serbian National Investment Plan identifies 49industrial development zones, whereas 17 are located in Belgrade, 20 in Vojvodina and theremaining in central and southern regions.

Picture: Serbian connection network

Along with the existing advantages such as educated and lowcost working force,customs free export to the South East European countries and Russia, strategic geographicalposition and one of the lowest corporate profit tax rate in Europe 10%, Serbia offers financialhelp to the potential investors. In accordance with the legal act of the Serbian Government,enacted at the end of June 2007, state offers grant for the investment projects from all sectors,except trade, tourism, hospitality and agriculture. Financial help is offered for the investmentprojects from the following sectors: manufacturing, internationally marketable services sectorand research and development.


6/34

6

Investment in manufacturing activities:

Available funds: from 2,000 up to 5,000 per every new employee;

The minimum investment amount: between 1 million and 3 million, depending on theunemployment rate in the municipality where the investment is made;

The minimum number of new jobs created: 50

Investment in the internationally marketable services sector:


The minimum investment amount: 500,000;

The minimum number of new jobs created: 10

Investment in R&D:


The minimum investment amount: 250,000;

The minimum number of new jobs created: 10.

Nonrefundable fundsare awarded to prospective investors in accordance with the number of

points earned. Investment projects are scored and evaluated based on the following criteria: investors references,

participation of domestic suppliers in the final product and the investment effect on localcompanies,

investments sustainability and viability,

the effect related to R&D,

the effect on human resources,

6the environmental impact,

7international turnover of services for investment in this area, 8the effect on development of the local community, and

9municipality support related to deduction of local fees.

Applications are to be submitted to the Serbian Investment and Export Promotion Agency(SIEPA). Upon evaluation and scoring of investment projects, the funds for selected projectsare awarded in accordance with the number of points, and paid out in four incrementsthroughout the projects lifetime:


7/34

7

1st increment: after concluding the contract for sale or lease of land,

2nd increment: after obtaining the construction approval,

3rd increment: after obtaining the righttouse permit,

4th increment: after achieving full employment envisaged by the investment project

The Benefits of Investing in Serbian Free Zone

Importers who are users of a free zone aren't liable for VAT on imported goods.

Imports and exports of goods and services into and out of a zone are unlimited.

Raw materials used for finished goods that are meant for export can be imported duty-free.

Fixed assets, machines, and construction materials can be imported duty-free.

Zone users can freely make use of foreign currency earned through operations withinthe zones.

Imports of all types of goods into the zones are duty-free. Goods from the zones can bedistributed on the domestic market after customs duties have been paid. If goodsdistributed on the Serbian market are produced in a free zone from domestic and

imported components, customs duties are only paid on the imported components.

Imports into the zones and exports from the zones are unlimited, that is, they aren'tsubject to quotas, permits, licenses, or other foreign trade restrictions. Goods that areimported from the zones into the domestic market are subject to standard customsprocedures, however, if the goods are produced out of at least 50% domesticcomponents, they are considered to b domestic goods.

Goods can be temporarily transferred from the zones to the domestic market and viceversa in order to add value through activities such as processing, installation, repairs,quality control and marketing activities, among others. This creates many opportunities

for cooperation with domestic industries.

Zone users can lease, buy, or build manufacturing facilities, warehouses, or commercialbuildings.

VAT is assessed on all imported goods at the rate of 18%, except for certain goodsidentified by VAT law, which are taxed at 8%


8/34

8

Imports and exports of goods and services are unlimited outside of the free zones,however, the government is legally authorized to impose quotas and other restrictionson certain types of goods in order to protect the domestic market

All goods (except for humanitarian supplies) imported outside of the free zones areliable for payment of duties at tariff rates currently in force Fixed assets, machines, and construction materials are liable for payment of duties. If

they are part of a foreign investment, they are only liable for a nominal customs fee of0.5%

According to the Foreign Investment Law, foreign investors have total control overprofits they earn

All goods (except for humanitarian supplies) imported outside of the free zones areliable for payment of duties at tariff rates currently in force

According to the current Foreign Trade Law, the Ministry of International EconomicRelations determines which types of goods may be temporarily imported or exported

Outside of the free zones, it is also possible to lease, buy, or build buildings, but theprocess is more complicated


9/34

9

4.Belgrade Industrial Zones

According to the Belgrade Statistical office, in the period between 2002-2008 newlogistic developments came to the market at the average of 18,000 sqm per annum. Themajority of these developments range in size between 2,000-15,000 sqm (90%), while veryfew range from 15,000 to 30,000 sqm. Belgrades modern logistics stock is largelyconcentrated in the popular areas of Zemun and Surcin, along the highways E-75 and E-70.The total logistic inventory in Belgrade area increased to around 125,500 sqm at mid 2008.Over the medium-term, Belgrades authorities will establish four main industrial/logistics zoneswithin the city territory - Surcin, Grocka (100 Ha), Mladenovac (270 Ha) and Obrenovac (255Ha).

Picture: Industrial Zones in Belgrade


10/34


11/34

11

4.2. Krnjaca Industrial Zone

According to Regulation Plan of Krnjaca (Belgrade Official Gazette 8/2000), this localityis registered as Commercial / Industrial Zone, and surrounding area is characteristic by large

number of industrial - commercial facilities (some of them are Metro Shopping Center, Porsche

Auto salon, Toyota Auto salon etc.). It is 1.5 km away from the Pancevacki Bridge and 5 km

away from Belgrade Downtown. It is connected with Pancevacki Road, as one of the main city

and regional traffic arteries, with transport frequency of 91,820 vehicles per day. 1.5 km away

is Zrenjaninski road, connecting this area with Novi Sad City and further on with Highway

leading to Budapest - Hungary. Also, in its nearest vicinity is Rail road which passes by at

northern side.

Picture: Location of Krnjaca Industrial Zone

Picture: Major developments and facilities in Krnjaca Industrial Zone:Structure Area (sqm) PurposePevec 40,000 HypermarketMetro Cash & Carry 8,300 HypermarketJeep Commerce 14,000 Distribution CenterPorsche n.a. Auto SalonToyota n.a. Auto SalonBIP n.a. FactoryTermoenergetik Plus n.a. FactorySource: Agencies


12/34

12

4.3. Zemun Industrial Zone

Zemun municipality is located in the central-western section of the Belgrade City area, alongthe right bank of the Danube. It has a population of 152,950. The urban section of Zemun isthe both most northern and western section of the urban Belgrade. Zemun borders theprovince of Vojvodina on the west (municipality of Nova Pazova), and municipalities of Surcinon the south, Novi Beograd on south-east and Palilula and Stari Grad across the Danube

Zemun Industry Zone can be divided in two; north from E 70 Highway, between Batajnicki put Streetand Danube River and the other on the south of E 70 Highway.

Picture: Location of Zemun Industrial Zone:

Picture: Major developments and facilities in Zemun Industrial Zone:

Structure Area (sqm) Purpose

Zmaj n.a. Agiculture machines factory

Ikarbus n.a. Busses and trucs factoryGrmec n.a. Plastic factory

Zekstra n.a. Textile factory

Soko Stark n.a. Food, candies and chocolate factory

Coca Cola n.a. Beverages and drinks

Ball Packaging n.a. Beverage can production

Source: Agencies

ZEMUNIND. ZONE

ZEMUNDOWNTOW

E 70 Highway

DANUBE


13/34

13

4.4. Belgrade Free Industrial Zone

The Belgrade Free Zone occupies a unique position on the crossroads between WesternEurope and the Near East, on the banks of Central Europe's greatest river-the Danube. Itscentral position both in the Balkans and on the midpoint of the Danube's course throughEurope facilitates communications and trade, and allows its users to be active participants inthe international economy.

The Belgrade Free Zone is in the immediate vicinity of the Port of Belgrade, located only 500meters away. While the Danube and Sava rivers will be the key to development and regionalintegration in the future, the Zone also benefits from excellent links to road, rail, and airtransport. The E-75 motorway passes nearby and Belgrade's international airport is only 17kilometers away. Another benefit of the Belgrade Free Zone is the surrounding area's highlydeveloped cultural economic, and scientific life. Belgrade is both Serbia's administrative andgovernmental center, and the heart of the country's cultural and educational heritage.Considering the European Union's latest expansion and the addition of 10 new membercountries, the Belgrade Free Zone now has the opportunity to develop more efficiently andcapitalize on the benefits offered by its location. The Belgrade Free Zone Holding Company,Ltd., which operates the Belgrade Free Zone, wa founded in 1991. Today, it is a modern jointstock company with 48 shareholders (private and socially owned companies, banks, and stateinstitutions).

Picture: Micro Location of Belgrade Free Zone:


14/34

14

Infrastructure Available in the Belgrade Free Zone

The Belgrade Free Zone occupies 8.14 hectares of land. Its infrastructure includes a completenetwork of electric lines, and water and sewage pipes. The entrance to the Zone has beenadapted for easy access, while there is also easy access to a network o loading and unloadingareas within the Zone. Since a digital telephone exchange office with optic cable was installedin the Zone, users have had full access to ISDN lines and high speed Internet.

Services Available to the Belgrade Free Zone's Users

The Zone is constantly developing new backup services to support the businesses of its clientsand users according to their needs, and currently offers services such as transport, loading andreloading, security, freight forwarding, marketing, and accounting. The Zone also features itsown branch of the Serbian Customs Service, where Zone users can finish any business that is

related to clearing customs. The branch has been outfitted with an optical link to the maincustomhouse in Belgrade, which has made its work many times more efficient and secure.Zone users can also benefit from the presence of a bank, which itself is one of the Zone'sclients. User can make use of the bank for all necessary payment and transfers, which alsoreduces the time necessary for goods to clear customs. Potential users can use the BelgradeFree Zone for wide range of activities. Users can invest in production, trade, or hospitality, andmake use of a whole host of services that the Zone offers (including legal advice, marketing,and freight forwarding). Users aren't just limited to carrying out their business activities; theycan also build and own buildings within the Zone, which they can later use for their business,lease, or sell. Most of the activities currently underway in the Belgrade Free Zone are related totrade and retail-they account for 75% of the Zone's total business. Production accounts for

20% of business, while a small number of users are involved in service industries.

Price List of Free Zone Belgrade

PRODUCTION AND STORAGE SPACE RENT

1 Indoor production or storage space...........................................6.00 EUR/m2 monthly

The prices of indoor production and storage space can be reduced up to 30% dependingon the type of the user's program, quality of the space and effects of the program.

2 Half-indoor storage space and covered space:

a.Half-indoor storage space, structure covered on three sides, withconcrete or asphalt base......................................................... 3.00 EUR/m2 monthly

b.Covered space (concrete or asphalt base, over3m high)...........2.00 EUR/m2 monthly


15/34

15

3 Open-air storage space........................................................... 1.50 EUR/m2 monthly

The prices of open-air storage space can be reduced up to 30% depending on the type of the

user's program, quality of the space and effects of the program.

OFFICE RENT

Furnished offices ........................................................................... 12.00 EUR/m2 monthly

Unfurnished offices....................................................................................................10.00 EUR/m2 monthly


16/34

16

5.Belgrade Wide Area Industrial Zones

5.1.

Simanovci Industrial Zone

Simanovci settlement are part of Peinci Municipality, which is surrounded with sixurban areas - Belgrade, Zemun, Stara Pazova, Ruma, Sremska Mitrovica, abac andObrenovac. Some villages tend to rely on neighboring towns; however, gravity to Belgrade isdominant. Peinci is 15 km away from the international airport "Nikola Tesla".

Good traffic and geographical position, close proximity to Belgrade and the airportNikola Tesla , diverse natural resources and nearby Obedska Pond are just some of allnatural and economic potentials of Peinci. The highway E-70, part of the European Corridor 10- an important traffic line in Europe, goes through its northern part, connecting the municipality

with a market with several million consumers.

Picture: Location of Simanovci Industrial Zone:

Simanovci


17/34

17

imanovci Industrial Zone is only 25km from Belgrade and 15 km from the international airportNikola Tesla, covering an area of about 160 ha. It is divided in North and South workingZone. The infrastructure is under construction (road networks, gasification, sewage-disposalsystems with a wastewater treatment plant, telecommunications.

A detail regulation plan for the industrial zones in Simanovci does exist. Purpose of thiszone is production, warehouse, manufactories and other facilities that doesnt polluteenvironment. The most desirable facilities would encompass 10 or more hectares (density 30%,max building coefficient 1.0). The number of floors is limited in the zone; ground floor only forproduction and auxiliary facilities, and gf + 1 for commercial facilities.

Besides North and South work zone, there are also so called working zones withresidence, covering an area of 91 Ha and is located at the borders of Simanovci towardsPrhovo, Dec and Sremski Mihaljevci. Parameters in this zone allowing construction are density70%, max building coefficient 1.5.

Picture: Part of the Simanovci Industrial Zone:

Companies which plan to build their facilities in the near future: Perutnina Ptuj (meatprocessing industry), tark (confection industry), Grand Prom (processing coffee), Fornetti

(mini pastry production), Slovkom (construction industry), Spirograf (office suppliesproduction), Selak (scientific-research center


18/34


19/34

19

5.2. Indjija Industrial Zone

Indjija is a town in the Srem region located on the southern slopes of Fruska GoraMountain, half way between Belgrade and Novi Sad on the place where the two mostimportant European corridors intersect: Corridor 10 (highway E-75) and Corridor 7 (the RiverDanube). The Municipality of Indjija covers an area of 385 km, and consists of 11 settlements,with 52,750 residents and a population density of 130/m2. There are 3,760 registeredbusinesses, 90% of which are privately owned. Over 45% of all businesses are industrialmanufacturing facilities, mainly metal and rubber manufacturing. The second largest industry(over 30%) is retail and wholesale trade. The remaining 25 % of businesses are engaged inconstruction, hospitality industry, transportation and other industries.

Picture: Indjija location

Indjija is one of the pioneers in Serbia that established Industrial Zones, which makes mailadvantage and strengths of this municipality. It developed two Industrial parks and started todevelop Italian Industrial Zone.

Northeast Industrial Park covers an area of 281.42 hectares, and is located 2km fromIndjija`s town center, with easy access to pan-European Corridor 10 (section E-75 Belgrade-Novi Sad), and international railroad (Belgrade-Novi Sad section). The construction of thisIndustrial Park commenced 70 years ago, and so far 30% of its industrial capacities have beenutilized. It is equipped with all the necessary infrastructure, including water, sewerage, gas,and electricity. Within the Northeast Industrial Park there is also an area designated as a FreeZone, facilitating import and export of finished goods and raw materials. Finally, this IndustrialPark is designated for SMEs, manufacturing facilities, medium and large industrial complexes,storages, commercial properties and so forth.


20/34

20

Southeast Industrial Park covers an area of 100 hectares, and is located 1.5km fromIndjija's town center. All locations within the Park are easily accessible and connected to theroad M22/1 (Belgrade-Novi Sad) which runs through the town center and leads towardsBelgrade. This Industrial Park is also fully equipped with turnkey infrastructure, including

water, sewerage, gas, and electricity. The construction in Southeast Industrial Park commencedsome 30 years ago, and so far 50% of the existing capacities have been utilized. Theconstruction land is of a very high quality, excellent for construction of larger objects. A bypassis planned to run through a portion of this Industrial Park with a goal of dislocating heavytransit from the inner city, which will additionally improve its position. This Industrial Park isprimarily targeted for the development of industries utilizing "clean" technology, as well as forconstruction of storage facilities.

Picture: Industrial Parks Location

Future Projects in Indija

Italian Industrial Zone

98 hectares of available industrial land

Available construction sites from 2000m2 to 200.000 m2

All construction sites are equipped with transportation infrastructure, sewerage,electricity, as well as the most sophisticated telecommunications infrastructure includingdigital phone lines, local area network, and internet service.

A Business Center serving as headquarters for small, medium, and large enterprises.

A Free Zone

Northeast Industrial

Park

Southeast Industrial

Park


21/34

21

Available business activities include, but are not limited to, the following: leasing,purchasing, or building manufacturing and storage facilities, distribution, wholesale andretail trade services, banking and insurance

The Park will serve as the largest and technologically most sophisticated distributioncenter in Eastern Europe for goods produced on its premises

The investment project is valued at a total of 500 million and will be completed by 2014.

Future IT Park - first in Europe

Answering the needs of international software producers to reach their Europeancustomers more efficiently and timely, India`s leading property developer decided to build a25,000-square-meter IT park in Indjija. In the first phase, Embassy Group will invest 60 milliondollars and employ 2,500 highly educated workers there. In future, this IT Park could becomethe biggest of its kind in Europe, employing 25,000 workers. At that point, it would be worth600 million dollars, with export value rising to 2 billion dollars. Embassy Group executives planto attract their regular clients, such as Microsoft, IBM and Hewlett Packard, to Indjija andSerbia. At the moment, the list of companies renting office space in the company`s IT park inBangalore (India) includes ANZ, IT, BEA Systems, Bearing Point, Continuous Computing,Covansys, Daimler Chrysler, Fidelity Investments, Goldman Sachs, IBM, Lenovo, LG Soft,McAfee, Microsoft, Misys, NetApp, PSI Data, RCI, Stylus, Super Valu, Synergy, Target, 24/7and Yahoo.

Picture: Major developments and facilities in Indjija:

Structure Area (sqm) Purpose Investment valueEUR mn

Trade Unique 40,000 Office building 60

Monus 28,000 Tobacco factory 50

Henkel n.a. Adhesives factory 6Bauerhin n.a. Car equipment factory 1.8

OMV n.a. Oil industry 12

EscaFood Solutions 1,400 McDonalds Supplier n.a.Monbat n.a. Battery production 9Source: Minicipality's web site


22/34

22

6.Novi Sad Industrial Zone

Novi Sad is the capital of the northern Serbian province of Vojvodina, and theadministrative centre of the South Baka District.According to the 2002 Census, Novi Sad isSerbia's second largest city, after Belgrade, with around 300,000 inhabitants. In its mostrecent official census from 2002, the city had an urban population of 216,583, while itsmunicipal population was 299,294. The city is located on the border of the Baka and Sremregions, on the banks of the Danube River and Danube-Tisa-Danube Canal, while facing thenorthern slopes of Fruka Gora Mountain.

Since it was founded in 1694, Novi Sad became the centre of Serbian culture and earned itsnickname Serbian Athens. Today, Novi Sad is a large industrial and financial centre of theSerbian economy; and it is also one of the biggest construction sites in the region.

Novi Sad has 10 Industrial and Work Zones, and are listed as following:

Marija Snena (Radna Zona Istok)

Rasadnik (Radna Zona Zapad)

Radna Zona Sever I (Industrijska Zona Sever)

Radna Zona Sever II (Industrijska Zona Jug)

Radna Zona Sever III

Radna Zona Sever IV

Rimski anevi

Zapadna Privredna Zona (Radna Zona Zapad) Pobeda (Radna Zona Istok)

Deponija


23/34

23

Picture: Novi Sad Industrial and Work Zones location

6.1. Novi Sad Free Zone

The Novi Sad Free Zone is located in Novi Sad, within an international port complex on thebanks of the Danube River. The Zone's traffic network is directly tied to the Pan-EuropeanTransportation Corridor 10 and the Vienna-Budapest-Belgrade international rail line. Theaverage distance from the Zone to the borders of neighboring countries (Croatia, Bosnia,Romania, and Hungary) is 80 kilometers. The border with the EU and the international airportin Belgrade are 100 and 70 kilometers away, respectively. Novi Sad, as an administrative,

industrial, commercial, and academic center, as the seat of the Novi Sad Fair, CommodityExchange, and leading banks in the country, offers an excellent business environment forclients of the Novi Sad Free Zone. The corporation that manages the Novi Sad Free Zone isorganized as a joint stock company and was founded in 1992 by well-known companies in theregion.


24/34

24

Picture: Micro Location of Novi sad Free Zone

Space Occupied by Buildings

Buildings used by Novi Sad Free Zone, Ltd.: 9,000 square meters

Buildings used by clients: 14,000 square meters Total: 25,000 square meters

Outdoor storage space used by Novi Sad Free Zone, Ltd.: 8,000 square meters

Outdoor storage space used by clients: 22,000 square meters Total: 30,000 squaremeters

Undeveloped land

20 hectares of land

Urban planning regulations allow building of up to 100,000 square meters of newindustrial or commercial space

Infrastructure Available in the Novi Sad Free Zone

The Novi Sad Free Zone encompasses 26.7 hectares of developed land with communalinfrastructure and direct links to international road, rail, and river ways. The Zone alsohas use of 7 hectares of open, undeveloped land. In addition, the Zone has the followinginfrastructure in place

An electric energy supply of 650 kW, with additional capacity available

A natural gas network


25/34

25

Standard fire and lightning protection

A water and sewer network

Telephone and ISDN lines

Services Available in the Novi Sad Free Zone

Land leases for land intended for industrial and commercial construction withguaranteed fixe terms for up to 60 years.

Rental of storage and office space in building owned by the Zone

Loading, unloading, and reloading of goods-provide by a special department within theZon equipped with Lined machinery.

Availability of a customs terminal for quicker an simpler customs procedures

24-hour security.

Other services: administration, freight forwarding and agency services

Land and Commercial Space

In buildings owned by clients of the Novi Sad Free Zone:

The investor is responsible for all urban planning zoning, and building permit costsrelated to new construction.

The Zone negotiates all planning and construction work in its name and on account ofthe investor.


26/34

26

7.Sabac Industrial Zone

The backbone of economic development of abac municipality is the Northwest Work Zone.This zone encompasses the area of about 921,00 ha; 400,00 of which is owned by abacmunicipality. Northwest Work Zone is a prosperous resource which requires significantinvestment. The benefits are at least double-fold:

1. reducing the number of unemployed citizens through new job openings

2. major income influx in municipal budget through income tax

Picture: Sabac Northwest Industrial Zone location

In the coming years, construction of infrastructure is to be finalized in order to be ableto intensify opening of new businesses which will additionally boost production. A detailedregulation plan has recently been adopted and projects drafted for construction of gasdistribution network, which is a pre-condition for preparation of project documentation forinfrastructure construction, as one of the main requirements posed by investors is developed

communal and traffic infrastructure of land sites. Detailed regulation plan also charters futurerailway lines through the Northwest Work Zone which will make railway traffic available topotential investors.

Besides the above, the Road Institute has made projects for the future highway between abacand Ruma, while the abac-Sremska Mitrovica motorway, to be completed in 2008, will cut thedistance between the Northwest Work Zone and the highway by about 25 km.

With the future highway running between abac and Ruma, and a more aggressive marketingapproach of the local administration, abac is expected to become a magnet for newinvestment in the near future.


27/34

27

7.1. Sabac Free Industrial Zone

Sabac Free Zone is located in an industrial area in the eastern part of the town of Sabac,only 30 kilometers from the border with Bosnia-Herzegovina and 70 kilometers from the borderwith the Republic of Croatia. The Zone has access to navigation on the Sava River, and to theM-19 (Belgrade to Sarajevo via Sabac) and M-21 highways. Three kilometers of track link theZone with Serbia and Montenegro's rail network. In addition, the Port of Sabac, which iscurrently under construction, promises greatly improved access to shipping on the Sava Riverin the future. The Port will be built in stages and located on 30 hectares of land. Its docks willbe able to accommodate ships with capacities of up to 1,000 tons and all different types ofcargo.

Picture: Sabac Free Zone

Infrastructure Available in the Sabac Free Zone

Sabac Free Zone is located on 50 hectares of land, of which 15 hectares have installedcommunal infrastructure. Sabac Free Zone, Ltd. owns 19,329 square meters of indoorwarehouse and manufacturing space, and 10,000 square meters of outdoor storage space. It

also owns two administrative buildings with a total area of 650 square meters. Zone users whohave invested in constructing buildings within the Zone own another 3,853 square meters ofmanufacturing space.


28/34

28

The Sabac Free Zone's facilities include:

A customs terminal and 3,000 meters of rail track

25,600 square meters of internal roadways

Two transformer sub-stations with 3x630 KwA capacities

A service station for maintenance of loading and unloading equipment with a 250 squaremeter warehouse

A 150 square meter retail store

100 direct telephone lines available,

A 5-kilometer network of water and sewer pipes,

A 50-ton capacity weighbridge


29/34

29

8.Subotica Free Industrial Zone

Subotica Free Zone is located in the northernmost part of Serbia and the province of

Vojvodina-next to the border with Hungary and the European Union. Subotica has a veryvaluable geographic location. The E-75 international highway passes through Subotica andrepresents a major pan-European road that leads from north to south and connects with aninternational road network heading to the Near East. The existing rail line that passes throughSubotica is an integral part of the European rail network. The Subotica Free Zone was foundedin 1996, when a joint stock company was formed to manage the Zone.

Picture: Location of Subotica Free Zone


30/34


31/34

31

9.Smederevo Free Industrial Zone

Smederevo Free Zone is located at the confluence of two great rivers: the Danube River

with the Danube Basin, and the Morava River with the Morava-Vardar Valley. The Rhine-Main-Danube Canal, a waterway that stretches from the North Sea to the Black Sea, passes directlythrough Smederevo. The proximity of the M-24 highway and regional road 107 also makes thislocation very attractive. All of this demonstrates the quality of the transportation links that theSmederevo Free Zone enjoys with Serbia and the region. The Smederevo Free Zone wasfounded in 1991. In December 2003, the Zone became a wholly owned part of one of theworld's leading steel companies-the United States Steel Corporation. The Zone is managed bythe Free Zone USSB-Industrial Business Zone Management Company in Smederevo. Goods canbe delivered to the Smederevo Free Zone by water-on the Danube River-and by road, using themany highways and regional roads in the area. There is a branch of the Serbian CustomsService in Smederevo, while the Zone itself has a dedicated Customs officer available for itsclients.

Picture: Smederevo Free Industrial Zone

DOWNTOWN


32/34

32

Infrastructure Available in the Smederevo Free Zone

The Smederevo Free Zone has two locations - the Old Ironworks and the Bridge-that

cover a surface area of 82 hectares, while buildings and other construction cover an area of55,131 square meters.

The Old Ironworks Location

The Old Ironworks location is on the right bank of the Danube, 2 kilometers upstreamfrom the center of Smederevo on the Smederevo-Belgrade road and 12 kilometers from theBelgrade-Nis motorway. The location encompasses 17 hectares of land, and has access tocustoms, fire, and security services. The existing buildings in this location are particularly

suitable for metal processing. They are equipped for industrial production and possess completeinfrastructure, including water, sewer, and power. In addition, there is outdoor, partiallyenclosed, and indoor storage space available. The location also has an internal road networkand parking facilities for all types of transportation equipment. The Smederevo Free Zone'susers have access to natural gas, air, and electric power.


33/34

33

10. Kragujevac Industrial Zone

Picture: Kragujevac Location

Kragujevac Industrial Zone is comprised of 3 zones; Petrovac, Servis I and ServisII, encompassing an area of over 150 Ha. Because of cites fast development and one of thebiggest investment in Serbia, FIAT partnership in amount of EUR 700 mn, city faced lack ofland that could offer to the investors. Thats why local authorities are working on a expansionof Industrial Zones., and creating industrial zone Servis III.

Picture:Kragujevac Industrial Zone location:

KRAGUJEVAC

DOWNTOWN

INDUSTRIAL

ZONE


34/34

Graph: Major developments and facilities in Kragujevac Industrial Zone:

Structure Area (sqm) PurposeInvestment value

EUR/mn

Metro Cash & Carry 6,000 Hypermarket 15Merkator 30,000 Shopping Center 20

Lukoil n.a. Oil production n.a.

Forma Ideale n.a. Warehouse n.a.

Harmoent n.a. n.a.

Source: Minicipality's web site

industrial market serbia.pdf

Documents