07-06-05
GE ACKNOWLEDGES POLISH RAIL DEREGULATION
WARSAW, POLAND—JULY 4, 2005— This week, the President and CEO for GE Equipment Services, Arthur H. Harper, is visiting Warsaw to hear first hand about the ongoing deregulation and privatization of Poland’s rail freight industry.Mr. Harper will arrive in Warsaw this Wednesday to meet GE customer Rail Polska. “GE Equipment Services oversees a diverse group of operating companies around the world that manage, finance and maintain a variety of equipment. Our European businesses, headquartered in Amsterdam, have 3 billion US dollars of equipment with customers and we are looking to further grow our investments in Poland.” Harper explains. Discussions are expected to centre on how GE can further aid Rail Polska as it executes its ambitious growth strategy.Rail Polska is a wholly owned subsidiary of Rail World Inc., a US-based railway management, consulting and investment corporation that specializes in the public-to-private conversion of railroads around the globe. In 2003 Rail Polska acquired the industrial railway and siding operations of Kolex, based in Oswiecim, and Zec Trans, based in Wroclaw. Both operations were subsequently granted unrestricted operator licenses on the Polish rail network and were merged into Rail Polska in 2004.In GE Equipment Services, Rail Polska has a strategic partner that regularly helps companies worldwide manage, finance and operate commercial equipment ranging from rail wagons and tractor-trailers to commercial vans and temporary modular office space units.GE’s rail wagon leasing company is GE Rail Services. “We have an established business relationship with Rail Polska through leases on a number of coal rail wagons. This relationship places Rail Polska as one of our most important and valued clients in Central Europe,” Mr Jan Makela, Managing Director of GE Rail Services Europe adds.Both Rail Polska and GE expect that this relationship will develop and expand in the months ahead. In particular, Rail Polska expects to expand the fleet of available coal rail wagons by working together with GE. “We believe the development of innovative, highly flexible approaches to financing and managing rail wagons is essential to maximize the growth of rail freight in Poland”, concludes Mr Tim Hollaway, CEO of Rail Polska.“Our Rail Services business provides our customers with rental, maintenance and funding solutions that keep freight on the move,” Harper notes. “Today GE is a US$152 billion global business employing over 320,000 people worldwide. Flexibility and innovation have driven this success. And we apply that same flexibility to the rail industry, where we provide customers with the widest range of rail wagons, and financial products for obtaining those wagons.”
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Notably, Mr. Harper is no stranger to the economic reinvention presently underway throughout much of Europe. Prior to heading up Equipment Services, he served as President for GE Plastics Europe, based in Bergen op Zoom, The Netherlands.
“It’s clear to me that the Polish market is about to hit an extremely buoyant time,’ he concludes. “I want to make sure Rail Polska knows just how important they are to us as a customer, and I’m delighted to have the chance to deliver that message personally.”
GE is virtually alone in the breadth of world-class technology in energy, transportation, healthcare, water and security. "Our wide range of products is complemented with strong consumer and commercial financial services. We are convinced that GE's 21st century solutions can help Central Europe to develop and increase its competitiveness. GE offers a unique opportunity for Poland who is in the process of upgrading infrastructure following its recent admission to the EU." - said Leslaw Kuzaj, GE's Regional Executive for Central Europe.
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General Background
Rail Polska Sp. z o.o. is headquartered in Warsaw and is a subsidiary of Rail World Incorporated, a Chicago-based rail management and investment company. The President and CEO of Rail World Inc., Mr Edward A. Burkhardt, has a mission to create a rail freight business known throughout the world. He also led the successful privatization of rail freight in Estonia. Rail Polska is now recognised as a national freight operator that can provide services on the whole PLK network.
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
GE Equipment Services has its European Headquarters in Amsterdam, with over 2,000 people across Europe, providing trailers, light commercial vehicles, rail wagons, construction equipment and modular buildings for rental and lease. The Rail Services business in Europe has 5,000 wagons.
For further information please contact:
Lynette Innes, Communications Manager – Europe
GE Equipment Services
Rail Services
Tel +31 (0) 20 504 1798
Fax +31 (0) 20 504 1730
Mobile +31 (0) 646 270 281
lynette.innes(at)ge.com