PKP CARGO signed the contract with the European Bank for Reconstruction and Development for an investment credit with the value of 100 million EUR. Funds obtained from the credit can be used for implementation the strategy until 2020, in particular for strengthening of the company’s position as an integrated logistic operator of an international range.
“Signing the contract with the European Bank for Reconstruction and Development is the confirmation of credibility of PKP CARGO. We have assumed, for the years to come, ambitious goals which we will achieve only through the implementation of key investments. The PKP CARGO Group is an international player, who, thanks to good financial security, has an opportunity of further development” – says Łukasz Hadyś, Financial Member of the Management Board of PKP CARGO Group.
The credit line granted by EBRD credit line with the value of 100 million EUR will be available until 31 December 2016. The Contract gives the company very beneficial conditions and assumes flexibility in credit disbursement. PKP CARGO will have 11 years for the repayment of a possible credit, from the end of the availability period.
The obtained funds will be spent on the implementation of plans adopted in the strategy of PKP CARGO for the years 2016-2020, including acquisitions and investments. The CARGO’20 strategy assumes transformation of PKP CARGO from a railway carrier operating mainly in the Polish market into a leading logistic operator, active in the area of Central and Southern Europe.
The new strategy is based on four pillars. The first one, CARGO Leader, assumes development on the original market. The second one is CARGO International, that is strengthening the international position and achieving the level of approximately 20 percent of transportation work performed outside the borders of Poland thanks to strategic alliances and takeovers. The third pillar is CARGO Intermodal, assuming gaining the position of a leading operator of intermodal carriage in the area of Central and Southern Europe. The last of the pillars is CARGO Connect, assuming integration of logistic services of international range within the PKP CARGO Group.
PKP CARGO is the largest freight railway carrier in Poland, with market share exceeding 56 percent in terms of transportation work. Apart from railway freight carriages, PKP CARGO provides services of shipping, as well as terminal and siding operation. It also deals with repair and maintenance of the rolling stock.