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Strike hits coal, oil cos

Several coal mines were reported to have cut output because of the railway strike and oil companies were unable to make shipments. "Unfortunately the situation is not good, we are still blocked," said Stefan Garus, commercial director with Dyrekcja Eksploatacji Cystern (DEC), which manages rail shipments of oil. "We live from shipments. It will be difficult to recover."
DEC transports on average 23,000-26,000 tons of fuel a day earning estimated revenue of zl 250,000 a day, Garus said. But the company had virtually all shipments blocked from Wednesday through Friday, with only one train dispatched daily.
As a result of the strike, DEC wasn't able to reload two tankers hired by Scandinavian oil companies Preem Petroleum and Neste, which are docked at the Gdynia port. Preem and Neste will have to pay for keeping ships in the dock and they will claim the money back from DEC, Garus said. In turn, DEC said it would hold PKP responsible for the loss, which Preem estimated at zl. 105,000.
The strike affected slightly more than half of all PKP's passenger and cargo services. Late last week the government and railways union were continuing negotiations to end the work stoppage.
Other oil companies also had problems, but continued production. Petrochemia Plock, which ships 30% of its products by rail, can store output for two weeks, said Ireneusz Wypych, public relations manager. But he said Petrochemia may have to cut production if the strike runs longer.
A prolonged strike was the main worry of industry last week. While steel mill Huta Katowice continued production, its shipments were stuck near the factory. "We have on-time contracts and if there are delays we will pay penalties," said Jaroslaw Zwolinski, a Huta spokesman. And if supplies don't resume this week, it too may have to cut back production.
This fear was echoed by car maker Daewoo-FSO. "If the strike extends we will be forced to stop production," said Krystyna Danilczyk, a Daewoo-FSO spokesman.

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