The success of PKP Intercity’s privatisation could be affected by the lower performances of regional transport subsidiary Tanie Linie Kolejowe (TLK), at the same time with the sustained evolution of Przewozy Regionalne (PR), a company which represents the former suburban and regional transport division of PKP Group and which is today subordinated to the16 authorities of the Polish administrative departments. InnoTrans trade fair included a conference focused on the future of passenger regional transport in Poland, in the wake of the European Football Championship EURO 2012 organised by Poland and Ukraine. Conclusions were pessimistic, and the reduction of state funds because of the economic downturn and the prioritisation of long-distance and especially high-speed transport, also affected by insufficient funding, have plunged regional transport into a second plan that could negatively influence the development of the sports event to optimal parameters.
The discussions held during InnoTrans trade fair focused on two important areas: the impact of passenger market liberalisation on passenger regional transport and investments in regional rail infrastructure. The two large companies providing short and medium-distance transport services in Poland, TLK, member of PKP Intercity and PR, will have to face external competition, since many foreign operators are already operating on the Polish market. Taking for example Arriva, whose activities have been taken over by Deutsche Bahn (DB). Deutsche Bahn’s regional division, DB Regio, has already announced massive investments in Poland and its intention to expand services that are currently resuming to operating lines in Kujawsko-Pomorskie region in North-Western Poland.
During discussions, Przewozy Regionalne President Malgorzata Kuczewska-Laska, declared the following related to foreign groups’ competition: “We have understood the fact that there will be new companies in some regions and we are aware of the necessity to compete and collaborate with regional companies under the new market conditions”. She said that new financing sources need to be found for upgrading and maintaining regional lines, since state investments reduced and EURO 2012 is every day closer. It is also very important to attract private investments and European funds to the greatest extent possible. These funds will be directed primarily towards high-speed rail network development and then to regional lines.
Fierce rivalry between the national operator and former PKP Group subsidiary
Przewozy Regionalne used to be part of PGP Group before the activity split and the company’s separation into several companies according to the provided services. Starting November 2009, all activities have been transferred from the national railway company to the authorities of the 16 regions or voievodships, as they are known in Poland. The national passenger company has set up its own local and regional transport subsidiary, Tanie Linie Kolejowe, which was, however, shadowed by PR. There are voices who criticise PKP Intercity’s separation and plead for TLK’s shutdown.
During 2009-2010, the two regional transport companies had a conflict on collecting the money coming from ticket sales. The regional stations managed by Przewozy Regionalne sold tickets for PKP Intercity services as well, while PKP ticket offices did the same with the tickets used on PR services, but Przewozy Regionalne didn’t transfer the money into the accounts of national passenger operator. The scandal was sold in court and PR paid a fine of about PLK 90 Million, but PKP Intercity said the amount coming from the tickets sold at PR ticket offices is much higher. Meanwhile, there are rumours according to which PKP Intercity would condition the operation of certain regional lines by PR in exchange of paying the debt coming from ticket sales, but the rumours were denied by officials from both companies.
Some specialists say rivalry is beneficial and stimulates the competitiveness of the two companies, while others, more pessimistic, cannot help notice that two dogs strive for a bone and the third runs away with it, as Deutsche Bahn announced its participation in the tenders concerning the concession of several lines whose contracts expire this year.
Poland is expecting a boom of tourists to visit the country on the occasion of the European Football Championship and the lack of funds risks to affect the well-development of the event, as
Zbigniew Szafranski, General manager of PKP PLK infrastructure manager, declared at the InnoTrans conference. He also stressed the necessity of additional state and European funds, including for regional and pre-urban lines.
The discussions held during InnoTrans trade fair focused on two important areas: the impact of passenger market liberalisation on passenger regional transport and investments in regional rail infrastructure. The two large companies providing short and medium-distance transport services in Poland, TLK, member of PKP Intercity and PR, will have to face external competition, since many foreign operators are already operating on the Polish market. Taking for example Arriva, whose activities have been taken over by Deutsche Bahn (DB). Deutsche Bahn’s regional division, DB Regio, has already announced massive investments in Poland and its intention to expand services that are currently resuming to operating lines in Kujawsko-Pomorskie region in North-Western Poland.
During discussions, Przewozy Regionalne President Malgorzata Kuczewska-Laska, declared the following related to foreign groups’ competition: “We have understood the fact that there will be new companies in some regions and we are aware of the necessity to compete and collaborate with regional companies under the new market conditions”. She said that new financing sources need to be found for upgrading and maintaining regional lines, since state investments reduced and EURO 2012 is every day closer. It is also very important to attract private investments and European funds to the greatest extent possible. These funds will be directed primarily towards high-speed rail network development and then to regional lines.
Fierce rivalry between the national operator and former PKP Group subsidiary
Przewozy Regionalne used to be part of PGP Group before the activity split and the company’s separation into several companies according to the provided services. Starting November 2009, all activities have been transferred from the national railway company to the authorities of the 16 regions or voievodships, as they are known in Poland. The national passenger company has set up its own local and regional transport subsidiary, Tanie Linie Kolejowe, which was, however, shadowed by PR. There are voices who criticise PKP Intercity’s separation and plead for TLK’s shutdown.
During 2009-2010, the two regional transport companies had a conflict on collecting the money coming from ticket sales. The regional stations managed by Przewozy Regionalne sold tickets for PKP Intercity services as well, while PKP ticket offices did the same with the tickets used on PR services, but Przewozy Regionalne didn’t transfer the money into the accounts of national passenger operator. The scandal was sold in court and PR paid a fine of about PLK 90 Million, but PKP Intercity said the amount coming from the tickets sold at PR ticket offices is much higher. Meanwhile, there are rumours according to which PKP Intercity would condition the operation of certain regional lines by PR in exchange of paying the debt coming from ticket sales, but the rumours were denied by officials from both companies.
Some specialists say rivalry is beneficial and stimulates the competitiveness of the two companies, while others, more pessimistic, cannot help notice that two dogs strive for a bone and the third runs away with it, as Deutsche Bahn announced its participation in the tenders concerning the concession of several lines whose contracts expire this year.
Poland is expecting a boom of tourists to visit the country on the occasion of the European Football Championship and the lack of funds risks to affect the well-development of the event, as
Zbigniew Szafranski, General manager of PKP PLK infrastructure manager, declared at the InnoTrans conference. He also stressed the necessity of additional state and European funds, including for regional and pre-urban lines.
by Alin Lupulescu
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