Poland’s railway investment system is facing serious structural issues that hinder effective infrastructure development, according to representatives of the Polish Chamber of Land Transport (IGTL) and the Railway Business Forum (RBF). Despite the availability of funding, the reliance on EU programs and the inflexibility of current financial mechanisms are cited as key obstacles. These challenges negatively affect construction companies, reduce the sector’s competitiveness, and limit Poland’s economic and strategic potential. Experts are now calling for an urgent reform of railway financing, emphasizing that no new funding sources are needed—just more flexible use of existing ones. The Ministry of Infrastructure is also working on its own legislative proposals.
“The lack of stability is the main flaw of Poland’s current rail investment system. Even when funding is available from various government and EU programs, delays are common, and the financing itself is unstable. Another issue is the multiplicity of funding sources, which makes the system highly inflexible,” said Maciej Gładyga, Managing Director of IGTL, in an interview with Newseria.
Unstable Financing, Fluctuating Demand
According to IGTL, the current funding model is inefficient and unpredictable, leading to cyclical booms and busts in project orders. This volatility causes pricing issues and difficulties for contractors.
“It leads to pricing wars during downturns and unjustified price increases during peak times. There are also problems with contract indexation. When projects are launched all at once, it causes more disruption than if they were scheduled in a logical sequence,” Gładyga explained.
The irregular investment cycle makes it difficult to offer reliable and competitive passenger and freight services. Experts warn that without stabilizing the investment process, neither regional nor national rail transport can meet growing expectations. The solution lies in providing a stable and flexible financing structure that allows contracting authorities—such as PKP PLK and the future Central Communication Port (CPK)—to focus on project delivery rather than securing funds.
“Rail infrastructure managers like PKP PLK should focus on managing and organizing transport—not on assembling complex funding packages,” said Marita Szustak, President of IGTL.
Call for Reform Based on the Road Fund Model
IGTL and RBF are advocating for a reform of the Railway Fund, inspired by the successful model of Poland’s National Road Fund. Their proposal is based on three pillars: stable funding, flexibility to react to changing priorities, and long-term planning.
“We’re not calling for new funding sources, but rather the flexibility to use what’s already available, independently of the EU’s budget cycles,” Szustak emphasized.
Currently, rail investments are tightly tied to project schedules and earmarked funds, limiting the ability to respond to real-time needs. Meanwhile, the railway sector receives far less financial support than roads. The Railway Fund currently holds PLN 2 billion, compared to PLN 20 billion in the National Road Fund.
“We propose that the Railway Fund should have access to PLN 10 billion for PKP PLK and another PLN 10 billion for CPK-related investments. This would allow the rail sector to focus on project delivery rather than worrying about the source of funding,” Szustak added.
Predictability and Confidence Needed for Industry Growth
Another problem is the lack of transparency in procurement plans. Companies are often informed about tenders too late to plan adequately for staffing, equipment, or strategy.
“The market is demanding multi-year procurement plans. Right now, we learn about projects at the end of the calendar year, because PKP PLK doesn’t know how much money it will have or how it can spend it. This makes it impossible for construction and investment companies to make responsible decisions about growth or hiring,” said Adrian Furgalski, Chairman of RBF and CEO of ZDG TOR.
“If we had visibility for the next five years, everything would change—companies could plan, form consortia, secure materials, and resources. But as long as the rail sector remains unattractive for long-term investment, fewer people will be willing to commit to it professionally.”
The proposed reform would help develop both passenger and freight infrastructure—particularly for intermodal transport—boosting economic competitiveness, improving mobility, and enhancing national security.
“Right now, rail isn’t a viable option for shifting cargo off the roads. Freight trains are often delayed due to inadequate infrastructure or because passenger trains are given priority. We’re forced to wait on the sidelines because line capacity is poor,” Furgalski noted.
He also highlighted the strategic importance of railways in defense planning:
“Rail is essential to military logistics. Ukraine’s resistance to Russia would have been impossible without rail transport. Evacuation and defense plans must factor in railway capacity.”
Optimism About Legislative Progress
According to Furgalski, discussions on reform have made significant progress within the Ministry of Infrastructure.
“We’re optimistic—this is the furthest the rail sector has come in convincing policymakers to enact legal change,” he said. “The ministry has drafted a comprehensive new railway financing law. Yes, there are still inter-ministerial differences, but the Prime Minister’s Office is stepping in to mediate. If talks proceed, we could see the draft bill ready for parliamentary review within a few months—possibly allowing the new system to go live by January 1.”
If implemented, the reform could mark a turning point for Poland’s rail infrastructure—one that shifts the sector from reactive, short-term funding to a strategic, forward-looking model capable of supporting national goals in transport, economy, and security.
