WARSAW: January 24, 2016. PKP Cargo, Poland’s largest rail carrier, has obtained a 12-month, €100 million investment credit from the European Bank for Reconstruction and Development to expand its international logistics operation in the next five years.
Łukasz Hadyś, a member of PKP’s management board said the financing, which carries an 11-year term, is a confirmation of the company’s credibility.
The funds will be spent on implementing the company’s new business strategy, including M&A activity, to move PKP from operating mainly in Poland to a logistics and intermodal business generating 20 percent of its revenue in Central and Southern Europe.
Last year PKP signed an agreement with the Croatian railway carrier HZ Cargo and acquired an 80 percent stake in Advanced World Transport, the second largest rail operator in the Czech Republic. In 2014 PKP produced revenue of PLN4.3 billion and carried 111 million tonnes of cargo. Most of it coal.
PKP has 56 percent of the Polish rail market and provides shipping services as well as terminal and siding operation, repair and maintenance of rolling stock. The company also operates in the Czech Republic, Slovakia, Germany, Austria, Belgium, the Netherlands, Hungary and Lithuania. At the end of last year, it took delivery of three Vectron locomotives from Siemens (right) under a PLN315 million contract for 15 of the type for delivery by the first half of 2017.