PKP becomes joint-stock company - World Report

International Railway Journal, Feb, 2001

POLISH State Railways (PKP) has become a state-owned joint-stock company ahead of planned privatisation. The government will sell off some of the new non-core subsidiaries soon, but major loss-making sectors may remain in state ownership for a considerable time.

Among the first key companies to be sold will be a new suburban operator, Warsaw Commuter Rail. Another company, Polres, which comprises PKP's profitable InterCity and EuroCity passenger services, will also be made available to a strategic investor which is willing to invest in modernising rolling stock.

A subsidiary responsible for regional transport will be established in April and it will franchise services to regional governments, which, in turn, will be eligible to receive a subsidy of Zlotys 300 million ($US 69.3 million) in 2001, followed by Zlotys 500 million in 2002, and Zlotys 800 million in 2003.

PKP's freight unit will attract most interest from international investors. If the government decides to sell it, there are a number of potential bidders waiting to step in with offers (IRJ April 2000 p16). It appears, though, that the government does not intend to privatise PKP's infrastructure unit.

The new PKP holding company, PKP SA, has a share capital of Zlotys 10 billion, with a reserve of Zlotys 6 billion. Mr Krzysztof Celinski, chairman of PKP's management board, becomes chairman of PKP SA.

Meanwhile, work is continuing on construction of PKP's E20 east-west international corridor which, ultimately, will form part of an upgraded route connecting Berlin to Warsaw, Minsk, and Moscow (IRJ May 1998 p21).

Bids have been invited recently for modernisation of the Minsk Mazowiecki-Siedlce section, following completion of work on the Warsaw-Minsk Mazowiecki section.