PKP restructuring to create one regional company

Contrary to expectations, just one and not the predicted ten or more regional transportation companies will be created under the restructuring of Polish State Railways (PKP). The new regional operator will receive property valued at zl.948 million, and will be responsible for providing passenger transport services based on the country's 16 voivodships. PKP chairman Krzysztof Celiski justified the creation of a single company by pointing to the easier flow of subsidies from both state funds and the railway budget. Under the law on the commercialization, restructuring and privatization of PKP, regional passenger transport will be subsidized by some zl.300 million in 2001, a figure that will rise to at least zl.800 million in 2004 and 2005. The management of PKP will complete changes to the company's structure by the end of June. (Puls Biznesu, p. 4) M.T.