Railway construction

A company responsible for managing the state railway network, currently having over 19,000 km, is PKP Polskie Linie Kolejowe S.A.

The development of the railway construction industry in Poland is possible mainly thanks to the National Railway Programme (KPK), worth PLN 77 billion, which includes projects on railway lines co-financed by the Ministry of Infrastructure. In 2022, it was updated three times. It was originally prepared for the period from 2016 to 2023, until the end of the possibility of co-financing for projects under the European Union’s financial perspective for 2014–2020. Its recent updates also include 2024. The amendment of the National Railway Programme (KPK) adopted on 13 December 2022 by the Council of Ministers assumes expenditures of PLN 13.9 billion, including PKP PLK’s expenditures of PLN 10.9 billion, in 2023. The KPK determines the size and sources of financing, including EU and national funds.

As at the end of 2022, 39.1% of the projects from the KPK (with a total value of approx. PLN 30 billion) have already been completed. Another 59.5% (worth PLN 45.6 billion) is under implementation. Tenders for work worth PLN 400 million (0.6% of the total) are in progress. This category includes, but is not limited to, the reconstruction of line 202 within Słupsk station, development of design documentation for the Kędzierzyn-Koźle – Chałupki section, and retrofitting of the traffic control system at the CMK exit at Zawiercie station. Only 0.8% of the funds (PLN 600 million) are allocated to tasks for which tenders have not yet been announced.

The problem for railway project contractors is the indexation of contracts. According to construction companies, a similar solution should be introduced in this respect as in the case of road contracts. They believe that a further lack of a decision on the indexation threatens to paralyse railway projects due to financial problems and bankruptcy of subsequent contractors, further layoffs of employees, and the loss of executive potential, the reconstruction of which will take many years.

In 2022, PKP PLK announced tenders worth PLN 18.5 billion, but the signing of most contracts was delayed due to the lack of confirmed project financing. The company is ready to announce further tasks. In 2023, these are to be projects for a total amount of PLN 15-20 billion. Due to the lack of funds from the National Reconstruction Plan, industry representatives are calling for an alternative source of financing for railway projects (e.g. from the Polish Development Fund).
PKP PLK also runs the Kolej Plus (Railway Plus) Programme. Its purpose is to supplement the existing network with railway connections to towns having more than 10,000 inhabitants who do not have access to passenger connections with the capitals of the wojewodstwo. In 2022, the budget of the Kolej Plus Programme was increased from PLN 5.6 billion to PLN 11 billion. The condition for participation in this programme is that the applicant provides co-financing of at least 15% of the eligible costs and submits a declaration of a transport organiser for connecting at least four pairs of trains for at least 5 years.

PKP S.A. also runs the Railway Station Investment Programme (PID) for 2016–2023, covering 189 projects. Currently, the estimated value of PID for 2016–2023 is PLN 3.3 billion, of which projects worth approximately PLN 773 million have already been completed. In 2022, 26 railway stations (from 71 in total) were commissioned. By the end of 2023, PKP plans to hand over more than 50 railway stations after reconstruction and construction. As for the other projects planned under this programme: 75% of the projects is at the construction stage, 10% at the design stage and 15% at the preparatory stage.
The long-term perspective for the development of railway construction in Poland is favourable, taking into account the possibilities of co-financing investments under the FEnIKS and CEF programmes, and the plans to build railway lines as part of the Central Communication Port (CPK) project.

The CPK programme assumes the construction of approximately 2,000 km of railway lines by the end of 2034, a total of 10 routes (including 10 the spokes leading from various regions of Poland to Warsaw and the CPK). Works on the railway section between Warsaw and Łódź are the most advanced. The CPK company signed contracts for the design of the line, which is the first element of the new railway network, and at the same time the first fragment of the High Speed Railway in Poland. It submitted an application for a location decision related to the tunnel in Łódź. Construction works are to start in the first half of 2023. A project option was also announced for the Łódź – Wrocław section.

Source: www.cpk.pl