Freight Down, Hope Up: PKP Cargo Targets Turnaround with New Deals

Poland’s rail freight giant PKP Cargo is fighting to regain control. With losses shrinking, staff costs falling, and new contracts rolling in, the company is pushing forward with a bold restructuring plan—yet declining volumes and market share paint a more complex picture of a sector still under pressure.

Poland’s national rail freight carrier, PKP Cargo, has reduced its net loss and cut employee-related expenses, as it moves forward with a new restructuring plan to be submitted to shareholders and the court in June 2025, according to the company’s latest stock exchange filing.

Pracownicy PKP Cargo S.A. w restrukturyzacji Zachodniego Zakładu Spółki Sekcji Przewozów i Eksploatacji w Szczecinku bronią swoich miejsc pracy.

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The group's Q1 2025 results show signs of stabilisation, with a consolidated net loss of EUR 11.4 million, significantly lower than the EUR 27.6 million loss in Q1 2024. Revenue from transport activities reached EUR 217.2 million, while EBITDA totalled nearly EUR 17.5 million. The operating loss (EBIT) stood at EUR 4.8 million. Notably, the company has reduced employee benefit costs by over EUR 25.7 million year-on-year, from EUR 122 million in Q1 2024 to around EUR 96 million in Q1 2025.

Opening New Corridors and Contract Wins

PKP Cargo is also pursuing new commercial opportunities, especially on north–south corridors between the Baltic and Adriatic Seas, as well as routes to Hamburg and Rotterdam. Plans are underway for a central logistics hub aimed at improving both north–south and east–west rail flows. The company is also finalising contracts for a modern multifunctional rolling stock fleet.

In Q1 2025, PKP Cargo secured contracts worth EUR 55 million, including a EUR 11.3 million agreement to transport coal from Bogdanka mine to the Połaniec power plant (April 2025–March 2027), and new logistics deals with chemical group Azoty, including the option to lease wagons from PKP Cargo's own fleet.

A Strategic Shift to Stem Market Share Loss

PKP Cargo aims to halt the loss of its domestic market share. The company remains the market leader in Poland in terms of freight volume and tonne-kilometres, with 28.1% of transported volume and 26% of transport work in Q1 2025. However, this also marked yet another consecutive quarterly decline.

Rail freight volumes dropped by 2 million tonnes year-on-year, down 3.6% to 52.2 million tonnes, while transport work fell 4.7% to 13.4 billion tkm. PKP Cargo’s leadership is reviewing the profitability of existing contracts and plans to focus growth on specialised and intermodal segments, while low-growth sectors will be serviced under a dedicated cost strategy. Nevertheless, bulk materials remain central to PKP Cargo's operations.

Iron Ore Surges, Coal Continues to Fall

According to Poland’s statistics office, coal still dominates rail freight (32% market share) but continues its steady decline. Other major drops were seen in agricultural goods (-34.2%), refined petroleum products (-12.8%), and coke, briquettes, and industrial gases (-11.5%). Meanwhile, modest gains were recorded in stone, sand, and gravel (+2.1%), and iron ore saw a remarkable rise of 69.9% year-on-year.

Despite the improved Q1 figures, PKP Cargo’s share price on the Warsaw Stock Exchange remained largely unchanged, hovering around PLN 16—roughly the level seen when the restructuring programme was launched a year ago.

Source: PKP Cargo, regular reporting to the Warsaw Stock Exchange