Railway construction sector in Poland 2012

Development forecasts for 2012-2014

The report covers the current and forecasted trends – both on the railway market as a whole, and its individual segments, i.e. railway routes, stations, and other elements of the infrastructure.

It focuses mainly on market forecasts for the coming years, taking into consideration macroeconomic forecasts, the volume of planned investment and funding possibilities for planned projects.

An important section of the report comprises the profiles of top ten contractors of rail works in Poland, including an analysis of their current circumstances and strategies for the near future.

 

Raport's strengths

  • value forecasts for the construction and assembly production in railway construction until 2014
  • an analysis of individual factors impacting the market forecasts, and a SWOT analysis for the railway market in Poland
  • profiles of the top 10 companies on the railway construction market
  • a comparison of all the rail investments planned for 2012-2014, and investment intentions until 2020.

 

Key issues

  • an analysis of factors impacting the shape of forecasts for the Polish railway market: macroeconomic indicators, expenses of PKP PLK (Polish Railway Lines) and Fundusz Kolejowy (National Railway Fund), EU subsidies, Euro 2012 etc.
  • an analysis of the situation in railway construction as a whole, and in its selected segments (e.g. track investments, station investments, ERTMS)
  • a comparison of classic and slab surfaces
  • key legal obstacles and difficulties vs. amendments facilitating the investment process
  • rail investments in the public-private partnership system
  • High-speed Rail in Poland (including latest changes)
  • a comparison and analysis of large (over PLN 50m) railway projects planned for the coming years
  • an analysis of ten largest contractors on the railway market in Poland, including their financial results, most frequent consortium members, and key contracts they have acquired
  • an analysis of planned rail investment until 2012, and long-term plans until 2020.

 

Find out

  • Will PKP PLK be able to use all the available EU funding for the renovation of rail infrastructure by 2013?
  • What is the current and future value of the railway market in Poland?
  • How many kilometres of railway lines are going to be modernised in 2011-2015?
  • What key railway stations are going to be renovated by 2015?
  • What will be the shape of prices for construction materials used in railway construction over the next years?
  • What are the most recent financial results of top ten rail works contractors in Poland, and what new contracts have they acquired in the last months?
  • What factors are going to affect the condition of the railway construction industry in the coming years?

 

In what business situations will the report be an asset?

  • when starting activity on the railway market in Poland
  • carrying out a takeover or a fusion on the construction market
  • planning company strategy
  • analysing investment opportunities on the construction market in Poland
  • monitoring the competition on the railway construction market
  • estimating own share in the railway market
  • preparing demand forecasts for construction materials
  • preparing own analyses for the board or shareholders.

 

This raport is highly recommended to

  • executive staff, managers, marketing departments of the following:
  • manufacturers and distributors of construction machinery
  • contractor companies operating in Poland
  • foreign construction businesses investing or planning to invest in Poland
  • companies which design and manage railway investments
  • consulting, research and analysis agencies
  • government institutions, embassies, universities and research institutes
  • chambers of commerce, industry organisations, media houses, PR agencies
  •  financial institutions (banks, brokerage houses, investment funds).

 

Extract from this report

  • In 2012, PKP PLK is planning to announce railway tenders for the amount of PLN 3.3bn, which translates into 20% of the sum contracted in 2007-2011.
  • Since 2010 a Feasibility Study is being prepared for the construction of High Speed Rail in Poland. There are many signs that after the contract is completed (due in 2012) further investment works, expected to absorb approximately PLN 30bn, will be suspended until 2030.
  • The most expensive railway investment in Poland – the construction of a multimodal railway station Łódź Fabryczna − will consume PLN 1.4bn, and accounted for over a fifth of contracts signed in 2011.

 

Market commentary by expert

Thanks to EU funds for the development of railway transport, for the first time in twenty years Poland has a realistic chance to improve the state of railway infrastructure. Railway contracts signed within the financial perspective 2007-2013 are frequently worth several hundred million PLN, considerably boosting the growth of the railway industry. However, it will truly rise in 2014-2020, the years of the next EU perspective.

Katarzyna Bednarz, Construction market Analyst

 

We use PMR's services due to their analysts' extensive experience in market analysis, their high quality and level of engagement in the market research carried out for us. We consider PMR a competent and professional company and recommend them as a reliable partner in the area of economic information and market analysis. Senior Trade and Investment Adviser, British Embassy in Warsaw
PMR's analysts understand our needs well and the standard of their service has always fully met our expectations. We are looking forward to cooperating with PMR in the future as well. Senior Trade and Investment Adviser, British Embassy in Warsaw
Schueco International Poland wishes to recommend PMR Publications, as a trustworthy market information provider. PMR's prognoses concerning the construction sector are particularly worth recommending, as they are reliable and well prepared. Using them helps our company successfully plan further development. Managing Director, Schueco International Poland
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PMR reports are a serious contribution to the market overview picture, focusing our attention on key events in the industry as well as highlighting both general and specific market indicators. Together, these components are the base for our future forecasts of construction market development and help us to plan our sales. Market Analyst, Alpha Cement
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  1. Methodology p. 9

  2. Executive summary p. 11

  3. Railway construction market in Poland p. 15

    • Size of the railway market in Poland p. 15
    • Condition of railway infrastructure in Poland p. 17
    • Environmental considerations regarding the development of the railway sector in Poland p. 21
    • Tendering systems used in Poland p. 22
    • Price criterion in tenders p. 24
    • “Design and build” system p. 25
    • Public-private partnership in railway projects p. 27
    • Construction of ballastless railway tracks p. 28
    • Cost structure in railway construction p. 29
    • Ongoing and planned railway construction projects p. 35
  4. European traffic management systems p. 35

    • High-Speed Rail p. 43
    • Major ongoing railway projects p. 49
    • Investment projects implemented without the EU financial support p. 55
    • Tenders planned for 2012 p. 59
    • Investment projects planned for 2014-2020 p. 66
    • Investments in railway station buildings in Poland p. 69
  5. Development forecasts for 2012-2014 p. 73

    • Macroeconomic forecasts p. 73
    • Government programmes concerning railway infrastructure p. 74
    • Multi-Year Railway Investment Plan p. 76
    • Financing railway projects in Poland p. 78
      • EU funding p. 80
      • Financing from the Railway Fund p. 85
      • Financing from State Budget p. 87
    • Projections for construction and assembly output p. 88
    • SWOT analysis for the railway industry in Poland p. 90
  6. Competitive environment of the railway construction market in Poland p. 91

    • Main contractors p. 91
      • Trakcja Tiltra SA p. 91
      • Przedsiebiorstwo Robot Kolejowych i Inzynieryjnych SA from Wroclaw p. 92
      • Feroco SA p. 93
      • PNI Sp. z o.o. p. 94
      • Torpol Sp. z o.o. p. 96
      • Przedsiebiorstwo Robot Komunikacyjnych w Krakowie SA p. 97
      • PKP Energetyka SA p. 98
      • Pomorskie Przedsiebiorstwo Mechaniczno-Torowe Sp. z o.o. p. 99
      • Zaklad Robot Komunikacyjnych DOM w Poznaniu Sp. z o.o. p. 100
      • Przedsiebiorstwo Uslug Technicznych Intercor Sp. z o.o. p. 101
    • Competition on the railway infrastructure market p. 102
    • Main plan and design companies p. 104
  7. List of graphs p. 107

  8. List of tables p. 109

  9. About PMR p. 111

  10. Contact PMR p. 112

List of graphs

  1. Railway construction contracts concluded in Poland (PLN bn and km), 2008 – Q1-Q3 2011      12
  2. Construction and assembly output generated by railway construction in Poland (PLN m), 2005-2014      13
  3. Share of railway construction in the construction market in Poland, 2010      15
  4. Construction and assembly output generated by railway construction in Poland (PLN m), 2005-2011      16
  5. Condition of railway infrastructure in Poland, 2011      18
  6. Structure of railway lines in Poland by maximum train speed, 2011      18
  7. Track infrastructure upgrades in view of the necessary work, 1989-2009      19
  8. Condition of civil engineering elements of railway infrastructure in Poland (by number), 2003-2010      20
  9. Age structure of railway infrastructure in Poland, 2011      20
  10. High-speed rail construction cost in Europe and Asia per 1 km (€ m), 2011      30
  11. Distribution of costs involved in the construction of high-speed rail, 2010      30
  12. Estimated distribution of costs for the planned high-speed rail line in California, 2006      31
  13. Estimated aggregated distribution of costs for the planned high-speed rail line in California, 2006      31
  14. Cost structure in companies specialising in transport construction and building construction in Poland, 2010      32
  15. Map of the ETCS implementation in Poland, 2007-2023      38
  16. Map of the GSM-R implementation in Poland, 2008-2013      42
  17. Development of public transportation branches in the European Union, 1996-2009      44
  18. Development of high-speed railways in the EU (km), 1990-2017      44
  19. Planned route of the High-Speed Rail in Poland, 2011      45
  20. High-Speed Rail system with a time horizon until 2050      47
  21. Railway construction contracts concluded in Poland (PLN bn and km), 2008 – Q1-Q3 2011      50
  22. Rail investments underway in Poland, end of 2011      55
  23. PKP PLK tenders planned for railworks in Poland, 2014-2020      67
  24. Map of upgraded railway stations in Poland, 2012      70
  25. Structure of capital expenditure in Poland, by type of work, 2007-2015      76
  26. Capital expenditure on railway infrastructure in Poland, by type of work (PLN m), 2007-2015      77
  27. Increase in capital expenditure on railway infrastructure in Poland (PLN m), 2007-2015      77
  28. Capital expenditure on railway infrastructure in Poland (PLN m), according to the Multi-Year Railway Investment Plan, 2007-2015      78
  29. Sources of funding for railway projects in Poland, 2011-2013      79
  30. Budget of the Railway Fund and capital expenditure and expenditure on infrastructure maintenance in Poland (PLN m), 2006-2011      86
  31. Spending structure of the Railway Fund’s budget, 2011      86
  32. State’s spending on railway in Poland (PLN m), 2002-2012      87
  33. Construction and assembly output generated by railway construction in Poland (PLN m), 2005-2014      88
  34. Value of new investment tasks in railway construction in Poland annually (PLN m), 2011-2015      89

List of tables

  1. Comparison between ERTMS systems: ETCS vs GSM-R      36
  2. Schedule for the ETCS deployment, 2007-2023      37
  3. Schedule for the GSM-R implementation in Poland, 2008-2013      39-41
  4. Development of the High-Speed Rail system in Poland – long-term time horizon, 2014-2050      47
  5. SWOT analysis for the development of the Y-Line in Poland, 2012      49
  6. List of major railway construction contracts concluded in Poland, November 2007-September 2011      51-54
  7. List of railway investment projects implemented without the EU participation      56-58
  8. Railway tenders planned in Poland, 2012      60-62
  9. Railway contracts in Poland originally planned for 2011      64
  10. Indicative list of the main railway investment projects in Poland, 2014-2020      68
  11. PPP upgrades of station buildings in Poland, 2012      71
  12. Projections for the main economic indicators in Poland for 2011-2014      73
  13. EU-funded investment projects carried out in Poland, 2008-2015      81-84
  14. Reserve list of EU-funded investment projects to be carried out in Poland, 2010-2015      85
  15. SWOT analysis for the railway industry in Poland, 2012      90
  16. Key financial data for Trakcja Tiltra SA, 2007-2010      91
  17. Selected ongoing projects of Trakcja Tiltra SA      92
  18. Key financial data for Przedsiebiorstwo Robot Kolejowych i Inzynieryjnych SA from Wroclaw, 2007-2010      92
  19. Selected ongoing projects of Przedsiebiorstwo Robot Kolejowych i Inzynieryjnych SA from Wroclaw      93
  20. Key financial data for Feroco SA, 2007-2010      93
  21. Selected ongoing projects of Feroco SA      94
  22. Key financial data for PNI Sp. z .o.o., 2007-2010      94
  23. Selected ongoing projects of PNI Sp. z o.o.      95
  24. Key financial data for Torpol Sp. z o.o., 2007-2010      96
  25. Selected ongoing projects of Torpol Sp. z o.o.      96
  26. Key financial data for Przedsiebiorstwo Robot Komunikacyjnych w Krakowie SA, 2007-2010      97
  27. Selected ongoing projects of Przedsiebiorstwo Robot Komunikacyjnych w Krakowie SA      98
  28. Key financial data for PKP Energetyka SA, 2007-2010      98
  29. Selected ongoing projects of PKP Energetyka SA      99
  30. Key financial data for Pomorskie Przedsiebiorstwo Mechaniczno-Torowe Sp. z o.o., 2007-2010      99
  31. Selected ongoing projects of Pomorskie Przedsiebiorstwo Mechaniczno-Torowe Sp. z o.o.      100
  32. Key financial data for Zaklad Robot Komunikacyjnych DOM w Poznaniu Sp. z o.o., 2007-2010      100
  33. Selected ongoing projects of Zaklad Robot Komunikacyjnych DOM w Poznaniu Sp. z o.o.      101
  34. Key financial data for Przedsiebiorstwo Uslug Technicznych Intercor Sp. z o.o., 2007-2010      101
  35. Selected ongoing projects of Przedsiebiorstwo Uslug Technicznych Intercor Sp. z o.o.      102
  36. Consortia established for the main railway investment projects in Poland, 2010-2011      102
  37. Main plan and design companies operating in the railway construction industry and their major projects, 2011      105-106