The document states that the signatories will sign a contract by the end of 2019 to establish a company that will produce various freight wagons for PKP Cargo. The contract will also determine the number of shares each partner will hold in the planned company.\r\n\r\n\u201cThe market has a strong demand for freight wagons and the implementation of this project would be of great benefit to PKP Cargo,\u201d says PKP Cargo president, Mr Czes\u0142aw Warsewicz. \u201cCertainly our company could be the recipient of the production of this plant, because we have big needs both in the field of replacing old new rolling stock as well as increasing our resources.\u201d\r\n\r\nThe former Gniewczyna Wagon Factory near Przeworsk is a possible location for the plant, although other locations in Podkarpacie are under consideration. Production is due to begin in 2020.\r\n\r\n\u201cWe want to be an active partner in rebuilding the potential of the domestic industry,\u201d says ARP vice-president, Mr Andrzej Kensbok. \u201cEspecially in the field of renewal of the fleet of Polish carriers, which was once our national pride. The market needs it very much - currently 70% of all freight wagons are over 30-years-old. That is why today, by signing the agreement with PKP Cargo, we joined forces and competences.\r\n\r\n\u201cOur partners have investment needs and industry knowledge, and we in turn support the planned project financially. We also hope that companies from the ARP capital group will benefit from this cooperation. Our activities will not only limit barriers to the development of the rail freight market in the coming years, but also permanently improve the competitiveness of the Polish rail sector.\u201d\r\nPKP Cargo Terminal\r\nPKP Cargo also announced the establishment of a new company, PKP Cargo Terminal, which will be based in Medyka-\u017burawica near the Polish-Ukrainian border. The company, which will manage all terminals owned by PKP Cargo, will become the largest terminal manager in Poland and one of the largest in Europe.