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PKP Cargo to Improve Its Finances in 2009

May 2008.


In the first quarter of 2008, the amount of goods transported by the Polish state-owned rail freight operator, PKP Cargo, fell by about 8%, when compared to the same time of the previous year.

The company hopes to make a profit at the end of 2008, but it might turn out to be a challenging task concerning growing electric energy costs, rental fees and salaries. It is estimated that PKP Cargo spends some PLN 1.7bn (EUR 0.5bn) on salaries for its employees, whose number stands at 45,000, on an annual basis, and that rail infrastructure rental fees and salaries account for a 50% share in total costs of Cargo. At the same time, the profitability of the company is decreasing. While in 2006, it reached 0.9%, in 2007, it dropped to 0.2%. During the second quarter of 2008, PKP Cargo will invest in the implementation of new IT systems and in the improvement of the company\'s organization, hoping that new investments will be reflected in financial results for 2009, logisticsturku.fi reports.

Source: www.rzd-partner.ru



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