PKP CargoTabor Restructuring: Czerwieńsk Locomotive Deal

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Introduction

PKP Cargo, PKP CargoTabor, and the Marshal’s Office of the Lubusz Voivodeship have signed a letter of intent to begin negotiations regarding the potential acquisition by the Lubusz Voivodeship of an organized part of the Locomotive Repair Division in Czerwieńsk of PKP CargoTabor.

Letter of Intent

The letter of intent was signed to facilitate the continued operation of technical facilities and the provision of services related to the maintenance and repair of rolling stock. The signatories included Agnieszka Wasilewska-Semail, CEO of PKP Cargo; Paweł Miłek, Vice-President and Management Board Member for Restructuring Division of PKP Cargo; Marcin Butryn, CEO of PKP CargoTabor; Jerzy Ernst, the Management Board Member; Sebastian Ciemnoczołowski, Deputy Marshal, and Zbigniew Kołodziej, Member of the Voivodeship Board, representing the Marshal’s Office of the Lubusz Voivodeship.

PKP Cargo Restructuring

PKP Cargo reported a net loss of approximately EUR 562 million in 2024, accompanied by an 18.8% drop in revenue, from EUR 1.28 billion in 2023 to EUR 1.04 billion in 2024 and a corresponding decline in EBITDA from EUR 252 million to about EUR 70 million. On 30 June 2025, PKP Cargo filed a formal restructuring plan covering the period up to 2031. This plan aims to restore liquidity, settle nearly PLN 2.94 billion (EUR 664 million) in debt, streamline operations, and prepare the company for future investments. It expects a return to profitability by 2026.

In late 2024, PKP Cargo carried out a significant reduction in workforce, laying off 3,665 employees, which amounted to a 27% reduction, bringing total employment to around 10,046 employees.

PKP CargoTabor Restructuring

The Warsaw Commercial Court launched restructuring proceedings for PKP CargoTabor on 2 September 2024. An administrator was appointed, and the company continues to manage its own affairs under supervision. In March 2025, a restructuring plan was submitted aiming to restore profitability by focusing on financial, personnel, operational, and asset restructuring. This includes trimming activity to 12 repair sections, divesting non-core assets, and diversifying revenue sources. By 11 June 2025, the plan was approved by the Court and received a positive vote from the creditors’ board.

A letter of intent signed on 10 December 2024 between PKP CargoTabor, PKP Cargo, PKP SA, and PKP LHS (PKP Linia Hutnicza Szerokotorowa) indicates plans to potentially transfer or lease parts of CargoTabor’s operations to PKP LHS. This move could secure over 1,000 jobs and broaden PKP LHS’s service scope.

As part of the restructuring, CargoTabor planned collective layoffs affecting up to 520 employees by the end of November 2024, with related costs estimated at PLN 6.55 million (EUR 1.5 million). The restructuring aims to preserve vital maintenance services across Poland, especially in locations like Czerwieńsk, Gorzów Wielkopolski, Toruń, Tczew, and others. Integration with PKP LHS may help ensure continuity of services and infrastructure.

Cooperation Goals

The parties have expressed their willingness to cooperate and to work out a solution that would allow for the continued operation of the technical facilities and the provision of services related to the maintenance and repair of rolling stock. This potential transaction, as part of broader restructuring efforts, could bring significant benefits both to the region and to the wider rail sector — supporting the local labor market, the development of technical competencies, and the research and innovation capacity of the facility. The parties have pledged to carry out negotiations in good faith and in full compliance with all necessary procedures. Although the letter of intent is not legally binding, it marks a significant step forward in advancing dialogue and exploring future cooperation.

Conclusion

PKP Cargo, PKP CargoTabor, and the Marshal’s Office of the Lubusz Voivodeship have initiated negotiations regarding the potential acquisition of a part of the Locomotive Repair Division in Czerwieńsk. This is part of broader restructuring efforts, with the goal of maintaining operations and supporting the local labor market, and advancing dialogue for future cooperation.

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