Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

Railway Reform: Toolkit for Improving Rail Sector Performance
Case Study: Polish Railways
In the first half of 2010, revenues were 18 percent higher than during the first
half of 2009, 174 largely because several subsidiaries are on sound financial footing
(Figure 6). PKP LHS has been turning a profit every year since 2002, and PKP
Cargo has done so during four of the last six years. However, the infrastructure
company, and the passenger companies are not yet on sound financial footing.
During the next reform phase, contracting between Government and infrastructure
managers must be refined to provide: (a) incentives for better performance
and better value-for–money; and (b) right-sizing of the network to make it affordable
for Government to maintain in good condition.
6.2 Market Performance
In Poland, rail freight companies face stiff competition from road transport—a major
reason that railway market performance has failed to improve. Rail-transported
freight declined by 28 percent; passenger market volume fell by 15 percent (Figure 7);
and rail freight modal share fell by 25 percentage points as road transportation
gained modal share. However, during 2005-08, passenger modal share improved in
response to better-quality passenger services 175 (Figure 8).
174 CEE Rail Operators Forum 2010
175 European Foundation for the Improvement of Living and Working Conditions, 2008
The World Bank Page 385