Polish Rail Freight Records Third Consecutive Month of Growth, UTK Data Shows

Rail freight traffic in Poland has now grown for the third consecutive month, according to the latest figures from the country's rail regulator, UTK. The positive trend comes as PKP Cargo continues its court-supervised restructuring, strengthens its market position and updates its debt restructuring proposals for creditors.

Polish Rail Freight Continues Its Upward Trend

In May 2026, 19.1 million tonnes of freight were transported on Poland's railway network, representing a 6.1% year-on-year increase. Growth was even stronger when measured in transport performance. Rail freight reached almost 5.2 billion tonne-kilometres, an increase of 10.4% compared with May 2025.

Against this improving market backdrop, PKP Cargo S.A., currently undergoing restructuring under court supervision, has continued to strengthen its position. During the first half of 2026, the company increased its market share to 27.40% by freight volume and 27.59% by transport performance.

Together with similar trends reported across other Central European markets, the latest figures point not only to an improving economic environment but also to a gradual strengthening of rail freight's position within the wider freight transport sector.

PKP Cargo Updates Its Restructuring Proposal

On 30 June 2026, PKP Cargo submitted an updated restructuring proposal to the court overseeing its restructuring proceedings. The document sets out revised rules for restructuring the company's liabilities and is intended to move negotiations with creditors closer to a final agreement.

One of the most significant changes concerns financial creditors, who are now offered cash repayment of their claims. At the same time, debt-to-equity conversions would be limited exclusively to state-controlled railway companies.

The cash element of the settlement is expected to be financed through the company's recapitalisation, including a share issue previously approved by shareholders at an extraordinary general meeting.

According to PKP Cargo, the revised proposals respond directly to creditors' expectations. By restricting debt conversions to state-controlled railway entities while offering cash settlements to financial institutions, the company aims to reduce debt sustainably while preserving sufficient resources to finance future operations and investment.

"PKP Cargo's priority has also been to shorten the repayment horizon and increase the realistic chances of successfully implementing the agreement," said Zbigniew Prus, President of the Management Board of PKP Cargo.

Part of the Debt Will Be Converted into Equity

One of the central elements of the restructuring plan is the conversion of part of the outstanding debt into newly issued shares.

Under the proposal, PKP Cargo would increase its share capital by approximately EUR 6.8 million through the issuance of more than 6 million new shares, each with a nominal value of EUR 0.23 and an issue price of EUR 2.80. The total value of claims to be converted exceeds EUR 81.5 million.

Six Creditor Groups

The updated restructuring proposal divides creditors into six separate groups, each subject to different settlement conditions.

• Group I (tax authorities): repayment of 75% of the principal, with the remaining balance, interest and ancillary costs written off.
• Group II (commercial creditors with claims below EUR 11,650 and leasing companies): repayment of 100% of the principal, while all interest and ancillary costs are cancelled.
• Group III (banks, financial institutions and commercial creditors with claims above EUR 11,650): repayment of 50% of the principal, with the remainder, interest and additional costs written off.
• Group IV (state-controlled railway companies): 50% of claims converted into PKP Cargo shares, while the remaining 50%, together with all interest and ancillary costs, would be written off.
• Group V (social insurance institutions): repayment of 100% of principal and ancillary claims.
• Group VI (PKP Cargo Group companies and other affiliated creditors): repayment of 5% of the principal, with the remainder, including interest and ancillary costs, cancelled.

Under the proposal, payments to all creditor groups would be made in a single instalment no later than the final day of the twelfth month following the court's approval of the restructuring agreement.

The updated proposals will now be reviewed by the Creditors' Council. Because of the revisions and the original deadline for issuing its opinion, PKP Cargo has asked the court to extend the review period until 31 August 2026.

_{Soruces: PKP Cargo; Kolejowy Portal}