PKP CARGO plans to acquire in the first half of 2015 up to 50 percent of shares in Pol-Miedź Trans, a company wholly owned by KGHM Polska Miedź S.A. Pol-Miedź Trans controls approximately 2.5 percent of the Polish transport market, has a stable revenue base and is financially sound. Cooperation between PKP CARGO and KGHM Polska Miedź is in line with the carrier’s strategy, which calls for an active role in the consolidation of the Polish freight market, currently divided between some 60 players.
Work on the acquisition of PMT by PKP CARGO started in September. At the same time, lines of Pol-Miedź-Trans business unrelated to rail transport are being split off from the rest of the company. The completion of the split is scheduled for the first half of 2015. PKP CARGO intends to acquire up to 50 percent of shares in PMT, leaving KGHM the majority shareholder.
“As previously announced, PKP CARGO will be an active player in the consolidation of the rail freight market in Poland. This transaction is one of several projects that we are currently working on. With our rolling stock fleet, financial potential and logistics know-how—and given the fact that many carriers in Poland belong to large industrial groups—we can be a valuable partner and source of considerable synergies for such companies as KGHM Polska Miedź,” said Adam Purwin, CEO of PKP CARGO.
With the acquisition of a stake in PMT, the Polish carrier will get another stable source of revenue and new business contacts; the scale of its operations will also be expanded.
“We have analyzed many options for the development of the company’s rail business. We are working on the best solution, which would be to attract a strategic investor for this business. We still have to make significant investments in the rolling stock, and we want to strengthen our position on the domestic freight market. PKP CARGO offers these opportunities, and so we decided to consider a partnership with the company,” explained Mirosław Krutin, CEO of Pol-Miedź Trans.
The main benefits of this transaction for KGHM Polska Miedź include access to the largest, constantly modernized rolling stock fleet in Poland, and a wide range of logistics services offered by the PKP CARGO Group. It will also allow KGHM to focus on core business investments, while gaining a reliable partner for its rail freight operations.
Cooperation with KGHM on rail freight will help PKP CARGO achieve its strategic goals. The Polish carrier has recently signed a letter of intent regarding the potential acquisition of the full stake in CTL Logistics—a high-potential company with a stable share of the Polish and German rail freight markets. At the same time, PKP CARGO announced an agreement on the potential acquisition of one of the largest private rail freight operators in Europe: the Czech AWT, which controls approx. 8 percent of the Czech market.
Pol-Miedź Trans Sp. z o.o. with its registered office in Lubin is a Polish transport company founded in 1997. It offers road and rail transport services, engages in petroleum products trading, repairs wheeled vehicles, rail cars, machines and equipment, and operates in the freight forwarder business. It belongs to the KGHM Polska Miedź S.A. Capital Group. In 2013, PMT’s share in the Polish rail market was 2.4 percent in terms of freight volume and 2.1 percent in terms of freight transport.