Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

Railway Reform: Toolkit for Improving Rail Sector Performance
Case Study: Polish Railways
7 Conclusion
Polish railways reforms have succeeded on several fronts. Combined revenues are
30 percent higher than at the beginning of the reform process, and the freight
business is on a stable financial footing. Freight market competition has increased
and now private operators move 32 percent of rail freight. Maintenance
and asset renewal is between 230 and 580 percent higher than before reforms,
and staff productivity is 30 percent higher.
However, the reform process is not over and several significant challenges remain:
(i) rail freight transport is losing modal share to road transport; (ii) rail
passenger business is not yet financially stable; (iii) asset investment levels are
below what is needed to compensate for depreciation; and (iv) success in assets
productivity is mixed. Government should develop a balanced policy to support
road and rail infrastructure, and right size the railway network to what is affordable
to maintain in good condition. Government also needs to position PKP
Cargo to compete by involving the private sector in PKP ownership and management.
These challenges await the next stage of reform.
The World Bank Page 389