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PKP CARGO: Coal is our priority! How's the company preparing to perform additional coal transports?

PKP CARGO: Coal is our priority! How's the company preparing to perform additional coal transports?
photo: Archive/PKP CARGO: Coal is our priority! How's the company preparing to perform additional coal transports?
02 / 08 / 2022

PKP CARGO S.A. will be prepared to perform additional transports of coal purchased abroad by Węglokoks and PGE Paliwa, says Dariusz Seliga, the company's president. This task has been set for PKP CARGO by Prime Minister Mateusz Morawiecki.

In total, Węglokoks and PGE Paliwa will buy 4.5 million tons of coal for households. The fuel will be brought to Poland by ship, and from the ports, it will have to be distributed across Poland by December 31 this year at the latest. And it is precisely this task that PKP CARGO is to shoulder. It means that the company has to organize the transport of 4.5 million tons of coal over and above the amount of coal it has committed to transport this year on behalf of mines, power plants, thermal power plants and other customers.

Preparations for the additional transports are already underway at PKP CARGO. - We have not waited for Prime Minister Mateusz Morawiecki's decision to do so, as we know that both suppliers and coal customers expect that PKP CARGO, as the largest rail carrier in Poland, will take care of handling these cargoes. However, the head of government's decision gives us more options for action," stresses CEO Dariusz Seliga. And he adds that the company is in constant contact with PKP Polish Railways and port authorities so that by coordinating the activities of these institutions, it will be possible to increase the number of coal trains serving port wharves and running on rail routes. Cooperation with other carriers is also possible for this purpose.

The head of PKP CARGO explains that the company will provide an adequate number of wagons and shunting and line locomotives to carry coal. A few months ago, among other things, a decision was made to increase this year's plans to overhaul coal cars by several hundred units. The company will also ensure that traction teams and other workstations necessary in the transportation process are properly staffed.

"PKP CARGO employees are aware of the responsibility and importance of this task, and certainly, no one will need to be mobilized for effort. Polish railwaymen have more than once proved that in difficult moments the state and society can rely on them. This is the situation we are facing now, as the need for additional imports of several million tons of coal from outside Europe is one of the consequences of the war caused by Russia in Ukraine," argues Dariusz Seliga.

By securing coal transportation, PKP CARGO performs important strategic and social tasks. It is because the company is a crucial element of Poland's energy security system, and, at the same time, in this particular case, it also fulfils an important social task by ensuring winter fuel supplies to hundreds of thousands of Polish families.

President Dariusz Seliga and board members: Marek Olkiewicz (Operations), Jacek Rutkowski (Commercial), Maciej Jankiewicz (Finance) and Zenon Kozendra (Employee Representatives) announce that despite the priority for coal transportation, PKP CARGO will strive to fulfil all contracts signed with customers for the transportation of other goods. Admittedly, the prime minister's decision allows the carrier to limit such contracts for the duration of coal transport and for PKP CARGO to pay compensation by the Treasury for lost revenues. But Dariusz Seliga hopes it will not be necessary to reach for this instrument and wants the possible consequence of this decision to be only delays in the execution of the company's other contracts.

The government wants to secure the interests of PKP CARGO and the company's shareholders in this way. The agreement on possible compensation is being negotiated by PKP CARGO with the Ministry of State Assets. It intends to establish the level of compensation for the company's potential losses. Once the agreement is signed, its material findings will be immediately made public by the company.


Source: PKP CARGO Press Releases