PKP Intercity to invest PLN 2.5 bln in modernization

Passenger rail company PKP Intercity is earmarking PLN 2.5 billion until 2020 for the purchase and modernization of 510 wagon and 60 locomotives, as well as the upgrading of 15 servicing stations, according to Jarosław Oniszczuk, a member of the board of PKP Intercity.

Funds for this investment are to come from PKP SA (which recapitalized Intercity to the tune of PLN 1 billion), the company's own equity, and EU support.

PKP Intercity's rolling stock strategy envisages modernization of 455 wagons and purchase of 55 new units. The company will also purchase 40 electric and diesel-electric locomotives, and an additional 20 electric EU/EP07 series locomotives wits speeds of 160 km/h. The goal of the new strategy is an even larger increase in PKP Intercity passenger numbers. From January to August this year. PKP Intercity transported 25.6 million passengers, up 5 million y/y from 2015, a 26 percent increase. The company expects to transport around 37 mmillion passengers in the whole of 2016, compared to 31.2 million in 2015. It earned PLN 2.1 billion in 2015, up PLN 321 million from 2014, an 18 percent increase.