The Polish state-owned rail freight operator PKP Cargo, currently undergoing a massive restructuring, received somewhat bad news from the country’s government. The Ministry of State Assets has in fact rejected the company’s request for financial compensation in the context of the so-called ‘coal decision’.

“Both the Restructuring Administrator and the Management Board of PKP CARGO SA in restructuring regretfully acknowledge the position of the Ministry of State Assets regarding the lack of legal grounds for paying compensation to PKP CARGO SA”, the company said in a press release. The term ‘coal decision’ refers to an initiative launched by Polish former Prime Minister Mateusz Morawiecki obligating PKP Cargo to transport 4,5 million tonnes of coal with priority on the Polish network between July and October 2022.

The ‘coal decision’

Such a business decision forced PKP Cargo to prioritise coal transportation at the expense of other, more lucrative contracts for services that had to be dropped. This led to significant decreases for the company, both in terms of volumes, but especially financial revenue. The current management of the company defined the coal decision as a “reprehensible” initiative, which caused a tragedy for PKP Cargo and thousands of workers who will lose their jobs.

In order to be somehow compensated for these losses, the current management of PKP Cargo appealed to the Polish government for compensation at the end of July. About a month later, the government has now rejected this request. This decision “will not change the fact that the Management Board, together with the Restructuring Administrator, will take further intensive actions aimed at saving PKP CARGO SA, including bringing to justice for the state of the Company those who acted to the detriment of the Company, shareholders and employees”, PKP Cargo concluded.