PKP Cargo unveils zl. 5 billion restructuring plan

The largest carrier in the Polish State Railways (PKP) group, PKP Cargo, has prepared a restructuring plan the realization of which by 2006 is to cost almost zl. 5 billion. The company intends to modernize its rolling stock as well as to start co-operation with its key clients. It also promises cost reductions and lower tariffs. The strategy of the changes has been divided into two periods, with the most important target aimed at preventing a decrease in the quantity of freight as well as preparing the company for the launch of its activities onto the free market in the EU. A key to increasing the volume of business will be the preparation of an appropriate structure and organization within the company. At least half of the transport undertaken will involve long-term contracts with the most important customers. "We hope to hold an 85% share of the market," said Jozef Marek Kowalczyk, president of PKP Cargo. (Puls Biznesu, p.4) A.Z.