Poland continues its rail (r)evolution

Poland has guided its ambition to modernise and expand its railway infrastructure through well-defined plans and strategies aimed at creating a high-quality system that will ensure fast and efficient connections between provinces, major cities and between them, as well as their links with smaller cities and cross-border connections. The projects are financed by the national budget, but to make them happen, the authorities are again turning to European funds. The latest strategy for the development and modernisation of rail infrastructure is the one adopted for 2030, with a perspective for 2032 that will make the network the backbone of Polish mobility.

PolandIn 2019, the Polish Council of Ministers approved the National Railway Plan (KPK) for 2023, which contains 240 projects with an investment value of PLN 79 billion (EUR 18 billion). By the end of 2022, projects worth PLN 54 billion (EUR 12.3 billion) were realised out of the total investment value, representing more than 70% of the total programme investment. According to a Ministry of Infrastructure document published in August 2023, 6,439 km of tracks were upgraded under the programme, 168 projects with a total value of PLN 16.4 billion (EUR 3.7 billion) were completed and contracts worth PLN 57 billion (EUR 13 billion) were concluded.

As of December 2022, the railway infrastructure manager PKP Polskie Linie Kolejowe (PKP PLK) has absorbed European funds totalling PLN 36.5 billion (EUR 8.3 billion) for 79 projects. Through the Cohesion Fund, under Operational Infrastructure and Environment, the company obtained PLN 18.3 billion (over EUR 4 billion) for 42 projects and Eastern Poland Operational Programme (PO PW) supported nine projects with co-financing of PLN 1.6 billion (EUR 365 million). Important support is provided by the Connecting Europe Facility (CEF) which provided PLN 16.6 billion (EUR 3.6 billion) in co-financing for 28 rail projects.

The Sustainable Transport Development Strategy to 2030 adopted by Poland in the chapter dedicated to the railway sector mentions projects aimed at modernising, extending and revitalising infrastructure on lines belonging to the TEN-T core and comprehensive networks, improving parameters on rail freight corridors, ensuring efficient connections between cities (by extending and revitalising lines of regional importance) and implementing the Kolej Plus programme (Railway Plus, which aims to create and strengthen the rail connections of small towns and provide links to large cities), eliminating congestion on the national network and introducing digital technology, in particular by installing the European Rail Traffic Management System (ERTMS). The strategy also mentions projects to modernise stations and build the necessary passenger service infrastructure, including adaptation for people with disabilities, implementation of projects carried out by Centralny Port Komunikacyjny (CPK) including the construction of a new airport, new railway lines and modernisation and electrification of existing ones.

Poland’s National Energy and Climate Plan for the years 2021-2030 includes the development of energy-efficient and low-emission transport, with a focus on railways due to their ability to decarbonise transport as well as inland waterway and maritime transport. This strategy mentions the importance of railways in creating conditions to take over a large part of road traffic, especially over distances of more than 300 km, thus promoting sustainable transport based on alternative energy sources. Infrastructure projects are mentioned here to improve the efficiency of the railways, increase the operational safety of rail transport and improve the quality of rail freight and passenger services.  Electrification is also mentioned which will have a significant impact on reducing emissions and increasing capacity.

The National Strategy of Regional Development also focuses on railways through projects to increase the use of interregional, regional and intra-agglomeration transport potential, and where connections are lacking or deficient (usually small towns are targeted) activities are proposed to increase accessibility to rail transport services to increase social, environmental and territorial cohesion and ensure cohesive development.

For the period 2021 – 2027, the investment plans adopted by the PLK Management Board aim to create a coherent network within and between provinces, provide direct connections between provincial capitals and cities, modernise and extend lines in conurbations by optimising the capacity of urban nodes and integrating with urban transport systems, improving infrastructure on freight routes by increasing technical parameters especially on single lines, ensuring easy access to and from ports, introducing ERTMS on a large scale, eliminating congestion on the network and optimising infrastructure to strengthen multimodal transport and ensuring an infrastructure that corresponds to military traffic.

As a continuation of the strategy ending in 2023, in August the Council of Ministers adopted the decision to update the National Railway Program until 2030 with a perspective until 2032 which sets out the financial and investment framework as well as the conditions for the implementation of railway projects to be completed in 2032.

According to the new strategy, the total value of the projects is PLN 170 billion (EUR 38.8 billion) which allocates PLN 79 billion (EUR 18 billion) to the 2014-2020 projects that are currently underway, and PLN 80 billion (EUR 18.2 billion) will be the investment amount for the 2021-2027 projects. In addition, PLN 11 billion (EUR 2.5 billion) will be used through the National Reconstruction Plan, also for railway projects, and again European funding is essential for the realisation of the projects.

In November 2023, the Council of Ministers adopted a resolution setting increased financial allocation dedicated to international and interprovincial passenger rail transport.

The government decided to increase funding for these two types of transport services for the period 2024 – 2030 to increase public service compensation as part of the framework agreement between the Ministry of Infrastructure and the operator PKP Intercity. The decision resulted in an increase of PLN 6.5 billion (EUR 1.48 billion) in funding over the next six years, of which an initial tranche of PLN 603 million (EUR 137.5 million) will be allocated to the operator next year to improve services and accessibility in various regions by expanding long-distance services across the country.

“The very important decisions made by the government to update the National Railway Programme and to increase funds for co-financing interprovincial and international rail passenger transport are an expression of our consistency in building a safe, comfortable and punctual Polish railway since 2015,” the Minister of Infrastructure Andrzej Adamczyk said.

As a result, the update includes the transfer of PLN 1.3 billion (EUR 296.5 million) from the state budget to railway infrastructure managers for rehabilitation and maintenance projects until 2028, and the national manager PLK will be recapitalised in 2024 with PLN 1.3 billion (EUR 296.5 million) for its projects. This update also includes the results of co-financing under CEF 2 (20221 – 2027) where European funding has been increased by PLN 3 billion (EUR 684.2 million), allowing for a reduction in the involvement of state budget funds.

PLK manages 96% of the length of lines in operation, including infrastructure of national and economic importance. Other infrastructure managers included in this measure involve Tri-City SKM (which provides rail connections and services between Gdańsk, Gdynia and Sopot), Lower Silesian Service of Roads and Railways (Dolnośląska Służba Dróg i Kolei we Wrocławiu) and Euroterminal Sławków, owned by CZH, PKP Cargo and PKP LHS which manages the transshipment terminal located at the junction of the westernmost section of the broad gauge (1,520 mm) and standard gauge (1,435 mm) railway lines.

The rail strategy 2030 is based on three priorities, the first focusing on improving the efficiency of rail transport where priority is given to improving technical conditions on the lines belonging to the TEN-T core and comprehensive network, continuing modernisation works on several corridors (such as lines C-E 30, E 59, E 20, E 65, E 75), as well as on lines constituting international connections, optimising capacity in rail hubs in agglomerations and increasing access to provide increased capacity, improving connections in the Eastern Poland macro-region including on Eastern Magistral 16, section Rzeszów / Kielce – Lublin – Białystok – Olsztyn.

Under this priority, in 2030, there should be an additional 650 km of lines (an increase of 354 km compared to 2023) allowing passenger trains to run at over 160 km/h.

The second priority aims to increase operational safety of transport by introducing ERTMS/ETCS and improving service quality and infrastructure safety. Here, the strategy states that 1770 km should be equipped with ETCS in three years and 2,700 km by 2030. According to an analysis by the European Commission, in February 2023, Poland would have 559 km of lines operational with ETCS, and by the end of this year, 1,664 km would be equipped on core network corridors (CNC).

Under the funding allocated through the CEF and the Operational Programme Infrastructure and Environment (POIiŚ), ERTMS/ETCS projects on TEN-T corridors have CEF funding of PLN 1 billion (EUR 246.8 million), and ERTMS construction on the PKP Polskie Linie Kolejowe infrastructure for 2021-2027 inclusive under the KPC will have funding of PLN 2.6 billion (EUR 597 million). Also, through the Recovery and Resilience Programme, the installation of ERTMS gets PLN 114.4 million (EUR 26 million) for two projects on TEN-T involving the Poznań Główny – Krzyż and Sosnowiec Jęzor – Krakow Główny lines.

The third objective concerns the improvement of the quality of freight and passenger transport services for which, in addition to TEN-T projects, it is mentioned the improvement of cross-border infrastructure at nodes providing connectivity between the 1,435 mm and 1,520 mm gauge line networks, the optimisation of connections between Warsaw and important regions and those with low accessibility, but also strengthening connections between major cities, but also between large and small towns, and those providing connectivity between the rail network and ports to increase rail traffic to and from ports to take over from road traffic, but also to increase multimodal transport. Also under this priority of the 2030 strategy are the Centralny Port Komunikacyjny (CPK) projects and the complementary projects to create a network with fast and high-speed services (national and international) and to improve the technical conditions of the rail infrastructure for freight traffic including the provision of the Warsaw bypass, Poznań and Upper Silesia agglomerations including Katowice, and improving access to the important ports of Gdańsk, Gdynia, Szczecin and Świnoujście, as well as ensuring connections from other important points that can generate major freight flows.

Under this priority, the 2030 Strategy mentions that the average speed of freight trains will be increased, and in 18 out of 18 voivodeship centres to be connected by modernised lines, passenger trains will run at 100 km/h. It should be noted that in 2015, only 8 out of 18 voivodeship centres allowed passenger trains to run at this speed, with the number of provinces increasing to 14 in 2023 and then to 16 in 2026.

Targeted financing sources

The sources of financing for the projects selected as part of the strategy take into account those available through European funds, state funds and the financial resources of the infrastructure manager PLK, including bonds and loans from the European Investment Bank (EIB).

In the estimates of investment needs per project, projects that have received national funding and European co-funding in the multiannual financial years (2007-2013 and 2014-2020), with mention of the implementation of projects in 2024 and 2025, the total value is PLN 79 billion (EUR 18 billion), and through Poland’s recovery and resilience plan, in the period 2023-2026 the available funds would reach over PLN 11 billion (EUR 2.5 billion). For the financial perspective 2021-2027, the funds needed from the state budget and European funding amount to PLN 80 billion (EUR 18.3 billion). In total the planned expenditure according to the targeted sources of funding amounts to over PLN 170 billion (EUR 39 billion).

As regards the planned expenditure of the railway infrastructure administrator PLK, same funding sources for the 2007-2013 and 2014-2020 perspectives, the total is PLN 76.5 billion (EUR 17.5 billion), and through Poland’s recovery and resilience plan, there are funds of over PLN 11 billion (EUR 2.5 billion) between 2023 and 2026.

In the period 2021-22027, PLK expenditure is PLN 80 billion (EUR 18.3 billion). In total all this amounts to PLN 167.6 billion (EUR 38.4 billion).

The funds planned to be invested in railway infrastructure in the period 2021 – 2029, with a perspective of PLN 80 billion (EUR 18.3 billion) by 2032, will generate direct and indirect economic benefits of over PLN 60 billion (EUR 13.7 billion), representing about 2% of GDP.

The 2030 Strategy with 2032 perspective includes 165 rail projects (core and reserve) which are expected to be implemented with the support of CEF2 funds and through the European Funds for Infrastructure, Climate, Environment (FEnIKS) programme for 2021-2027 and have a total estimated value of PLN 34.7 billion (EUR 8 billion), investment calculated for the core projects.

There are also 14 projects that would receive European co-financing through the Eastern Poland Operational Programme with an estimated value of PLN 2.6 billion (EUR 593 million) for selected core projects. Another ten core projects would cost PLN 3.5 million (EUR 809.6 million) and would receive European funding through the European Funds for Eastern Poland Programme (FEPW) 2021-2027.

The strategy also includes 28 projects of regional importance for the period 2021-2027 at a cost of about PLN 10 billion (EUR 2.3 billion).

Also included are 54 national projects until 2030, with a perspective until 2032, which have an estimated value of PLN 40.5 billion (EUR 9.3 billion) of which the largest part, PLN 32.3 billion (EUR 7. The national budget would cover PLN 7.7 billion (EUR 1.76 billion) and PLN 506 million (EUR 116 million) would be covered by the Programme of Non-Military Defence Preparations.

In 2014-2020, through the Connecting Europe Facility, for rail projects, Poland received co-financing of EUR 3.2 billion for projects with an eligible value of almost EUR 4.4 billion. Thirty-three projects were co-financed, including one for the installation of ERTMS on lines belonging to the TEN-T core network with co-funding of EUR 186.9 million, out of a total eligible cost of EUR 220 million. It would run from 2016 to the end of 2023 and includes the preparation of design documentation and installation of ERTMS/ETCS Level 2 on four lines with a length of 99 km, mostly double lines carrying both passenger and freight traffic. This concerns two sections on the E20 mainline Kunowice/German border – Warsaw Gołąbki and Miłosna – Terespol / Belarus border (lines no. 2, 3) with a length of 659 km, including installation of control command and signalling equipment and Local Control Centres. The installation of the digital system on line E59 Poznań – Wrocław with a length of 168 km and line E30 Węgliniec – Zgorzelec/German border with a length of 28 km is also supported by this co-financing. The implementation of this project will increase the interoperability and safety of rail traffic and will allow trains to run at over 160 km/h.

In June 2022, through the first CEF2 Transport call for proposals, the national railway infrastructure manager obtained co-financing of EUR 937 million for two projects on the E30 and E65 main lines. The largest part, EUR 755.1 million, was allocated to the rehabilitation and upgrading project and the doubling of the Będzin – Katowice – Piotrowice line in Silesian Province on the E65 railway line. On the section Katowice Szopienice Południowe – Katowice Piotrowice 22 km of new tracks will be built, and 100 km of tracks and 140 engineering structures will be rebuilt and 130 km of traction network will be replaced. The project also includes the construction of a Local Control Centre in Katowice. The second project involves the modernisation of the Tychy – Most Wisła section in the Silesian Province which has received confinement of EUR 182 million.

On these two lines, in addition to the infrastructure, works will be carried out to modernise existing stations and build new stops, and once the works are completed in 2026, trains will be able to run at speeds of 160 km/h.

In the second CEF2 Transport call for proposals, PLK was awarded EUR 694.4 million for the implementation of three projects. The largest amount of co-financing, EUR 362 million, was awarded to the project for the modernisation works of the Zabrzeg – Zebrzydowice (state border with the Czech Republic) section on lines E30 and E65 in Silesian Province. This project includes the modernisation of 36 km of lines to comply with TEN-T core requirements. The works include construction and reconstruction of tracks and engineering structures, modernisation of existing stations and construction of new stops as well as elimination of level crossings. Completion of the works will mean increased quality of service and cross-border connections, increased safety and adaptation of stations for 750-metre long trains.

The second largest project, with co-financing of EUR 285 million, was selected for the upgrading of the Białystok – Suwałki – Trakiszki (state border) section of the Białystok – Ełk line (phase II) on the E75 main line. The project involves the modernisation of 96 km of the Bialystok – Elk line which is part of the future Rail Baltica line on the territory of Poland. After completion of the project, it will improve cross-border connections between Poland and Lithuania and provide direct connection to the European gauge network and facilitate access between the rest of Europe and the Baltic States via Rail Baltica.

The third project selected by the European Commission and submitted by PLK has received EUR 47.3 million and aims to carry out design documentation for modernisation works on the Rzeszów – Medyka (state border with Ukraine) section of the E30 railway line. The project involves modernisation and construction works on the section as part of the overall Medyka – Rzeszów – Kraków – Katowice project and will significantly improve cross-border links between Poland and Ukraine and facilitate Ukraine’s access to the European Union rail transport network.

In the framework of the strategies which included projects from 2015 to 2030, it is estimated that by the end of this year 8,270 km of tracks should be rehabilitated and modernised, in 2026, another 1,330 km of tracks should be rehabilitated, the total length (over the period 2015-2026) being 9,600 km of tracks. In the period 2026-2030, Poland would have another 2,900 km of tracks rehabilitated, which would mean that in 2030, 12,500 km of tracks would be modernised.


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