The year 2024 was extremely challenging for the entire European rail freight market, explains Tomáš Tóth, Chairman of the Board of Directors of ČD Cargo. He adds that the acute decline in the volume of goods traditionally transported by rail has continued, with many of the large carriers in the EU reporting massive losses, staff cuts and liquidity problems:
"The decrease in volumes occurred mainly in the domestic transport market, especially as a result of the gradual decrease in the transport of brown coal to power stations and heating plants. In the metallurgical industry, the significant reduction in the production of Liberty Ostrava was decisive, and there was also less demand for the transport of timber by rail," he comments.
The freight transport segment itself recorded a loss of almost €38 million: "The economic results were negatively influenced mainly by transactions related to the ongoing process of downsizing the company - provisions for severance payments to employees and one-off revaluation of assets, i.e. redundant rolling stock," explains Tomáš Tóth.
According to him, ČD Cargo has continuously reacted to the decline in its performance and started its transformation in good time with the aim of adapting to the new reality and preparing for the future. However, the change in the structure of transported goods and the general decline in the performance of the rail freight market in the Czech Republic inevitably lead to the reduction of capacities that we don't need: "We are systematically reducing the number of freight wagons, locomotives and employees," concludes Tóth.
