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, realized the pre-tax profit of 481 million CZK according to the International Financial Reporting Standards (IFRS) for the first half of 2019. The net after-tax profit of 270 million CZK was the contribution of the segment of freight transport to the consolidated result of ČD Group. In the first half of this year ČD Cargo Group transported under its own licences a total of 33.4 million tons of goods and increased total operating revenues by 377 million CZK, i.e. by 5.8%.
“In the first half of the year, I positively rate the development of international transportation of coal and other commodities in cooperation with our subsidiaries abroad. We are already able to meet our customers' needs in Poland, Austria and Slovakia with our own capacities and we are expanding this territory. Combined transport performance is also increasing in cooperation with our subsidiary intermodal terminals, whose capacities are now almost full; revenues from logistics and other ancillary services to rail freight transport are also increasing“, says ČD Cargo, a.s. Chairman of the Board Ivan Bednárik.
The development of international transport was supported by ongoing investments in the modernization of the locomotive and freight fleet. Ivan Bednárik adds, “Without a fleet of interoperable locomotives, we would not have had a chance to succeed in the European transport market, so we expanded our Vectron fleet and soon the first Traxx MS3 locomotives will be added. However, our outdated diesel locomotives and carrying lines of freight cars also deserve modernization. We have purchased the first "JUMBO" fuel tank cars, and we also increase the number of combined transport cars and Innofreight system transports. Deliveries of new high-wall Eanos vehicles were launched in July. We have immediate business use for all these investments.“
At the same time, ČD Cargo's performance this year is negatively influenced by the higher price of electricity and diesel and the labour market situation, which is reflected in real wage growth. This, together with higher costs of acquisition and external financing of investments, contributed to a slight year-on-year decline in the profit of the freight carrier. “Modernizing the rolling stock fleet and retaining employees in key professions is our priority, but we must invest prudently in them. We already see a decline in transports in some commodities due to the slowdown in economic growth in Europe. For now, we have been able to compensate for this decline in other commodities, but the situation on the transport market is getting worse and we need to be ready to compete with other carriers in the fight for transport volumes by the quality and price of services offered.” adds the Chairman of the Board.
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