ČD Cargo has announced further restructuring measures following ongoing declines in rail freight volumes. In the first half of 2025, total freight performance across all operators on the Správa železnic network decreased by 5.3%. ČD Cargo recorded a 3.2% decline during the same period. The drop follows previous volume reductions in 2023 and 2024.
The reduction in transported goods is linked to structural changes in the Czech and European economy. These include:
· shift away from fossil fuels in energy and heating (coal used to be long dominant commodity)
· reduced steel production (notably the end of crude steelmaking at Liberty Ostrava)
· disruptions in energy-intensive chemical sectors
· uncertainty in the automotive industry also because of a tariffs imposed by the USA
· return to pre-bark-beetle timber harvesting levels
· efforts to curb losses from single wagonload shipments.
Workforce and fleet cuts ahead
In response, ČD Cargo plans to continue reducing capacities. The company will downsize its freight wagon and locomotive fleet and proceed with additional layoffs.
Up to 700 employees are expected to leave the company by the end of 2025, including both operational and administrative roles. The process began with the announcement of 287 operational staff redundancies.
The reduction in headcount will correspond with the projected performance levels for early 2026. Further discussions with union representatives are scheduled, focusing on the next phase of capacity adjustment.
No light at the end of 2026 tunnel
Company management does not expect a reversal of the trend in the near future. Forecasts for 2026 suggest total transported volumes will remain below 45 million tonnes. Without new types of cargo entering the rail freight portfolio, ČD Cargo estimates its yearly volume may stabilise around 40 million tonnes.
The restructuring includes a wider set of measures. These cover reduced inventories, re-evaluation of rental agreements, cost-saving in overheads, and the consolidation of train formation locations.
Still holding more than half of the freight rail market
ČD Cargo currently holds a 51.7% share of the Czech rail freight market. According to management, the continuing contraction in traditional commodities is confirmed by market signals and discussions with business partners. Some foreign rail operators have entered insolvency, and more closures are expected.
Trade unions: Support to shift from road to rail remains only on paper
Trade unions were also informed about the lack of tangible support from either European institutions or the Czech Ministry of Transport to shift freight from road to rail, despite targets set in the EU’s White Paper on Transport. The 2030 goal of moving 30% of road freight over 300 km to rail or water remains far from being met. Road freight continues to expand across Europe, including in the Czech Republic, increasing pressure on rail operators.
