Opposition criticizes Polish Railways privatization

Law and Justice leader Jaroslaw Kaczynski (C) with MPs Jerzy Polaczek (L) and Andrzej Adamczyk (R). Photo: PAP/Jakub Kamiński

“The privatization of PKP Cargo is being carried out improperly, and the company has clearly been undervalued,” Jaroslaw Kaczynski said at a press briefing on Wednesday.

Kaczynski's comments come after Polish Railways announced share prices for the initial public offering of its freight firm on the Warsaw Stock Exchange.

PKP Cargo's IPO is due to take place on 30 October, with shares priced at 68 zloty (16.3 euro) apiece.

Polish Railways is aiming to sell 50 percent of its stake in the freight firm, encompassing almost 21 million shares, with a combined value 3 billion zloty (717.9 million euro).

Kaczynski said that in principle, his party is not opposed to the privatization of the 50 percent stake. However, he objected to the fact that revenues from the sales will largely be spent on paying debts “created by the bureaucracy of Polish Railways” over a decade ago.

Polish Railways unveiled far-reaching plans in November 2012, aimed at combating debts of about 4.3 billion zloty (1 billion euro).

Several of the group's companies have been ear-marked for either total or partial privatization.

The first sale to be made was that of its cable-car wing Polish Cable Lines (PKL), in May 2013. (nh)

Source: PAP