Poland Advances Strategic East West Rail Corridor Upgrade with PLN 1.2 Billion Contract Award

Standfirst

Modernising one of Poland's important freight and passenger railway corridors has moved into the implementation phase after PKP Polskie Linie Kolejowe S.A. awarded a contract worth PLN 1.199 billion for the design and construction of works on the C E 20 railway line between Skierniewice and Czachówek Wschodni. The project combines engineering design and major construction activities and is seeking financial support from the European Union Connecting Europe Facility. 

Introduction

Reliable rail infrastructure has become increasingly important as European countries seek to strengthen freight corridors and improve passenger mobility while supporting more sustainable transport networks. Upgrading existing railway lines rather than building entirely new corridors has become a key strategy for increasing capacity and improving operational efficiency.

Against this backdrop PKP Polskie Linie Kolejowe S.A. has completed the procurement process for a major railway modernisation project covering the C E 20 railway line between Skierniewice and Czachówek Wschodni. The awarded contract combines detailed engineering design with construction activities across railway infrastructure and associated systems including signalling telecommunications traction power civil engineering structures stations and environmental protection works.

The contract has a total awarded value of PLN 1,199,941,074.95 and represents one of the significant rail infrastructure awards published through Tenders Electronic Daily during this procurement cycle.

Why This Contract Matters

The project extends well beyond routine railway maintenance. It is intended to modernise a substantial section of railway infrastructure serving central Poland through a design and build approach that allows engineering solutions and construction activities to be delivered under a single contract.

The scope includes track renewal signalling systems telecommunications traction power infrastructure engineering structures passenger platforms and environmental protection facilities. The contractor will also be responsible for obtaining required administrative approvals carrying out conformity assessment of railway subsystems and delivering certification required before infrastructure can enter operation.

The procurement also includes optional sections covering additional railway segments and interface works with future projects. This gives the contracting authority flexibility to expand the programme without launching an entirely new procurement if funding and operational priorities permit. The notice also states that the project is seeking European Union funding through the Connecting Europe Facility which underlines its wider strategic importance within the European transport network.

Contract Timeline

Contract Overview

The procurement was conducted by PKP Polskie Linie Kolejowe S.A. using an open procedure under Directive 2014 25 EU which governs procurement by entities operating in the utilities sector. The contract covers both works and engineering services under a design and build model.

The awarded scope primarily covers the railway section from kilometre 0.407 to kilometre 27.950 together with options extending the project to kilometre 63.150 and additional interface works where coordination with other railway contracts becomes necessary. The contracting authority has stated that these options are independent and may be exercised separately.

The procurement is not structured as a framework agreement and does not use a dynamic purchasing system. The contract is covered by the Government Procurement Agreement ensuring international procurement obligations apply.

Key Contract Details

Project Scope

The contract covers preparation of engineering documentation followed by construction across multiple railway disciplines. These include track infrastructure railway signalling systems telecommunications traction power systems electrical infrastructure engineering structures passenger platforms station related buildings level crossings and environmental protection facilities.

Beyond physical construction the contractor must complete conformity assessment activities for railway subsystems and provide the required European verification declarations and certificates before the upgraded infrastructure enters service. Optional works may extend the upgraded railway corridor and provide technical integration with other railway investment projects where required by the contracting authority.

About the Contracting Authority

PKP Polskie Linie Kolejowe S.A. is Poland's national railway infrastructure manager and is responsible for developing maintaining and operating the country's railway network. The organisation acts as the contracting entity for this procurement and is responsible for managing the tender process signing the contract and overseeing project delivery. According to the TED notice the organisation also serves as the provider of procurement information and review related information for the procedure.

About the Organisations Involved

PKP Polskie Linie Kolejowe S.A. is the contracting authority responsible for procuring, managing and implementing Poland's railway infrastructure projects. Operating as the national railway infrastructure manager, the organisation launched the open procurement procedure, evaluated bids, selected the successful tender and signed the final contract. It will also oversee contract execution throughout the estimated 56 month implementation period.

Trakcja S.A. serves as the leader of the successful tendering party. The company will coordinate delivery of one of Poland's largest railway modernisation contracts, covering engineering design, construction, railway systems integration and commissioning. According to the TED notice, Trakcja S.A. is classified as a large economic operator and led the winning consortium.

Sarinż Sp. z o.o. participated as a member of the successful tendering party. The company is identified in the notice as a medium sized economic operator and forms part of the contractor responsible for delivering the awarded works. The notice identifies the company as a winning tenderer but does not specify the division of responsibilities within the consortium.

Krajowa Izba Odwoławcza serves as the review authority for the procurement. The institution is responsible for handling procurement related appeals and ensuring compliance with Poland's public procurement legislation throughout the tender process.

Procurement Analysis

The procurement attracted nine competitive bids, demonstrating substantial market interest despite the technical complexity and significant financial value of the project. All tenders were submitted electronically, reflecting the maturity of Poland's digital public procurement environment. No tenders were received from SMEs or from companies registered outside Poland, indicating that projects of this scale continue to favour established domestic railway infrastructure contractors with extensive technical capabilities.

The contract was awarded using an open procurement procedure under Directive 2014/25/EU, providing unrestricted competition among qualified economic operators. The contracting authority selected the winner using a 100 percent price based evaluation criterion, where the total evaluated price included both the core contract scope and all optional works. This approach encouraged bidders to provide comprehensive commercial pricing for the complete potential project rather than only the mandatory works.

An important feature of this procurement is the inclusion of three independent contractual options. Two options allow extension of railway modernisation works across additional sections of the corridor, while a separate interface option enables integration with future railway projects requiring compatibility with signalling and train control systems delivered under this contract. Because these options are independent, PKP Polskie Linie Kolejowe S.A. retains flexibility to expand the programme according to available funding, project sequencing and operational priorities without undertaking a completely new procurement process. 

The project follows a design and build procurement model, placing responsibility for engineering design, construction, regulatory approvals, certification and commissioning under a single contractor. This integrated delivery model can improve coordination between design and construction while reducing interface risks that commonly arise when separate engineering and construction contracts are used.

The procurement is also subject to the Foreign Subsidies Regulation. The TED notice confirms that a notification was submitted and the preliminary review was administratively closed before contract award. This illustrates the increasing influence of European Union regulatory oversight on major infrastructure procurements involving large international contractors or complex financing arrangements.

Another notable feature is the project's planned application for funding under the Connecting Europe Facility. Although the notice states that the project is seeking EU financial support rather than confirming funding approval, the programme's inclusion highlights the corridor's strategic importance within the wider European transport network.

From a procurement perspective, the combination of significant contract value, integrated design and construction responsibilities, multiple optional work packages and European regulatory requirements makes this award representative of the increasingly sophisticated procurement strategies being adopted for major railway infrastructure investments across Europe.

Additional Procurement Facts

Market & Industry Perspective

The award demonstrates Poland's continued commitment to upgrading its national railway infrastructure through large-scale integrated contracts that combine engineering, construction and railway systems under a single delivery model. Rather than separating design from execution, the contracting authority has chosen an approach intended to streamline project delivery and improve coordination across multiple technical disciplines.

Projects of this scale continue to create demand across the railway supply chain. Although the principal contract has already been awarded, implementation will require a wide range of specialist products and services including signalling equipment, telecommunications systems, traction power components, civil engineering materials, environmental protection solutions, testing, inspection and certification activities. Companies with proven railway expertise may therefore find opportunities through subcontracting arrangements during the project's execution phase.

The inclusion of optional work packages also provides flexibility for future expansion. Should additional funding become available, the contracting authority may activate further sections of the contract without initiating an entirely new procurement procedure. This procurement strategy enables infrastructure programmes to adapt more efficiently to changing investment priorities while maintaining continuity of project delivery.

The project's planned application for financial support through the Connecting Europe Facility further reflects the importance of aligning national railway investments with wider European transport objectives. Corridors that strengthen cross-regional connectivity continue to receive significant attention as European governments prioritise sustainable freight transport and improved passenger mobility.

Economic Significance

With an awarded value of nearly PLN 1.2 billion, this contract represents a major public infrastructure investment that is expected to generate economic activity across multiple sectors over the next 56 months. Beyond railway construction, expenditure will support engineering consultancies, specialist equipment manufacturers, construction material suppliers, technology providers, testing laboratories and numerous subcontractors involved throughout the delivery lifecycle.

Long-duration railway contracts also provide greater certainty for contractors and suppliers, enabling investment in skilled personnel, specialised equipment and long-term project planning. Such investments contribute to strengthening Poland's railway construction sector while supporting broader transport modernisation objectives.

Future Procurement Opportunities

Businesses active in railway infrastructure should closely monitor procurement activity from PKP Polskie Linie Kolejowe S.A., which continues to implement extensive network modernisation programmes across Poland. Similar projects frequently involve upgrades to railway tracks, signalling, electrification systems, telecommunications infrastructure, bridges, stations and passenger facilities.

The optional components included within this contract may also create additional work if exercised during implementation. Furthermore, complementary infrastructure projects associated with adjacent railway corridors may generate separate procurement opportunities for engineering firms, construction contractors, equipment suppliers and technical service providers in the coming years. These observations are based on the procurement structure described in the TED notice; the notice itself does not announce future tenders.

PolandTenders.com Procurement Intelligence

From a procurement intelligence perspective, this award illustrates several trends that are increasingly shaping European railway procurement.

First, contracting authorities are favouring large integrated design-and-build contracts that transfer responsibility for engineering, construction, regulatory approvals and commissioning to a single contractor or consortium. This approach can reduce interface risks while simplifying overall programme management.

Second, the inclusion of independent optional work packages provides greater flexibility in long-term infrastructure planning. Authorities can extend project scope in response to available funding without restarting complex procurement procedures, improving both administrative efficiency and delivery continuity.

Third, the procurement demonstrates how European regulatory requirements are becoming an integral component of major public contracts. Compliance with interoperability certification, conformity assessment procedures and Foreign Subsidies Regulation requirements is now an essential consideration for bidders competing for strategic infrastructure projects.

Finally, the strong level of competition, nine submitted tenders for a contract valued at approximately PLN 1.2 billion, highlights the continued attractiveness of Poland's railway investment programme for experienced infrastructure contractors capable of delivering technically complex projects under demanding regulatory frameworks.

Opportunities for Suppliers

Although the principal contract has been awarded, projects of this magnitude typically create substantial opportunities for specialist subcontractors and supply chain partners throughout the implementation period. Companies involved in railway infrastructure, signalling, electrification, telecommunications, civil engineering, environmental protection, testing, inspection and certification services may benefit from participation through the successful contractor and its delivery partners.

Engineering consultancies, equipment manufacturers, construction material suppliers and railway technology providers should also monitor related procurement activity associated with Poland's continuing railway modernisation programme. These observations are based on the contract scope described in the TED notice and do not indicate additional procurements announced within the notice itself.

What Businesses Should Watch

• Implementation progress of the 56-month railway modernisation programme.
• Potential activation of the three optional work packages included in the contract.
• Subcontracting opportunities arising during engineering design and construction.
• Progress of the project's application for Connecting Europe Facility (CEF) financial support.
• Future railway infrastructure procurements issued by PKP Polskie Linie Kolejowe S.A. as part of its wider investment programme.

Key Takeaways

• PKP Polskie Linie Kolejowe S.A. has awarded a contract valued at PLN 1,199,941,074.95 for the design and construction of the C–E 20 railway line between Skierniewice and Czachówek Wschodni.
• The successful contractor is a consortium led by Trakcja S.A. together with Sarinż Sp. z o.o..
• The procurement attracted nine competitive tenders and was awarded using an open procedure with price as the sole evaluation criterion. 
• The contract follows an integrated design-and-build model covering engineering, construction, railway systems, environmental protection and regulatory certification.
• The procurement includes three optional work packages, providing flexibility for future expansion subject to the contracting authority's requirements. 
• The project is seeking financial support through the European Union's Connecting Europe Facility programme.

Conclusion

The award of this PLN 1.2 billion contract marks another significant milestone in Poland's long-term railway infrastructure modernisation programme. By combining engineering design, construction, systems integration and regulatory compliance within a single contract, PKP Polskie Linie Kolejowe S.A. aims to deliver a comprehensive upgrade of an important section of the national railway network while maintaining flexibility through optional project components. 

Beyond its immediate construction value, the procurement reflects broader trends across European infrastructure investment, including integrated delivery models, increased regulatory oversight and continued emphasis on improving transport connectivity. As implementation progresses over the next 56 months, the project is expected to generate business opportunities across the railway supply chain while supporting Poland's wider transport development objectives. The conclusions regarding market implications are editorial analysis based on the procurement information contained in the TED notice. 

Source: TED Contract Award Notice no 525473-2026 - 2026/S 144-525473, "Design and Construction Works on Railway Line C-E 20 between Skierniewice and Czachówek Wschodni", published on 29 July 2026. Information has been adapted from the official European Union procurement notice.