Czech national rail freight operator ČD Cargo is reportedly planning to scrap thousands of wagons and locomotives. The measure has to do with a market downturn and high energy prices.
ČD Cargo wants to get rid of approximately a quarter of its wagons. It currently has 21,000 wagons, but that is supposed to go down to about 15- or 16,000. In the first half of 2025, the company scrapped 314 wagons. During the entirety of last year, that number amounted to 360. Another 765 wagons have been sold.
The freight operator will also remove locomotives from its fleet. It mainly concerns older electric locomotives and diesel locomotives, according to Czech media.
Cuts in the workforce
ČD Cargo, much like its counterparts throughout Europe, has had to deal with a market downturn and high costs in recent years. “The market is reflecting the decarbonisation of the energy and heating sectors and the overall decline in the competitiveness of European industry,” Tomáš Tóth, the chairman of the company’s board of directors, told publication Hospodářské noviny.
In 2023, the operator transported 56,7 million tonnes of goods, which was 2,7 million tonnes less than in 2022. Besides the rolling stock reduction, ČD Cargo is therefore also planning cuts in the workforce. Up to 700 employees are to leave by the end of this year, more than a tenth of the current workforce. “We must gradually prepare ČD Cargo for real volumes of about 40 million tonnes of transported goods”, board chairman Tóth added.
Terrible news for workforce and customers.