Improving road connections with the EU and across the Western Balkans region is essential to strengthening integration, though toll rates don’t always match road quality. In some cases, the toll rates charged on highways in the region don’t always equate to the actual quality of the roads
Infrastructure remains a critical issue across the region, affecting not only daily life but also the prospects for broader development. Despite varying levels of investment, toll systems, and road networks, Albania, Bosnia and Herzegovina, Croatia, Montenegro, North Macedonia, Serbia, and Slovenia each face unique challenges that hinder connectivity and competitiveness. With infrastructure directly tied to the ease of trade, tourism, and foreign investment, understanding these differences sheds light on the road ahead for each of these nations.
Albania
High Costs, Limited Highways
Albania’s infrastructure struggles, with limited highways and tolls impacting both business and daily life
A ccording to the Institute of Statistics, Albania’s road infrastructure remains underdeveloped, with only 24.7 kilometres of the highway within a network of 3,600 kilometres of roads, the rest being mainly interurban routes and lower-quality roads. In reality, Albania’s key highways are limited to a few routes: a 114-kilometre highway from Durrës to the Kosovo border, a 46.5-kilometre connection from Fier to Vlorë, and a 31-kilometre stretch linking Tirana to Elbasan.
The recently opened 21-kilometer Thumanë-Kashar segment of the Adriatic-Ionian corridor also adds to the network but lacks certain essential infrastructure elements. Only two of these highways, the Durrës-Kosovo route and the Thumanë-Kashar segment, charge tolls. The Durrës-Morinë toll road, managed by private companies, generates a significant income, reporting around €100 million in turnover from 2018 to 2021, with fees ranging from €5 for cars to €22.5 for heavy trucks. Trade and travel between Albania and Kosovo have increased steadily, making this route essential for the economy. The Thumanë-Kashar section toll is set at €2.10 for its 21 kilometres, connecting northern Albania to Tirana and the south. Northern Albania, known for its heavy industry, relies on this route to transport goods from Tirana’s industrial zone to Kosovo, making it a vital commercial corridor.
Besides tolls, Albanians face additional fuel costs through a circulation tax added to the price of diesel, introduced to fund road maintenance. In 2023, the government collected 19.5 billion ALL (about €190 million) from this tax, significantly impacting the cost of diesel for both individuals and businesses, who now pay more at the pump.
I nfrastructure remains a critical issue across the region, affecting not only daily life but also the prospects for broader development. Despite varying levels of investment, toll systems, and road networks, Albania, Bosnia and Herzegovina, Croatia, Montenegro, North Macedonia, Serbia, and Slovenia each face unique challenges that hinder connectivity and competitiveness. With infrastructure directly tied to the ease of trade, tourism, and foreign investment, understanding these differences sheds light on the road ahead for each of these nations.
Serbia
Growing Highway Network and Toll Burden
Serbia’s expanded highway system promises regional connectivity, but toll hikes weigh heavily on businesses
Serbia’s development strategy highlights that a well-developed transport network is essential for sustainable growth and regional connectivity. Over the past decade, significant efforts have gone into expanding Serbia’s road network, which spans over 45,000 kilometres, with 925 kilometres covered by highways. An additional 262.5 kilometres are currently under construction, with 52.57% of the country’s highway network set to have been built in the last ten years.
Yet, tolls have become an increasingly noticeable expense. The toll price varies by route, vehicle type, and sections travelled, and in 2023, Serbia collected over 33.7 billion dinars from tolls, which made up 52.94% of the Public Enterprise Roads of Serbia’s income. A recent toll increase, effective 1st April, raised rates by 14% for all vehicles and 8% for those with TAG devices. This change means car drivers now pay 1,720 dinars from Belgrade to Preševo, 2,010 dinars from Novi Sad to Preševo, and 2,450 dinars from Subotica to the North Macedonia border.
These increases weigh heavily on all drivers, but businesses, especially those in transport, feel the greatest impact. Many in the sector argue for a vignette system similar to that in other countries, which would allow for weekly, monthly, or annual payments rather than distance-based tolls. However, the government has not yet considered this approach.
Instead, the government plans to introduce toll collection on certain expressways next year, monitored through satellite vehicle tracking rather than physical toll booths. Though expressway tolls will be lower than highway rates, they will still apply to the largest haulage vehicles and some high-traffic routes, raising concerns among transport operators about further increases in operational costs.
Croatia
Motorway Milestone
After decades of expansion, Croatia’s motorway network has become a critical infrastructure asset, though rising toll costs continue to spark debate over affordability and accessibility
Following independence, Croatia prioritised motorway construction as a cornerstone of its infrastructure development. From a starting point of just 280 kilometres in 1991, the country’s motorway network had expanded to 1,341 kilometres by the close of 2022. Today, Croatia’s 11 motorways, managed primarily by the public company Croatian Motorways Ltd. (HAC), have become essential for the nation, given the limitations of its railways. Three of these routes—the A2, A8, and A9, which make up the Istrian Y— are managed by private concessionaires.
Now, after more than 20 years, the motorway construction initiative is nearing completion, with final sections currently under development. These include the A5 from Beli Manastir to the Hungarian border, the A11 connecting Zagreb and Sisak, and the last conversion works on the Istrian Y near Rijeka. Additionally, work on the A7 connecting Rupa to Slovenia continues, with plans to extend it southward to join the A1, linking Zagreb with Dalmatia. The final stretch of the A1, from Ploče to Dubrovnik, is also set to begin construction, further improving access to Croatia’s southern coast.
Motorways play a major role in Croatian travel and trade, given the poor state of the rail network. Toll roads see significant use, with over 80 million vehicles recorded in 2022, resulting in €426 million in toll revenue. For households and businesses, these tolls can be a substantial expense. A drive from Zagreb to Rijeka, for instance, costs €9.20 for a car, with trips to Split or Osijek reaching €24 and €16, respectively. Heavy vehicles incur higher costs, with tolls of up to €83.70, creating added expenses for freight transport. Despite growing calls to replace tolls with a vignette system to ease these burdens, both HAC and the government have so far retained the existing toll model.
North Macedonia
Pricey Tolls and Poor Roads
High tolls, numerous stops, and underdeveloped roads put a strain on travellers and businesses in North Macedonia
Driving through North Macedonia can be both costly and cumbersome. A 150-kilometre stretch from Serbia to Greece costs over €12 in tolls alone, making it one of the most expensive routes per kilometre in Europe. With toll booths every 25 kilometres, drivers must stop six times along this route. Other routes are no different—travellers from Skopje to Shtip, for instance, encounter three toll booths in just 40 kilometres.
Beyond the tolls, road quality is another issue. A single 44-kilometre section to Ohrid has been under construction for 11 years, leaving travellers to navigate an unsafe and unmaintained road. Recent government revisions to the project promise further delays, frustrating both locals and tourists visiting one of the country’s main destinations.
North Macedonia’s dependency on the Thessaloniki port, which is vulnerable to strikes, only heightens the impact of poor infrastructure on its economy. The lack of alternative routes for goods and materials raises transportation costs, undermining the competitiveness of North Macedonian companies.
Slovenia
Congested Highways Challenge Business
Ageing highways and frequent congestion hinder travel and impact businesses across Slovenia
In Slovenia, dissatisfaction with road infrastructure runs high. The country’s ageing and congested highways are some of the region’s most costly, though they are not the tolls but the frequent standstills that weigh heavily on businesses and travellers alike.
Managed by the national highway operator, DARS, Slovenia’s highway network includes 624.9 kilometres of motorways and expressways, plus nearly 200 kilometres of junctions, intersections, and other roads.
The network, which spans around 39,000 kilometres in total, struggles under heavy traffic loads, especially during the peak summer tourism season, with maintenance and upgrades becoming a regular necessity. Last year, DARS invested €301 million to address these issues, including €106 million for renovation and €77 million toward new construction.
Despite these investments, frequent congestion remains a challenge for the flow of goods and commuters, particularly as Slovenia’s businesses rely on the road network for efficient transport.
Bosnia and Herzegovina
Highway to Nowhere
Decades of slow progress on Bosnia’s highways strain the economy and discourage foreign investment
Bosnia and Herzegovina’s highway project along Corridor Vc has become a symbol of delays, taking nearly 25 years to build only 100 kilometres out of the planned 335. With the completion date pushed back repeatedly, the new target stands at 2030.
Expressway development fares no better, with only Banja Luka, Doboj, and Gradiška connected, while most other projects are still in concept stages. Bosnian citizens and businesses have paid generously for road infrastructure through fuel tolls and excise duties, contributing some 16 billion KM over the last 18 years. Yet, many feel they’ve received little in return, with no transparency over how funds are spent and empty promises of a long-awaited Sarajevo-Belgrade highway, which has yet to be mapped out.
For exporters, the country’s limited infrastructure poses a significant economic barrier. Only two border crossings with Croatia serve as inspection points for the EU market, causing delays and impacting the quality of perishable goods, diminishing Bosnia’s competitive edge.
Without a reliable infrastructure, foreign investors also remain wary, as Bosnia continues to lag behind Europe in both investment and economic growth.
