Similarly, in the case of the sanctioned procedure (restructuring under the supervision of the court) of PKP Cargo. On 24 July 2024, the Management Board of the Company adopted a resolution on "Carrying out group redundancies in the Plant and Railway office of CARGO S.A..It’s okay. ” The reason for specified drastic decisions are the financial losses suffered by the Company in the first half of this year. Information about the causes of these losses presented by politicians and a large part of the media is given according to the mentioned scheme: we are not them. The right is alarmed that shortly after the change of government, the State Treasury company, PKP Cargo, began generating losses alternatively of profits, while left-wing liberal environments accuse that losses are the consequence of bad management during the erstwhile United Right Government.
Assessment of the results of a large commercial law company is not a simple and one-dimensional issue. However, there is simply quite a few publically available data that allows for a substantive assessment of the situation. And that is what he expects, or should alternatively be expected by society. The first highly crucial origin is the profits of the company on the timeline. The net financial results of the Company for the last 6 years are as follows:
You can see the considerable financial losses the Company suffered in 2020 – 2021. It should be assumed that this was a consequence of the pandemic and paralysis of planet economies. This presumption is entirely valid. On Intermodalnews.pl we find this information: "The largest freight carrier in Europe, Deutsche Bahn Cargo, which has recorded losses for respective years, deepened it in 2020. The carrier, like most DB companies, was heavy hit by the coronavirus crisis, explains the board of DB.“ As you can see, the losses incurred by PKP Cargo in the years 2020 – 2021 are as clear as possible, but the profits gained in the following years 2022 and 2023 show good results. Especially against the background of competition. Well, DB Cargo Polska (the daughter of Deutsche Bahn Cargo) suffered a net failure of PLN 35.48 million in 2023 and the share of the German company in the Polish marketplace by the transported weight fell from 15.89% in 2022 to 14.98% in 2023.
After reading this information, it is time to decision on to the fundamental issue. In the first 4th of the year PKP Cargo S.A. reported losses of PLN 118.1 million. And here comes the key question of the causes (in guess who is guilty, us or them). As I have already written, the assessment of the results of the commercial law company is not one-dimensional. This is why we request to look at the marketplace situation in the transport manufacture in 2024. The rail cargo marketplace has been under force from manufacture to deconipt. In the first 4th of 2024 the sold production decreased in Poland by 0.7% year-on-year. But already the extraction of hard coal and lignite has fallen by 20.6% (this is simply a green order), and construction and assembly production has fallen by 10.5%. It's a real economical collapse. This is confirmed by the message of Mr P.O. associate of the Management Board of PKP Cargo, Ms Monika Starecka: "The beginning of this year brought deeper declines in the industry, which is the consequence of continued stagnation in industry. The simplification in the production of goods applicable for the possible transport of the PKP CARGO Group, specified as coal and steel, has had a negative impact on the portfolio of carried-out operations". It is so no wonder that in the first 4th of 2024 the railway manufacture in Poland transported by 10.5% little freight mass counted year by year. But it is disturbing to know that the transport of the Railways Cargo fell in the first 4th of 2024 as compared to the first 4th of 2023 as much as 23.3%. A decrease of 23.3% compared to the decline of the full manufacture on the marketplace by 10.5%.
Thus, it can be seen that the impact on the rail freight transport manufacture in the first 4th of 2024 was the external origin of the economical stagnation observed in Poland, but the losses of PKP Cargo itself are disproportionately higher than the average losses in the industry. Here is the key question about the management of the Company in specified a hard marketplace period. Let us so look at the following entries in the Statute of PKP Cargo S.A. concerning the Management Board:
§ 14.1
The Management Board shall have between 1 and 5 members, including the president of the Management Board, appointed for a joint word of 3 years.
§ 15
If the Management Board is single, the Company is represented by the president of the Management Board. If the Management Board is multi-member, the Company shall represent 2 members of the Management Board acting together or 1 associate of the Management Board acting together with the proxy.
At the turn of 2023 and 2024, the Board of Railways Cargo consisted of 5 people. These were: Dariusz Seliga – president of the Management Board, Marek Olkiewicz associate of the Management Board for Operational Affairs, Maciej Jankiewicz associate of the Management Board for Financial Affairs, Jacek Rutkowski – associate of the Management Board and Zenon Kozendra – worker representative.
In early February 2024 the Supervisory Board suspended 2 key members of the Management Board - president Dariusz Seliga and associate of the Management Board for Operational Affairs Marek Olkiewicz. Thus, at the time of the economical crisis, the Management Board of the Company is truncated to 3 people, with two-man representation. The curiosal decision falls on 22 April 2024, erstwhile Jacek Rutkowski was recalled from the position of associate of the Management Board. Only 2 active members of the Management Board remained in the Company, including 1 representing employees. This is simply a clear signal for the marketplace talking about the decision-making paralysis of the Company.
Although this situation is short-lived, on 24 April the Supervisory Board yet dismisses 2 members of the Management Board suspended in February and, alternatively of the 3 members of the Management Board cancelled in total, delegates from the Supervisory Board 3 fresh persons to execute the tasks of the Management Board of PKP Cargo. However, he delegates only for a limited period, until 25 July 2024. On that day, they were extended for another 3 months, until 25 October, the delegation to execute the duties of a associate of the Management Board temporarily. Thus, since 24 April the Company has a full board of 5 members, but in the case of 3 members it is only temporary function. There is simply a crisis on the market, the Company, which was profitable last year generates losses, and the shareholders of the Company with the leading voice of the State Treasury do not appoint a unchangeable Management Board with authority for full term. Who of the contractors would want to sign strategical contracts with the Company with specified a unstable Management Board? On the another hand, which of the members of the Management Board will be willing to sign the key to the continued existence The companies of the agreement, knowing that they will most likely not be able to supervise their implementation, and thus could exposure themselves to various kinds of charges?
Instead of listening to empty words, it is worth reading the facts.
And finally, the riddle:
► How can the company go bankrupt quickly, effectively and in “white gloves”?
► Paralyze the activities of her board
Mr Bogdan
P.S. Company Deutsche Bahn Cargo Poland Yeah. announced that she was looking for employees with experience in the rail transport industry.
Alles klar as the Germans say, It's all clear
