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Green light for sale Cargotor to PKP PLK, good news for Malaszewicze?

27 January 2023

PKP PLK has got the approval to fully acquire Cargotor by the Polish Office of Competition and Consumer Protection. The parties are both involved in the modernisation of Malaszewicze, the border area between Poland and Belarus. The merger implies a boost in the investment capacity for the modernisation.

Cargotor is an independent rail infrastructure manager owning and maintaining 180 km of tracks in Poland. Apart from this, it runs 30 dispatch points, and it owns Malaszewicze Cargo Terminal. PKP PLK is the largest rail freight operator in Poland, and likewise, it owns and operates a terminal in Malaszewicze.

Source: PKP PLK

The parties signed a letter of intent for the sale in November 2021. The acquisition was approved by the Polish authorities on 16 January 2023. PKP Cargo said in Polish media that “both Cargotor and PKP PLK are involved in the planned infrastructural investments in the Małaszewicze Transshipment Area on the border of the European Union with Belarus, including the modernisation of the railway infrastructure, and the purchase (…) will result in a synergy effect as part of the implementation of the above.”

Modernisation plans

As per the original plans, the Malaszewicze Cargo Terminal would be modernised and the broad and narrow gauge tracks would be expanded. Similarly, the plans of PKP PLK were to modernise the Siedlce-Terespol section of E20 Railway Line, improve accessibility of the Tersepol-Brześć border crossing including the extension of 1520 mm rail tracks at Terespol station and the construction of a new bridge on the Bug River.

However, the modernisation plans as previously drafted relied heavily on EU funding, which has been stopped due to a reorientation towards connectivity with Ukraine. The question remains whether the upgrades of the Malaszewicze will continue under the current circumstances. The merger of the two Polish industry leaders may provide new impetus to the plans.

On the agenda at RailFreight Summit 2023

The modernisation of Malaszewicze will be one of the main topics to be discussed at the RailFreight Summit 2023. The 6th edition of this event will be held on 19 & 20 April in Warsaw, and it is already possible to register on the website.

Do you have something to share or discuss about this topic and do you want to be included on the programme? Send us an email to news@railfreight.com.

Source: City of Lodz during RailFreight Summit 2021

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