Intermodal transport and logistics will be the core development pillar of a strengthened partnership between PKP Cargo and COSCO Shipping Group. The two parties are poised to expand their intermodal offerings in multiple countries “in Western, Central and Eastern Europe”. PKP Cargo appears to become a core partner in COSCO’s increased rail freight presence in the Old Continent.
The two parties are no strangers. In fact, PKP Cargo holds 20 per cent of COSCO SHIPPING Lines Poland Sp. z o.o., COSCO’s Polish subsidiary, which operates with a joint venture business model. Acting president of the management board of PKP CARGO, Marcin Wojewódka underlined that the existing and proven partnership between the two is about to be cemented even more.
A hope amid worries?
PKP Cargo is experiencing a rough patch, similar to many state-owned rail freight operators around Europe. The Polish company appears to have a budget hole of 1,17 billion euros, and its volumes and share value are following a steep downward trajectory.
In a recent interview with RailFreight.com, PKP Cargo indicated that it hopes for a market revival in the second half of 2024 that will allow it to catch its breath. However, hoping for a market revival does not sound like a concrete action plan. Regarding concrete actions, PKP plans to ‘pause’ around 30 per cent of its employees for a year until the situation becomes relatively more stable.
Another pillar in improving the company’s finances is intermodal expansion. PKP wants to expand into semi-trailer transportation via rail, a market it deems “untapped”. “We see a great opportunity in the transport of semi-trailers. We are trying to make the Ministry of Infrastructure interested in creating a national trailer transport system. Ultimately, all carriers could use it,” stressed Tomasz Mostowski, PKP’s strategy director, a few days ago in Polish media.
A focus on semi-trailer transportation would be in line with PKP Cargo’s long-term strategy, which involves developing intermodal transport. On the other hand, a partner like COSCO, which is renowned for its ability to shape intra-European rail flows through the ports it serves, seems ideal for assisting this expansion, which could possibly save PKP from going bankrupt.
“I believe that our foreign resources and experience in independent transport in 9 European Union countries allow us to prepare a competitive, comprehensive and tailor-made offer for such an important partner as the COSCO SHIPPING Group,” was Marcin Wojewódka’s concluding remark on the partnership.