CPK signs business plan agreement for HSR trains in Poland

Centralny Port Komunikacyjny (CPK) in Poland has signed a business plan agreement for the establishment of a rolling stock pool aimed at financing the purchase of High-Speed Rail (HSR) trains and leasing them to operators under long-term agreements.

This model, already successful in several European countries, aims to address the high entry barriers and low margins that deter operators from investing in HSR rolling stock.

CPK has partnered with EY to develop a business plan and conduct a private investor test for the new rolling stock company.

This collaboration, following a competitive procurement process, will also potentially include the creation of an investment memorandum for future capital partners.

EY’s role encompasses a comprehensive analysis of the European passenger rolling stock rental market and the development of optimal solutions tailored to CPK’s requirements.

The decision to establish a rolling stock pool was influenced by the challenges operators face in purchasing HSR trains.

CPK’s preparatory actions, including studies on passenger needs and rolling stock maintenance models, consultations with railway operators, and legal and business analyses, have laid the groundwork for this initiative.

The company is also updating the train procurement schedule to align with its railway construction timeline, aiming to launch the HSR line between Warsaw, CPK, and Lodz in 2032.

The CPK rolling stock company will acquire trains in three categories, including InterCity HSR, Aero Express, and InterRegio, catering to various passenger needs and regional authorities.

The estimated value of the rolling stock pool project by 2032 is PLN8.7bn ($2.19bn), with funding anticipated from bond issuance, commercial capital, and debt funding.

The CPK Multiannual Programme for 2024-2032, endorsed by the Council of Ministers, outlines the financial strategy for this investment.

CPK CEO Dr Filip Czernicki said: “The rolling stock purchases for the CPK-planned HSR lines will be conducted in a thoughtful and comprehensive manner, based on the identified needs of interested entities.

“Financing the purchase through the CPK rolling stock company reduces investment risks for organisers and operators, who will receive modern vehicles tailored to the required standards for servicing new railway lines in exchange for periodic leasing fees.”

The establishment of the CPK rolling stock pool is expected to modernise Poland’s railway system, which currently has an average train age of more than 30 years.

PKP Intercity, the sole operator with HSR rolling stock in Poland, operates 20 Pendolino trains.

In 2023, RB Rail signed a memorandum of understanding (MoU) with CPK and Sprava zeleznic (SZCZ) to jointly develop a HSR network in North-East Europe.