Long-term outlook poor for Czech rail transporters

21 April 2020

The closing of the country’s borders has meant that rail and road-based logistics companies in the Czech Republic have seen demand for their services fall by tens of percentage points, creating an existential risk. They’re now demanding help from the government, as are companies near the borders of the country who have lost access to their employees. Czech Television reported from Uhříněvěs with the boss of Metrans Rail who showed the cameras thousands of empty rail containers piled on top of each other like blocks. In normal times, the company would handle 14 cargo trains from Germany on a daily basis, but the volume has been cut in half. “The boats coming in from Chinese harbors aren’t full,” he said. “The long-term plan for filling boats is -30 percent. That’s a big problem for us.”

Rail-based logistics companies are looking for the state to grant reduce their costs by deferring payments. “Otherwise, we’re going to have big problems maintaining employment,” said Oldřich Sládek, executive director of Žesnad, an association of rail transportation companies. They have to pay the Czech Railways Authority around CZK 100 per kilometer for the use of its network.

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