Croatia's dual-use logistics systems in Split and Rijeka as key ports for NATO operations in the Mediterranean – Creative image: Xpert.Digital
Europe's defense strategy in the Mediterranean: Croatian ports are being transformed into multifunctional logistics centers
NATO partner Croatia: Innovative port development strengthens European military logistics
Europe's modern security architecture is facing fundamental changes that require innovative approaches to defense logistics. Croatia has established itself as a strategic partner of NATO and is developing its ports of Split and Rijeka into important dual-use logistics systems capable of meeting both civilian and military needs. This development marks a significant step in European defense strategy and positions Croatia as a central logistics hub in the Mediterranean.
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What are dual-use logistics systems?
Dual-use logistics systems refer to infrastructures and transportation networks that can be designed and used for both civilian and military purposes. Unlike traditional dual-use goods, which encompass individual products or technologies, dual-use logistics systems extend to entire supply systems and transportation networks. This dual use makes it possible to create synergies between civilian economic interests and military defense requirements, thereby increasing both efficiency and resilience.
The strategic necessity of dual-use logistics in modern Europe arises from the changing security landscape. Europe's modern logistics environment must increase the efficiency and sustainability of civilian supply chains while simultaneously meeting the heightened demands of military mobility in a shifting geopolitical landscape. In this context, the concept of dual-use logistics, particularly in combined rail-road transport, is gaining crucial importance.
Croatia's strategic position in the NATO alliance
Croatia has been a full member of NATO since April 2, 2009, thus achieving one of its most important strategic and foreign policy goals since the first free elections in 1990. Croatian leaders were confident that NATO membership would make Croatia more attractive economically, particularly for foreign investment.
The Croatian Armed Forces are currently undergoing a comprehensive transformation and modernization process, which also includes meeting NATO standards. To achieve this, over 15 billion kuna (approximately 2.1 billion euros) were invested in the military by 2015. Croatia now aims to reach the NATO target of two percent of GDP by 2025 and to spend three percent of its gross domestic product on defense by 2030.
The modernization efforts include the procurement of 126 modern wheeled armored vehicles, the modernization of all remaining main battle tanks, the procurement of modern fighter jets and helicopters, as well as several ships and fast attack craft for the navy. Germany and Croatia have signed a memorandum of understanding for the joint procurement of Leopard 2A8 main battle tanks, underscoring the close cooperation between the two countries in the defense sector.
The Port of Split: Naval base and civilian transport hub
Split occupies a key position in Croatia's dual-use strategy. The port is home to the Lora naval base, which serves as the headquarters of the Croatian Navy. Lora is a port in the northwestern part of Split, located in Kaštela Bay, and is currently used as a naval base by the Croatian Navy. Situated next to the Brodosplit shipyard, it was an important naval base and headquarters for the Yugoslav Navy.
The Croatian Navy has a personnel strength of 2,500 personnel and, in addition to its naval headquarters Lora in Split, maintains naval bases in Lastovo, Ploče, Pula, Šibenik, and Vis. The Navy protects the sovereignty of the Republic of Croatia at sea and comprises the Naval Flotilla, the Coast Guard, a Marine Infantry Battalion, a Coastal Surveillance Battalion, and the "Petar Kresimir IV" Training Center in Split.
International military cooperation is regularly on display in the port of Split. For example, the Greek landing ship HS “CHIOS” visited the Croatian Navy in July 2024 as part of bilateral military cooperation between Croatia and Greece. Such visits strengthen relations between the navies and offer opportunities to exchange experiences and expertise in naval operations.
Rijeka: Croatia's emerging logistics hub
The Port of Rijeka is developing into one of the most important container terminals in the northern Adriatic and is striving for the status of "first port of call". With the development of the Port of Rijeka and intermodal transport, the opportunity was recognized to position Croatia as a logistics hub in Southeast Europe.
The modernization of the Port of Rijeka encompasses several ambitious projects. APM Terminals' new container terminal aims to handle trucks entirely digitally and using smartphones. Container transport is the fastest-growing sector, having almost doubled in the last five years – from 200,102 container units (TEU) in 2015 to 356,068 TEU in 2021.
Rijeka's strategic importance stems from its position as the only port in the northern Adriatic with sufficient capacity to handle increasing container volumes. The Adriatic Gate Container Terminal still has capacity for an additional 300,000 TEU of annual throughput, attracting shipping companies and rail operators. The first phase of the Zagreb Container Terminal is planned to commence operations with a 400-meter-long quay and an annual capacity of at least 600,000 TEU.
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NATO operations in the Mediterranean and the role of Croatia
Croatia plays an important role in NATO operations in the Mediterranean. Operation Sea Guardian is a NATO maritime security operation in the Mediterranean, decided upon at the NATO summit in Warsaw in July 2016. This operation serves to ensure security in the Mediterranean and to strengthen the southern flank of the alliance.
The historical development of NATO's presence in the Adriatic Sea demonstrates Croatia's long-standing involvement. During Operation Maritime Guard, a NATO naval blockade in the Adriatic Sea during the Yugoslav Wars, the region was already of strategic importance. The operation began on November 22, 1992, based on UN Security Council Resolution 787.
Current challenges on NATO's southern flank require increased attention. The Mediterranean is of particular geostrategic importance, as Russia's illegal war of aggression against Ukraine, Hamas's terrorist attack on Israel, and displacement and illegal migration all have repercussions in this region. The security of shipping and supply routes in the Mediterranean is becoming increasingly fragile and is of central importance to Germany and Europe.
Civil-military cooperation in logistics
Civil-military cooperation forms a cornerstone of successful dual-use logistics systems. This cooperation refers to the collaboration between governmental or non-governmental civilian organizations and military forces. Joint training exercises between civilian organizations and military units are an essential building block for successful cooperation at a practical level.
Germany serves as a model, demonstrating how civil-military cooperation can function. The German Navy and the Federal Waterways and Shipping Administration have signed an important agreement on civil-military cooperation, regulating the management of civilian maritime traffic on German waterways. This agreement is a crucial component of national defense capabilities and security preparedness.
Practical implementation is achieved through the integration of private logistics providers. The Rhenus Group has fully acquired the Croatian logistics company Log Adria, thereby strengthening its presence in the Balkans. Log Adria offers sea freight and forwarding services from its headquarters in Rijeka and has a sea freight branch in Ploče as well as air freight locations in Zagreb and Belgrade.
Your dual -use logistics expert
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The global economy is currently experiencing a fundamental change, a broken epoch that shakes the cornerstones of global logistics. The era of hyper-globalization, which was characterized by the unshakable striving for maximum efficiency and the “just-in-time” principle, gives way to a new reality. This is characterized by profound structural breaks, geopolitical shifts and progressive economic political fragmentation. The planning of international markets and supply chains, which was once assumed as a matter of course, dissolves and is replaced by a phase of growing uncertainty.
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Dual-use logistics systems: Croatia's innovative answer to modern defense challenges
Technological Innovation and Military Mobility
Military Mobility, an EU-NATO cooperation project, aims to enable the faster deployment of troops and equipment across Europe. The PESCO project Military Mobility serves to simplify, standardize, and accelerate procedures, as well as to modernize transport infrastructure. Germany, the Netherlands, and Poland are working on a cross-border model corridor for military traffic from west to east.
Croatia's participation in Military Mobility is one of 26 participating countries in the PESCO project. The project facilitates the faster deployment of troops and military equipment across Europe by land, air, and sea. Its practical implementation requires addressing and harmonizing complex, often legal, issues among the participating states.
Digitalization and AI are shaping the future of military logistics. Modern military logistics is undergoing a fundamental transformation driven by the principles and technologies of "Industry 4.0." This transformation, known as "Military Logistics 4.0," marks a shift away from traditional, often reactive approaches toward integrated, data-driven, and increasingly automated systems.
European defence logistics and PESCO projects
PESCO projects form the backbone of European defense integration. Permanent Structured Cooperation (PESCO) comprises 25 EU member states that have agreed on 20 commitments. The PESCO project “Network of LogHubs in Europe and Support to Operations” aims to create a Europe-wide network of military logistics centers.
Germany, as coordinator, leads the LogHub network together with France and Cyprus. The LogHubs enable the centralized storage and deployment of equipment or ammunition and also benefit national and collective defense. The networked LogHubs help strengthen the EU's operational capability, as decisions can be implemented more quickly.
Croatia's integration into these structures is taking place gradually. The German Armed Forces are integrating elements of the Croatian armed forces into their developing multinational logistics network. Croatian military personnel are already participating as observers in German-Hungarian exercises where troops practice joint logistical operations. Active integration of Croatian units into the Structured Partnership in Logistics (SPiL) will be possible from 2025 onwards.
Industrial cooperation and defense cooperation
Croatia's defense industry is showing remarkable developments. The country has an independent defense industry dating back to Yugoslav times, but sources major weapons systems from the USA, France, and Germany. Brodosplit has strategically focused on developing ships for security and defense purposes and initiated the project for an offshore patrol vessel – the corvette BIS 91.
German-Croatian cooperation is intensifying. Rheinmetall and DOK-ING from Croatia have signed a Memorandum of Understanding to establish a joint venture. The agreement envisions the joint development and subsequent marketing of unmanned vehicles. A key feature of this partnership is its entirely European origin and value chain.
Technology transfer is being carried out systematically. Germany is supporting Croatia in transitioning its armed forces from Eastern to Western technologies. The agreed exchange agreement provides for the delivery of at least 50 Leopard 2 A8 main battle tanks from Germany to Croatia, while Ukraine will receive 30 Yugoslavian M-84 main battle tanks and 30 M-80 infantry fighting vehicles from Zagreb by the end of the year.
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EU millions for dual-use projects: Croatia needs German success stories
Infrastructure challenges persist. To achieve the goal of a logistics hub in Southeast Europe, the rail network must also be modernized accordingly. The green transition and efforts towards climate neutrality in mobility are acting as drivers for the modernization of Croatia's rail network. However, major railway projects, financed primarily from the Cohesion Fund and the CEF financial instrument, are progressing slowly.
Political obstacles could hinder development. President Zoran Milanović is partially blocking the deployment of Croatian officers to NATO activities, leading to political tensions. This stance could have long-term consequences for Croatia's international standing.
Financial investment is needed. EU dual-use funding supports projects with dual uses in the trans-European transport network. Over three years, Germany secured more than €296 million in funding for dual-use projects. Such investments are also necessary for Croatia to modernize its infrastructure accordingly.
Strategic importance for NATO's southern flank
NATO's southern flank is gaining strategic importance. Russia's increased presence in Syria, Libya, and Algeria, as well as China's growing influence on the African continent, are creating new challenges. NATO is facing new types of threats on its southern flank: state collapse in some countries, a more assertive Russia, and a growing Chinese presence.
Croatia's contribution to the security of its southern flank is achieved through participation in NATO operations. The country participates in Operation Sea Guardian and provides ships and personnel for maritime security operations. The Croatian Navy possesses modern Helsinki-class guided-missile fast attack craft and mine countermeasures vessels, which can be used for both military and civilian purposes.
Regional stability is promoted through Croatian initiatives. Starting in 2025, Croatia will support the logistics forces in the German-led EU Battlegroup with a company. This cooperation demonstrates the close link between German and Croatian defense planning and strengthens the European security architecture.
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Croatia as a dual-use logistics hub
The future of Croatian dual-use logistics systems shows promising developments. Split and Rijeka are becoming indispensable hubs in European defense logistics. The combination of modern ports, strategic location, and close NATO integration creates ideal conditions for realizing genuine dual-use capabilities.
Croatia's vision of becoming a logistics hub in Southeast Europe is becoming a reality through continuous investment in infrastructure and technology. The successful integration of civilian and military logistics requirements creates synergies that benefit both economic development and defense capabilities.
The strategic partnership with Germany and other NATO allies forms the foundation for this development. Joint procurement projects, technology transfer, and operational cooperation are creating robust structures that are equipped to meet the challenges of the 21st century.
Croatia's dual-use logistics systems in Split and Rijeka thus represent not only a national success story, but also an important building block in the European security architecture. They exemplify how modern defense logistics, through the intelligent integration of civilian and military capabilities, can create both economic benefits and strategic security.
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