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PKP CARGO Revised the Group's Strategy for 2019-2023. Here's What You Might Find Interesting

PKP CARGO Revised the Group's Strategy for 2019-2023. Here's What You Might Find Interesting
photo: pkpcargoTV/PKP CARGO Revised the Group's Strategy for 2019-2023. Here's What You Might Find Interesting
07 / 02 / 2023

PKP CARGO CEO Dariusz Seliga presented the revision of PKP CARGO Group's Strategy for 2019-2023. He informed that the strategic Group's goal is to create the No. 1 position in the Tri-City area and on the New Silk Road routes within the European Union in terms of freight work and weight carried in 2023, as well as to include this position within the framework of cooperation.

"It was justified to make changes to the Strategy, because of the COVID-19 pandemic, and then Russia's aggression to Ukraine and the ongoing war in that country, the macroeconomic phenomena in which the PKP CARGO Group finds itself," explained President Seliga. "We have an effect that 2023, provided that the conditions related to the economic slowdown in Europe, the energy crisis and the destabilisation of the supply chain as it emerges are applied," said Dariusz Seliga.

Vision, mission and goals

President that the vision enshrined in the strategy will not change: PKP CARGO Group will move towards supporting the role of Central European leader in rail freight by gaining an additional position in the Tri-City area and on the New Silk Road. This is also the mission of PKP CARGO Group: to implement a logistics service activity in the rail freight and intermodal services market, giving the first choice supplier.

"Our main strategic objectives are, firstly, to be No. 1 in the Tri-City area and on the New Silk Road routes within the European Union in terms of freight work and weight carried in 2023 and to take this position into account in the years of participation. And secondly, to increase the 50% share of the Polish market in terms of freight work by 2027," says CEO Dariusz Seliga, pointing out that PKP CARGO's strengths and market opportunities for the groups "are a strong position on the Polish market and a strong brand, an improved internal structure, large personnel and rolling stock resources, as well as Poland's geographical location."

Key actions to help PKP CARO achieve its software objectives include high sales activity, continuous sales process and customer service, and improving freight service and maintenance. The implementation of the designated measures will work together in the framework of individual policy initiatives: 

  • Growth of the organisation in the domestic market 
  • Securing rolling stock resources 
  • Logistics efficiency 
  • Indicator resource management 
  • Digitalisation and computerisation 
  • Asset management

Acquisitions only suspended

The CEO of PKP CARGO was asked by journalists and analysts, among other things, whether the company was abandoning the practice of acquisitions in the Polish and foreign markets.

"Acquisitions on a national domestic and steady funding level and a pillar of the group's strategic development. Much of this provision in the cessation years with comments on the odd one from India. We are already seeing the recovery being checked based on capital components. As a company, we are actively monitoring and analysing potential acquisition targets. Apart from the fact that the economic index of PKP CARGO, regardless of that, in 2022, the Group started to generate positive financial results – the net result of the companies for three quarters of 2022 up to -5mln PLN, but for the third quarter already +38mln PLN – and it must take some time for us to be able to make available the possibilities offered, ordinary for original or foreign acquisitions," explained Dariusz Seliga.

Attendees at the conference were also interested in the impact of increasing energy and energy costs to increase efficiency. "Obviously, we aim to achieve that a significant part of our activities is focused on compensating for the increase in energy costs with improved management processes. We aim to maintain a favourable and competitive offer to our customers. We are committed to ensuring that our customers feel the effect of increased energy prices to the maximum extent possible," said the President of PKP CARGO.

In turn, referring to the issue of increasing salaries, Dariusz Seliga confirms good relations with the standard and that the increase in employees is required by the Management Board. "What is important for us is the sustainable development of the organisation and further development of the division's Group based on an attractive employer," said President Seliga, reminding that this is already the fourth broadly defined pay rise for PKP CARGO employees since he has been at the head of the company's Management Board since April last year.

PKP CARGO in Ukraine

The situation in Ukraine is bound to have an impact on the implementation of the strategy in this and subsequent years. The President pointed out that PKP CARGO, as a national freight carrier, actively participates in cargo handling between Poland and Ukraine. "As a Group, we have become heavily involved in handling the transport of grain, petrochemical products, vegetable oils and other industrial products for which the previous transport routes were disrupted as a result of Russia's aggression. We believe that, ultimately, the PKP CARGO Group will actively participate in rebuilding the Ukrainian infrastructure from war damage. The excellent relations we have developed with customers and the Ukrainian railways will pay off in the years to come. We are convinced that Poland will be a key transit country in the process of handling Ukrainian trade," explained Dariusz Seliga.

The war unleashed by Russia triggered the West's action, which introduced sanctions against Russia and Belarus. The sanctions, which have been used on freight along the new Silk Road and in front of PKP CARGO, have been added to compensate for these losses, and are even more active in the Tricity area, especially as the carriage of intermodal cargo between ports and terminals is greater than the capacity of the New Silk Road. More than 95% of all containerised cargo is transported to Europe by sea. "Taking advantage of this function, we are investing in the purchase of modern rolling stock, and our position in the Tricity area has been augmented by the new multimodal terminal in Zduńska Wola Karsznice. I see a major role in this process for our subsidiary PKP CARGO INTERNATIONAL. We have proven ourselves in the PSU. We are pushing harder in Europe. It is my personal dream for us to be the most powerful tool in the European Union, that we could compete with the German DB and long to win," summarised CEO Dariusz Seliga.

The head of PKP CARGO announced that in the fourth century of this year, we will get to know the Long-Term Development Plan of PKP CARGO Group for the years 2024 - 2028.