Market Trends of poland road freight transport Industry
Rapid growth of transport and storage sector GDP contribution witnessed despite delays in construction of a few projects
- In April 2024, the construction of a highway in Poland faced a year-long delay. This setback came after archaeologists unearthed traces of settlements, some dating back 10,000 years, alongside artifacts from the Bronze and Iron Ages. Poland's General Directorate for National Roads and Motorways (GDDKiA) revealed that these significant discoveries occurred at two sites near the village of Jawiszowice. The findings emerged during the ongoing work on the S1 expressway in the southern Małopolska province.
- Between 2020 and 2022, the Government Road Construction Fund facilitated the completion of road investment projects spanning 14,000 km, backed by funding of nearly USD 2.53 billion. This investment not only enhanced road safety but also systematically boosted the appeal of various regions for new investments. In February 2022, the Polish Government earmarked USD 0.68 billion for the construction of new local roads and the renovation of existing ones, covering a combined length of 3,900 km. This backing for local self-governments aims to establish a cohesive and integrated road transport system nationwide.
- In July 2024, Poland's GDDKiA announced an investment of USD 4.74 billion for road development, upgrades, and maintenance throughout the year. Among the recent contracts awarded, GDDKiA has greenlit a 17 km segment of the S17 expressway, valued at USD 192.36 million. Furthermore, a separate package worth USD 140.60 million has been allocated for roadworks in West Pomerania. Upcoming projects include the Rusinov Ring Road and a segment of the S10 Cybowo-Lowicz Walecki Expressway. These undertakings, which encompass the construction of 16 bridges, aim to alleviate local traffic delays and are slated for completion in 2028.
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Growing fuel pricing trend witnessed with stabilization expected due to discovery of oil field in the country
- In September 2024, PKN Orlen, Poland's largest refiner and energy firm, unearthed a significant oil field in western Poland. Located in the Lubuskie region, the newly discovered oil field sits adjacent to the existing Rzeczyca field, which boasts reserves of 100,000 metric tons of oil. Collectively, the entire complex is now projected to contain 500,000 metric tons of oil. Once fully developed, the site is set to yield an annual production of 16,500 metric tons of oil. Preliminary tests at the site suggest a strong likelihood of additional oil deposit discoveries. This development is anticipated to curtail Poland's fuel imports in the future.
- Poland's road fuel consumption rose sharply in 2022 due to lower taxes and higher transport needs driven by the influx of refugees from Russia's invasion of Ukraine. This surge in demand could make it difficult for Poland to replace Russian diesel imports if the European Union (EU) decides to impose a ban. In October 2022, the average price of 95-octane fuel in Poland was USD 1.76 per liter, which was higher than the average price for the entire year. The price increases were due to rising crude oil costs, a weak zloty, and a seasonal spike in demand for the crude oil used to produce diesel fuel.
- The new tariff regarding fuel transmission has recently been under discussion, and Tariff No. 1/2025, will take effect on January 1, 2025. The President of the Energy Regulatory Office approved it on June 3, 2024. This tariff applies to the transmission of gaseous fuels through the Polish section of the Yamal-Europe Transit Gas Pipeline. The tariff rates will be valid from January 1, 2025, at 6:00 a.m. until January 1, 2026, at 6:00 a.m. It aims to stabilize fuel prices in Poland.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Poland plans to invest over USD 14 billion in its first nuclear power plant between 2025 and 2030
- Poland's e-commerce industry is expected to grow significantly, driven by rising income and mobile shopping trends
- Rising infrastructure development focus is improving the overall LPI rank of Poland
- Poland's exports are expected to double by 2030, driven by technological advancements
- Poland's trucking sector faces rising costs and insolvency risks due to the Mobility Package regulations
- Scania leads the truck market in Q1 2024, while alternative fuel vehicles remain a small segment
- Rising adoption of electric vehicles in road delivery fleet is expected to reduce the road freight pricing in coming years
- Rising inflation rate growth trend witnessed since 2022 in Poland, with 3rd highest rate achieved in 2024
- Orlen's new oil field discovery is expected to boost production and yield 16,500 tons of oil annually
- Poland's battery industry faces uncertainty due to new EU regulations and increasing competition from other nations
- Road length construction has witnessed a rise since 2022 with high maintainance budget allocated for 2025 as well
- Poland targets 56% renewable energy by 2030 and reducing its dependence on imported gas
- Electric trucks are expected to be more cost-effective than diesel, driving essential electrification in Poland
- Rising road freight volume trend witnessed despite truck driver shortages
- Rising volumes witnessed across all modes supported by new infrastructures
