"The Germans Will Crush Us": PKP Cargo CEO Warns of Crisis, Urges Fair Conditions and Baltic Investment

PKP Cargo sees the future of rail freight in intermodal transport and the development of Baltic ports. However, according to the company’s management, Poland must improve its competitiveness against Germany.

The Polish transport and logistics think-tank Klaster Luxtorpeda 2.0 organised on 28 October the 11th annual conference dedicated to the development of rail transport in Poland and Europe. The event, partnered by RAILTARGET, featured, among others, Agnieszka Wasilewska–Semail, Chairwoman of the Board and CEO of PKP Cargo, who presented a realistic vision of the future of rail freight transport. According to her, there are essentially two models of rail freight companies in Europe.

Two Models of Rail Freight Operators in Europe

The first is a dominant state-owned or majority state-owned rail freight operator, which, thanks to public ownership, can fully exploit the potential and structure of public financial aid. In addition to traditional transport operations, such a company maintains contracts with the state for crisis response, military mobility, and other strategic purposes.

The second model is a national carrier with the state as a minority shareholder. In the case of PKP Cargo, the company is also publicly traded on the stock exchange. It currently operates in a Polish market where no single carrier holds a majority share. However, due to its ownership structure, PKP Cargo cannot benefit from all forms of public financial assistance. Consequently, the company faces fundamentally different market conditions in Poland than competitors such as DB Cargo enjoy in their home markets.

PKP Cargo Focuses on Intermodal Transport and Baltic Port Development

Agnieszka Wasilewska–Semail, who previously worked for many years in the financial sector, including at PKO Bank Polski S.A., Bank Handlowy S.A. (now Citigroup), ING Bank Śląski, and Kredyt Bank S.A., compared the current rail freight market situation to Poland’s banking sector. The latter is largely dominated by foreign-owned banks, where competition has always been complex, and mergers and consolidations often took place outside Poland, on foreign markets. The country had only one major national bank, which benefited from state protection in several market segments.

"As PKP Cargo, we do not have a position like PKO Bank. That’s why in this crisis, we’re doing everything we can. We are focusing on the intermodal segment of the rail freight market. We very carefully compare our capabilities and competitiveness with Germany, where our main competitors operate. Poland’s greatest transport and logistics opportunity lies in the purposeful development of Baltic port capacity and infrastructure. We aim for the potential of Gdańsk (Baltic Hub) to roughly match the current rail transport volume to Hamburg. Today, the ratio between Gdańsk and Hamburg stands at 1:3.5. Poland must closely monitor all factors that collectively determine its logistics and transport competitiveness, identifying where it still lags behind or even undermines its own position compared to competitors," she stated.

Fairer Conditions and Tax Reform According to PKP Cargo CEO

As an example, Wasilewska–Semail cited value-added tax (VAT), which PKP Cargo’s analysis identified as a significant factor influencing decisions on the type of transport chosen. In Germany, VAT on transport and logistics services is different—and more favourable—than in Poland. There are substantial discrepancies, such as a 4% VAT difference on container transport, as well as differences in traction energy charges, railway infrastructure fees, and the simplification of administrative procedures.

According to Wasilewska–Semail, PKP Cargo will advocate for further regulatory changes. The state should not view the issue narrowly from the perspective of rail mode alone. The future lies in intermodal transport, and it is essential to create comprehensively advantageous conditions for it. She warned that, due to the implementation of the Green Deal, no coal will be transported by rail in Poland or elsewhere in Europe after 2040. "If we do not open up new opportunities for our future, all transport to our region of Europe will go through Germany," she cautioned.

PKP Cargo International Aims to Improve Delivery Accuracy

Ahead of the upcoming Translogistica Poland trade fair, Łukasz Grzesło, CEO of PKP Cargo International, also commented on the future of rail freight transport. According to him, the key is to focus on customer expectations, which include a fully transparent transport and logistics process. Customers must be able to track their shipments as easily as courier parcels.

The goal of the railway sector should be to achieve delivery accuracy of around 95%, while also ensuring flexibility in the collection and rescheduling of transport according to customer needs. Increasingly, carbon footprint measurement is becoming a critical factor for clients and often a decisive criterion in large international corporate tenders. However, it is essential for carriers to provide concrete data and evidence, not just general statements about emissions, and to automatically integrate this data into the client’s information systems for reporting purposes.