PKP Cargo ends price war and unfair treatment of its rivals

MG
opublikowano: 08-01-2008, 10:52

Warsaw (Puls Biznesu) – State-owned railway company has new priorities.

 

Wojciech Balczun, member of PKP Cargo supervisory board, has recently been appointed temporary CEO. Tenders to choose the CEO and his deputy will end this month. The former management was fired at the end of last year. Meanwhile, there are lots of important issues going on in the company. Contracts for this year’s railway transport are being signed. PKP Cargo which is more and more adversely affected by private rivals, cannot afford losing further clients. It is in clash with PKP Intercity and PKP PR as far as the price of locomotive lease is concerned. In addition, trade unions demand wage increases.

 

“Negotiations over locomotive lease prices are about to end. We should reach a compromise although it won’t be easy. The prices will be agreed on and not given in advance”, Wojciech Balczun said.

He refused to say, however, how much higher the prices will be. Before, PKP Cargo warned they would be doubled. The temporary CEO is optimistic about wage demands as well. He has experience in negotiations over wages. Last year when PKP Cargo employees protested, he was the social negotiator in the clash between them and their employer. As far as this year’s contracts are concerned, Wojciech Balczun promises a more client-oriented policy.

“We need to speed up sales and marketing departments”, the temporary CEO said.

He promises to end up the price war.

“We have many common businesses with our rivals. We also need to speak one voice as a branch. The market should decide who is better in everyday business”, Wojciech Balczun believed.

 

In 2007, PKP Cargo will have PLN 6bn (EUR 1.7bn) of sales and only PLN 7m of net income.

(PLN 1 = EUR 0.278)

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Podpis: MG

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