Polish state-owned Industrial Development Agency (IDA) and PKP Cargo signed a letter of intent to launch the production of freight wagons in Podkarpacie (southeast Poland). The companies say that advanced talks are underway with Greenbrier subsidiary Wagony Świdnica to join the project. and to sign the letter of intent.
The letter states that the signatories will sign a contract by the end of 2019 to jointly establish a company responsible for the production of various freight wagons which will be used by PKP Cargo. The document will also determine the number of shares each partner will own in the planned company.
“The market has a strong demand for freight wagons and the implementation of this project would be of great benefit to PKP Cargo. Certainly, our company could be the recipient of the production of this plant, because we have big needs both in the field of replacing the old rolling stock with a new one,” Czesław Warsewicz, the president of PKP Cargo said.
The former Wagon Factory “Gniewczyna”, near Przeworsk, is a possible location for the new company, but in Podkarpacie is another location which is taken into consideration.
The involved companies intend to begin the production of new freight wagons in 2020.
“We want to be an active partner in rebuilding the potential of the domestic industry. Especially in the field of renewal of the fleet of Polish carriers, which was once our national pride. The market needs it very much – currently 70% of all freight wagons are over 30 years old. That is why, by signing the agreement with PKP Cargo, we joined forces and competences. We also hope that companies from the ARP capital group will benefit from this cooperation,” said Andrzej Kensbok, vice president of the Industrial Development Agency.
During the signing ceremony, PKP Cargo has announced the establishment of its new company, PKP Cargo Terminal, which will be based in Medyka-Żurawica, at the Polish-Ukrainian border.
The company, which will manage all terminals owned by PKP Cargo, will become the Poland’s largest terminal manager and one of the largest in Europe. “This is an example of activities integration within PKP Cargo Group, which aims to improve management and better use of resources, but above all to propose a better offer for clients. The terminal manager is another example of our strategy implementation, which assumes development of the intermodal sector,” Czesław Warsewicz, PKP Cargo president said.
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