Ceske Drahy seeks solutions to increased competition

The main task of Czech railway company Ceske Drahy (ČD)’s management for the near future is the solution of the business model in passenger transport after 2019 when the company ends most of its long-term contracts with the regions and with the Ministry of Transport. The company also expects to defend its international rating from Moody’s, to repay the crown-denominated bonds in the summer of 2018 and to refinance euro bonds in 2019.
ČD reported a profit of CZK 984 million (EUR 38.6 million) in 2017, CZK 100 million (EUR 3.9 million) more than in the previous year. The company saw increases in both freight and passenger transport.
In passenger transport, the main focus was on the growth of competition, the gradual opening up of the long-distance transport market and the redefinition of the regional transport business model after 2019, coupled with the liberalization of the passenger transport market. Ceske Drahy’s services were used by almost 175 million people. Long distance journeys and suburban connections attracted more interest and significant revenue growth was recorded on the international routes Prague – Vienna – Graz and Prague – Berlin – Hamburg.
Freight transport focused on stabilizing transport performance and developing business activities in neighboring countries. In cooperation with its subsidiaries abroad, ČD Cargo has successfully continued its expansion into foreign markets, such as Poland, Romania and Hungary. The company has invested in purchasing new locomotives and freight wagons to increase its competitiveness on the European market. This helped to increase revenues by CZK 163 million (EUR 6.4 million) year-on-year and reach a net profit of CZK 743 million (EUR 29.1 million).

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