Serbian Industrial and Logistic Market

H2 2008

AGENDA

1.

Serbia Key Facts ........................................................................................3

2.

Belgrade Key Facts .....................................................................................4

3.

Serbian Industrial and Logistic Market ..........................................................5

4.

Belgrade Industrial Zones............................................................................9

4.1.

Dobanovci and Surcin Industrial Zone ...................................................... 10

4.2.

Krnjaca Industrial Zone .......................................................................... 11

4.3.

Zemun Industrial Zone ........................................................................... 12

4.4.

Belgrade Free Industrial Zone ................................................................. 13

5.
5.2.
6.
6.1.
7.
7.1.

Belgrade Wide Area Industrial Zones .......................................................... 16

Indjija Industrial Zone............................................................................ 19
Novi Sad Industrial Zone ........................................................................... 22
Novi Sad Free Zone ............................................................................... 23
Sabac Industrial Zone ............................................................................... 26
Sabac Free Industrial Zone ..................................................................... 27

8.

Subotica Free Industrial Zone .................................................................... 29

9.

Smederevo Free Industrial Zone ................................................................ 31

10.

Kragujevac Industrial Zone ........................................................................ 33

1. Serbia Key Facts

Located in Southeast Europe, Serbia represents central part of the Balkan Peninsula, at
the intersection of Pan European Corridors N 10 and N7, on the way from Europe to Asia. The
Republic of Serbia encompasses an area of 88,412 square kilometers. It is divided into 29
districts 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 with
Hungary, to the West with Croatia and Bosnia and Herzegovina, to the South East with
Montenegro and to the South with Albania and Macedonia.
Pan European Corridor N 10 is one of the most important European highways passing through
the country, leading from Salzburg through Belgrade and Ni and branching to Athens and
Sofia. Another branch of the corridor links the Capital with Budapest.
Belgrade Airport represents the main gateway for international air transportation with JAT
Airways as major national courier and with 43 direct lines.

2. Belgrade Key Facts

The capital of Republic of Serbia, Belgrade, is situated on the confluence of rivers

Danube 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 them
belongs 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 point
for traffic, an intersection of the roads of Eastern and Western Europe. Belgrade is a large
industrial, commercial, tourist, cultural, educational and political centre and an important 1.7
million-customer market.
Belgrade is investing significant resources into infrastructure and building land development
with the result that there is a substantial amount of building land available for all purposes. The
Belgrade local authorities support investment and enable projects to be speedily commenced
and completed.

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 to
long term. Via strategic transportation corridors 10 and corridor 7 the country links Western
Europe and the Middle East, representing excellent location for future regional logistics centers
which 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 49
industrial development zones, whereas 17 are located in Belgrade, 20 in Vojvodina and the
remaining 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 geographical
position and one of the lowest corporate profit tax rate in Europe 10%, Serbia offers financial
help 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 investment
projects from the following sectors: manufacturing, internationally marketable services sector
and research and development.

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 the
unemployment rate in the municipality where the investment is made;

The minimum number of new jobs created: 50

Investment in the internationally marketable services sector:

Available funds: from 2,000 up to 10,000 per every new employee;

The minimum investment amount: 500,000;

The minimum number of new jobs created: 10

Investment in R&D:

Available funds: from 5,000 up to 10,000 per every new employee;

The minimum investment amount: 250,000;

The minimum number of new jobs created: 10.

Nonrefundable funds are 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 local
companies,

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 projects
are awarded in accordance with the number of points, and paid out in four increments
throughout the projects lifetime:
6

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 dutyfree.

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

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

Imports of all types of goods into the zones are duty-free. Goods from the zones can be
distributed on the domestic market after customs duties have been paid. If goods
distributed 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't
subject to quotas, permits, licenses, or other foreign trade restrictions. Goods that are
imported from the zones into the domestic market are subject to standard customs
procedures, however, if the goods are produced out of at least 50% domestic
components, they are considered to b domestic goods.

Goods can be temporarily transferred from the zones to the domestic market and vice
versa 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 commercial
buildings.

VAT is assessed on all imported goods at the rate of 18%, except for certain goods
identified by VAT law, which are taxed at 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 restrictions
on certain types of goods in order to protect the domestic market

All goods (except for humanitarian supplies) imported outside of the free zones are
liable 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 of
0.5%

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

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

According to the current Foreign Trade Law, the Ministry of International Economic
Relations 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 the
process is more complicated

4. Belgrade Industrial Zones

According to the Belgrade Statistical office, in the period between 2002-2008 new
logistic developments came to the market at the average of 18,000 sqm per annum. The
majority of these developments range in size between 2,000-15,000 sqm (90%), while very
few range from 15,000 to 30,000 sqm. Belgrades modern logistics stock is largely
concentrated 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 zones
within the city territory - Surcin, Grocka (100 Ha), Mladenovac (270 Ha) and Obrenovac (255
Ha).

Picture: Industrial Zones in Belgrade

4.1.

Dobanovci and Surcin Industrial Zone

Most interesting area for investors in this moment is Dobanovci Industrial Zone, which is
also major industrial / logistic area within Belgrade, and along with Surcin makes 3,118 Ha of
total land. Dobanovci settlement is one of the fastest growing in wide Belgrade area and is
located 15 km from Belgrades downtown. What makes this area so interesting is its great
connectivity with Belgrade via E 75 Highway and future Ostruznica bypass, which will present
future main transport artery for long vehicles. Also, main advantage of this location is vicinity
of the Airport Nikola Tesla (8 km), which makes this zone suitable for storage warehouses
and logistic canters. In past few years, initiatives from the local authorities makes Dobanovci
industrial center, with great number of logistic centers, factories, petrol pumps, warehouses,
custom storehouses etc.

Picture: Location of Dobanovci and Surcin Industrial Zone:

BELGRADE

E 75 Highway
DOBANOVCI IND.
ZONE

SURCIN IND.
ZONE
Ostruznica
bypass

Graph: Major developments in Dobanovci and Surcin Industrial Zone

Structure
Sekulic
Zora
InterEurope Group
Nelt
Belfrigo
Pepsi and Co.
Sped Commerce
IMT
PKB

Area (sqm)
140,000
14,500
8,600
32,600
n.a.
n.a.
n.a.
n.a.
n.a.

Source: Agencies

10

Purpose
Logistic
Logistic
Logistic
Warehouse
Warehouse
Warehouse
Warehouse
Factory
Factory

4.2.

Krnjaca Industrial Zone

According to Regulation Plan of Krnjaca (Belgrade Official Gazette 8/2000), this locality
is 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
Pevec
Metro Cash & Carry
Jeep Commerce
Porsche
Toyota
BIP
Termoenergetik Plus

Area (sqm)
40,000
8,300
14,000
n.a.
n.a.
n.a.
n.a.

Source: Agencies

11

Purpose
Hypermarket
Hypermarket
Distribution Center
Auto Salon
Auto Salon
Factory
Factory

4.3.

Zemun Industrial Zone

Zemun municipality is located in the central-western section of the Belgrade City area, along
the right bank of the Danube. It has a population of 152,950. The urban section of Zemun is
the both most northern and western section of the urban Belgrade. Zemun borders the
province of Vojvodina on the west (municipality of Nova Pazova), and municipalities of Surcin
on 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 Street
and Danube River and the other on the south of E 70 Highway.

Picture: Location of Zemun Industrial Zone:

ZEMUN
IND. ZONE
DANUBE

E 70 Highway

ZEMUN
DOWNTOW

Picture: Major developments and facilities in Zemun Industrial Zone:

Structure
Zmaj
Ikarbus
Grmec
Zekstra
Soko Stark
Coca Cola
Ball Packaging

Area (sqm)
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.

Source: Agencies

12

Purpose
Agiculture machines factory
Busses and trucs factory
Plastic factory
Textile factory
Food, candies and chocolate factory
Beverages and drinks
Beverage can production

4.4.

Belgrade Free Industrial Zone

The Belgrade Free Zone occupies a unique position on the crossroads between Western
Europe and the Near East, on the banks of Central Europe's greatest river-the Danube. Its
central position both in the Balkans and on the midpoint of the Danube's course through
Europe facilitates communications and trade, and allows its users to be active participants in
the international economy.
The Belgrade Free Zone is in the immediate vicinity of the Port of Belgrade, located only 500
meters away. While the Danube and Sava rivers will be the key to development and regional
integration in the future, the Zone also benefits from excellent links to road, rail, and air
transport. The E-75 motorway passes nearby and Belgrade's international airport is only 17
kilometers away. Another benefit of the Belgrade Free Zone is the surrounding area's highly
developed cultural economic, and scientific life. Belgrade is both Serbia's administrative and
governmental 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 member
countries, the Belgrade Free Zone now has the opportunity to develop more efficiently and
capitalize 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 joint
stock company with 48 shareholders (private and socially owned companies, banks, and state
institutions).

Picture: Micro Location of Belgrade Free Zone:

Belgrade Free Zone

DOWNTOWN

13

Infrastructure Available in the Belgrade Free Zone

The Belgrade Free Zone occupies 8.14 hectares of land. Its infrastructure includes a complete
network of electric lines, and water and sewage pipes. The entrance to the Zone has been
adapted for easy access, while there is also easy access to a network o loading and unloading
areas within the Zone. Since a digital telephone exchange office with optic cable was installed
in 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 clients
and users according to their needs, and currently offers services such as transport, loading and
reloading, security, freight forwarding, marketing, and accounting. The Zone also features its
own 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 main
customhouse 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's
clients. User can make use of the bank for all necessary payment and transfers, which also
reduces the time necessary for goods to clear customs. Potential users can use the Belgrade
Free Zone for wide range of activities. Users can invest in production, trade, or hospitality, and
make 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; they
can 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 to
trade 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

1

PRODUCTION AND STORAGE SPACE RENT

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

The prices of indoor production and 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.
2

Half-indoor storage space and covered space:

a. Half-indoor storage space, structure covered on three sides, with

concrete or asphalt base......................................................... 3.00 EUR/m2 monthly
b. Covered space (concrete or asphalt base, over3m high)...........2.00 EUR/m2 monthly

14

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

15

5. Belgrade Wide Area Industrial Zones

5.1.

Simanovci Industrial Zone

Simanovci settlement are part of Peinci Municipality, which is surrounded with six
urban areas - Belgrade, Zemun, Stara Pazova, Ruma, Sremska Mitrovica, abac and
Obrenovac. Some villages tend to rely on neighboring towns; however, gravity to Belgrade is
dominant. Peinci is 15 km away from the international airport "Nikola Tesla".
Good traffic and geographical position, close proximity to Belgrade and the airport
Nikola Tesla , diverse natural resources and nearby Obedska Pond are just some of all
natural 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

16

imanovci Industrial Zone is only 25km from Belgrade and 15 km from the international airport
Nikola Tesla, covering an area of about 160 ha. It is divided in North and South working
Zone. The infrastructure is under construction (road networks, gasification, sewage-disposal
systems with a wastewater treatment plant, telecommunications.
A detail regulation plan for the industrial zones in Simanovci does exist. Purpose of this
zone is production, warehouse, manufactories and other facilities that doesnt pollute
environment. 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 for
production and auxiliary facilities, and gf + 1 for commercial facilities.
Besides North and South work zone, there are also so called working zones with
residence, covering an area of 91 Ha and is located at the borders of Simanovci towards
Prhovo, Dec and Sremski Mihaljevci. Parameters in this zone allowing construction are density
70%, 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 (meat
processing industry), tark (confection industry), Grand Prom (processing coffee), Fornetti
(mini pastry production), Slovkom (construction industry), Spirograf (office supplies
production), Selak (scientific-research center).

17

Picture: Major developments and facilities in Simanovci Industrial Zone:

Structure
JUB d.o.o.
Pink Int.
Strauss Adriatic
Trimo Inzenjering
Agena Technology
ITM Group
Kleemann Elevators
Lagermax Aed
Loz
Natura Coop
Europa
MGM Inzenjering
Djurdjevic
ID Interactive Design
Fornetti
Termomont
RPC
Milotex
Pollino

Land area
(Ha)
6.0
130.0
3.0
4.8
3.3
3.2
1.0
3.0
0.5
1.1
12.0
1.5
3.5
0.8
2.0
3.0
1.0
1.4
1.0

Purpose

Final construction works

Film industry
Coffee production
Construction engineering
Production of tool making machines
Distribution and logistic
Production of elevators system
Storage, logistic
Trading metal goods
Machines for meat processing
Building construction
Stainless steal distribution
Machines for meat processing
Production of furniture
Production
Production
Plastic production
Shoes production
Shoes production

Source: Municipality web site

18

Investment value
(EUR/mn)
11
40
8
13.5
6
15.5
1.2
4
1
8
4
3
2
0.4
2
1
5
3
2

5.2. Indjija Industrial Zone

Indjija is a town in the Srem region located on the southern slopes of Fruska Gora
Mountain, half way between Belgrade and Novi Sad on the place where the two most
important European corridors intersect: Corridor 10 (highway E-75) and Corridor 7 (the River
Danube). 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 registered
businesses, 90% of which are privately owned. Over 45% of all businesses are industrial
manufacturing facilities, mainly metal and rubber manufacturing. The second largest industry
(over 30%) is retail and wholesale trade. The remaining 25 % of businesses are engaged in
construction, hospitality industry, transportation and other industries.
Picture: Indjija location

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

Northeast Industrial Park covers an area of 281.42 hectares, and is located 2km from
Indjija`s town center, with easy access to pan-European Corridor 10 (section E-75 BelgradeNovi Sad), and international railroad (Belgrade-Novi Sad section). The construction of this
Industrial Park commenced 70 years ago, and so far 30% of its industrial capacities have been
utilized. 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 Free
Zone, facilitating import and export of finished goods and raw materials. Finally, this Industrial
Park is designated for SMEs, manufacturing facilities, medium and large industrial complexes,
storages, commercial properties and so forth.

19

Southeast Industrial Park covers an area of 100 hectares, and is located 1.5km from
Indjija's town center. All locations within the Park are easily accessible and connected to the
road M22/1 (Belgrade-Novi Sad) which runs through the town center and leads towards
Belgrade. This Industrial Park is also fully equipped with turnkey infrastructure, including
water, sewerage, gas, and electricity. The construction in Southeast Industrial Park commenced
some 30 years ago, and so far 50% of the existing capacities have been utilized. The
construction land is of a very high quality, excellent for construction of larger objects. A bypass
is planned to run through a portion of this Industrial Park with a goal of dislocating heavy
transit from the inner city, which will additionally improve its position. This Industrial Park is
primarily targeted for the development of industries utilizing "clean" technology, as well as for
construction of storage facilities.

Picture: Industrial Parks Location

Northeast Industrial
Park

Southeast Industrial
Park

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 including
digital phone lines, local area network, and internet service.
A Business Center serving as headquarters for small, medium, and large enterprises.
A Free Zone
20

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

The Park will serve as the largest and technologically most sophisticated distribution
center 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 European
customers more efficiently and timely, India`s leading property developer decided to build a
25,000-square-meter IT park in Indjija. In the first phase, Embassy Group will invest 60 million
dollars and employ 2,500 highly educated workers there. In future, this IT Park could become
the biggest of its kind in Europe, employing 25,000 workers. At that point, it would be worth
600 million dollars, with export value rising to 2 billion dollars. Embassy Group executives plan
to attract their regular clients, such as Microsoft, IBM and Hewlett Packard, to Indjija and
Serbia. At the moment, the list of companies renting office space in the company`s IT park in
Bangalore (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, 24/7
and Yahoo.

Picture: Major developments and facilities in Indjija:

Structure
Trade Unique
Monus
Henkel
Bauerhin
OMV
EscaFood Solutions
Monbat

Area (sqm)

Purpose

40,000
28,000
n.a.
n.a.
n.a.
1,400
n.a.

Office building
Tobacco factory
Adhesives factory
Car equipment factory
Oil industry
McDonalds Supplier
Battery production

Source: Minicipality's web site

21

Investment value
(EUR/mn)
60
50
6
1.8
12
n.a.
9

6. Novi Sad Industrial Zone

Novi Sad is the capital of the northern Serbian province of Vojvodina, and the
administrative centre of the South Baka District. According to the 2002 Census, Novi Sad is
Serbia's second largest city, after Belgrade, with around 300,000 inhabitants. In its most
recent official census from 2002, the city had an urban population of 216,583, while its
municipal population was 299,294. The city is located on the border of the Baka and Srem
regions, on the banks of the Danube River and Danube-Tisa-Danube Canal, while facing the
northern slopes of Fruka Gora Mountain.
Since it was founded in 1694, Novi Sad became the centre of Serbian culture and earned its
nickname Serbian Athens. Today, Novi Sad is a large industrial and financial centre of the
Serbian 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

22

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 the
banks of the Danube River. The Zone's traffic network is directly tied to the Pan-European
Transportation Corridor 10 and the Vienna-Budapest-Belgrade international rail line. The
average 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 airport
in 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, Commodity
Exchange, and leading banks in the country, offers an excellent business environment for
clients of the Novi Sad Free Zone. The corporation that manages the Novi Sad Free Zone is
organized as a joint stock company and was founded in 1992 by well-known companies in the
region.

23

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 square
meters

Undeveloped land

20 hectares of land

Urban planning regulations allow building of up to 100,000 square meters of new

industrial or commercial space

Infrastructure Available in the Novi Sad Free Zone

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

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

A natural gas network

24

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 with
guaranteed 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 the

Zon 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 costs
related to new construction.

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

25

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 abac
municipality. Northwest Work Zone is a prosperous resource which requires significant
investment. 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 able

to intensify opening of new businesses which will additionally boost production. A detailed
regulation plan has recently been adopted and projects drafted for construction of gas
distribution network, which is a pre-condition for preparation of project documentation for
infrastructure construction, as one of the main requirements posed by investors is developed
communal and traffic infrastructure of land sites. Detailed regulation plan also charters future
railway lines through the Northwest Work Zone which will make railway traffic available to
potential investors.
Besides the above, the Road Institute has made projects for the future highway between abac
and Ruma, while the abac-Sremska Mitrovica motorway, to be completed in 2008, will cut the
distance 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 marketing
approach of the local administration, abac is expected to become a magnet for new
investment in the near future.
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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 border
with the Republic of Croatia. The Zone has access to navigation on the Sava River, and to the
M-19 (Belgrade to Sarajevo via Sabac) and M-21 highways. Three kilometers of track link the
Zone with Serbia and Montenegro's rail network. In addition, the Port of Sabac, which is
currently under construction, promises greatly improved access to shipping on the Sava River
in the future. The Port will be built in stages and located on 30 hectares of land. Its docks will
be able to accommodate ships with capacities of up to 1,000 tons and all different types of
cargo.

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 installed
communal infrastructure. Sabac Free Zone, Ltd. owns 19,329 square meters of indoor
warehouse 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 who
have invested in constructing buildings within the Zone own another 3,853 square meters of
manufacturing space.

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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 square
meter 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

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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 very
valuable geographic location. The E-75 international highway passes through Subotica and
represents a major pan-European road that leads from north to south and connects with an
international road network heading to the Near East. The existing rail line that passes through
Subotica is an integral part of the European rail network. The Subotica Free Zone was founded
in 1996, when a joint stock company was formed to manage the Zone.

Picture: Location of Subotica Free Zone

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Infrastructure Available in the Subotica Free Zone

The Zone encompasses 11 hectares of land. It possesses 5,000 square meters of production
space, 1,150 square meters of closed storage space, and 217 square meters of office space.
Other infrastructure:

City water supply

Road network within the Zone

Two transformer sub-stations with 2x630 KwA capacities

Telephone lines

Projected connection to local gas lines

Business Activities in the Subotica Free Zone

Foreign companies wishing to do businesses in the Subotica Free Zone only need to sign a
contract with the Zone's management company to become a part of the Zone's operations.
Negotiated fees are guaranteed to clients for three years from the contract's start date. Within
the Zone, users can engage in a wide range of activities, including production, warehousing,
reloading and packing goods, banking, finance, insurance services, and travel services. Any
activity that doesn't pollute the environment is permitted within the Zone. In addition, the
Subotica Free Zone itself offers a host of services to its users, such as shipping, loading and
unloading, insurance, freight forwarding, and marketing. Goods pass through customs within
the Zone, at a special branch of the Serbian Customs Service. Most of the clients currently
using the Zone are involved in commerce, although two clients are production companies.

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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-MainDanube Canal, a waterway that stretches from the North Sea to the Black Sea, passes directly
through Smederevo. The proximity of the M-24 highway and regional road 107 also makes this
location very attractive. All of this demonstrates the quality of the transportation links that the
Smederevo Free Zone enjoys with Serbia and the region. The Smederevo Free Zone was
founded in 1991. In December 2003, the Zone became a wholly owned part of one of the
world's leading steel companies-the United States Steel Corporation. The Zone is managed by
the Free Zone USSB-Industrial Business Zone Management Company in Smederevo. Goods can
be delivered to the Smederevo Free Zone by water-on the Danube River-and by road, using the
many highways and regional roads in the area. There is a branch of the Serbian Customs
Service in Smederevo, while the Zone itself has a dedicated Customs officer available for its
clients.

Picture: Smederevo Free Industrial Zone

DOWNTOWN

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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 of
55,131 square meters.

The Old Ironworks Location

The Old Ironworks location is on the right bank of the Danube, 2 kilometers upstream
from the center of Smederevo on the Smederevo-Belgrade road and 12 kilometers from the
Belgrade-Nis motorway. The location encompasses 17 hectares of land, and has access to
customs, fire, and security services. The existing buildings in this location are particularly
suitable for metal processing. They are equipped for industrial production and possess complete
infrastructure, including water, sewer, and power. In addition, there is outdoor, partially
enclosed, and indoor storage space available. The location also has an internal road network
and parking facilities for all types of transportation equipment. The Smederevo Free Zone's
users have access to natural gas, air, and electric power.

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10.

Kragujevac Industrial Zone

Picture: Kragujevac Location

KRAGUJEVAC

Kragujevac Industrial Zone is comprised of 3 zones; Petrovac, Servis I and Servis

II, encompassing an area of over 150 Ha. Because of cites fast development and one of the
biggest investment in Serbia, FIAT partnership in amount of EUR 700 mn, city faced lack of
land that could offer to the investors. Thats why local authorities are working on a expansion
of Industrial Zones., and creating industrial zone Servis III.

Picture:Kragujevac Industrial Zone location:

INDUSTRIAL
ZONE

DOWNTOWN

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Graph: Major developments and facilities in Kragujevac Industrial Zone:

Structure
Metro Cash & Carry
Merkator
Lukoil
Forma Ideale
Harmoent

Area (sqm)

Purpose

6,000
30,000
n.a.
n.a.
n.a.

Hypermarket
Shopping Center
Oil production
Warehouse

Final construction works

Source: Minicipality's web site

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Investment value
(EUR/mn)
15
20
n.a.
n.a.
n.a.