Prospects and Challenges in Poland's Railway Market: A Forward Outlook
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Market outlook
Poland is one of the largest railway markets in Europe. Taking into account the strategic investments planned by the government (including the CPK – central transfer hub, regional program aimed at elimination of transport exclusions or the ‘Three Seas’ initiative), next to modernisation ones, the coming years should bring, in our view, high expenditures on the development of the domestic railway infrastructure.
Therefore, we expect (1) solid demand and (2) a gradual shift in the company's revenue structure towards a greater sales of new products (accompanied by a relatively stable contribution of revenues from rolling stock modernization and repairs) in the subsequent period. Unfortunately, in the current turbulent business environment, we anticipate continuing demand fluctuations caused by the lack of long-term plans for rolling stock investments and the varying access to funding for such projects.
