The Polish national rail freight operator PKP Cargo is sailing through troubled waters due to decreasing volumes and performance. The company placed thousands of its employees into inactive status since the beginning of June. However, the situation is less bleak for up to 300 of them, who will be hired by Polregio, a Polish company offering regional rail passenger services.

Polregio said the initiative would include “up to 300 people in professional groups employed in traction teams, maneuvering teams, technical inspection and in the area of ​​rolling stock maintenance and repairs”. On the other hand, about 7,000 PKP Cargo employees will still remain under inactive status with a 40 per cent salary cut until June next year.

PKP Cargo’s adverse situation

In May, PKP Cargo announced the ‘inactive status’ initiative for up to a third of its workforce, which amounts to over 21,000 people. After that, speculation about a possible bankruptcy surfaced, due to a financial hole of over one billion euros and the current PKP Cargo acting President underlining years of mismanagement.

Most of the company’s hopes now rely on a market revival which may not be very likely considering the country’s recent rail freight figures. Despite the somewhat drastic situation, PKP Cargo is also looking into new markets, such as the transportation of semi-trailers, to try and weather the storm and get back on its feet.

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