PKP CARGO Restructures Operations to Recover From EU State Aid Ruling and Heavy Debt

PKP CARGO is making big changes to improve its finances and stay competitive. The company is dealing with heavy debt and restructuring after the European Commission ruled that its state aid was illegal. To cut costs, PKP CARGO is reducing staff, selling off unnecessary property, and focusing on making its processes more efficient.

A major part of PKP CARGO’s plan is to expand abroad through its subsidiary, PKP CARGO International, which operates in Central Europe. At the InnoTrans trade fair back in September, the company met with potential clients as it aims to grow its business outside of Poland. "The Group has stopped merely talking about going abroad and started doing it," said Dr. Marcin Wojewódka, acting CEO of PKP CARGO, in an interview with Rynek Kolejowy. He expects the results of these efforts to become visible next year.

The company is also preparing for new opportunities to transport goods between Ukraine and Western Europe once Russian war in Ukraine ends. PKP CARGO is building relationships with Ukrainian Railways to be ready to support the country’s reconstruction efforts.

Although the company is moving forward with these plans, Wojewódka says it still faces tough financial challenges. 2025 is expected to be a difficult year, but the company remains hopeful. PKP CARGO’s stock price has risen from EUR 2.81 to EUR 4.15, showing that shareholders have more confidence in the company's future.

Source: Rynek Kolejowy