Warsaw (Puls Biznesu) – PKP Cargo wants to cut costs and increase transport. Its new CEO Wladyslaw Szczepkowski presents its strategy.
Wladyslaw Szczepkowski, who has been the CEO of PKP Cargo for a month, has already submitted its strategy for the company to the supervisory board. First results of his ideas may appear this year.
“It concerns costs mainly. If we can pay less for some things or may not buy something At all, we will verify it within 12 months. We will look for the cheapest deliverers. We will look for savings in cutting the time of tenders. I expect to cut costs by 10 percent”, Wladyslaw Szczepkowski said.
However, over 30 percent of fixed costs are those connected with the access to railway network.
“The only way to save money in fixed spendings is to limit the payment fund. We are not going to fire people. The signals from the owner say not to cut employment”, the CEO added.
He refused to publish results for 2005. In 11 months of last year, the company transported 137m tones of cargo, which was less than in the same period of 2004. In 2004, PKP Cargo, the leading cargo railway company, had PLN 109m of net income against PLN 6 billion of sales.