On the recommendation of the prosecutor's office, the agency launched an investigation into financial irregularities.
In the center is Mateusz Morawiecki, the former prime minister, who implemented in 2022 a coal transport directive which is alleged of having caused losses of over 376 million złoty (€88 million)
The Prosecutor’s Office wrote on social media that the investigation will focus on the consequences of Morawiecki’s order in July 2022. The directive mandated PKP Cargo to prioritize the transport of coal purchased and imported by several state-owned companies in response to Poland’s urgent need to secure energy supplies.
The company has stated that it is fully cooperating with the CBA investigation, having itself first reported the irregularities. Current management has also laid blame for the collapse on their predecessors, citing poor decisions and a lack of financial oversight.
Alleged losses and operational impact
PKP Cargo’s management claim that the decision imposed by Morawiecki forced the company to break existing contracts with other clients, resulting in lost revenue and contributing to the freight carrier’s ongoing financial troubles.
Although the purchasing companies covered the transport costs, the disruption to regular operations led to a substantial decline in profitability.
The situation has been further aggravated by PKP Cargo’s broader financial decline in recent years.
In a statement issued in July 2024, the current management said that the company’s market value plummeted by 90% during the nine years of the Law and Justice (PiS) government, from over 4 billion złoty (€933 million) in 2014 to approximately 600 million złoty (€140 million) in April 2024.
Additionally, PKP Cargo’s market share in Poland has fallen from 60% in 2013 to below 30% in early 2024.
The company also emphasized that despite its dwindling market share and revenues, operational costs, wages, and investments continued to rise; this, they say, has resulted in unsustainable financial pressures. As things stand, PKP Cargo’s debt has ballooned to nearly 5.2 billion złoty (€1.2 billion).
Restructuring and Layoffs
In response to its dire financial condition, PKP Cargo initiated a restructuring plan in July 2024. The plan includes mass layoffs affecting 30% of its workforce (4,142 employees).
PKP Cargo has
reached agreements with other railway operators, such as PKP Intercity and Polregio, to facilitate the transfer of some workers within the industry.
PKP Cargo’s Strategic Role and International Operations
Despite its challenges, PKP Cargo remains a significant player in logistics, offering multimodal transport services that combine rail, road, and sea. The company operates independently in Poland and across several European countries, including Germany, Austria, and the Netherlands.
PKP S.A., the state-owned railway company, remains PKP Cargo’s largest shareholder, holding a 33.01% stake.
