Polish State Railways fights losses with property sales

Polish State Railways (PKP) recorded losses last year totaling zl.2.1 billion, with debts exceeding zl.7 billion, according to initial assessments. PKP's management board attributes the losses partly to employment restructuring, emphasizing that losses were lower by zl.379.6 million than in 1999, even though higher than anticipated (zl. 58.8 million, or 2.8%). This year PKP expects to get about zl.310 million from the sale of some of its real estate, assuming the transactions are approved by the Transport Minister. So far, PKP has closed tenders for the sale of land surrounding the Krakow railway station and the Gdanski Station in Warsaw, as well as the property of a health resort under construction in Kolobrzeg; it expects to receive a total of zl.122 million for the three deals. Recently, PKP cancelled the tender to choose a developer for the property surrounding the Central Railway Station in Warsaw. A new tender will be announced next month, with a $1million guarantee required from the successful company that it will fulfill the terms and conditions of its bid. (Rzeczpospolita, Mar. 30-April 1, pp..B1,B3) M. S-C.