In 2012, PKP CARGO Group – the national leader in rail freight transport – had a share of 50.4% based on the weight of cargos transported, and 60.2% based on transport work. However, by 2023, this had dropped to 33.1% in terms of weight and 33.9% in terms of transport work. In order to navigate the current difficult situation, specific actions need to be taken across multiple areas. With careful planning, the nationwide and international freight transport giant can get back on track for successful business operations.
The national carrier needs profound organisational changes and improvements in process efficiency to adapt to the competitive market and create potential for long-term business growth and profitability. The market has huge potential, and PKP CARGO S.A. is a company with a lot of long-term possibilities.
“PKP Cargo is an excellent company with a lot of potential,” said Dr Marcin Wojewódka, the Acting CEO of PKP CARGO, in a restructuring interview with eNewsroom.pl. “But it needs restructuring and changes which we’re currently implementing. We have to acknowledge the market has changed significantly. PKP Cargo, which once had nearly 60% of the market, now has less than 30%. It used to be that six out of every ten wagons transporting goods on Polish rails were ours, with our distinctive blue PKP CARGO logo. Now, it’s fewer than three in ten. That’s the big challenge before us. Unfortunately, the mistakes of our predecessors and the failures of the government during the past eight years have allowed our competition to strongly enter the market and to widen their reach, creating a highly competitive sector. Therefore, regaining a 60% market share for PKP Cargo is impossible. However, we will undertake any effective measures to reverse this unfavourable trend, which has consistently seen PKP CARGO lose its market share, and to generate new transport job orders.
We are beginning to see the first signs of improvement, as we’ve won two big contracts this year under the new management. But we must be realistic. We need to carry out a restructuring of the company, reduce costs, and start doing good business. Only through slow, organic work can we recover the place which is rightfully the company’s,” predicts Wojewódka.
Source: https://managerplus.pl/marcin-wojewodka-pkp-cargo-traci-udzialy-na-rynku-potrzebna-gleboka-restrukturyzacja-i-zmiany-43156
