PKP Intercity gets €500m in EU funds for fleet upgrade

Published on 31-10-2024 at 14:56

PKP Intercity gets big funds from the EU. PKP Intercity

PKP Intercity has signed an agreement with the Centre for EU Transport Projects for a 500-million-euro European grant to help it buy 56 zero-emission locomotives and modernise 248 passenger carriages. The huge funding bundle is part of Poland’s EU-backed National Reconstruction Plan, which has opened up in earnest since the bloc’s former Council President Donald Tusk returned to power in Warsaw.

The 500 million euros will apparently be used for seven ongoing PKP Intercity projects, including buying modern locomotives and the modernisation of an array of different wagons. However, the two key areas where the money is set to be spent are the purchase of 56 locomotives, worth around 230 million euros, and the 275 million-euro modernisation of some 248 passenger cars. There is a condition within the agreement that PKP Intercity completes both projects by mid-2026.

“Today, an extremely important agreement for the Polish railways will be signed between PKP Intercity and the Centre for EU Transport Projects worth PLN 2.162 billion,” said the Polish Minister of Infrastructure, Dariusz Klimczak, on Wednesday.

“This European funding will allow us to implement a project with an even higher value of PLN 2.297 billion… Thanks to this funding, we will be able to implement our plans to expand the network of rail connections, modernise the rolling stock, but above all, meet the expectations of all those who want to travel by Polish rail, who want to travel, among others, with PKP Intercity.”

Keeping it in-house

The contracts for the wagon modernisation will be handled exclusively in Polish rolling stock factories, including the Poznań-based Pojazdów H. Cegielski factory, the Bydgoszcz-based Pesa site, the Pesa Mińsk Mazowiecki facility and PKP Intercity’s Remtrak. Meanwhile, the Newag factory in Nowy Sącz will be supplying the electric locomotives.

The cars and locomotives backed by the EU financing will be used on inter-provincial lines as part of a public service agreement. The route map will likely include destinations including Warsaw, Krakow, Wrocław, Białystok, Gdańsk and Poznań. They will also likely head to smaller cities such as Piła, Hajnówka, Lubartów, Sieradz, Krotoszyn, Kalisz, Lubliniec, Zakopane and Piotrków Trybunalski.

🥳 WOW! Dobre wieści dla polskiej kolei! Ogromne 2,1 miliarda zł #funduszeUE z #KPO dla @PKPIntercityPDP na nowoczesny tabor.
🚆 To aż 56 nowych lokomotyw i 248 wyremontowanych wagonów – po Polsce będziemy się przemieszczać jeszcze szybciej, wygodniej i bardziej ekologicznie! 🆒 pic.twitter.com/HhXZnOj0nu

— Centrum Unijnych Projektów Transportowych (@CUPT_gov_pl) October 30, 2024

On announcing the deal, the President of PKP Intercity, Janusz Malinowski, was keen to point out that as of today, PKP Intercity currently has contracts in Polish industry worth over 3.4 billion euros. “This agreement today allows us to carry out these contracts, allows us to prepare further contracts. On the one hand, the money will flow to Polish producers… and on the other hand, passengers will receive very high quality rolling stock, thanks to which they will be able to travel comfortably.”

PKP Intercity investing

2024 has seen a slew of big rolling stock projects for PKP Intercity. Last week, it announced plans for its biggest train order ever, launching a tender worth more than 2.3 billion euros for 42 double-decker electric multiple units. That’s after signing a contract at the beginning of the year for 63 new multi-system electric locomotives, with an option to order another 32, with the deal valued at just over half a billion euros.

That’s alongside inking multi-million-euro projects for the modernisation of its 50 COMBO cars, the purchase of 35 dual-drive traction units, and 300 new railcars, with an option for another 150 vehicles, valued at around 973 million euros gross. And much of this has been made possible with a new influx of EU funding.

Tusk opens up funds

That’s as the bloc renews its push to unlock funds to support Poland’s infrastructure projects since Donald Tusk, an ex-EU executive himself, returned to the role of Polish Prime Minister in 2023. Under the previous government led by the Law and Justice party, the bloc had withheld approximately 76.5 billion euros in Cohesion Policy funds due to concerns over the rule of law and judicial independence in Poland.

Poland's prime minister has something to do with the PKP Intercity's recent fortunes. — Poland’s prime minister has something to do with the PKP Intercity’s recent fortunes. gov.pl.

Tusk’s pro-EU and more liberal administration has led to a massive thawing of relations between Warsaw and Brussels, resulting in the EU beginning to release previously frozen grants. Earlier this year Tusk’s former colleague EU chief Ursula Von der Leyen said his government’s ambitious plan to tackle the rule of law was “a powerful statement,” saying it was “a clear roadmap for Poland.” With that endorsement she also announced that the EU would start unblocking payments of up to 137 billion euros for Warsaw.

And as Brussels is particularly enthusiastic about funding rail, much of that money will go to backing infrastructure improvements, modernisation of tracks and rolling stock, electrification, and the implementation of ERTMS, as Poland returns to the EU fold and its vision for expanding cross-border rail and EU freight trade.

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