Polish Transportation Report

Published by: Internet Securities, Inc. (Intellinews)

Published: Nov. 3, 2008 - 22 Pages

Table of Contents

The global economic turmoil began to affect the domestic transport sector already before the US markets actually plummeted. The airline industry is expected to grow (in terms of the number of customers served) only by 15% this year compared to last year's 25%. The recent developments on financial and commodity markets are likely to weigh heavily on the financial standing of the industry (as fuel now constitutes of 30-40% of its total costs). This has already led to some major shifts in the industry, especially in the low-cost carriers' segment, with the unit of national airline PLL Lot, Centralwings, abandoning regular flights altogether.

The sector's companies are still slated for privatisation. However, the momentum heralded in the government's programme from April began to lose steam as the global market faced very big problems. Ultimately, the Treasury is to decide on the way to privatise the air carrier PLL Lot only in early 2009, already hinting that the original IPO plans could make way for a strategic investor. Also, railway carriers see their IPO plans delayed - by a few months, for the time being.

The global financial crisis is already leading to delays in motorway construction credit talks, as companies look for financing before the construction of 430km of motorways kicks off next year under the auspices of the public-private partnership. They complain that banks are reluctant to provide money, but pledge to wind up the projects on time for the football tournament Euro 2012. The government has verified its road construction programme for the championship. A year earlier, it pledged to provide 2,012km of roads and 1,000km of motorways by 2012. Now it is known that the construction on 753km of roads will not be concluded on time, with another 200km of roads being questionable.

Abstract

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