PKP CARGO has signed an agreement with the European Bank for Reconstruction and Development for an investment loan worth 100 million euros. The funds obtained from the loan will be used to implement the strategy until 2020, in particular to strengthen the company’s position as an integrated logistics operator with an international reach.
– Signing the agreement with the European Bank for Reconstruction and Development is a confirmation of PKP CARGO’s credibility. We have adopted ambitious goals for the coming years, which we will only achieve through the implementation of key investments. The PKP CARGO Group is an international player that, thanks to solid financial security, has the opportunity for further development – says Łukasz Hadyś, Member of the Management Board of PKP CARGO for Finance.
The 100 million euro credit line granted by the EBRD will be available until December 31, 2016. The agreement provides the company with very favorable terms and assumes flexibility in making loan withdrawals. PKP CARGO will have 11 years from the end of the availability period to repay any loan. The funds obtained will be used to implement the plans adopted in the PKP CARGO strategy for 2016-2020, including acquisitions and investments. The CARGO’20 strategy assumes the transformation of PKP CARGO from a rail carrier operating mainly on the Polish market into a leading logistics operator active in the Central and Southern European region.
The new strategy is based on four pillars. The first, CARGO Leader, assumes development in the home market. The second is CARGO International, which means strengthening the international position and achieving a level of approximately 20 percent of transport work performed outside the country thanks to strategic alliances and acquisitions. The third pillar is CARGO Intermodal, which assumes gaining the position of a leading intermodal transport operator in the Central European region. The last pillar is CARGO Connect, which provides for the integration of international logistics services within the PKP CARGO Group.
PKP CARGO is the largest rail freight carrier in Poland, with a market share exceeding 56 percent in terms of transport work. In addition to rail freight transport, the PKP CARGO Group provides forwarding services as well as terminal and siding operations. It also deals with the repair and maintenance of rolling stock.