PKP Cargo’s Future Depends on Creditor Deal, Says Radosław Karwicki

PKP CARGO has entered another critical stage of a restructuring process that has already lasted more than two years. A Warsaw court has handed day-to-day control of the company to court-appointed administrator Paweł Głodek. Radosław Karwicki, Editor-in-Chief of Raport Kolejowy, tells RAILTARGET what the change means for the company and what will matter next.

The decision of the District Court for the Capital City of Warsaw on 29 September means that court-appointed administrator Paweł Głodek now directly manages PKP CARGO. The Management Board can no longer carry out the management functions that had previously remained in its hands. As RAILTARGET previously reported, PKP CARGO says freight operations and customer services continue as normal and that the change does not restart the restructuring process from the beginning.

But the latest decision is only another chapter in a crisis that started much earlier. The court opened restructuring proceedings on 25 July 2024, initially allowing PKP CARGO to continue managing the business within the limits of ordinary management. Later that year, the company reduced its workforce by 3,665 people. Of these, 2,515 left through collective redundancies and another 1,150 departed for other reasons.

The financial figures show how serious the situation had become. According to the PKP CARGO's 2024 financial results, the company recorded a PLN 2.41 billion net loss in 2024, compared with a PLN 82.1 million profit a year earlier. Much of that loss came from impairment charges: the company said these reached PLN 2.10 billion in 2024, reflecting, among other things, the value and structure of its rolling stock.

There has since been a visible improvement. The Group returned to a PLN 39.4 million net profit in 2025, while the first half of 2026 brought a net profit of PLN 117.8 million. Revenue from customer contracts reached PLN 1.84 billion in the first six months of this year, slightly above the same period in 2025. Still, better operating results have not solved the central problem: PKP CARGO remains in restructuring and must agree with its creditors on how to deal with liabilities running into billions of złoty.

Karwicki: Operations Continue, but Stability Is Now Crucial

Commenting on the situation for RAILTARGET, Radosław Karwicki, Editor-in-Chief of Polish railway publication Raport Kolejowy, says: "The current situation should primarily be viewed as another stage in the ongoing restructuring proceedings, rather than as the termination or suspension of PKP CARGO’s operational activities.”

For customers and other railway companies, the immediate question is whether PKP CARGO can continue operating without disruption as its management structure changes. Karwicki points to continuity of freight services, stable relations with customers and business partners, and predictability for employees as the main priorities.

The company itself has made the same point. Głodek said the takeover should not require a long transition and that he would work with management and employees while reviewing decisions requiring approval. His stated goal is to complete the remaining restructuring measures, reach an agreement with creditors and eventually return management of the company to its corporate bodies.

Karwicki also notes that PKP CARGO already has an approved restructuring plan aimed at improving liquidity, cutting costs, increasing efficiency and restoring the company’s ability to invest.

"At this stage, the priority will therefore be to maintain the company’s operational stability and consistently implement the objectives of the restructuring process," he told RAILTARGET.

Nearly PLN 3 Billion in Claims, The Creditor Deal Is the Real Test

That may prove to be the hardest part. According to PKP CARGO’s arrangement documents, claims covered by the restructuring agreement amounted to around PLN 2.96 billion as of late May 2026. The company has repeatedly changed its proposals during negotiations with creditors, including banks and financial institutions.

On 15 September, PKP CARGO submitted another amended version of its arrangement proposals. The basic structure remained unchanged, but an additional mechanism was added that could allow some creditors to recover part of claims that would otherwise be written off. Part of any compensation eventually obtained by PKP CARGO from the Polish state in connection with the so-called coal decision could also be used for these payments.

Tensions over the proposals became public shortly before the court changed the company’s management rules. The Management Board said it had made major concessions but argued that expectations from some of its largest creditors, including the European Investment Bank and infrastructure manager PKP PLK, went too far and could damage PKP CARGO’s ability to compete.

Karwicki sees the creditor agreement as the central issue in the next stage.

"The success of the restructuring process will depend not only on further operational measures, but also on the company’s ability to reach an arrangement with its creditors that is acceptable to them while, at the same time, enabling PKP CARGO to continue its operations and rebuild its market position," he said.

He mentions several things that will matter: a credible financial model, better operational efficiency, keeping customers and freight volumes, and rebuilding confidence among banks and other market partners.

There is already one positive example within the Group. In August, creditors of subsidiary PKP CARGOTABOR backed its arrangement by a large majority: 250 of the 271 creditors who cast valid votes supported it, 97.32% of the principal amount of claims included in the vote. The judge-commissioner later confirmed that the arrangement had been adopted, although final court approval is still required before it can be implemented.

The Market Is Improving. PKP CARGO Still Has to Catch the Opportunity

PKP CARGO is restructuring right when parts of the Polish rail freight market are beginning to recover. Company data based on figures from Poland’s Office of Rail Transport showed that PKP CARGO’s share of the market by freight volume reached 27.4% after May 2026, compared with 26.28% a year earlier. Its share measured by transport performance also increased, from 25.43% to 27.59%.

PKP CARGO’s restructuring is not taking place in a market without growth opportunities. One of them is the changing logistics map created by Russia’s war in Ukraine.

The EU–Ukraine Solidarity Lanes, which use rail, road and inland waterways, have become a major route for Ukrainian trade. According to the European Commission, around 230 million tonnes of Ukrainian exports had moved through the corridors between May 2022 and July 2026. The routes run through Poland, the Baltic region, the Adriatic and the Danube area and are also being developed as part of Ukraine’s longer-term connection with the EU market.

Karwicki believes this could create business for PKP CARGO, particularly in transit, intermodal transport and future logistics connected with Ukraine’s reconstruction. But geography alone will not guarantee the company a larger share of these flows.

Its position will depend on prices, service quality, the availability of locomotives and wagons, investment capacity and cooperation with other European operators and logistics companies.

"If PKP CARGO succeeds in restoring financial and operational stability, it will have an opportunity to capture part of these emerging freight flows and strengthen its position in the European market. However, if the restructuring process becomes prolonged and limits the company’s ability to invest and compete effectively, some of the emerging market opportunities may instead be captured by other operators," Karwicki said.

That is now the central challenge for PKP CARGO. The company has moved away from the huge losses reported in 2024 and its freight volumes are beginning to recover. But it is still operating under court-supervised restructuring, negotiations with creditors remain unresolved, and for the first time since the proceedings began, its Management Board no longer controls the day-to-day running of the business.