ČD Cargo Group keeps strengthening its position in Europe
In 2017, ČD Cargo, a. s., the biggest domestic railway cargo transport provider and the most significant daughter company of Českých drahy, a.s., achieved profit before taxation according to international accounting standards (IFRS) at the amount of CZK 886 million. The cargo transport segment, which comprises of ČD Cargo and its capital shares, contributed to the consolidated result of ČD Group with net profit before taxation at the amount of CZK 743 million.
“After a long time, ČD Cargo shows international progress of the transported goods volume and revenues from the main activity which was one of our most important goals for 2017. We have been successful in using synergies in ČD Cargo Group, provide the customers with comprehensive services and increase the transport distance. The example includes new international product trains and growing transports of road trailers”, states the Chairman of the Board of ČD Cargo, a.s. Ivan Bednárik,
He adds: ” We have prepared and approved a concept for the restoration and sustainability of the railway wagon fleet. We use it to plan the mid-term investment of significant financial means to modernise the engines and cargo vehicles. We have started to implement the concept. In 2017 the example was the acquisition of other inter-operable engines, and also new cargo wagons for the transport of replaceable extensions and containers. The goal is to support the expansion abroad and increase the competition on the European transport market.”
The inter-annual profit of ČD Cargo slightly dropped. This drop results from the growth of costs for traction energy consumption and the payment for railway transport tracks due to higher performance, and also higher investment activity of the company, including higher costs for common maintenance of the railway wagon fleet, and the growth of real salaries of employees which resulted from the actual situation of the work market in the Czech Republic.
Ivan Bednárik has added: “I asses the achieved results very positively. We could have achieved much better result but with the risk of losing qualified employees or missing hardware this year. The investment in our employees and the fleet of railway wagons is considered a key aspect. The task for 2018 is mostly in the area of increasing the efficiency of transports of individual wagon deliveries where we want to compete with the road transport. Last year, we achieved the best result in this field in the history, but we want to shift it further because it plays an important role in our portfolio of services.
The goal of Ivan Bednárik is that the transports of individual wagon deliveries on the railway were perceived by the customers and public as an equal substitute to the truck transport, and that the motto ‘Anything Anywhere’ will be fulfilled.