The Fall of a Titan: PKP Cargo’s Sharp Decline Sparks Political Feud

Thousands of jobs at risk, wagons sent to scrap, and a restructuring plan submitted without union consent. PKP Cargo, once Poland’s flagship rail freight operator, is navigating its greatest crisis in decades—under judicial supervision and political fire.

The Management Board of PKP CARGO S.A., currently undergoing restructuring, announced on 30 June 2025 that the company’s appointed administrator has submitted a restructuring plan to the competent court. The plan aims to restore the rail operator’s financial health and full ability to meet its obligations. PKP Cargo, listed on the Warsaw Stock Exchange, is 33% owned by its parent company, the national rail operator PKP S.A.

The plan outlines the following priorities:

• Short-term financial stabilisation through measures such as cash flow optimisation, renegotiation of financial obligations, cost-cutting, and revenue growth—including deeper collaboration with key clients;
• A series of comprehensive restructuring measures extending through 2031;
• A strategic focus on rail freight operations, with a gradual exit from declining markets, particularly the coal transport segment;
• A shift towards intermodal and specialised transport, which offers higher margins and is less susceptible to economic fluctuations.

A Survival Strategy, Not a Comeback Plan

The core of the restructuring strategy is to implement its most critical measures between July 2025 and December 2026. If successful, PKP Cargo expects to reach an EBITDA of approximately EUR 306 million by 2031, reduce the share of labour costs from 45% to 31% of total expenses, decrease reliance on coal (to 13% of revenue), and grow intermodal transport to 19%.

Among the most contentious measures is workforce restructuring, which includes a new remuneration system that could yield cost savings similar to the mass layoffs planned for 2025. Implementation hinges on union agreement to shorten the collective notice period from 11 June 2026 to 31 October 2025.

However, PKP Cargo missed its 30 June deadline to secure a collective labour agreement and has asked the court to extend it until 31 July. Unless agreed, the previously announced mass layoffs will proceed. A standoff has now developed: the company is relying on court oversight to shield it from union resistance, while unions threaten strike action. Union leaders argue the burden of restructuring falls unfairly on employees, especially given the controversial scrapping of wagons, previously reported by RAILTARGET.

Rolling Stock to Scrap, Workers to the Street

The restructuring plan also reveals that PKP S.A., as PKP Cargo’s majority shareholder, is considering a loan of up to EUR 118 million to support ongoing operations. These funds would not be used to repay creditors. While projections for future financial performance are included, PKP Cargo has stated these do not constitute an official financial forecast.

Access to the full plan has been restricted to creditors through Poland’s National Debt Register (KRZ), administered by the Ministry of Justice.

PKP CARGO upada, zwalniani są pracownicy, wyprzedawany jest majątek, ale kiedy zapytałem o szczegóły tej wyprzedaży usłyszałem, że…. to tak na rozpoznanie rynku🙈 #pkpcargo pic.twitter.com/XkQQpwp4TF

— Mariusz Krystian (@KrystianMariusz) June 24, 2025

Market Share Collapse and Political Finger-Pointing

Back in 2012, PKP Cargo controlled 50% of Poland’s rail freight market by weight and 60% of total rail freight performance. By 2023, its market share had fallen to 33.1% by weight and 34% in performance. In Q1 2024 alone, the group reported a loss of EUR 28 million, compared to a profit of EUR 24 million in Q1 2023. Revenues fell to EUR 280 million, down from EUR 372 million a year earlier.

PKP Cargo’s market capitalisation has collapsed from EUR 1.1 billion to just EUR 141 million. Following the plan’s submission, the Warsaw Stock Exchange reacted with a slight dip in share value to EUR 3.72. Throughout 2025, shares have fluctuated between EUR 3.29 and EUR 4.47. The crisis has escalated into a bitter political dispute, with Civic Platform and the opposition Law and Justice party blaming each other for the downfall of Poland’s once-dominant rail freight operator.

Sources: PKP Cargo, Warsaw Stock Exchange