PKP to spin off its Intercity and Energetyka subsidiaries

Polish State Railways (PKP) has created two new subsidiaries, PKP Energetyka, dealing with transit-power distribution, and PKP Intercity, concentrating on express passenger services such as Intercity, Eurocity, and sleeping cars. Both companies were technically established yesterday, but the registration procedures can last several months. The base capital of each company is zl.50,000, but according to PKP board member Krzysztof Niemiec, after the completion of registration procedures, both subsidiaries will have capital amounting to hundreds of millions of zlotys. PKP Intercity will take over 130 trains and 1,300 cars, employing about 1000 people. The company will have to support itself, but that should not prove difficult since this part of PKP's activity is already profitable. Last year PKP recorded traffic of 60 million passengers, of which 10 million used Eurocity, Intercity or express trains. Energetyka will supply electricity to both PKP and external clients, employing about 10,000 people. PKP will possess 100% ownership of both PKP Energetyka and PKP Intercity. (Rzeczpospolita, p. B3) A.D.