RAILWAY

INVESTMENT IN INFRASTRUCTURE OF THE RAIL NETWORK IN POLAND

Description of actual situation

PKP_Intercity
PKP PLK - managing the Polish state railway infrastructure, at the turn of 2014 and 2015 announced tenders for the execution of feasibility studies for many new others projects. The investments themselves are to be started at the end of 2016.

This refers to the feasibility studies for the investments co-financed from the new European Union budget for 2014-2020.

The feasibility studies refer among other to the following sections of the railways:

- Kutno – Toruń Główny,

- Ełk – Korsze (including electrification),

- Łódź Kaliska – Zduńska Wola – Ostrów Wielkopolski,

as well as, Skawina – Sucha Beskidzka – Chabówka – Zakopane (including construction of a rail link in Sucha Beskidza)

or Opole Groszowice – Jelcz – Wrocław Brochów.

In addition, a pre-design documentation for works on the railway line No 202 on Gdynia Chylonia - Słupsk section is to be prepared.

In a future perspective, the problems of technical condition of the railway infrastructure, access to seaports will also be comprehensively solved.

The analysis necessary to perform these works cover the lines to the ports of Gdansk, Gdynia, Szczecin and Świnoujście.

The entire investment plan of PKP PLK for 2016-2021 is to have a value of approx. PLN 68 billion (EUR 15 billion).

Financial perspective

PKP_Intercity_EIP_na_torach

The need to develop the document resulted from fundamental changes in the structure of the European Union (EU) aid measures for the sector of railway infrastructure in Poland, which occurred with the entry into a new 2015-2020 budgeting period. In contrast to the 2007-2014 financial perspective, a significant part of the funds for Poland are now available under the new Connecting Europe Facility (EUR 7,7 billion). The program includes 5 projects to be submitted by PKP PLK S.A. in 2015 in the first CEF competition.

The total value of the projects is about PLN 8 bn, which requires an involvement of the following financial resources:

  • from CEF Fund (EU funds) - PLN 5.6 bn
  • from the state budget - PLN 1.5 bn o from EIB loan - PLN 0.9 bn.

The program includes the following projects:

  • Works on the E 59 railway line on Wroclaw - Poznan section, stage 4, boundary of Dolnoslaski Region-Czempin section,
  • Works on the E 20 railway line on Wroclaw - Poznan section, stage 4, other works, Sochaczew-Swarzedz section,
  • Works on the Warszawa Wlochy-Grodzisk Mazowiecki railway line (line no. 447),
  • Works on the ring rail line in Warsaw (sec. Warszawa Golabki /Warszawa Zachodnia-Warszawa Gdanska),
  • Works on the E 75 railway line on Sadowne-Bialystok section together with other works on Warszawa Rembertow-Sadowne section.

and many, many  others…

The following WPIK-CEF2015 Projects closely fit in with the strategic directions of the TEN-T network development:

  • Works on the E 59 railway line on Wroclaw - Poznan section, stage 4, boundary of Dolnoslaski Region-Czempin section, The line belongs to the TEN-T core network in both passenger and freight traffic. The works on the line are divided into 3 implementation sections, two of which will be performed under the 2007-2013 perspective measures, and the third (middle) section is the subject-matter of the WPIK-CEF2014 project.
  • Works on the E 20 railway line on Wroclaw - Poznan section, stage 4, other works, Sochaczew-Swarzedz section, The line belongs to the TEN-T core network in freight traffic. It is subject to gradual modernization and the project in question is the last stage, and primarily covers the traction network comprehensive modernization and reconstruction of large stations, which will, among other things, allow getting the useful 750 m length of track for freight trains.  Moreover, the line is a freight corridor No. 8 The line is also an important connection in the qualified passenger traffic.
  • Works on the Warszawa Wlochy-Grodzisk Mazowiecki railway line no. 447. The line belongs to the TEN-T core network in passenger traffic. It is a second pair of tracks of the No. 1 Warsaw - Katowice railway line at a section located in Warsaw agglomeration area, which is loaded with a very heavy traffic of trains, significantly greater than the one occurring on the No. 1 Line.

The preparatory works for the project implementation (including design documentation) received a funding from the TEN-T Fund.

Table 1         Preparation of WPIK-CEF2015 projects

Name of the project Deadline for execution of the works Feasibility study Environmental Decision Design Documentation
Works on the E 59 railway line on Wroclaw - Poznan section, stage 4, boundary of Dolnoslaski Region-Czempin section 2015 – 2019

 

available (2011) available (2009) available
Works on the E 20 railway line on Wroclaw - Poznan section, stage 4, other works, Sochaczew-Swarzedz section 2016-2020

 

available (2008) available (2012) none
Works on the Warszawa Wlochy -Grodzisk Mazowiecki railway (line no. 447) 2016-2018

 

available (2011) available (2012) none
Works on the ring rail line in Warsaw (sec. Warszawa Golabki/Warszawa Zachodnia- Warszawa Gdanska) 2016-2018

 

available (2011) available (2012) none
 

Works on the E 75 railway line on Sadowne-Bialystok section together with other works on Warszawa Rembertow -Sadowne section.

2016-2020

 

available (2008) Mazowieckie Region
available (2009) none
Podlaskie Region
none none

 

  • Works on the ring rail line in Warsaw (sec. Warszawa Gołąbki /Warszawa Zachodnia-Warszawa Gdańska).The line belongs to the TEN-T core network in freight traffic. It serves for the freight traffic moving within Warsaw agglomeration area to the east-west direction, i.e. Rzepin-Poznań- Warsaw-Terespol. Moreover, the line is a freight corridor No. 8 In view of the location of the line, a significant agglomeration passenger trains traffic also occurs in it. The feasibility study for modernization of the Warsaw Railway Junction, including improving the capacity of the ring rail line, was funded from the TEN-T fund.
  • Works on the E 75 railway line on Sadowne-Białystok section together with other works on Warszawa Rembertów-Sadowne section. The line belongs to the TEN-T core network in both passenger and freight traffic. It is an element of the Rail Baltica line, which is an EU priority project.

Moreover, the line is a freight corridor No. 8 Between Warsaw and Bialystok it was divided into two implementation sections, the first of which (to Sadowne) will be implemented under the 2007-2013 perspective measures, and the second one is the subject-matter of the WPIK-CEF2014 project.

Funding of the program

The primary source of funding for modernization projects under the program are European Union funds under the CEF mechanism. The national contribution will be covered from the state budget.   The program provides for maximum utilization of the EU funds to finance the projects.

This requires efficient implementation of the investment and full securing of the appropriate national contribution in the form of the state budget and EIB loans funds.

Reduction or postponed by years of the planned measures in one of the sources, carries automatically the threat of resignation from the implementation of certain projects or failure to implement the investment within the prescribed time.

Modernization of railway lines of the national importance

The list of tasks accepted for implementation
modern_pkp

Task Period of implementation Length of the line [km] Value of the task [mln PLN]
Works on the E 59 railway line on Wroclaw - Poznan section, stage 4, boundary of Dolnoslaski Region-Czempin section 2015-2020

 

142.8 1 700
Works on the E 20 railway line on Wroclaw - Poznan section, stage 4, other works, Sochaczew-Swarzędz section, 2016-2021

 

176.2 2 800
Works on the Warszawa Włochy-Grodzisk Mazowiecki railway (line no. 447) 2016-2019

 

44.2 500
Works on the ring rail line in Warsaw (sec. Warszawa Gołąbki / Warszawa Zachodnia – Warszawa Gdańska 2016-2019

 

22.2 600
Works on the E 75 railway line on Sadowne-Bialystok section together with other works on Warszawa Rembertów - Sadowne section. 2016-2021

 

213.4 3 200
TOTAL 2016-2021 598.8 8 800

PKP INVESTMENT PLANS UNTIL 2020

invest_pkp

Therefore, in the implementation document to 2020 strategy, the  construction of five new lines appears for the first time.

They include among others the so called hellish route, or Podleze-Piekielko line (PLN 6 bn), (in Polish Piekielko - Little Hell) which would shorten the transportation from Krakow to Nowy Sacz and Zakopane and to Muszyna and Krynica.

The plans include connector between Katowice and Pyrzowice airport (PLN 1.6 bn) and tunnel from Łódź Fabryczna to Łódź Kaliska (PLN 2.3 bn).


There is also a line from Modlin Airport located near Warsaw to Plock, a city with a population of 120 thousand people (PLN 1.8 bln) and - a completely new - connector of Jaktorow on CMK with Łowicz on E20 main line (PLN 2.4 bn) ...

and more, more .

Implementation document demonstrates the potential investments portfolio.

PKP PLK implements preparation of more investments than the anticipated allocation so that in the event of any failure it can implement other projects from the list.

Evaluation of investments and a method for their preparation:

Investment Estimated cost (in PLN bn) preparation stage
Podleze - Piekielko 6 feasibility study under development
Katowice - Pyrzowice 1.8 materials for environmental decision under preparation
Lodz Fabryczna -Lodz Kaliska 2.5 feasibility study under preparation
Modlin - Plock 2 ready feasibility  study
Jaktorow - Lowicz 2.6 ready feasibility  study

 

Investment plans of the railway companies

The new lines planned for 2020.

PKP_Intercity_most-min

Podleze - Tymbark/Mszana Dolna plus modernization of Chabowka-Nowy Sacz

There is no basic feasibility study which is still under development.  It's an investment in the foothill and mountain area; therefore it is difficult to be achieved. But it is worth even to start it until 2020 (at the expense equal to e.g. PLN 1-2 bn) and finish it after that period.

Katowice - Pyrzowice Airport Line

This project is very advanced in terms of its formal preparations.  In terms of suitability for passengers it is the number one of the lines planned in the Implementation Document for the transport strategy 2014-2020.

Lodz Fabryczna – Lodz Kaliska (cross-city tunnel)

Here, the feasibility study is completed. The line is justified by the need to merge both the Lodz junction and the line arriving to the city. A line important on a scale not only of Lodzkie region, but also of the entire network. In addition, the tunnel and the underground station will serve in the future for High Speed Rail trains. Construction of the underground station was planned together with the cross-city tunnel and KDP, because without them it would make no economic and social sense.

Modlin - Plock line,  Jaktorow - Lowicz line.

INFORMATION ABOUT PKP - POLSKIE LINIE KOLEJOWE S.A.

PKP_Intercity-min

  1. The Management Board of PLK implemented a new policy of the investment risk management. An additional element is an ongoing monitoring of the investment in the field. PKP Polskie Linie Kolejowe facilitated the procedure for granting contractual advances; and the possibility to pay for works not executed in their entirety, i.e. "partial" payments in the newly concluded agreements.
  2. The Polish Railways created a package of new tender regulations, particularly relevant for the efficient implementation of the investment under the new EU financial perspective for 2014-2020. In the new term, the total amount allocated to the rail transport may amount to approx. EUR 15 billion.
  3. Therefore, the Polish Railways, as the main beneficiary of these funds are just finishing the development of the National Rail Program (program document for the financial perspective 2014-2020), in which investment projects with a total value of PLN 78.6 billion (approx. EUR 15 billion) are included.

One of the key changes is the obligation of contractors to present a detailed schedule of implementation of the project.

Changes were made also in the process of selecting the contractors. In case of the most important investments, the Polish Railways shall apply a two-stage tender procedure.

Thereunder, the European Funds in the amount of more than EUR 7.6 billion will be allocated to the rail transport. The Railways are also preparing for spending money from the EU budget for 2014-2020.

For the Railways it will be approx. EUR 10 billion of the EU contribution only and approx. EUR 15 billion together with the domestic funds.

Therefore, PKP PLK developed the National Program Station, in which investment projects with a total value of PLN 78.6 billion were included.

The photographs have been taken from PKP website for the media - http://www.intercity.pl/pl/site/o-nas/dzial-prasowy/