Visible signs of the economic recession are negatively impacting the operations of PKP CARGO. Consequently, in 2008, the company transported over 11 million tons of goods less than in 2007 and recorded a negative financial result. The year 2009 may be even more difficult for the company. Therefore, the financial condition of PKP CARGO will be largely determined by the rationalization of costs. This is to apply to all segments of the company’s operations – from rolling stock operation and maintenance, through administration, to employment. However, the rationalization of costs does not mean that expenditures on projects related to the company’s development will be limited. The priority will remain investments that are expected to bring the company the greatest economic benefits, thanks to which it will be more competitive on the market. This concerns, in particular, funds for the modernization of rolling stock, the computerization of management and transport process monitoring, and the construction of terminals and logistics centers.
PKP CARGO, having already implemented a recovery program in the second half of last year that took into account the need for the company’s uninterrupted functioning, achieved significant savings in terms of cost rationalization. Measurable financial effects were brought in 2008, and will also be brought in the 2009 budget, by the transfer of nearly 5,500 employees involved in traction services to passenger companies. Further savings were provided by the optimization of rolling stock repairs, which were adjusted to the volume of transport carried out. In addition, costs of access to infrastructure were limited, and expenditures related to maintaining unnecessary reserves and stocks, mainly concerning rolling stock unsuitable for operation, were reduced. Implementing the cost-saving program as of January 1, 2009, PKP Cargo is introducing a new organizational structure at the level of the company’s facilities. Reducing the 42 existing freight transport and rolling stock facilities to 16 new regional company facilities, and combining commercial functions with operation and maintenance in these facilities, will facilitate the creation of more attractive offers for customers, allow for more efficient responses to their needs, and enable more rational implementation of transport services. However, the company does not intend to focus only on cutting costs, but also, despite the unfavorable economic climate, shows determination in acquiring customers and concluding new contracts. The mobilization of the company’s commercial services has already brought measurable results. Thanks to the introduction of a new commercial policy, simplifying procedures and facilitating negotiations with the client, as well as a more flexible, pro-business approach in agreeing on contracts, the value of signed agreements, including long-term ones, significantly exceeds the value of contracting from the beginning of 2008.
Unfortunately, the current economic situation is verifying customer declarations. The actual transport carried out by PKP CARGO is lower than contracted. The expected further deepening of stagnation in the transport market has prompted PKP CARGO to introduce more radical cost-saving measures. As of December 30, 2008, the first management board resolutions regarding the so-called anti-crisis package came into force. Its goal is to define the principles for limiting costs in the most important areas, including investments, administration, real estate management, repairs, operations, and personnel. Limiting costs in these areas covers both the PKP CARGO headquarters and the newly created company facilities.