Can PKP Cargo’s New Leadership Save the Company? Bold Restructuring Plan Unveiled

The new management at PKP Cargo is setting out a bold restructuring plan and strategic vision aimed at stabilizing the company and restoring profitability by 2028. Will their efforts be enough to put Poland’s national freight carrier back on track?

PKP Cargo’s new CEO Agnieszka Wasilewska-Semail and Vice President for Restructuring Paweł Miłek gave their first major interview to the Polish economic and financial daily Parkiet on March 4. Having taken office on February 1, 2025, their mission is to stabilize the company, update its development strategy until 2028, and present a realistic restructuring plan to shareholders.

PKP Cargo and the Czech Market

According to CEO Wasilewska-Semail, the Czech rail freight market has shrunk by several percent over the past two years. The Czech Republic is primarily a transit country for PKP Cargo, meaning most goods passing through are not destined for the domestic market. However, PKP Cargo’s performance reflects the overall economic stability of Central Europe.

PKP Cargo maintains a strong position in the Czech Republic through PKP Cargo International (formerly AWT), which has undergone restructuring and is gradually regaining market share. This subsidiary also operates in Slovakia, Hungary, and Slovenia, successfully managing regular transport routes between manufacturing plants in the Czech Republic and Slovakia and ports on the Adriatic.

PKP Cargo’s Expansion into Foreign Markets

With the development of the Paskov terminal near Ostrava, located midway between the Baltic and Adriatic seas, PKP Cargo has strengthened its role as a pan-European carrier. CEO Wasilewska-Semail confirmed that this will be a key strategic direction for the company moving forward. However, Germany remains one of PKP Cargo’s top priorities. The East-West corridor from Ukraine through Poland to Germany and the Netherlands is critical for European rail freight, and PKP Cargo aims to strengthen its position along this route.

In Germany, the company has gradually expanded its freight services to German and Dutch ports. The next step is to increase operations on the Czech-German corridor, one of Central Europe’s most vital trade routes, where PKP Cargo plans to handle the entire transport chain.

Challenges and Market Trends

PKP Cargo’s leadership anticipates a continued decline in coal transport volumes. The EU’s industrial policies bring uncertainties for the steel industry, while decarbonization measures and U.S. tariffs on steel and aluminum could create challenges for European rail freight operators. On the other hand, demand for construction materials and aggregates remains stable, and the chemical transport sector is expected to grow. Additionally, EU tariffs on fertilizers from Russia and Belarus could benefit PKP Cargo by increasing domestic agrochemical production and transport. However, intermodal transport is stagnating due to Europe’s economic slowdown, and PKP Cargo does not foresee growth in this sector—neither on domestic Polish routes nor along the Eurasian corridor.

PKP Cargo’s Restructuring and Future Strategy

The new strategy and restructuring plan aim to regain lost market share and restore profitability. In 2025, PKP Cargo will focus on service quality improvements, better transport planning and monitoring, and optimizing operational processes. The company has also launched action plans and projects to halt its market share decline and improve financial performance. However, significant improvements in operational profitability are not expected until late 2025.

Judicial Oversight of PKP Cargo’s Restructuring

For the first time, PKP Cargo has detailed how judicial supervision over its restructuring process works in practice. A court-appointed overseer attends board and supervisory council meetings. Since July 2024, this oversight has included:

• Monitoring partial employee reorganizations
• Approving the termination of unprofitable external contracts
• Reviewing the company’s movable and immovable assets, receivables, and cash flow

A comprehensive list of all claims against PKP Cargo serves as the foundation for restructuring activities, and all decisions must be reported to the court with supporting financial statements. The restructuring plan is being developed in collaboration with professional external consultants.

Nowa Prezes #PKP Cargo zakłada powrót do min. 35% udziału w rynku w ciągu 3 lat wobec 28,5% obecnie.

Prawdopodobnie (komentarz👇) mowa o transportowanej masie towarów, obecnie to 5 mln ton. Gdy PKPC miało udział 35% w rynku przewoziło 40-50% więcej.
//t.co/Vp7jb1YUPz

— Marcin Markiewicz, CFA (@MarcinMarkiewix) March 5, 2025

PKP Cargo: Poland’s National Rail Freight Carrier

PKP Cargo is Poland’s national rail freight operator. The company’s shares are publicly traded on the Warsaw Stock Exchange, with its parent company PKP holding a 30% stake. The 2024 financial results will be published in late April. PKP Cargo consists of 20 subsidiaries, employs several thousand workers, and operates a fleet of approximately 1,500 locomotives and nearly 50,000 freight cars. Since June 2024, the company has been undergoing a court-supervised restructuring process, as previously reported by RAILTARGET.

Source: Parkiet