Warsaw (Puls Biznesu) – PKP PR, Poland’s state-owned regional railways, had PLN 321m (EUR 78.6m) of loss in the January-May period, or PLN 40m better than planned. Ticket sales were lower than expected however and amounted to PLN 378m instead of PLN 400m. “We do not compare this year’s results to those of 2004 because Koleje Mazowieckie were founded on the basis of part of our company taking over some routes. Therefore, our financial results have improved but not as much as it could have. Local authorities paid us PLN 111m instead of PLN 170m”, Leszek Ruta, PKP PR CEO explained. He expects the loss to amount to PLN 500m at the year-end. “We need at least three years to balance the company’s operations. Maybe in two years, we will break-even in regional transport”, he estimated.
The management is anew starting negotiations with local authorities to increase subsidising. Leszek Ruta refused to give details but PLN 403m, promised before is 40 percent too little. The company generates most losses in routes between 17 of Poland’s regions and abroad. The government failed to give the company PLN 50m promised earlier. “Unless we receive the money, some of the trains will be withdrawn”, the CEO stressed.
PKP PR is modernising its cars. Passenger cars are to be modernised as well as suburban cars. 11 new cars are to be bought. PKP PR has over PLN 400m for those projects but it’s still too little. “We spend our own sources of PLN 100m for modernising each year. To get other funds, including EU ones, we need help from the government. We have applied for sources to the state’s budget. Some local authorities are ready to finance those projects”, the CEO said.
(PLN 1 = EUR 0.245)Poland/Enterprises/Railways