Poised for rapid transformations
Chair of Group PKP (Polish State Railways) S.A. Supervisory Board
In your opinion, what progress has been made in implementing the “Strategy of railway transport expansion till 2013”? What is Group PKP’s position on European markets?
Group PKP is today poised for rapid transformations. The Group was formed in 2001 in the wake of the process to restructure the Polish State Railways state enterprises. The purpose of those transformations was, consistent with European Union directives, to separate railway transport from railway lines management and also to create independent commercial law bodies which would render services not only on the railway market.
Private carriers already operate in Poland. Small sections of the railways infrastructure are already owned by private companies. Group PKP, though occupying a dominating position today, is no longer a monopolist and will definitely not be a monopolist in the future. Its presence in railway transport will also gradually diminish in the passage of time. As regards the present state of implementing the government strategy till 2013, mention must be made, first and foremost, of shifting regional transportation, specifically PKP Regional Haulage Co. Ltd., to local government management. Local governments are best acquainted with local requirements and will be able efficiently to decide on the size of transportation. This corresponds closely with what the government headed by prime minister Tusk is already pursuing, through consolidating the strength of local governments and placing all which can be sensibly regulated at the local level, in the hands of local government. Should everything fall into place successfully, regional railway transport will become local government property as of early 2009. Then the door will be open for the next moves to be made by Polish railways, including privatising of PKP Intercity Co. Lyd., and in future years also the privatisation of all PKP companies apart from that which fits into the framework of today’s activity of the company strictly connected with the railway infrastructure (PKP Polish Railway Lines S.A.). PKP Cargo S.A. is a very important Group company. The restructuring of that company concerns a multitude of processes including internal reorganisation, the manner of company functioning and sales and marketing issues. That is a highly complex process but is imperative if there is to be any talk of privatising the company and assessing its operations properly.
As regards Group PKP’s position on European markets it must be stressed that national railways in Europe adhere quite strictly to their countries. PKP is Europe’s third largest railway, preceded only by those of Germany and France. A true European railway market is still some time away. To exist in it Group PKP companies must improve effectiveness and quality of its rendered services. Also, as what could be called just another “economic creation”, the Group must not let up on transformations.
What has to be done to cause improved competitiveness of railway transportation in Poland today?
Improving the competitiveness of railway transport is, clearly, an important element of the strategy we have been mentioning. Preparations are proceeding to construct a high-speed railway understood as a competitive means of passenger transport. High-speed railways prove competitive also to airborne transport over up to 500 km distances.
When one mentions the primary competition between railway and road transport, cargo haulage takes pride of place here. It is here that fees for access to the railway infrastructure are a fundamental factor concerning the competition aspect. That is a field which the state have to sort out. Fees for access to railway infrastructure, to tracks, should be shaped at government level, by the minister of transport, in appropriate proportion to fees for road haulage. When the strong points of railway transport are highlighted, it must also be borne in mind that the railways are much more efficient as regards energy consumption, which suggests that could become an element of national energy policy. The same is true of environment protection.
As regards ownership regulations, the Polish state should be the proprietor of the railway infrastructure and should also own or employ various agencies and businesses which would be responsible for repairs, maintenance and traffic organisation. As regards roads. no surprise is aroused by the fact that the state constructs roads and then gives access to them free-of-charge or in return for fees. That is a situation which could function with similar success in the case of railways. New private operators are also bound to offer competition in the imminent future, which means that the question: the railways or road vehicles - will become only a part of a much wider problem of competitiveness.











