Study calls for faster rail action
The report, compiled by the international consultancy firm The Boston Consulting Group (BCG), suggests that Polskie Koleje Państwowe (PKP) risks bankruptcy if it cannot shrug off its so-called 'universal service obligations': The expectation of the government and media, in particular, that PKP must service unprofitable lines in order to provide a public good.
As the market liberalizes, private-sector competition - often from abroad - will enter the market and cherry-pick the most profitable routes, such as the high-volume traffic line between Gdańsk and Warsaw. According to the report, Poland's service obligation is 60 percent higher than Spain's, while its subsidies are 83 percent lower.
Germany's rail business is the most dynamic in Europe, the report suggests, and will present a major threat to PKP by 2006 - when there will be no restrictions on competition. In a future of continental logistics consolidation, the German-based Railion looks on course to dominate Central Europe from Finland to Bulgaria by 2015. Poland has only until 2006 to take advantage of the rapidly growing Russian transport market.
However, one observer close to Deutsche Bahn (DB) claims that, in passenger transport at least, the major focus of the Germans will not be to aggressively compete with their weaker Polish rivals, but to unite with them to fight the threat posed by competition from road transport, particularly the coach company Polski Express.
The European Union is pushing - through incentives and direct aid - to promote rail transport and reduce the level of pollution and congestion caused by Western Europe's comprehensive road network. The Polish government, by contrast, is looking to use EU structural funds to develop motorways rather than its rail network.
The argument in the west is that road construction increases demand for road transport, so congestion and pollution is inevitable, therefore, rail transport should be promoted. In Poland, a conspicuous lack of highways is the bane of the average traveler and distribution company alike, and there is little patience for the EU vision of keeping transport on the tracks and off the roads.
But according to Peter Ulrich of BCG, there are key opportunities that are still being missed and will soon be key to rail company survival. In the passenger business, the "...suburban rail networks are still underdeveloped" in Polish cities. In contrast to a general Western European trend, Polish cities are still being suburbanized "...improving the position of rail as a choice of transport".
Furthermore, intercity rail travel is still far faster than road and far cheaper than air, but there is almost no marketing to send this message to the traveling population. 'Political marketing' or the lobbying of public opinion, is also a key strategy, currently omitted by PKP that could be harnessed for its future survival.
Finally, "...financing will be the key challenge," says Ulrich. "PKP... has to focus on the sustainable part of the business and (look for) intelligent financing opportunities."
As the market liberalizes, private-sector competition - often from abroad - will enter the market and cherry-pick the most profitable routes, such as the high-volume traffic line between Gdańsk and Warsaw. According to the report, Poland's service obligation is 60 percent higher than Spain's, while its subsidies are 83 percent lower.
Germany's rail business is the most dynamic in Europe, the report suggests, and will present a major threat to PKP by 2006 - when there will be no restrictions on competition. In a future of continental logistics consolidation, the German-based Railion looks on course to dominate Central Europe from Finland to Bulgaria by 2015. Poland has only until 2006 to take advantage of the rapidly growing Russian transport market.
However, one observer close to Deutsche Bahn (DB) claims that, in passenger transport at least, the major focus of the Germans will not be to aggressively compete with their weaker Polish rivals, but to unite with them to fight the threat posed by competition from road transport, particularly the coach company Polski Express.
The European Union is pushing - through incentives and direct aid - to promote rail transport and reduce the level of pollution and congestion caused by Western Europe's comprehensive road network. The Polish government, by contrast, is looking to use EU structural funds to develop motorways rather than its rail network.
The argument in the west is that road construction increases demand for road transport, so congestion and pollution is inevitable, therefore, rail transport should be promoted. In Poland, a conspicuous lack of highways is the bane of the average traveler and distribution company alike, and there is little patience for the EU vision of keeping transport on the tracks and off the roads.
But according to Peter Ulrich of BCG, there are key opportunities that are still being missed and will soon be key to rail company survival. In the passenger business, the "...suburban rail networks are still underdeveloped" in Polish cities. In contrast to a general Western European trend, Polish cities are still being suburbanized "...improving the position of rail as a choice of transport".
Furthermore, intercity rail travel is still far faster than road and far cheaper than air, but there is almost no marketing to send this message to the traveling population. 'Political marketing' or the lobbying of public opinion, is also a key strategy, currently omitted by PKP that could be harnessed for its future survival.
Finally, "...financing will be the key challenge," says Ulrich. "PKP... has to focus on the sustainable part of the business and (look for) intelligent financing opportunities."
