PKP Cargo signs PLN 1 bln deal with ArcelorMittal
22:50
State-controlled freight operator PKP Cargo has signed a deal with Poland’s largest steel producer ArcelorMittal for the transportation of 35 million metric tons of raw materials.
The deal, signed on Monday, is worth PLN 1 billion, and will see PKP Cargo deliver a minimum of 11 tons annually for ArcelorMittal. The contract is set to last until at least June 2017
PKP Cargo will transport raw materials used by ArcelorMittal, such as coke, lignite, lime as well as other metals and chemicals. Three subsidiaries of the ArcelorMittal group are to benefit from the deal, including ArcelorMittal Poland, ArcelorMittal Warszawa and Czech-based ArcelorMittal Ostrava.
During 2013, PKP Cargo transported a total of 114 million tons for its entire client base. The company is the largest of its kind in Poland, holding a 48.23-percent market share in January 2014, and is the EU’s second largest – after Germany’s Deutsche Bahn – rail freight operator.
ArcelorMittal Poland is the country’s largest steel producer, comprising some 70 percent of the country’s industry potential. It owns five units in Poland, mostly in the southern industrial region of Silesia.
