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New strategy for PKP CARGO Group

PKP CARGO ‘s new strategy focuses on the development of international services and the extension of its offer by the elements enabling servicing of the entire logistics chain. PKP CARGO will invest in intermodal services, the most rapidly developing freight market component. The offer of the logistics operator will be complemented by the ‘last-mile’ road freight.

The effect of the CARGO’20 strategy implementation estimates significant increase of transport performance – by 33%, increased share of freight performed in total outside Poland by 20 pp and doubling of intermodal transport. Diversification of income is supposed to strengthen independence of the PKP CARGO Group from freight of currently fundamental cargo – coal and aggregates.

The CARGO’20 strategy was adopted by the Management and Supervisory Boards and is based on the rail freight market development forecast. The baseline scenario of PKP CARGO estimates insignificant increase in the transport performance in Poland from 50 billion tkm in 2014 to 54 billion tkm. The pessimistic scenario assumes stabilization of the market volume at the current level. Increase is expected in the aggregate, ore, steel, crude oil and its derivatives and intermodal segments, whereas drops are assumed in coal transport.

The breakthrough years for the rail transport are about to come. On one hand, large infrastructural investment will improve the operating conditions, whereas on the other hand – decreasing demand for coal translates into forced searching for incomes in the new market segment and servicing the entire logistics chain. Long-term development requires also focusing on the operational excellence. The CARGO’20 strategy is our response to the challenges and opportunities faced by the PKP CARGO Group. We will use the expanding logistics competences of our group, its favourable financial condition and geographical location of Poland, forming a great foundation for building the position of the leading European logistics operator. We plan to extend the geographical range of operation, in particular towards south , stated Chief Executive Officer of PKP CARGO Adam Purwin.

The PKP CARGO Group will develop rail freight within the Central Europe with the use of assets of the two carriers: PKP CARGO and Czech AWT acquired in 2015. Key directions of the expansion (organic and via mergers) will cover servicing the N-S and W-E corridors. On the Baltic – Adriatic Seas route the Company intends to make use of the full capacity of the cooperation with the Croatian HZ CARGO, whereas thanks to the Rol-Rail subsidiary (joint-venture with the Italian national carrier – Trenitalia) it will provide its services also on the Apennine Peninsula.

“At the moment, trade exchange with Germany being the key economic partner of Poland is serviced by rail only in 11%. This percentage rate, for example in trade exchange between Czech and Germany, reaches 22%. We have both resources and sales potential to change these relations. Today we are a large carrier, however the size of our company is strictly correlated with the size of the Polish market. We wish to go beyond Poland, execute more transborder connections and transport outside the borders of our country”, said Purwin.

Current share of PKP CARGO in trans-border rail connection servicing reaches 42%, whereas its share in the Polish rail freight market is 57%.

PKP CARGO wishes to make even better use of its strategic assets – rolling stock and terminal Network. Terminal operation will be concentrated in the PKP CARGO Connect company offering the cargo reloading and storage services in the most attractive locations: Małaszewice, Warsaw, Poznan, Gliwice, Medyka, Braniewo and Paskov near Ostrava. The terminals in Małaszewice are supposed to handle the traffic on the China routes, related to development of the New Silk Route and become a gate to Europe for the Chinese goods. Already today the cargo from China has been transported via this terminal to Poland, Germany or Holland.

PKP CARGO Connect will provide complete logistics service under so called “single window”. The company is responsible for trade and forwarding service of the PKP CARGO Group and was established in effect of the merger of the intermodal forwarder and operator acting within the Corporate Group. PKP CARGO Connect will combine servicing the international clients (including Chinese) with comprehensive logistics offer based on the PKP CARGO Group assets (sidings, terminals, forwarding, intermodal and customs know-how).

Servicing the vehicle transport will be the company’s novelty. Introducing road freight to the offer, the Group gains the opportunity to service the clients from the “first” to “last mile”.


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