Daughters Abroad Thrive, Mothers at Home Struggle: Contrasts in Czech-Polish Rail Freight Sector—A ČD Cargo and PKP Cargo Study

The Czech and Polish rail freight markets are witnessing an intriguing phenomenon: while ČD Cargo and PKP Cargo grapple with declining revenues, their foreign subsidiaries continue to perform well.

The ongoing crisis in rail freight transport has not spared the Czech Republic or Poland. As part of its restructuring efforts, ČD Cargo is preparing to scrap rolling stock and lay off up to 700 employees by the end of 2025. This was announced by Tomáš Tóth, Chairman of the Board of Directors, on his X (formerly Twitter) account.

Zástupce odborových organizací jsme seznámili s dalšími etapami restrukturalizace vynucené poklesem přepravních výkonů. Vyžádají si šrotaci dalších vozidel a odchod až 700 zaměstnanců do konce roku 2025. Postupně @CDCargo musíme připravit na reálné objemy cca 40 mil. tun zboží. pic.twitter.com/gLHMhD3nvl

— Tomáš Tóth (@toth_cdc) July 22, 2025

Significant structural changes are also underway at Poland’s PKP Cargo. As previously reported by RAILTARGET, the Polish freight operator plans to lay off up to 2,400 employees in two waves by the end of September 2026. The company also intends to reduce its reliance on revenues from coal transport and shift further towards intermodal freight.

Daughters of Renowned Mothers: ČD Cargo Poland and PKP Cargo International

Meanwhile, ČD Cargo Poland is strengthening its position in the Polish market. In 2023, its share in the Polish rail freight market rose to 1.93%, increased to 2.07% last year, and reached 2.70% in the January–June period of this year. ČD Cargo's Polish subsidiary currently ranks 7th among all rail freight operators in Poland.

A similarly positive trend can be observed at PKP Cargo International. The subsidiary of Poland’s PKP Cargo posted a significant improvement in the Czech market last year, recording a net profit of CZK 117.2 million (approx. EUR 4.8 million). This is according to the 2024 annual report published by the company in early July. This comes after a setback in 2023, when the company reported a loss of CZK 76 million (EUR 3.1 million).

Jan Sechter: Companies Growing in Crisis Deserve Recognition

In light of the success of these subsidiaries, RAILTARGET reached out to Jan Sechter, Chairman of the Transport Section of the Czech Chamber of Commerce. "The decline in transport volumes is a Europe-wide phenomenon with varying impacts on individual carriers. The more companies focused on transporting coal, steel, and industrial materials, which are in recession, the greater their difficulties. In large companies such as the Czech, Polish, or German cargo operators, trade unions and fixed costs in the vehicle fleet significantly influence their flexibility. However, foreign subsidiaries of ČD Cargo and PKP Cargo (PKP Cargo International) are managing to grow during the crisis and attract new customers. This is certainly a result of good management," said Sechter.

PKP Cargo and ČD Cargo: Financial Losses Continue

In 2012, PKP Cargo controlled roughly half of the Polish market in terms of freight weight and accounted for 60% of rail freight performance. By 2023, however, its share had dropped to 33.1% of transported weight and 34% of transport performance. In the first quarter of 2024, the group recorded a loss of PLN 118 million (approx. EUR 27.7 million), compared to a profit of PLN 104 million (EUR 24.5 million) in the same period the previous year. At the same time, operating revenues fell from PLN 1.58 billion (EUR 371 million) in Q1 2023 to PLN 1.19 billion (EUR 279 million) in Q1 2024.

ČD Cargo also reported a substantial loss of CZK 945 million in 2024, according to a press release from České dráhy. The text also notes that unlike in the Czech Republic, ČD Cargo’s market share abroad—particularly in Poland—is showing slight growth. A press release from the Ministry of Transport confirms the long-term success of ČD Cargo's Polish subsidiary, stating that in 2023, the ČD Cargo group performed well mainly due to its international operations, including the achievements of ČD Cargo Poland.

Although the crisis in rail freight is a frequently discussed topic, the developments in the subsidiaries of national rail giants suggest otherwise. The positive performance of ČD Cargo Poland and PKP Cargo International last year, despite the losses of their parent companies, may be an early sign that the rail freight market is poised for recovery.