Tight grip to be held on PKP monopoly to give state-owned carrier an edge

The Transportation Ministry will not allow private railway carriers, which were awarded the licenses, to start operating before debt ridden Polish State Railways (PKP) planned commercialization takes place. The market will open up only after Poland joins European Union structures, said minister Jerzy Widzyk. The Sejm's sub-commissions are studying a draft bill concerning PKP's restructuring, privatization and commercialization and will review a 1998 decision by the previous Transportation minister to issue over 20 licenses to private rail carriers. Decisions made by the former minister do not fulfill the required formalities, such as establishing the costs of using PKP's infrastructure. PKP fears the premature activation of licenses could squeeze it out of certain markets and mentions petroleum storage and transportation company Dyrekcja Eksploatacji Cystern (DEC) which is about to be taken over by GATX Rail Overseas Holding Corporation as an example. This company could, according to the Ministry dominate the lucrative railway freight business, which will yield PKP zl. 5.5 billion in revenues this year. (Rzeczpospolita, July 8-9, page B1) P.S.