PKP CARGO announces the strengthening of its market position in Poland and Europe. The logistics operator will continue internal changes aimed at constantly increasing the efficiency of the PKP CARGO LOGISTICS Group.
PKP CARGO expects to transport approximately 117.6 million tons of cargo in 2013 (transport work will amount to approximately 30 billion ntkm). The operator will generate 567.4 million PLN in operating profit before depreciation and amortization (EBITDA) with revenues of approximately 4.8 billion PLN. In 2013, PKP CARGO’s net profit will amount to 251.9 million PLN. The results for 2013 and 2014 will be influenced by cyclical periodic rolling stock repairs – in these years, they will increase to over 17,000 wagons and over 420 electric and diesel locomotives. In the case of wagons, this is 20 percent more than in the two following years.
– The foundations of PKP CARGO are very stable. We have signed a number of long-term contracts that allow us to look to the future with optimism and safely develop the Group – says Wojciech Balczun, CEO of PKP CARGO.
As part of multi-year contracts in 2013, the Group will provide logistics services to, among others, companies from the Dalkia, TAURON and EDF Groups, Jastrzębska Spółka Węglowa, Węglokoks, Elektrownia Kozienice, the ArcelorMittal concern, KW Bogdanka, as well as producers of stone, aggregates and chemical products such as PKN Orlen, Anwil, Grupa Azoty, Siarkopol or Ciech. The PKP CARGO Group is constantly strengthening its position in the intermodal services market with over a 70 percent share in this segment. It is also dynamically developing its operations outside of Poland.
– In parallel, we are carrying out a number of activities aimed at improving the efficiency of the PKP CARGO Group and increasing customer satisfaction. The effects of this work will be visible as early as 2013 – says CEO Balczun. – These are actions related, for example, to the optimization of the Group’s structure – from April 1, 2013, within the Group, one company will be created to handle wagon repairs, one entity will conduct activities in the field of locomotive repairs, and one will be responsible for the repair of wheelsets and electrical machinery. In addition, PKP CARGO will implement new IT tools related to rolling stock maintenance and monitoring its operation. These are the EKL and SANKO IT systems. Savings resulting from the full implementation of the SANKO system will amount to approximately 90 million PLN over five years after the completion of implementation. In 2013, PKP CARGO will also launch the ability to issue and receive electronic invoices and will also implement an electronic consignment note.
PKP CARGO is constantly developing its operations outside of Poland. This is one of the operator’s strategic development directions. PKP CARGO expects to obtain a “B” safety certificate in the first quarter of 2013, authorizing independent rail transport in Hungary, and in the second quarter of next year, a certificate allowing such transport to be carried out in the Netherlands. This means that in 2013, the logistics operator will gain access to the largest seaports in Europe, from where it will be able to transport, among other things, containers to Central European countries.
By mid-December 2012, PKP CARGO had launched almost 7,500 trains abroad. This means a dynamic increase compared to the previous year (approx. 4,500 trains in 2011). Most of them run in the Czech Republic and Slovakia, followed by Germany and Austria. Trains with the PKP CARGO logo transport primarily cars, car parts, ore, coal, and containers abroad.
PKP CARGO in 2012
PKP CARGO estimates that in 2012 it will transport approximately 116 million tons of cargo, and transport work will exceed 29.5 billion ntkm. The operator’s revenues in 2012 will amount to approximately 4.6 billion PLN, EBITA 519.7 million PLN (value adjusted for reserves), and net profit 295.9 million PLN. The increase in the company’s profitability results from a properly planned pricing policy and maintaining a cost regime.
The difference in transport for 2012 compared to 2011 results primarily from the completion of many road investments and the problems of the construction industry, which are also felt today. Transport of energy raw materials in 2012 remained at a stable level (amounting to approximately 50 million tons).
In 2012, intermodal transport, among others, grew – for 11 months, PKP CARGO transported 413.1 thousand UTI (intermodal transport units) compared to 333.4 thousand UTI for 11 months of 2011 (an increase of 24 percent). Transport of ores and pyrites, sand, oil and its derivatives, agricultural produce, and ferry cargo also increased.
PKP CARGO constantly allocates significant funds for development. Investments implemented by the company after 10 months of 2012 amounted to 423.6 million PLN. The vast majority of investment funds were allocated to the modernization of traction rolling stock (almost 330 million PLN).
The company also allocated several dozen million PLN for ICT projects, such as the EKL and SANKO systems. PKP CARGO also began the construction of a transshipment terminal at the Poznań-Franowo station. The cost of this investment is almost 40 million PLN, of which the subsidy from the European Union will amount to 14.6 million PLN.