The development of the PKP CARGO Group in the following reporting periods will remain consistent with the valid strategy of the Group for 2016-2020, whose main goal is to shape and improve the activity of the leading logistic operator in Central and eastern Europe based on four pillars:
Pillar I. Leader in the domestic transport market
The activity of the Group in the Polish rail freight market is oriented at consolidating the position of leader in servicing all cargo categories transported by railway. Forecasted and observed characteristics of the market (incl. planned numerous infrastructural investments, trends in mining, metallurgical and chemical industries) are the priority for the Group in shaping and securing the assets and appropriate offer. The expected effect of the actions is both the satisfaction of service recipients and the growth in freigth turnover and in margins obtained on services. Regardless of the actions aimed at competitiveness and high quality of services of the PKP CARGO Group in the current market environment, the Group conducts a series of actions aimed at promotion of railway transport. It expected effect is an increased share of railway in the transport industry, thereby shaping the foundations and additional space for further developement.
Pillar II. Significant position in international market
The ambition of the Group is further dynamic development and building a significant position in Central and Eastern Europe. Activity in servicing international transport is based on part B safety certificates authorizing PKP CARGO S.A. to provide on its own transport on the territory of 7 EU countries. The Group’s transport activity is supported by subsidiaries specialized in international shipping. An important element of strategic development of the PKP CARGO Group in foreign markets is the servicing of transport from/to the North Sea and Adriatic Sea ports. The key and promising project dynamically developed by the Group is transport from/to China. It should be noted that the established strategic alliances with foreign partners are an asset for the Group. The Group consistently pursues the strategy of developing international transport along the main transport corridors in north-south and east-west directions. The effect of synergies with entities of the AWT Group will be used to increase the presence in servicing the markets in the so-called Three-Sea among the Baltic Sea, Adriatic Sea and the Black Sea.
Pillar III. Leader of the intermodal market in CEE
In view of the observed dynamic development of intermodal transport and the prospect for further growth of containerization of goods transported in international traffic, the key pillar of development of the PKP CARGO Group is its activity and building a strong international position in servicing the transport of the analyzed cargo category. The Group’s development in the intermodal market is based on improving product logistics, implementing modern technologies of transport process management, shaping new service distribution channels, building competences in the operations as intermodal operator, and offering clients the place on constantly and regularly launched services. An important element in the development of intermodal products is the activity of PKP CARGO S.A. in servicing transport along the New Silk Road. The servicing of goods transported from China by railway, apart from the planned increased transshipment for Polish ports, is also the basis of growth in the Company’s transport of intermodal loads.
Pillar IV. The development in adjacent elements of the value chain
Within the pillar the Group constantly expands its offer with services complementary to railway transport, including railway shipping and road transport, and optimizes its terminal activity. Thanks to actions in this area, the offer of the PKP CARGO Group will be able to secure efficient service of complicated and demanding logistic chains.
The adopted CARGO’20 strategy also envisages acquisitions, however, these will depend on market situation and attractiveness of potential acquisition targets. The activities conducted within the four pillars, along with further improvement of service quality, efficient utilization of strategic assets, modernization of the rolling stock and cooperation with other carriers will translate into further dynamic development of comprehensive services provided by the PKP CARGO Group and into the consolidation of market position in the following years.
As part of the Strategy implementation, in 2018 and in the following years the PKP CARGO Group intends to:
- gradually increase quality standards of the provided services and of flexibility in meeting clients’ needs with the full utilization of the potential of companies in the PKP CARGO Group,
- continue to build its position in foreign markets, including its position in the region of Central and Eastern Europe and develop transport from/to China,
- improve the efficiency of wagon and locomotive utilization by increasing their availability as a result of improved standards and maintenance and repair quality as well as optimization of the transport process,
- continue to optimize IT activities to improve the Company operations,
- continue to optimize transport organization,
- adjust resources, costs and processes to actual needs,
- optimize the operations of business units of the PKP CARGO Group.