The problems that plague Poland’s largest rail carrier, PKP Cargo, have not yet been resolved, as new competition is emerging right under its nose. This time, it has come not from the west, but from the east.
Ukrainian Railways Challenge PKP Cargo
In just a few months on the Polish railway market the first Ukrainian carrier will debut cargo, namely the Ukrainian Railways Cargo Poland company, whose activity was enabled by a positive decision of the Office of Rail Transport. This company, established a year ago, is not yet a giant in its field and its potential does not match PKP Cargo, but its appearance raised concerns among trade unionists and part of the political class. Their suspicion was particularly fueled by the moment when the company appeared, namely the time when PKP Cargo is struggling with serious problems and is forced to lay off thousands of workers.
So will the Ukrainians be able to challenge the Polish carrier and take away its piece of the lucrative freight transport cake? At first glance, there is little to suggest this, especially when you look at its size. As the rynek-kolejowy.pl portal has established, the company’s share capital is currently only PLN 5,000and 100 percent of its shares are owned by Ukrainian Railways. Government representatives are also trying to cool down emotions.
– The Ukrainian carrier with a declared number of 3 locomotives and 100 wagons will be one of many entities that wants to operate on this highly liberalized market. What will be the influence of an entity that has such wealth in terms of locomotives and wagons? It will be negligible, certainly below 1% of market share – reassured Deputy Minister of Infrastructure, Piotr Malepszak.
Ukrainians will overcome even wide tracks
But how did it happen that Ukraine, which is at war with Russia, has both the will and the means to try to conquer the markets of neighboring countries? Well, as it turns out, its appearance here is the effect of liberalization of the Polish railway marketwhich has recently been approved for 14 different carriers. The Ukrainians, as they themselves declare, want to carry out transport between companies in their country and target recipients.
For now, the Ukrainian company, which officially is expected to start operating in early 2025however, has another problem – overcoming differences in wheel gauge. In Ukraine, the old, still Russian rail gauge of 1520 mm is still in force, while in Europe it is only 1435 mm. Ultimately, the Ukrainians want to deal with this problem, building transfer points on the Polish-Ukrainian border. When this happens, will the Ukrainian carrier threaten PKP Cargo? The government reassures.
– We do not see any threat when it comes to the mass nature of these transports, we do not see the possibility of a broad entry with our own rolling stock – said Deputy Minister Malepszak.
