Government looks for options on how to privatize PKP Cargo

Jerzy Śmiałkowski, the deputy president of transport company Cargosped, presented his concept to the government on how the state should privatize his Treasury-owned competitor, PKP Cargo. The plan envisages that 14 companies from the sector, which are partially controlled by the state, should be consolidated into one entity. According to Śmiałkowski, these are all small companies operating in specific market niches, but thanks to the merger they would create an internationally strong group. "This would give them a chance to purchase around 50% of shares in PKP Cargo. And this should happen before 2007, that is before market liberalization. The minority stake could be sold on the bourse. Such a solution would also allow the state to maintain its stake in this strategic part of the economy," said Śmiałkowski. On the other hand, Infrastructure Minister Krzysztof Opawski announced that before privatization, PKP Cargo has to undergo serious restructuring, but every idea is worth considering. (Puls Biznesu, p. 5) A.K.