The PKP family is working in harmony

The PKP Group was established in 2001, as a result of a restructuring programme of the State-Owned Enterprise, Polish State Railways. The reform was aimed at the separation of railway operating activity and the management of railway lines as well as to set up independent commercial entries. The PKP Group is now made up of a mother company, PKP S.A., and a number of subsidiary companies.

The PKP Group is made up of 10 subsidiaries, which all work in harmony to provide a company which operates efficiently and effectively in its overall operations. Those 10 subsidiaries are:

• Polish State Railways Joint Stock Company – PKP S.A.
• PKP Cargo Joint Stock Company – PKP Cargo S.A.
• PKP Broad-Gauge Metallurgical Line Ltd – PKP LHS Sp. z o.o.
• PKP Regional Services Ltd – PKP PR Sp. z o.o.
• PKP Intercity Joint Stock Company – PKP Intercity S.A.
• PKP Rapid Urban Rail in Tri-City Ltd – PKP SKM Sp. z o.o.
• PKP Polish Railway Lines Joint Stock Company – PKP PLK S.A.
• PKP Power Engineering Ltd – PKP Energetyka Sp. z o.o.
• PKP Information Technology Ltd – PKP Informatyka Sp. z o.o.

Railway Telecommunication Ltd – Telekomunikacja Kolejowa Sp. z o.o.Passenger and freight operations

The subsidiaries that make up the passenger operations of the PKP Group are PKP Regional Services Ltd (PKP PR Sp. z o.o.), PKP Intercity Joint Stock Company (PKP Intercity S.A.) and PKP Rapid Urban Rail in Tri-City Ltd (PKP SKM Sp. z o.o.).

The subsidiaries that make up the freight operations of the PKP Group are PKP Cargo Joint Stock Company (PKP Cargo S.A.) and PKP Broad-Gauge Metallurgical Line Ltd (PKP LHS Sp. z o.o.).

Modernisation

By 2013, the PKP Group is planning to modernise 800km of railway lines at an approximate cost of €6.7 billion. The Group also plans to modernise or build 14 railway stations in the biggest cities in Poland at an estimated cost of approximately €1.5 billion and to also invest around €1.2 billion in rolling stock. Every year, the PKP Group spends in the region of €1.2 billion on investments and improvements.

Figures of performance

In 2007, the PKP Group’s passenger services and freight operations were recorded to give results on passenger figures and gauge some understanding of how well their operations have achieved. It was revealed that PKP Regional Services carried approximately 168.9 million passengers in 2007 – an increase on the 2006 figures which was just 162.6 million. PKP Intercity Joint Stock Company (PKP Intercity S.A.) transported 11.6 million passengers which was an increase on the 10.7 million figure of 2006. In 2007, PKP Rapid Urban Rail in Tri-City Ltd (PKP SKM Sp. z o.o.) carried 40.6 million passengers – in 2006 they carried 39.3 million.

The freight operation results of the 2007 figures showed that PKP Cargo Joint Stock Company (PKP Cargo S.A.) transported 144.9 million tonnes, but in 2006 this figure was 149.1 million tonnes. PKP Broad-Gauge Metallurgical Line Ltd (PKP LHS Sp. z o.o.) transport 8.6 million tonnes which was an increase in the 2006 figure of 7.3 million tonnes.

Polish State Railways Joint Stock Company – PKP S.A.

PKP S.A. are among the leading owners of real estates in Poland. All over the country, PKP S.A. has 98.2 thousand of real estates with a total area of approximately 107.4 thousand hectares. Some of these estates are used by railway lines and some constitute the production and service backyard of railway companies, office buildings, apartment blocks and railway stations. 15% of these real estates can be potentially used in business. The real properties of PKP provide the company with huge potential to gain profits on the attractive market of real estates, all the more because Poland is an attractive country for investors (mostly investment funds) from that sector. The rate of return in Poland is very high and the investment risk is low. However, high financial assets are a requisite to exploit the full business potential accumulated in railway hotels, office buildings, kindergartens, schools, sports centres and many others.

Four main options for economic usage of railway areas will be considered during works of consulting companies, which are:

• To sell the real estates to investors
• To transfer the real estates to an investor for paid usage and to oblige him to complete a particular project upon the real estate area
• To establish a company with participation of third parties, to which a real estate is contributed for the investor to complete a project
• To perform own investments on real estates, financed from external funds

Hybrid variants are also taken into account

PKP S.A. has 3,005 railway stations, of which 1,506 are in operation and 1,499 are not used. Their total useful area amounts to 1,320,317m2. Their value is estimated at €205 million. These railway stations can be divided into four categories (A-D) on the basis of the number of departed passengers. So, according to the 2000:

• A – with more than 2 million passengers departed (15, including 5 stations which depart more than 3.5 million passengers)
• B – with 1 to 2 million passengers departed (27)
• C – with 0.3 to 1 million passengers departed (147)
• D – with less than 0.3 million passengers departed (1,317)

The total used space usage of railway station areas is 878,838m2 and can be summarised as follows:

• PKP Group companies – 249,724.5m2 (18.85%);
• Commercial – 171.639m2 (13%);
• All-accessible space – 213.456m2 (16.2%);
• Residential apartments – 244.017m2 (18.5%);
• Unused space – 441,479m2 (33.4%) – including unused space, not assigned for further usage

The Polish Railway Stations are public utility sites. Although the main function of a railway station is to depart passengers, given today’s trends in business development and changing lifestyles of modern city dwellers, a station may respond to growing needs of travellers by broadening the range of services it provides. In today’s modern world, more and more people buy a fare on the Internet or from a team of ticket collectors equipped with a pay card reader, rather than queue up at the ticket office. The time spent at the station waiting for the train could be used to work (if there is Internet access), shop, relax in a café or visit the cinema. So, more and more often a railway station becomes a place worth visiting and to spend some of our free time.

PKP Intercity Join Stock Company

PKP Intercity S.A. separately operates the highest segment of passenger traffic services in Poland with qualified trains. PKP Intercity journeys are made on the following categories of trains: InterCity, EuroCity, Express, Low-cost railways, Euro-Night and international night trains. The distinctive feature of PKP Intercity is the totally new standard of service. “Travel the way you like!” this is the motto of the Company – a company that wants to make travelling across Poland and Europe a real pleasure.

PKP Regional Services Ltd

PKP PR Sp. z o.o. is the largest railway carriers in Poland. The Company launched slow and fast regional trains, fast trains between the largest cities and regions in the country and international (long-distance and border traffic) trains.

PKP Rapid Urban Rail in Tri-City Ltd

PKP SKM Sp. z o.o. provides railway passenger services on routes in Pomorskie Province.

PKP Cargo Joint Stock Company

PKP Cargo S.A. deals with domestic and international transportation and reloading of goods. Additionally, it provides logistics and forwarding services, as well as traction related services associated with rentals, maintenance and repairs of rolling stock. The Company’s operating activity is run by the Head Office and the offices of 21 freight transport establishments and 19 rolling stock establishments. International customers are handled by representative offices of PKP S.A. in Germany, Belgium, the Czech Republic, Belarus, Ukraine and Russia, and representative offices of PKP Cargo S.A in Russia and Slovakia.

PKP Broad-Gauge Metallurgical Line Ltd

PKP LHS Sp. z o.o. performs the function of both operator and infrastructure manager on the broad-gauge line 1,520mm in the section 400km long between Polish – Ukrainian border crossing Izov – Hrubieszów and Sławków południowy LHS station located 30km south from Katowice, as well as providing full scope of import, export and transit transport services. Through the broad-gauge Ukrainian railway system, the Company has direct access to the Eastern European and Asian railways systems.

PKP Power Engineering Ltd

The company mission of PKP Energetyka Sp. z o.o. is satisfying the needs and the expectations of customers in the sphere of supplies of electric energy and quality power engineering services. The company supplies electric energy mainly for the purpose of electric traction as well as for general purposes to railway and non-railway customers. The company also provides power engineering services on the territory of the entire country. Since 2004, the company effectively utilises the TPA (Third Party Access) principle.

PKP Polish Railway Lines Joint Stock Company

PKP PLK S.A. is a PKP Group company responsible for the management of the state railway network. The core duties of PKP PLK S.A. include:

• Providing carriers with access to the railway lines
• Preparation of railway timetables
• Operating of traffic on the railway lines
• Maintaining railway infrastructure in a condition ensuring safe operation of railway traffic
• Utilising the premises of railway lines for commercial purposes
• Investor’s services

PKP Information Technology Ltd

The subject of PKP Informatyka Sp. z o.o. activity is provision of state-of-the-art services in the sphere of preparation, modification and utilisation of IT systems and technical services to PKP S.A., PKP Group Companies and other businesses, especially from the transportation sector.

Railway Telecommunication Ltd

Telekomunikacja Kolejowa Sp. z o.o. is a company specialising in the provision of telecommunication services to customers from and from outside the railway sector. It was established by PKP S.A. with the intention of adaptation to operations in market conditions. Currently the framework network of Company is about 28,000km long and it is situated along railway lines throughout the country.