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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. << Previous | Next >> |
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