News

Year 2024 was extremely challenging for the whole European rail freight market. Acute decline of commodity volumes traditionally transported by railway continued and many of large carriers across the EU report massive losses, staff reduction and issues with liquidity. Despite further grow in transport performance of ČD Cargo branches and subsidiaries abroad, the total volume of transport decreased to 56.7 million of tonnes in 2024. “The decrease in volumes occurred above all on the domestic transport market, particularly as a consequence of gradual decline in transport of lignite to power stations and heating plants. In the field of metallurgical industry, essential reduction in production of Liberty Ostrava was crucial, and lower demand was also for transport of timber by railway,“ comments Tomáš Tóth, chairman of the Board of ČD Cargo, a.s.

ČD Cargo was reacting continuously to the performance decline and started its transformation in time with the aim to adapt itself to the new reality and prepare for the future. “The change in the structure of transported commodities and the overall decline in performance on the rail freight market in the Czech Republic leads us to inevitable reduction in capacities for which we don’t have use. We systematically lower the numbers of freight wagons, locomotives, and also employees. A fundamental change is happening also in the product of Single Wagon Loads, which is economically no longer sustainable in its current form,” continues Tomáš Tóth.

The freight transport segment itself registered loss of CZK 945 million. “The economic results were negatively influenced above all by transactions related to the ongoing process of downsizing the company – reserves for severance payments to employees and one-time revaluation of the assets, i.e. redundant rolling stock,” explains Tomáš Tóth. In total, these accounting transactions exceeded the amount of one billion Czech crowns. In case of assets revaluation, it means no real expenditure, but a necessary accounting adjustment which supports transparent management and long-term sustainability of the company.