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Albania-Kosovo trade, human exchanges defy re-introduction of tolling

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7 years ago
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TIRANA, Oct. 24 – The launch of tolling on the Albania-Kosovo highway in mid-September 2018 did not have any immediate effect on human and trade flows between the two neighboring countries last month.

Both trade and human exchanges grew by comfortable double digits last month after tolling was reintroduced on Sept. 16 following a five-month suspension triggered by violent protests that led to revised fees for local residents and frequent road users.

Although two weeks of human and trade flows until late Sept. 30 is too little to judge over the effects that tolling could have, the business community on both sides of the border have warned tolls will have a negative effect by increasing trade exchange costs.

Data published by Albania’s state-run statistical institute, INSTAT, shows Albania’s exports to Kosovo grew by an annual 50 percent to 2.6 billion lek (€20.7 mln) last September and by 25 percent to 19.5 billion lek (€155 mln) for the first three quarters of this year, ranking the neighboring ethnic Albanian country the second most important destination of Albanian exports with a 8.4 percent share after Italy, the traditional top trading partner that accounts for about half of Albania’s exports.

Kosovo is the sole regional country that Albania has a trade surplus with exports exceeding imports by three times.

Meanwhile, tourists from Kosovo grew by strong double-digits of around 66 percent last September and were up by around 23 percent for the first three quarters of this year, topping international tourist arrivals, in significantly higher numbers that were also favored by warm weather.

Ethnic Albanian tourists from Kosovo, Macedonia, Montenegro but also more than a million migrants in Italy and Greece traditionally top tourist arrivals in Albania in a segment known as ‘patriotic tourism.’

The reintroduction of tolls on the Durres-Kukes highway on Sept. 17 came after the government renegotiated fees with the concessionaire to apply a 100 lek (€0.78) toll for Kukes residents compared to average tolls of €5 for other highway users, and apply discounts for regular business users.

The new revised fees on the country’s first toll road offer up to 40 percent in discount on regular users with 10 to 60 passes a month who can also take advantage of a digital pass system.

Tolls ranging from €2.5 for motorcycles, to €5 for passenger cars, €11.2 for buses, and €16.2 and €22.5 for mid and high-tonnage trucks have been described as too high by the Albanian and Kosovo business communities, who fear trade exchanges between the two ethnic Albanian countries could receive a severe blow.

Tolls on the 114 km highway are being collected on the 5.5 km twin-bore Thirre tunnel where the concessionaire, a joint venture between two of Albania’s largest companies, has made available ten toll booths, two of which for Kukes residents, one of Albania’s poorest whose car owners and public transport operators benefit reduced fees.

An average of 5,000 vehicles cross through the Highway of Nation, where traffic peaks during summer as Kosovars flock Albanian seaside towns in what is known as ‘patriotic tourism.’

Kosovo has also announced plans to introduce tolls on its own part of the so-called Highway of Nation, but says its fees will be much lower compared to Albania.

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