PKP plans to launch new wave of spin-offs this year

Polish State Railways (PKP), having successfully spun off three regional railway lines and a personnel consultancy, is looking to do the same with five more subsidiaries, among them its telecom, pharmaceuticals and energy interests. According to PKP president Krzysztof Celinski, PKP Telekomunikacja is to become independent in August. PKP Intercity, which operates Poland's most profitable long-distance passenger connections, is also to be included in the next wave of spin-offs. As part of a decentralization process, the state railway behemoth plans to divide itself gradually into numerous smaller entities, almost all of which will be privatized. For example, the Tri-city regional commuter line SKM could be sold off even before the end of this year. The only part of PKP that will remain in state hands will be a company to be known as Polish Railway Lines (PLK), which will be responsible for railway infrastructure. (Puls Biznesu, p.11) T.J