Rail co's start reform
Last week alone, the Chicago-based Rail World subsidiary Rail Polska (RP), the Swedish CarConTrain and the state rail monopoly Polskie Kolejow Państwowe (PKP) all announced major restructuring programs.
PKP's zł.4.5 bn plan encompasses the upgrade or construction of nine logistics centers, and according to PKP Cargo spokesman Janusz Mincewicz, could involve the direct involvement of a foreign investor, especially because at this point there are complaints - most evident in the strike threat last month - that there are not enough public finances in place to ready PKP for the harsh competition of an open market.
According to a Boston Consultancy Group rail industry report in November, the development of logistics centers is a major strategic opportunity in the changing sector, as the controllers of hubs will not only be the chief benefactors of anticipated surges in trans-continental volume, but will also position themselves as gatekeepers who can give preferential treatment to freight handling partners.
The first new PKP Cargo center to be constructed will be at Małaszowice near the Belorussian border, where new customs warehouses, depots and infrastructure will be built, at a estimated minimum cost of zł.200 million.
Another rail terminal will be constructed from July 2004 by the Swedish firm CarCon Train, in a €20 million development in Huta Krzeszowska. Industrial plants 80km away in the Podkarpacie region will be serviced by the terminal, as well as freight trade between Poland and the Ukrainian and Russian markets.
Meanwhile, the Chicago-based Rail World Inc.'s subsidiary Rail Polska has also announced its intention to purchase of up to seven transport companies, in deals forecast to value zł.110 million next year, although this will not involve the acquisition or construction of hubs. Rail Polska's stated goal has been to take an active part in the privatization of PKP Cargo, with an objective of capturing 10 percent of the rail cargo market. But with the privatization process on hold, Rail Polska has had to focus on service specialization.
"At this stage, we want to specialize on rail sidings for heavy industry," says Janusz Wellman, deputy president of Rail Polska. "...we are not developers, but transporters." According to Wellman, RP's parent company Rail World does have the resources to offer a serious bid in the eventual PKP privatization process. However, Rail World would be more interested in a bid for an entire sell-off, rather than a piecemeal purchase of sections of PKP Cargo.
From a position of expertise with heavy-industry clients, Wellman hopes to stave off looming competition. "We are concerned about competition from the German companies and other Europeans," says Wellman. "That is why we our reorganizing our business now." With opportunity in mind, Wellman hopes that co-operation with larger European partners will be viable well before the liberalization watershed of 2006. "Partnership could be good for both sides. We have a license to operate, and they do not."
PKP's zł.4.5 bn plan encompasses the upgrade or construction of nine logistics centers, and according to PKP Cargo spokesman Janusz Mincewicz, could involve the direct involvement of a foreign investor, especially because at this point there are complaints - most evident in the strike threat last month - that there are not enough public finances in place to ready PKP for the harsh competition of an open market.
According to a Boston Consultancy Group rail industry report in November, the development of logistics centers is a major strategic opportunity in the changing sector, as the controllers of hubs will not only be the chief benefactors of anticipated surges in trans-continental volume, but will also position themselves as gatekeepers who can give preferential treatment to freight handling partners.
The first new PKP Cargo center to be constructed will be at Małaszowice near the Belorussian border, where new customs warehouses, depots and infrastructure will be built, at a estimated minimum cost of zł.200 million.
Another rail terminal will be constructed from July 2004 by the Swedish firm CarCon Train, in a €20 million development in Huta Krzeszowska. Industrial plants 80km away in the Podkarpacie region will be serviced by the terminal, as well as freight trade between Poland and the Ukrainian and Russian markets.
Meanwhile, the Chicago-based Rail World Inc.'s subsidiary Rail Polska has also announced its intention to purchase of up to seven transport companies, in deals forecast to value zł.110 million next year, although this will not involve the acquisition or construction of hubs. Rail Polska's stated goal has been to take an active part in the privatization of PKP Cargo, with an objective of capturing 10 percent of the rail cargo market. But with the privatization process on hold, Rail Polska has had to focus on service specialization.
"At this stage, we want to specialize on rail sidings for heavy industry," says Janusz Wellman, deputy president of Rail Polska. "...we are not developers, but transporters." According to Wellman, RP's parent company Rail World does have the resources to offer a serious bid in the eventual PKP privatization process. However, Rail World would be more interested in a bid for an entire sell-off, rather than a piecemeal purchase of sections of PKP Cargo.
From a position of expertise with heavy-industry clients, Wellman hopes to stave off looming competition. "We are concerned about competition from the German companies and other Europeans," says Wellman. "That is why we our reorganizing our business now." With opportunity in mind, Wellman hopes that co-operation with larger European partners will be viable well before the liberalization watershed of 2006. "Partnership could be good for both sides. We have a license to operate, and they do not."
