Poland’s rail freight operator, PKP Cargo is set to be privatised this year, according to government announcements.

“PKP Cargo is ready for privatisation, I have no doubt about it,” head of the rail freight operator, Wojciech Balczun told the PAP news agency.

In 2010 the operator managed to make a profit for the first time in a number of years, estimated at 40 million zloty (10 million euro), as well as increasing its market share with increased cargo traffic noted at 14 percent in 2010.

At the end of January, Infrastructure Minister Cezary Grabarczyk said that he hoped the government would rubberstamp PKP Cargo’s privatisation strategy by mid-February, with tenders planned to open for strategic or financial investors interested in the takeover of the rail freight operator later this month.

Profits for PKP Cargo come off the back off a three-year restructuring process which Balczun announced were “practically finished.” In 2009, the freight operator ended the year with a loss of 500 million zloty (130 million euro).

“From the beginning of January we are operating in a new organisation,” Balczun said, adding that PKP Cargo “has 10 sites instead of the 42 which were still operational in 2008.”

PKP Cargo has also been undertaking a programme of voluntary redundancies since the start of its restructuring. Currently around 27,000 people work for PKP Cargo, although Balczun added that when he took the helm of the freight operator in 2008 there were 45,000 employees.

With 85 percent of PKP Cargo’s workforce linked to trade unions, Balczun told PAP that “the last three years are proof that trade unions can be a partner in undertaking very difficult restructuring processes, including the reduction of employees.” (jb)