This report covers the market developments in FY 2013, H1/2014 and the data available as of August 2014.

The Polish logistics and transport industry recorded overall good performance in 2013, considering the high base comparison – in 2010-2012 the sector’s dynamics peaked, fuelled by the preparations for to the Euro2012 soccer championship.
Transport service revenues rose by 3.9% y/y, backed by the 6.8% y/y rise of revenues in the road transport, which continued to account for the highest share of the market last year. The gross financial results of transport companies also improved on an annual basis, alongside the net financial result and profitability rate.
The transport of passengers continued overall annual decline last year, with the air segment being the only one that recorded y/y increase.

Freight transportation volume returned in the positive area in 2013 and continued on upward path in H1/2014, mainly propped by the good performance of the road segment. Nonetheless, we note that the transport companies were negatively affected by Russia’s ban on food imports from the EU earlier in the year. The freight forwarders’ association even claimed in August 2014 that many companies are on the verge of bankruptcy.

While the prospects for full year 2014 indeed remain linked to domestic and international economic developments, in terms of exports the Eurozone remains Poland’s key destination market (50.7% of Poland’s total exports in 2013). Accordingly, the developments in the Eurozone rather than Russia-related trade issues are more likely to impact the activity of freight transport operators in 2014.

Key points:

• Freight transport volume, revenues up y/y in 2013
• Number of passengers serviced at Polish airports rises 2.2% y/y last year
• Rail freight transport volume inches up 0.7% y/y in 2013, performance remains on upward path in H1/2014
• PLL LOT plans to turn Warsaw Chopin Airport into regional hub
• PKP PLK secures EIB loan for further investments in upgrade of railway lines, prepares to sell power, telco, IT units
• EIB grants EUR 240mn loan for upgrading of Warsaw’s municipal infrastructure