ČD Cargo Chief: Stable Today, But Part of Rail Freight Needs State Support

Czech freight operator ČD Cargo remains financially stable and self-financed, according to its CEO. However, chairman Radim Ječný warns that parts of rail freight transport cannot survive in the long term without public support.

You have been serving as Chairman of the Board of ČD Cargo for your second month. In what economic and operational condition did you take over the company?

The company is financially and operationally stable. Every day we have 300–400 trains on the network, and our locomotives with our crews can be found in Hamburg and Polish Baltic ports, as well as in Austria, Slovakia, and Hungary. From this brief overview, the most important thing is clear—the company has customers who are interested in our services. Most of them are long-term business partners who remain loyal in both good and difficult times.

The situation on the rail freight market is not easy. How does ČD Cargo perform compared to European competitors, such as national operators in Germany, Austria, or Poland?

Compared to other national operators in our region, we perform very well. We are the only one in our wider region that does not receive any public support; we are self-financing. Even our market share, oscillating around 50%, is something some neighbouring national railways could envy.

What are your priorities in leading the company? Will you focus more on fleet modernisation or on operational and business optimisation?

In the previous period, the company invested heavily in renewing its locomotive fleet, partly due to the state-mandated introduction of the European Train Control System (ETCS). At present, we consider these investments completed and are focusing primarily on optimising our costs, including in the single wagonload segment.

The company has recently undergone significant restructuring involving reductions in staff, wagons, and locomotives. How did you perceive this process?

This restructuring was necessary. In recent years, transported volumes have declined due to factors beyond ČD Cargo’s control. Transport of energy and heating coal is decreasing, Liberty Steel Ostrava has stopped pig iron production, and the bark beetle crisis has ended. All this led to the need for restructuring steps to ensure the company’s long-term sustainability.

Is rail freight today price-competitive with road transport without state support? What needs to change?

I would divide the question into two parts, based on our two main products: block trains and single wagonload traffic.

For block trains, our competitors are other rail operators, and road transport is neither a price nor logistical substitute. The situation is different for single wagonload traffic—smaller groups of wagons. There, we are not competitive with road transport in the long term.

That is why we value the approximately 10 million tonnes we transport annually in this segment. However, it is a segment where we are consistently making a loss, and in my opinion, its long-term sustainability without public support is impossible. A simple discount on track access charges is not sufficient.

The decline in traditional cargo, especially coal, has significantly affected the sector. How does ČD Cargo plan to replace this loss?

As in the past, we must look for new commodities and new customers. The transport market is constantly changing. Sometimes slowly, sometimes rapidly. Transport of maritime containers continues to grow dynamically. We have a strong position in the automotive sector, where we face challenges related to the transition to electromobility. We also expect new flows in biomass transport and, in the future, municipal waste transport after the end of landfilling.

Rising fuel prices are a major issue. How is ČD Cargo responding?

Rail transport is inherently much more energy-efficient than road transport. Moreover, most of our traction is electric, and thanks to our annual purchasing system for 2026, we do not expect sharp increases. However, part of our network is still not electrified, and we had to pass increased costs on to customers from 3 April in the form of a fuel surcharge. Our business partners understand the situation, and the vast majority have accepted these surcharges. I believe this is only a short-term fluctuation and that diesel prices will return to lower levels.