Budget cuts to prevent PKP privatization hitting the buffers

Grupa PKP's management board is targeting the Cargo, Przewozy Regionalne and InterCity subsidiaries in a cost-cutting exercise to increase profits by 2-3%. However, if Cargo's current investment plans come off, it may enjoy a much higher income. "It will be known by December whether Cargo will become the new owner of the German Ruhrkohle," said PKP management board member, Janusz Lach. Lowering costs by 3-5% will depend on acquiring additional budget funds needed to maintain the power network and expand the fleet. After nine months of 2004 PKP SA lost about zł.1 million. The best result in the group was posted by Cargo that enjoyed a profit of zł.80 million. InterCity lost as much as zł.40 million. (Puls Biznesu, p. 11) D.W.