Press releases

11/16/2016 12:00:00 AM

Intermodal and transport abroad are the driver of PKP CARGO - Group's results after 3 quarters of 2016.

After three quarters of 2016, the revenue of PKP CARGO Group amounted to 3,214 million PLN and EBITDA - 346 million PLN. Since April this year, the company gradually increased its market share, considerably improved results in the sector of intermodal transport and entered the next phase of long-term cooperation with Chinese partners in the framework of the new Silk Road.

During III quarters of 2016, PKP CARGO Group carried 80.9 million tons of goods          (-4% year-on-year) and has realized transport operations on the level 20.8 billion tkm (-4% year-on-year). At the same time, its market share in September 2016 amounted to 52.4% basing on performance and this result was by 3.2 percentage points better than the result of April this year. This clearly shows that the company managed to reverse the negative trend from the beginning of this year. The market share according to transported weight in September this year amounted to 45%.

The services were provided by five subjects from the PKP Group: PKP CARGO S.A., PKP CARGO SERVICE and three carriers forming part of AWT Group, which belongs to PKP CARGO and operating in Czech Republic, Slovakia and Hungary.

- PKP CARGO is a forward-looking company with great potential that we want to explore better, while operating on a very difficult, competitive market. The implemented changes in company operation and the resignation from a vertical management model are already showing their first results. Area management is much more efficient for companies specializing in railway transport and the results for the third quarter are the best evidence thereof. Every month we systematically improve our market share and win all the biggest bids- underlines Maciej Libiszewski, Chairman of the Board of PKP CARGO.

As one of the priorities of company’s actions is customer satisfaction – we focus on maintaining the leading position in the country and developing business in Central and Eastern Europe. All the time we adjust to the expectations and needs of our current and future customers, and we use the opportunity which undoubtedly is the idea of the new Silk Road - adds President Libiszewski. To strengthen commercial relations with China became for PKP CARGO one of the important developmental impulses. - We are looking for partners abroad, so that our fleet could be used to a greater extent outside of Poland, on longer routes. We are talking about activating transports between the ports of the Adriatic Sea, the Baltic Sea and the Black Sea . During a recent visit to China we had business meetings in several large provinces. This week we had a revisit and hosted representatives of the Xinjiang province, with its capital in Urumqui, where a dry container port strategic for the new Silk Road is being build. We signed a memorandum, which opens PKP CARGO new opportunities for cooperation with Chinese partners. I am convinced that it is promising not only for our company but for the entire Polish economy - adds President Libiszewski. The company regularly increases transports abroad. In the third quarter of 2016, basing on performance, transport operations have increased by 26% as compared for the corresponding period of the previous year.

The transport activity of PKP CARGO was influenced by general macro-economic conditions and a lower-than-expected economic growth, resulting in difficult market conditions. In particular, this was a weak period for infrastructure construction, which means less demand for the transport of basic construction materials (gravel, stones and sand) and a downturn in demand for coal, including exports. During the nine months of the current year, the rail transport market in Poland experienced a decrease 1,9% in relation to the same period of 2015.

The operating income of PKP CARGO Group in the third quarter amounted to 1091 million PLN (-10% year-on-year), with operating costs of 1 083 million PLN (-3% year-on-year). EBITDA amounted to 154 million PLN (-30%). After three quarters of 2016, the results developed as follows: operating income 3 214 million PLN (2% year-on-year), operating costs 3 303 million PLN (12% year-on-year), EBITDA - 346 million PLN (-36% year-on-year), net profit -116 million PLN.

The Group provides sources of financing its development. PKP CARGO has access to more than 1.7 billion PLN funds for investment; of which more than 162 million PLN is cash. Other financing sources include credit lines guaranteed e.g. by Bank Gospodarstwa Krajowego, the European Bank for Reconstruction and Development, as well as commercial banks.

The results in individual segments developed as follows:


This segment shows the biggest growth dynamics within the area of rail freight transport in Poland. After nine months it provided 8% of the total performance of the Group. PKP CARGO counts on further increases in this product group.

 The third quarter of 2016 shows an increase of transported weight by 23% YOY, including foreign transport by 16% YOY. Excluding AWT data, the increase was respectively by 28% YOY and 51% YOY in foreign transports.

After three quarters of 2016, one noticed an increase in transported weight by 27% YOY, including foreign transport by 110% YOY could be noticed. Excluding AWT data, the increase was respectively by 18% YOY and 59% YOY.

Dynamic development of the New Silk Road. The increase in transport by land from/to China during 9 months of 2016 amounted to 112% YOY, and only in the third quarter of 2016 - 71% YOY.

Development of transport outside Poland – during 9 months of 2016, the increase in performance was about 208% YOY.

Development from sea ports to terminals in Poznań, Warsaw, Radomsko and Łódź.


Fuel constitutes the largest segment of PKP CARGO transports. After nine months of 2016, the results in this segment basing on performance were as follows: coal 8.1 billion tkm (-8% year-on-year); this decrease was however compensated to a large extent by increases in: coke and lignite 1.1 billion tkm (21% year-on-year), liquid fuels 0.82 billion tkm (40% year-on-year).

The results in this segment were influenced by:

Decline in coal mining in Poland by about 0.4% YOY- reaching a level of 52.0 million tons.

Increase in coal sales by about 2.9% YOY – reaching a level of 54.1 milion.

Reduction of carbon stocks on mine heaps by 50.7% YOY- to a level of 3.4 million tons by the end of September (31.4% less than in January this year when the result showed still 5.7 million tons).

Reduction of energy production by 0.6% YOY, including from coal by about 1.6% YOY.

The market of aggregates

Delayed start of major infrastructure investments influenced the transports of aggregates and construction materials, the second largest transport segment of the trademark of PKP CARGO. The performance within the last nine months amounted to 3.27 billion tkm (-18% year-on-year).

 The results in this segment were influenced by:

Delays in implementation of infrastructure investment and smaller scale of construction work compared to last year, in addition, a large part of the tenders is being realized using the formula "design and build", which delays the start of investment.

Reduction of rail investments – out of planned 8-11 billion PLN for the modernization of railway infrastructure in 2016 – current expenditures in 2016 are estimated to 5.2 Billion PLN. Railway investments serviced by PKP CARGO S.A. in 2015 are accomplished.

There was also a decrease in transport orders for " industry stone" due to the reduced demand from power plants and steel mills.

Metals and ores

Performance within this sector of goods exceeded 2.58 billion tkm (-5% year-on-year).

The results in this segment were influenced by:

Import duties on steel products from China and Russia introduced by the EU.

Price increase for iron ore by 43% in 9M 2016 and 10% in the third quarter of 2016 (56.7 USD/t in 09'16 vs. 39.6 USD/t in 12'15 and 51.4 USD/t in 06 ' 16).

January-August 2016 noticed a decrease in price of the marketed production in metal industry (2.8% y/y), and metal products industry (about 0.9% y/y) - as a result of price pressure on raw materials necessary for the production of steel caused by the economic slowdown in China.

Read also:


On Tuesday, April 10th, 2017 in Shanghai, the President of PKP CARGO Maciej Libiszewski and the President of Worldwide Logistics Group Jacky Lim signed the agreement to tighten cooperation which would enable PKP CARGO to be established in China.


In 2016 the PKP CARGO Group's revenues amounted to 4,411 million PLN, with EBITDA of 562 million PLN.

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