PKP Cargo Signed 3 Years Contract for Veolia

PKP Cargo Signed 3 Years Contract for Veolia
July 6, 2015 10:25 pm

PKP CARGO signed the 3-year contract for rail freight of 4.25 million tonnes of hard coal with Veolia in Poland. Contract performance is scheduled for 2016-2018.
The contract signed at the end of June continues long-term cooperation between both parties. At present, PKP CARGO has been carrying the freight for the Veolia companies and the entities from the PKP CARGO corporate group service part of Veolia’s sidings in Poland.

– “By extending our cooperation with Veolia we prove that PKP CARGO is the first-choice carrier for the largest business entities in Poland” – says Member of the Management Board in charge of Commerce at PKP CARGO Jacek Neska. – “We are a well-proven and tested partner. Optimization performed in the company and resulting high flexibility enables us providing high-quality services for an attractive price” – adds Jacek Neska.

Freight will be carried at the area of six of seven PKP CARGO facilities. Contract service will require operation of few to several trains a week, depending on the Client needs and demand. The contract provisions stipulate primarily the supplies of coal originating from the Silesian mines to central and western Poland by means of electric trains, in so called goods wagons.

– “Security of coal supplies thanks to which our heating plants and power and heating plants may produce heat and energy for their recipients is our priority. Satisfactory performance of its tasks by PKP CARGO was the reason behind our decision to extend cooperation for subsequent three years” – says Michał Mejer, Veolia in Poland. The contract with Veolia is another significant agreement for coal fright signed by PKP CARGO this year. The second largest rail freight operator in the EU has entered previously into the contracts for coal freight with, among others, the Azoty Group companies. PKP CARGO acts also as the independent coal freight carrier from Poland to Germany. The entire freight is carried by own rolling stock of PKP CARGO.

Coal recorded the highest share in transport of all goods carried in Poland by rail. According to the Central Statistical Office data, in 2014 hard coal freight reached more than 46% of total rail freight volume. In the same period, share of solid fuels in total transport performed by PKP CARGO in terms of loads carried amounted to 50%, of which 46% was hard coal.

Veolia is one of the leading service providers in terms of energy management as well as water supply, sewage and waste management in Poland, developing and implementing the economically effective and environment-friendly solution. Veolia has been operating in Poland since 1994 and employs 5 thousand people in app. 40 cities, including Warsaw, Lodz and Poznan. It is the largest private heating grid operator as well as third largest company on the co-generation market and a leader in energy services.

PKP CARGO is the largest rail freight operator in Poland with market share exceeding 47% in terms of freight volume and 57% in terms of transport performance (2014). Apart from rail freight, PKP CARGO Group acts as the forwarder and operator of terminals and sidings. Its activities cover also rolling stock repairs and maintenance.

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