PKP railway company wants to fight with car transport

29-03-2007, 15:26

Warsaw (Puls Biznesu) – Railway and car transport companies to fight for the market

PKP, the state-owned railway company, is going to fight to regain the cargo market. It would like to make the government raise road fees paid by trucks. In the beginning of 1990ies, 83 billion ton-km of cargo were transported by trains while 40.3 billion by trucks. Today, the proportion is completely different: TIR transport rose by three times to 119.7 billion of ton-km while railways transport nearly half of the cargo it used to 17 years ago.

PKP representatives believe they lost the market because the competition was not fair. The costs of 1 km of rail transport amount to PLN 6 (EUR 1.5) while one-day fee paid by trucks – PLN 30.

“Our position is much worse. Car transport is cheaper because it pays less for the access to the infrastructure than railways” Andrzej Wach, PKP CEO explained.

There are two solutions, in his opinion: either the government supports railway infrastructure or fees paid by trucks grow. The Polish government covers only about a tenth of the costs of keeping the railway infrastructure, while the rest is paid by transport companies. In Germany, the ratio amounts to 60 and 40 percent respectively. PKP CEO likes the second solution more and is going to lobby among MPs.

“I know this is revolutionary but this EU is also considering to make the transport costs equal”, PKP CEO said.

(PLN 1 = EUR 0.258)

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Puls Inwestora / PKP railway company wants to fight with car transport