Rail carriers face bankruptcy

Rail carriers face bankruptcy

Rail carriers in the near future will have to buy electricity up to ten times more expensive than a few months ago. Many of them may fail.

The rail sector is facing high energy prices. As recently as mid-2021, traction energy and fuel prices accounted for 20.8 percent of PKP Cargo’s costs. This year it is already 28.3 percent.

Private carriers also have a problem with energy prices. The European Rail Freight Association (ERFA), an industry organization, has published a call for the implementation of solutions to reduce the price of electricity for railroads. In it, it writes, among other things, that energy prices have increased up to tenfold. Carriers that have to buy it so expensively will raise prices for customers or go bankrupt. Bankruptcy threatens mainly medium-sized and smaller companies in the sector.

According to Jakub Majewski, president of the ProKolej Foundation, energy prices need to be reduced not only in freight but also in public transport.

The European Commission is expected to present solutions for reducing energy prices any day now.

Source: https://www.pb.pl/drogi-prad-skieruje-pociagi-na-bocznice-1163596

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