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ČD Cargo is building on the positive results of previous years and gradually completing the objectives of its long term strategy

ČD Cargo, a. s., the largest subsidiary of České dráhy, a.s, and a member of ČD Group, which is engaged in rail freight transport, realised a profit before tax in accordance with the International Financial Reporting Standards (IFRS) of CZK 935 million in 2018. The freight transport segment contributed a net profit after tax of CZK 663 million to ČD Group’s consolidated result.

In 2018 ČD Cargo Group transported a total of 68.4 million tonnes of goods under its own licences, which is 2.3 million tonnes more than in 2017. The year-on-year progress was even more significant from the perspective of transport performance – it amounted to 9.4 % due to the forwarding distance having been extended primarily by the realised international sections.

“We have been increasing our share in the Polish transport market, we have created the subsidiary ČD Cargo Niederlassung Wien, which now executes transports under our licence in Austria, we actively operate in Slovakia and we are preparing to enter other rail freight transport markets in Europe. I must say that we have also been doing well in the domestic transport market, where we have increased our market share year-on-year for the first time in the independent history of ČD Cargo, a.s. What contributed to this were primarily the increased transports of coal to power plants, for which we use the modern technology innofreight, but also the new transport management model and the overall active business policy of the company. ČD Cargo has also had significant involvement in solving the bark beetle crisis in spite of the low profitability of these transports. However, we have full awareness of our social responsibility in this case, and we are coordinating the process with the Ministry of Transport and the Ministry of Agriculture,” says the Chairman of the Board of ČD Cargo, a.s., Ivan Bednárik.

What contributed to the year-on-year decrease of ČD Cargo Group’s profit were primarily higher investments in the renewal and modernisation of the railway rolling stock fleet, and then also the increase in the employees’ real wages, the price rise of electricity, fuel and other inputs.

Ivan Bednárik adds, “I view the results achieved all the more positively given that in 2018 we invested almost CZK 2.5 billion in the renewal, modernisation and component maintenance of the goods wagon and locomotive fleet, which is the most in ČD Cargo’s history. We also invest more resources into increasing our own repair capacities to ensure that there is a sufficient number of operable goods wagons and locomotives. We have also expanded the fleet of modern interoperable locomotives for international transports and the fleet of general purpose flat goods wagons for the transports of a wide range of commodities.

ČD Cargo will also continue investing more in accordance with the rolling stock fleet renewal and sustainability policy in the years to come. “We have contracts for the supply of new wagons and locomotives but also for the modernisation and repair of the existing railway rolling stock fleet, which will strengthen ČD Cargo’s competitive ability in the European transport market and so contribute to the achievement of our long term strategy. At the same time, it is vital that the quality of offered services continues to increase and that operational processes and the use of our capacities are optimised so that we are able to continue keeping the commitments to our customers, contractors, shareholders and creditors in the future,” adds the Chairman of the Board.

ČD Cargo Group strengthened its position in the domestic transport market in 2018 and once again increased its modal share abroad year-on-year.


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