Poland’s transport industry pleads for government lifeline as coronavirus obliterates revenues

By bne IntelliNews March 10, 2020

Poland’s road transport industry has collapsed as a result of the developing coronavirus epidemic, the sector association ZMPD said on March 6. Emergency measures are needed from the government to save the PLN130bn (€30.2bn) industry, the association said.

The spreading coronavirus epidemic – there were 17 cases in Poland on March 9 with the number set to grow rapidly soon, according to the government – has driven road transport’s cargo turnover down 30% in mere weeks, the ZMPD said. Passenger movement has virtually, ceased with turnover falling 97%, according to the association.

“We are waiting for a comprehensive offer of help from the government. That [will be] especially important for the smallest entities, which make up the most [of the transport sector]. Help should be quick before companies go bankrupt,” head of the ZMPD Jan Buczek said in a statement.

The association wants the government to enable granting transport companies working capital loans with preferential terms for four to five years as well as deferment or suspension of social security payments and tax advances.

The ZMPD also said the government could lower excise duty on fuels used in transport in order to drive down companies’ costs.

The transport sector’s plea for help is just one business lobby asking the Polish government to step in with emergency measures to help struggling businesses. The coronavirus epidemic is expected to reduce Poland’s economic growth to below 2% in 2020, according to most recent forecasts

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