The Belgrade City Traffic Company (GSP) faced significant financial challenges despite a 9% increase in business revenues last year. GSP reported a loss of €17.4 million for 2024, which is a considerable rise compared to the previous year. Over the past five years, GSP has accumulated a loss of around €95 million. The company’s debts also grew substantially, with long-term loans increasing nearly fourfold, reaching €84.5 million by the end of 2024.
The financial decline coincided with the privatization of parts of Belgrade’s public transport. A consortium of private carriers was awarded a ten-year concession for 84 suburban lines, and GSP lost control over several routes, leading to protests from unions. Despite the loss of some lines, GSP’s revenues still increased to 23.4 billion dinars (€200 million), primarily due to a price hike in transportation services and government payments for the integrated transport system (ITS).
However, GSP’s accumulated loss grew to €36.7 billion by the end of 2024, and its debt load increased significantly, with long-term financial liabilities reaching €84.5 million, up from €17 million in the previous year. The company also faced rising interest costs, which doubled compared to 2023, and paid default interest on supplier debts.
In contrast, GSP’s competitor, Strela from Obrenovac, experienced significant growth, with revenues reaching €61 million and a profit of nearly €9 million, marking a strong financial performance in the urban and suburban transport sector.
Disputes and legal challenges also plagued GSP, with 115 commercial disputes and 242 employee-related cases in 2024, including compensation for back wages and unpaid food expenses. The company is expected to lose the majority of these cases, further impacting its financial standing.
