Správa železnic Slepá ražba štoček desky - přední strana
Annual report 2019 Annual report 2019
Contents
Foreword 4 Organisation’s Profile 8 Basic information 9 Management 10 Corporate governance 11 Strategy 16 Organisation’s activities 20 Line section anniversaries 20 2019 highlights 22 Operability of the rail infrastructure 25 Modernisation and development of the rail infrastructure 33 Operating the rail infrastructure 40 Utilisation of the Správa železnic’s rail infrastructure by carriers 43 International cooperation 46 Financial performance 50 Internal audit and risk management 54 Human resources 60 Corporate responsibility 66 Subsequent events 71 Financial section 72 Independent Auditor’s Report 74 Balance sheet 78 Income statement 86 Statement of changes in equity 90 Cash flow statement 92 Notes to the financial statements 96 Persons responsible for the annual report 147 Annual report on the provision of information 148 List of abbreviations 150 Identification and contact details 152
3 Správa železnic Annual report 2019
Foreword Ladies and gentlemen, dear business partners,
2019 was a successful and very lively Key construction projects launched by construction location. We selected the year for Správa železnic. It brought with Správa železnic in 2019 included the supplier of the feasibility study for the it many events, changes, and mainly electrification of the Uničov – Olomouc high-speed (Brno) – Přerov – Ostrava everyday conscientious work carried out and Šakvice – Hustopeče u Brna lines, the railway line using the unique best value by the company managing the Czech rail modernisation of the Soběslav – Doubí approach/best value procurement (BVA/ way infrastructure as one of the major u Tábora line section in the Fourth BVP) method. The preparatory works employers in the Czech Republic. Corridor, and the optimisation of the now also include fieldwork. As part of Praha-Smíchov – Černošice line, and the the geodetic survey of the area between Almost 92 kilometres of modernised lines modernisation of one of the key lines in Prosenice and Ostrava-Svinov, between were put into operation. The moderni the Central Bohemian Region, Lysá nad Modřice and Šakvice and between Praha sation and renovation of further lines Labem – Čelákovice, in the Third Corri Běchovice and Poříčany, we began to was launched and continued. Further dor. We also successfully concluded the prepare the documents for up to 130 km steps were made in the preparation of one-year closure of the Brno main station of new tracks. At the end of the year, we the construction of the pilot high-speed connected with an extensive renovation announced a tender for the preparation of railway line sections, and record amounts of the control command and signalling the documentation for planning decision were spent on the renovation and refur facility. A significant result of our activity of the first pilot section of the high-speed bishment of the train station buildings, at the end of 2019 was obtaining the first Praha-Běchovice – Poříčany railway line. putting emphasis on their barrier-free two final and conclusive decisions about character. This is only a short list of the the placement of the construction in the As a part of the approved long-term activities carried out by Správa železnic Prague - Václav Havel Airport – Kladno strategy extending to 2025, we continued in the past year. Just the modernisation rail connection project. to fulfil the individual objectives set out of railway infrastructure required an in the short-term 2018 - 2020 action investment of almost CZK 20 billion. The We also progressed with the prepara plan. One of the significant areas was Company continues to belong among the tion of the pilot sections of a high-speed the redress of the long-term insufficient biggest final beneficiaries of EU funds. In railway line. We concluded a contract for maintenance of some line sections. We are 2019, the trend of increasing funds spent cooperation on the preparation of the successful in realising this plan. We spent on preparation of further constructions construction of a high-speed railway almost CZK 11.9 billion on repairs and continued. The first construction financed line with French railways SNCF with the maintenance carried out by external from the new EU Blending Call tool came objective to prepare a design manual for suppliers. For example in June we finalised close to its realisation phase. high-speed railway lines on the level of the significant repair of the “Sázava documentation for issuing a decision on Pacific” line section between Ledečko
4 5 Správa železnic
and Zruč nad Sázavou of CZK 687 million. pages including all passenger rail carri Another significant event was the repair ers, location of the train and information of the Železný Brod – Tanvald line section on the individual train stations including of CZK 411 million. barrier-free access. In connection with the extensive modernisation of rail in We were successful in accelerating the frastructure and preparation of projects, preparatory works and renovation of we actively inform about the planned train station buildings. Tens of train constructions and large infrastructure station buildings all over the Czech projects including high-speed railway Republic got a new look. Of the total lines and the implementation of ETCS on sum exceeding CZK 1.5 billion, more than our web site. CZK 1.1 billion was designated for refur bishment and more than CZK 480 million After 15 years of our existence, the end of for preparatory works and renovations; 2019 brought a change in the name of the the total sum was a record amount since organisation. We have entered the new our takeover of the train station build decade as Správa železnic. ings in 2016. We have started renovating the facade of the Fanta Building at the Prague, 20 March 2020 Prague main station and the train station building in Havířov.
Thanks to intensive preparation, the renovation of large train station build ings in České Budějovice, Plzeň and Pardubice will commence. In connection with using a new logo, we launched the re-branding and operation of our new web pages, which were extended by new functionalities in course of the year. Our customers and passengers will thus find Jiří Svoboda a connection search function on our web Director General
6 Správa železnic Annual report 2019
Organisa tion’s Basic information Who we are Správa železnic manages Profile Pursuant to applicable legal regulations, —— the rail infrastructure as Správa železnic, státní organizace (Správa a state-owned asset železnic) acts as a rail owner and operator. —— assets listed in the Annex to the Transformation Act Legal status —— specified payables and receivables The state organisation was incorporat- of ČD, s. o., that existed as ed on 1 January 2003 pursuant to Act at 31 December 2002. No. 77/2002 Coll., on České dráhy, a. s., (Czech Railways, joint-stock compa- Legal ground of business activity ny), Správa železnic, státní organizace —— Správa železnic carries out its business (Rail infrastructure Administration), activities in accordance with the Trade a state organisation, and on an amend- Licensing Act. ment to Railway Act No. 266/1994 Coll., as amended (the “Railway Act”), and Our strategic goals Act No. 77/1997 Coll., on State Enter- —— reliable, safe, smooth and prises, as amended (the “Transforma- environmentally friendly operation tion Act”), as one of the legal succes- of the rail transport sors of České dráhy, státní organizace —— steady increase in the speed and (Czech Railways, state organisation). capacity of the rail infrastructure The state organisation was incorporat- —— greater efficiency of the rail ed without being founded; the Ministry infrastructure administration, of Transport (MT) of the Czech Repub- supervision, maintenance and repairs lic is the establishing entity on behalf of —— interoperability – introducing the Czech Republic. modern interoperable systems and technologies Business activity —— strengthening of the pro-client focus —— operation of rail infrastructure and active communication —— ensuring the operability of the rail —— increase in the market share of rail infrastructure transport —— maintenance and repairs of the rail —— strengthening of the position of infrastructure Správa železnic as a significant and —— development and modernisation of the attractive employer. rail infrastructure —— preparation of documents to fulfill Správa železnic is involved in several sci public service obligations entific and research projects primarily as —— supervision of the use of the rail infra an application guarantor. structure, rail operation and its operability
8 Organisation’s Profile 9 Správa železnic Annual report 2019
Corporate Management governance
Statutory body (as at 20 March 2020) Statutory body
The Organisation’s statutory body Director General Deputy Director General for Deputy Director General for Infrastructure Modernisation manages its activities and acts on its Infrastructure Modernisation Jiří Svoboda behalf. It makes decisions on all cor- Mojmír Nejezchleb porate matters unless they have been Mojmír Nejezchleb (aged 49 years, graduated from the entrusted to the competence of the Deputy Director General for European Polytechnic Institute, s. r. o., (aged 56, graduated from the Faculty of management board or the MT. Rail Operability in Kunovice and the Institute of Law and Civil Engineering at the Brno University Law Science o. p. s., in Prague, holding the of Technology, holding the office since As at 31 December 2019 Marcela Pernicová office since 23 March 2018) 1 July 2013) Director General Deputy Director General for Traffic Management Jiří Svoboda Statutory Deputy Director General Deputy Director General for Miroslav Jasenčák Rail Operability Statutory Deputy Director General Mojmír Nejezchleb Marcela Pernicová Mojmír Nejezchleb As at 20 March 2020 (aged 56, graduated from the Faculty of Deputy Director General for Civil Engineering at the Brno University of (aged 47, graduated from the Faculty of As at 20 March 2020 Economics Technology, representing the Director Gene Civil Engineering at the Brno University Director General ral in his absence since 23 March 2018) of Technology, holding the office since Aleš Krejčí 1 May 2018) Jiří Svoboda Deputy Director General for Management of Správa železnic, Statutory Deputy Director General Infrastructure Modernisation státní organizace Deputy Director General for Mojmír Nejezchleb (as at 20 March 2020) Traffic Management Mojmír Nejezchleb Deputy Director General for Miroslav Jasenčák In 2019 and 2020, no changes occurred. Deputy Director General for Rail Operability Economics (as at 20 March 2020) (aged 57, graduated from the University Marcela Pernicová Aleš Krejčí of Transport in Žilina, holding the office Management of Správa Železnic Deputy Director General for since 1 November 2018) Traffic Management (aged 60, graduated from the Faculty of As at 31 December 2019 Miroslav Jasenčák Production and Economy of the Univer- Deputy Director General for sity of Economics, Prague, holding the Economics office since 1 June 2012) In 2019 and 2020, no changes occurred. Aleš Krejčí (as at 20 March 2020)
10 Organisation’s Profile 11 Správa železnic Annual report 2019
Corporate governance
Supervisory Board Audit Commitee
The Supervisory Board supervises the As at 20 March 2020 The audit committee monitors the As at 20 March 2020 execution of the powers of the Direc- process of preparation of the financial Chairperson Chairperson tor General, the performance of the statements, assesses the efficiency organisation’s activities and the com- Pavel Hrubeš of the organisation’s internal control, Eva Janoušková pliance of its activities with legal reg- internal audit and risk management ulations. The Supervisory Board, upon Vice-chairperson systems, monitors the process of the Members proposals submitted by the Director statutory audit of the financial state- General, approves key organisational Martin Kolovratník ments, assesses the independence of Tomáš Čoček policies. It also debates the annual the statutory auditor and the auditing Pavel Hrubeš report, the financial performance and Members firm, and primarily the provision of approves the annual budget additional services to the organisation, Lenka Hlubučková Tomáš Čoček and recommends the auditor to audit As at 31 December 2019 Ladislav Němec the organisation’s financial statements. The audit committee is, at the same Changes in 2019 and 2020 Chairperson Jaroslav Foldyna time, entitled to inspect the accounting Chairperson books or other documents and check Pavel Hrubeš Ivo Drahotský the data contained in these records. until 10 January 2019 Vice-chairperson Vít Janoš position unoccupied As at 31 December 2019 since 11 January 2019 Martin Kolovratník Chairperson Eva Janoušková In 2019 and 2020, no changes occurred. Members (as at 20 March 2020) Eva Janoušková Tomáš Čoček Members Ladislav Němec Tomáš Čoček Jaroslav Foldyna Pavel Hrubeš Ivo Drahotský Lenka Hlubučková Vít Janoš
12 Organisation’s Profile 13 Správa železnic
Corporate Bridge reconstruction governance over the water dam Strategy And Development Committee Hracholusky
The Strategy and Development Com- As at 20 March 2020 mittee issues standpoints or prepares Chairperson position documents, primarily in respect of Správa železnic strategic materials, Ladislav Němec strategic proposals of the MT of the Czech Republic of both a legislative and Members non-legislative nature with impact on the railway sector, proposals for the Tomáš Čoček railway sector arrangement, strategic Martin Kolovratník proposals of the Transport Policy of the European Union (EU) and directives Ivo Drahotský which directly influence Správa železnic activities, Správa železnic management Vít Janoš system, Správa železnic organisational structure and its changes. In 2019 and 2020, no changes occurred. (as at 20 March 2020) As at 31 December 2019
Chairperson
Ladislav Němec
Members
Tomáš Čoček
Martin Kolovratník
Ivo Drahotský
Vít Janoš
14 Správa železnic Annual report 2019
The vision and strategic objectives infrastructure parameter harmonisa- Strategic projects Strategy of Správa železnic are formulated in tion and new technology implementation, Správa železnic successfully continues a document called SŽDC‘s Strategy, for instance as regards ERTMS and implementing the project management. reflecting the Czech Republic’s and telematic applications. Strategic projects are directly linked to the EU’s transport policies for the rail the strategic goals of the Organisation transportation sector. The strategic Preparations for construction of and their realisation is usually a necessary objectives relate to all business activi- a high-speed rail system condition for achieving these goals. Next ties of the organisation and include an In 2019, Správa železnic made further to the above mentioned preparation of important international aspect. progress in the planning and pre-pro- high-speed rail system, we work on fur- ject preparations for the construction ther projects which belong to all fields of Single European Railway Area of a high-speed rail system. We saw the Správa železnic’s activities. The railway holds an irreplaceable po- continued process in the update of the sition in the transport industry. The EU guidelines for the area development of The ETCS (European Train Control Sys- endeavours to enhance the efficiency the individual regions, which will enable tem) Implementation programme is of of railway functioning while respecting the organisation to obtain the planning significant importance for the future of general priorities. In order to do so and decisions for a high-speed rail system in the railways. The purpose of the pro- to enhance the efficiency of the rail- the coming years. Ongoing results of fea- gramme is to ensure the conditions for way system as such, a Single European sibility studies were used for this process. the implementation and operation of the Railway Area has been established. Geodesists have started their fieldwork. ERTMS/ETCS system in the railway net- Basic conditions and principles for the Správa železnic also commenced the work administered by Správa železnic in functioning of all stakeholders including tender procedure for the preparation of accordance with the requirements of the the rail infrastructure administrators the documentation for issuing a deci- Czech and EU legislation including the re- have been set. Accordingly, Správa sion on a construction placement for lating strategic documents (primarily the železnic’s activities are directed towards the first high-speed railway line in the National Implementation Plan ERTMS). fulfilling the obligations prescribed by Czech Republic in the Praha-Běchovice – Directive 2012/34 EU of the European Poříčany section (high-speed railway line The programme comprises four projects: Parliament and of the Council in respect Polabí). Within the pre-project prepara- of the conditions and principles. tion, we will fully utilise the results of our 1. Ensuring the preparedness of cooperation with the French railways SŽDC (the railway infrastructure In 2019, Správa železnic concentrated on SNCF, the manual for projecting high- operator) for implementation of setting its processes to comply with the speed railway lines on the level of the the line part of ETCS. expected implementation of the fourth documentation for issuing a decision on railway package, including the support a construction placement. The high- 2. Policies and procedures of SŽDC of the public administration authorities. speed railway lines in the Czech Republic in respect of the construction and The interoperability of the European rail will thus be predominantly projected for operation of ETCS. system remains a major issue of the Eu- a speed of 320 km/h. In December 2019, ropean transportation policy. In order to we also signed a contract for joint 3. Preparedness of SŽDC for the ensure interoperability, Správa železnic pre-project preparation of a cross-bor- construction and operation of has adopted an active approach towards der tunnel with DB Netz AG. ETCS’s line part which will be
16 Strategy 17 Správa železnic
more economical and technically ture segments which restrain railway suitable for lines outside TEN-T. traffic. The project includes both railway Track optimisation lines and operating points with railway 4. Preparedness for equipping special switches. Station approach limits and Český Těšín – Dětmarovice SŽDC vehicles with ETCS’s mobile sets of tracks are individually analysed part and their operation under the in the operating points. The project supervision of ETCS. concentrates on the fully available infrastructure, i. e. the infrastructure In 2019, the BIM (building information the capacity of which is not restrained by modelling/management) implementa- closures of traffic. tion process into Správa železnic’s en- vironment continued. The objective is We consider the traction energy pro- to prepare and set the rules and proce- curement and sale policy a strategic dures for an effective implementation issue. With regard to this policy, we of the BIM process, including determin- have been realising the Energy Portal ing the basic technical conditions and project, which includes the hybrid model support by Správa železnic. The process of traction energy accounting, adjust- further includes the preparation and ments to SAP and Document service, setting of the requirements on technical SŽE customer portal, and project super parameters of the models, the specifi- vision. As part of the project, we will cation of the roles and the creation of create functions for exchange of energy conditions for work with transport infra- data on the engine vehicles consumption structure data, both within the organ- between infrastructure managers. After isation and primarily in relation to the the completion the project will include suppliers and third parties or individuals. validations connected both with energy data and the method of exchange of this As for ensuring rail operability, we have data itself. been implementing an infrastructure extent sustainability and development The project portfolio of Správa železnic project. We intend to prepare strategic comprises a total of 102 projects, of scenarios for ensuring the long-term which 26 strategic projects – direct sustainability and development of rail- measures to achieve strategic goals – way lines and to analyse the options of and 48 significant projects. optimising the railway network.
Furthermore, we implemented the first phase of a bottleneck identification project whose purpose is to identify capacity bottlenecks, i. e. the infrastruc-
18 Správa železnic Annual report 2019
Organisation’s activities
Line section anniversaries
Launch of railway transportation
06. 06. 1839 Břeclav – Břeclav st. hranice 180 26. 09. 1899 Borohrádek – Moravany – Chrudim město – Chrudim 120
07. 07. 1839 Břeclav – Brno hl. n. 180 26. 09. 1899 Hrochův Týnec – Chrudim město – Heřmanův Městec 120
01. 01. 1849 Brno-Židenice – Svitavy – Česká Třebová 170 08. 10. 1899 Otrokovice – Vizovice 120
01. 05. 1859 Turnov – Liberec 160 16. 10. 1899 Volary – Prachatice 120
01. 05. 1859 Jaroměř – Starkoč – Malé Svatoňovice 160 06. 11. 1899 Lenora – Volary 120
01. 12. 1859 Liberec – Hrádek nad Nisou st. hranice 160 07. 12. 1899 Martinice v Krkonoších – Rokytnice nad Jizerou 120
16. 01. 1869 Česká Lípa – Rybniště – Rumburk, Varnsdorf – Rybniště 150 30. 12. 1899 Dolní Lipka – Štíty 120
16. 01. 1869 Děčín hl. n. – Benešov nad Ploučnicí – Jedlová 150 15. 05. 1929 Bechyně zastávka – Bechyně 90
01. 02. 1869 Bohumín – Orlová – Louky nad Olší 150 16. 05. 1929 Vraňany – Lužec nad Vltavou 90
22. 04. 1869 Kladno – Stochov 150 14. 05. 1939 Čelákovice – Mochov 80
01. 11. 1869 České Budějovice – České Velenice st. hranice 150
30. 08. 1869 Brno hl. n. – Nezamyslice – Přerov 150
06. 12. 1869 Golčův Jeníkov – Kutná Hora – Kolín 150
16. 08. 1879 Duchcov staré nádraží – Ledvice 140
15. 06. 1889 Rokycany – Nezvěstice 130
01. 09. 1889 Chornice – Prostějov hl. n. 130
01. 09. 1889 Třebovice v Čechách – Chornice – Velké Opatovice 130
01. 10. 1889 Rohatec – Sudoměřice nad Moravou 130
21. 11. 1889 Tábor – Písek 130
21. 11. 1889 Putim – Ražice 130
14. 12. 1889 Šluknov – Mikulášovice dolní nádraží 130
01. 04. 1899 Horní Blatná – Potůčky st. hranice 120
11. 06. 1899 Březnice – Strakonice, Březnice – Rožmitál pod Třemšínem 120
11. 06. 1899 Blatná – Nepomuk 120
09. 07. 1899 Rakovník – Mladotice 120
16. 07. 1899 Brandýs nad Labem – Neratovice 120
continue »
20 Organisation’s activities 21 Správa železnic Annual report 2019
2019 highlights The revitalisation and electrification July The modernisation of the line section be- of the railway line from Oldřichov Správa železnic prepared a summer tween Soběslav and Doubí u Tábora was January u Duchcova to Litvínov was launched. campaign reminding passengers of safe launched as well. Správa železnic held an The process of selecting the supplier of railway rules. The spots were aimed Open House Day at the Negrelli‘s viaduct the feasibility study for the high-speed May primarily at young people. in Prague. Brno – Přerov – Ostrava railway line We completed the final phase of mod- using the new Best Value Approach/Best ernising the Plzeň main station which The renovation of the upper station in October Value Procurement (BVA/BVP) method cost almost CZK 1.6 billion. the Děčín East station was completed. Správa železnic launched the operation of commenced. an interactive map offering an overview We started renovating the facade and August of existing and prepared constructions. A new type of hinged noise barriers was roof of the Fanta Building at the Prague The renovation of the railway line be- installed in Sedlec, Prague. main station. tween Oldřichov u Duchcova and Bílina The refurbishment of the dispatch build- costing CZK 1.9 billion was launched. ing in Kolín was completed. February The renovation of the railway line be- Správa železnic began to use a new tween Lysá nad Labem and Čelákovice The geodesists started to measure pilot November logo and launched a corporate identity was launched and includes the construc- high-speed railway line sections be- The project of the railway line from innovation process. tion of a new bridge over the Labe river. tween Praha, Brno and Ostrava. Prague to Kladno and to the Václav Havel The long-awaited renovation of the dis- Airport received a positive planning We launched the complete renova- patch building in Havířov was launched Správa železnic launched the renovation decision for the first two sections. tion of the Letohrad station costing and will take approximately two years. of an important connection between CZK 851 million. Praha and Beroun in the section between December June Praha-Smíchov and Praha-Radotín. Trains returned to the renovated line March The modernisation of the Karlovy Vary A partial four-track line will be created in between Železný Brod and Tanvald. We launched the renovation of the station was completed; as part of this the course of the construction. Řetenice station in the Teplice district modernisation, the gate to the spa city The extensive renovation of the control costing almost CZK 1 billion. gained new platforms, underpass and September command and signalling facility at the elevators. Správa železnic launched an intelligent Brno main station was completed. The first session of Správa železnic’s au- railway crossings project. Selected cross- dit committee was held. Správa železnic presented a draft of ings will be equipped with cameras able to Regular passenger rail transport re- a new tunnel system between the Pra- identify drivers violating traffic regulations. turned to Židlochovice after 40 years April ha-Dejvice and Praha-Veleslavín halts and the town now has a direct train con- We launched the second phase of reno for the future new railway line from The modernisation and electrification nection with the regional capital Brno. vation of the Přerov junction costing Prague city centre to Kladno and Václav of the railway line between Olomouc more than CZK 3 billion. Havel Airport. and Uničov was launched. In the future Správa železnic opened a new halt at trains will operate at a speed of up to Písek South; passengers also started to We signed a contract for cooperation The renovation of the Čelákovice station 160 km/h on this line. use new platforms in Chrást u Plzně and with SNCF on the preparation of the was completed after more than two years. Praha-Vršovice. construction of the high-speed railway We started driving the Mezno tunnel on line in the Czech Republic. Trains returned to the renovated line the modernised part of Corridor IV be- An international jury presented the win- between Ledečko and Zruč nad Sázavou. tween Sudoměřice and Votice. ning design of the architectonic competi tion for the Praha-Veleslavín station.
22 Organisation’s activities 23 Annual report 2019
issued and updated to achieve a unified
(Preparation) (Preparation) Operability of the rail
– Suchdol n. O. Polom the line Modernisation of (Preparation) approach. Optimisation of the line of Optimisation infrastructure Dětmarovice – Petrovice u K. – Petrovice Dětmarovice
Český Těšín – Dětmarovice Český Těšín Ensuring the operability of the state- Supporting surveying activities are Lipník n. B. – Drahotuše the line Modernisation of (Preparation) owned national and regional rail network ensured by the railway geodesy adminis
and realisation on corridors is a necessary condition for their oper- tration units which are a part of the Modernisation of the line (Realisation) Modernisation of ation for the needs of safe and smooth Rail Operability Section, similarly as the rail traffic, thus representing one of the railway energy administration. main activities of Správa železnic. The operability of the RI in the regional Within the internal organisational struc- extent is facilitated primarily by the
Ústí n. O. – Brandýs n. O. n. O. Ústí the line Modernisation of (Preparation)
(Preparation) ture of Správa železnic, these activities management activities of the individ- Important construction works in preparation works construction Important Adamov – Blansko Adamov are coordinated by Rail Operability ual regional directorates’ technical Modernisation of the line Modernisation of
(Preparation) Section which lays down the principles administration centres that diagnose for ensuring the due technical condition, the technical condition of the operat-
(Preparation) development and adjustments to rail ed RI through their operating centres. Modernisation of the line Modernisation of
Choceň – Uhersko infrastructure facilities. It is further Special rail vehicles operated by the in charge of approving the use of new Technical Centre of Infrastructure Modernisation of the line Modernisation of Brno-Maloměřice St.6 – Adamov Brno-Maloměřice St.6 products and equipment related to line perform the diagnostic work. Based on administration, control command and an analysis of outputs of the diagnos- signalling equipment, electronics and tics, the repair and maintenance plans Velim – Poříčany Velim the line Modernisation of (Preparation) power supply as well as administration are prepared with the aim to fulfil all rail
Sudoměřice – Votice the line Modernisation of (Realisation) of buildings. Správa železnic is repre operator duties in this field. Nemanice I – Ševětín Nemanice I – Ševětín the line Modernisation of (Realisation) sented by both train station buildings
Černošice – Odb. Berounka Černošice – Odb. Berounka the line (Preparation) of Optimisation and operational and administration One of the indicators of the RI opera-
facilities. bility is not exceeding the limit values
(Preparation) of limited line speed sections, aka “slow
Karlštejn – Beroun Karlštejn The Rail Operability Section also inte- rides”. The assessed slow rides primarily branch – Karlštejn Berounka
Modernisation of the line Modernisation of grates supporting activities in the field include those introduced as a result of 2. phase Soběslav – Doubí Optimisation of the line (Preparation) of Optimisation Optimisation of the line (Preparation) of Optimisation Veselí n.L. – Tábor, II. part, n.L. – Tábor, Veselí
Veselí n.L. – Doubí u Tábora, n.L. – Doubí u Tábora, Veselí of public tenders and procurement the unsuitable technical condition of the which are then used as methodological infrastructure. The seven-kilometre lim- support by the entire organisation. In it for assessed slow rides set as at 31 De- (Finished) Beroun – Králův Dvůr Optimisation of the line (Realisation) of Optimisation 2019, we began unifying the tender- cember 2019 was fulfilled with a reserve. Praha-Smíchov (excl.) – Černošice (excl.) – Černošice (excl.) (excl.) Praha-Smíchov
Rokycany – Plzeň Rokycany ing practice across the organisation. The actual length of the assessed slow Templates of legal documents for public rides as at that date was only 0.925 km. Optimisation of the line (Realisation) of Optimisation Modernisation of the line Modernisation of tenders for supplies of services, raw materials and construction works in The significant elimination of slow rides connection with ensuring the operability was achieved primarily thanks to the of rail infrastructure are continuously continued positive trend of an increase in
Organisation’s activities 25 Správa železnic Annual report 2019
Ostrava Ostrava the funds for line repairs. We were suc- maintenance concept and the related (Preparation) cessful in preparing and realising several launch of the preparation of the cyclic
Modernisation of the junction Modernisation of comprehensive repairs to eliminate renewal pilot projects on the Corridor, unsuitable conditions and to maintain expected to be realised in 2020. essential parameters of the rail infra- and junctions on corridors structure. Such projects subsequently Správa železnic also paid intensive Přerov, Přerov,
(Preparation) enable the railway carriers to carry out attention to activities preventing ac-
2. + 3. contruction work 2. + 3. contruction passenger and freight transport without cidents on level crossings. In addition Reconstruktion of the station of Reconstruktion unnecessary restraints. The highest to the ongoing process of increasing amount of the total repair costs in the security level on crossings, further
Important construction works in stations in stations works construction Important 2019 was spent on the repair of the line related innovative security and telecom- (Preparation) Česká Třebová Třebová Česká (Realisation) section Ledečko (excl.) – Kácov – Zruč munication equipment projects con-
Brno main station nad Sázavou (excl.) which was launched tinued (detectors of obstacles, launch Modernisation of the junction Modernisation of
Reconstruction of infrastructure of Reconstruction in 2018, followed by the Železný Brod – of preparation of extended camera Tanvald line section (to be completed in systems utilisation by automatic detec- 2020) and the Domoušice – Hřivice line tion of offences, etc.). In 2019, 38 railway Pardubice Pardubice
(Preparation) section. Comprehensive repairs also in- crossings were cancelled (compared cluded national lines including the TEN-T with 26 in 2018 and 16 in 2017). In August
Modernisation of the junction Modernisation of network. The major national line repair 2019, Správa železnic approved its con- was realised in the Velký Osek (excl.) – cept of cancelling railway crossings and Kolín line section. This repair was the creating their replacements, introduc- final part of several significant repairs ing the system set-up of procedures to on the line branch Kolín – Všetaty – increase traffic safety at level crossings Děčín which were realised in 2019 and through a reduction in their number. the preceding two years. The purpose of these repairs was to maintain the opera Based on an overview of unstable sec- tional parameters of this railway line tions in terms of railway substructure, before the launch of its long-prepared we checked 48 line sections out of 86 optimisation. The line repairs are also problematic places in 2019; they will be aimed at eliminating so-called speed limit further reviewed and possibly repaired restrictions. After having completed the according to more specific findings.
repairs proposed in 2019, speed limit re- (Finished) Mikulášská (Realisation) (Realisation) (Preparation)
Junction Plzeň strictions in the total distance of at least The gradually improving condition of of Domažlice line 30 km will be eliminated. bridges was confirmed by the decrease
passenger station, incl. bridges passenger station, in the number of bridges rated at grade 3. construction work – overpassing work – overpassing 3. construction 2. construction work – re-building 2. of construction 5. construction work – Lobzy – Koterov work – Lobzy construction 5. A significant project from 2019 was 3 to 4.7%. Grade 3 represents the worst the setting of the system approach to evaluation, which is not necessarily
corridor line maintenance thanks to the a reason for the immediate change in Cheb (Realisation)
of the station of processing and approval of the cyclic operability conditions but is a serious Modernisation
26 Organisation’s activities 27 Správa železnic Annual report 2019
indicator for the infrastructure manag- energy management system under By establishing a platform for meetings maintenance of railway stations, includ- er that the structure soon needs to be ISO 50001. We continued fulfilling the among representatives of the disa- ing cleaning and security of the premis included into the construction planning concept of transfer to a unified power bled, train carriers and Správa železnic, es. To complete the task, it uses not process. Preceded by a visual inspec- supply system in relation to the priorities a system of mutual cooperation for only own HR, engineering and technical tion of bridges featuring a supporting of the 2014–2020 programme period, ensuring the barrier-free nature of rail capacity (primarily the capacity of its structure from prestressed concrete, including the requirements of TSI ENE transportation was set up. The data on own organisational units – the Regional in 2019 the first part of a more detailed (interoperability of the energy subsystem accessibility of train stations and halts Directorates and specialised units) but diagnostics and statics assessment was of the railway system). for handicapped persons have become also contractual relations with suppli- carried out and concerned 36 bridges. an integral part of the newly launched ers operating in the respective market. In 2019, more than CZK 1.1 billion was web pages of Správa železnic. These suppliers are selected by means In April 2019, the supply of a 50-piece se- spent on the repair, maintenance and of public procurement. In 2019, these ries of special engine vehicles MUV 75 was operability of buildings. We assessed the Expenses incurred on ensuring activities were financed from the SFTI completed. They partially replaced the technical condition and priorities within operability budget, which provides Správa železnic obsolete and highly defective MUV 69 ve- the whole network of train stations Správa železnic ensures the repairs with non-investment funds, and from hicles. At the end of 2019, a public tender and halts under unified standards and and maintenance of the national and revenues from lease of land, structures for the supply of six new special engine created a new mid-term plan of reno- regional rail infrastructure, compris- and non-residential premises and rev- vehicles for the control and maintenance vations and revitalisations of passenger ing the following sectors: railway lines enues from services and contractual of railway traction line which will already stations for the period of 2020–2024. (superstructure and substructure), rail performances relating to this segment. include the dashboard part of ETCS. substructures, bridges and tunnels, In 2019, major projects of refurbish- buildings and structures, electrical and The total expenses incurred in A significant success in 2019 was ensur- ment of the dispatch buildings were energy equipment, and communication ensuring the operability of the ing the supplies of traction energy (TE) realised in Kolín, Český Krumlov, Krnov and control-command and signalling RI and an allocation of centrally for the carriers through the commod- or Frýdek-Místek. In addition, sever- units under its management. In addition, recorded expenses amounted to ity exchange Power Exchange Central al tens of other buildings underwent Správa železnic also ensures repairs and CZK 20 090 million in 2019. Europe, a. s., The consumed TE can repairs of various extent in 2019. The be charged to the individual carriers initial phase of improving the quality of Table 1 – Selected activities through a hybrid model both for elec- sanitary facilities, making them a more Indicator Unit of Amount Amount tric engine vehicles (or if appropriate pleasant place, including the desirable measurement 2018 2019 units) equipped with devices measuring unification of their operation, was car- GP modification - rails km 1 816 1 869 the consumption of supplied energy as ried out and the project is planned to be GP modification - switches s.u. 1 515 1 489 well as for vehicles without this system. implemented in 2020. 2019 also brought Through centralised tendering, Sprá- first material results of the necessary Track bed cleaning – rails km 185 288 va železnic also ensured the supplies standardisation of publicly accessible Track bed cleaning – switches s.u. 461 362 of natural gas and electricity for the premises and internal policies for the transportation branch through Czech contents of the buildings (selection CFT, welding – rails km 416 577
Moravian Commodity Exchange Kladno. and determination of scope), sanitary CFT, welding – switches s.u. 780 345 facilities and railway halts and shelters Replacement of rails km 746 660 In 2019, Správa železnic successfully (equipment scope) were issued. underwent the recertification of the Replacement of railway sleepers pcs 292 311 348 161
28 Organisation’s activities 29 Správa železnic Annual report 2019
Reconstruction of Negrelli viaduct in Prague
30 Organisation’s Profile 31 Správa železnic Annual report 2019
Table 2 – Basic description of railway network Modernisation and The Corridor III passes via Mosty development of the rail u Jablunkova, the Slovak/Czech state Indicator Unit of measurement Amount 2018 Amount 2019 infrastructure border – Dětmarovice – Ostrava – Total length of lines km 9 406 9 396 Přerov – Česká Třebová – Prague – In terms of modernising and develop Plzeň – Cheb, the Czech/German state Length of electrified lines km 3 216 3 213 ing the rail infrastructure, Správa border. The Česká Třebová – Prague line
- traction system 3 kV DC km 1 797 1 803 železnic’s long-term objective is to pre section was completed as part of the pare and implement investment projects Corridor I, and the Přerov – Dětmarovice - traction system 25 kV AC 50 Hz km 1 381 1 372 focusing on the following priorities: line section as part of Corridor II. Table 4 - traction system 1.5 kV DC km 24 24 contains the incomplete line sections of —— modernisation of rail transit corridors; the Corridor III, which are in ongoing or - traction system 15 kV AC km 14 14 —— modernisation of railway junctions; design preparation stages. Length of standard-gauge lines km 9 384 9 373 —— modernisation of other lines integrated
Length of narrow-gauge lines km 23 23 in the European railway system; The Corridor IV consists of the Horní —— ensuring the interoperability of Dvořiště – České Budějovice – Prague – Length of single-track lines km 7 392 7 372 selected lines; Děčín – the Czech/German state Length of double- and more-track lines km 2 014 2 024 —— investment in the rail infrastructure to border. The Prague – Děčín – the Czech/ support the development of suburban German state border line section was Total construction length of tracks km 15 317 15 246 transport and integrated transport implemented within the works on Number of switch units s.u. 22 751 22 559 systems; Corridor I. Table 5 contains structures in
Bridges pcs 6 740 6 800 —— passenger station assets; the line section Horní Dvořiště – České —— high-speed connections. Budějovice – Prague, which are in ongoing Tunnels pcs 166 166 or design preparation stages.
Total length of bridges m 153 290 154 499 Modernisation of railway transit corridors Total length of tunnels m 54 065 54 072 The modernisation of railway transit Level crossings pcs 7 858 7 825 corridors means higher quality railway transport in the Czech Republic and a significant reduction of travel times on key lines, especially Prague – Ostrava Table 3 – Overview of buildings managed by Správa železnic and Prague – Brno. The completed modernisation of Corridor I on the Břeclav – Indicator Number of buildings Built-up area (m2) Built-up space (m3) Brno – Česká Třebová – Prague – Děčín line and of Corridor II on the Břeclav – Total 2018 8 127 1 722 540 12 839 157 Přerov – Ostrava – Petrovice u Karviné line Total 2019 8 166 1 730 586 12 918 554 was followed by the modernisation of the Corridor III and Corridor IV.
32 Organisation’s activities 33 Správa železnic Annual report 2019
Table 4 – Overview of works on the Corridor III the Negrelli viaduct, have been launched. area of communication and control-com The modernisation of the main station in mand and signalling units. With the Project description Length Stage of Project Project Brno and the overhaul of the Plzeň and exception of the Votice – České Budějovice (km) completion launch completion Cheb junctions as well as the reconstruction line section in Corridor IV, in which the Optimisation of the Beroun – Králův Dvůr line section 4.9 ongoing 11/2016 3/2021 of the second part of the Přerov junction modernisation has not yet been complet
Optimisation of the Český Těšín – Dětmarovice line section 20.9 ongoing 8/2017 1/2020 continue. Preparatory work continues on the ed, all transit corridors were covered with construction project Praha hl. n. – Praha- GSM-R. Kolín – Všetaty – Děčín, Kolín – Optimisation of the Praha-Smíchov – Černošice line section 8.8 ongoing 8/2019 9/2021 Smíchov, which will connect Corridor III to Havlíčkův Brod – Křižanov – Brno, Ústí nad Optimisation of the Černošice – Berounka branch line section 5.9 in preparation 2024 2026 the Prague junction. Preparatory project Orlicí – Lichkov, České Velenice – České work also continues on the thoroughfares Budějovice – Horní Dvořiště and Plzeň – Optimisation of the Berounka branch – Karlštejn line section 15.5 in preparation 2022 2028 through the junctions of Brno, Ostrava, České Budějovice line sections were also Optimisation of the Karlštejn – Beroun line section 5.7 in preparation 2022 2024 Pardubice and Česká Třebová completed. Construction projects between Ústí nad Labem and Děčín and other line Modernisation of other lines sections are being prepared. Table 5 – Overview of works on the Corridor IV integrated in the European
Project description Length (km) Stage of Project Project railway system After the completion of the ETCS completion launch completion The reconstruction and modernisation of (European Train Control System) pilot
Modernisation of the Sudoměřice – Votice line section 17.0 ongoing 3/2018 1/2022 the Kolín – Havlíčkův Brod – Křižanov – project in the Poříčany – Kolín line section, Brno line is being carried out gradually, with installation of the ETCS has also been Modernisation of the Veselí n. L. – Tábor line section, Part 2, Veselí n. L. – Doubí u Tábora line section, 8.6 ongoing 9/2019 4/2023 certain sections already completed and put completed and put in use in the Kolín – Stage 2 Soběslav – Doubí in use, and the modernisation of the Lysá Břeclav – Austrian/ Slovak state border line Modernisation of the Nemanice I – Ševětín line section 17.1 in preparation 2022 2028 nad Labem– Čelákovice – Praha-Vysoča section. Further, the installation continues ny line section continues. Modernisation in the Petrovice u Karviné – Ostrava – of Kolín – Nymburk – Všetaty – Ústí nad Přerov – Břeclav, Přerov – Česká Třebová, In 2020, Správa železnic plans to reconstruct junctions of Děčín, Ústí nad Labem, Kolín, Labem – Děčín, Hranice na Moravě – Horní Kralupy nad Vltavou – Prague – Kolín, eight busiest corridor sections, aiming at Choceň, Ústí nad Orlicí, Břeclav, Přerov Lideč and Plzeň – Domažlice line sec Praha-Uhříněves – Votice and Plzeň – Cheb preventing the line speed reduction, ensur (first construction project), Olomouc, tions are in preparatory stages. Further, line sections. Other line sections will follow. ing operability parameters and enhanc Bohumín and certain sections of the construction projects in Ústí nad Labem – ing the reliability and safety of operation. thoroughfares through the Plzeň junctions. Most – Cheb and České Budějovice – Plzeň Investment in the rail infrastructure These projects shall be co-funded from EIB The Úvaly – Praha-Běchovice – Praha-Libeň line sections are also being prepared. The to support the development of and CEF funds. The first line sections to be and Praha-Holešovice – Praha-Bubeneč projects are being drafted for the con suburban transport and integrated reconstructed include Velim – Poříčany and line sections have been completed, thus struction of the new rail lines in Ústí nad transport systems Dětmarovice – Petrovice u Karviné. completing Corridor I’s thoroughfare at Orlicí – Choceň and Brno – Přerov sections. In order to enhance the quality of suburban the Prague junction. The construction of transport in the Prague junction, the mod Modernisation of railway junctions the Praha-Hostivař station has also been Ensuring the interoperability of ernisation, electrification and installation In connection with the modernisation of completed. The construction in the Praha- selected lines of second rails on the Prague – Kladno corridor lines, significant railway junctions Hostivař – Praha-Vršovice line section, Other significant investments include line with a connection to the Václav Havel are being modernised in their line sections. ensuring the admission of Corridor IV to the construction projects ensuring the inter Airport in Ruzyně. The modernisation is Thoroughfares through the railway Prague junction, and the reconstruction of operability of the railway network in the subdivided into several separate con
34 Organisation’s activities 35 Správa železnic Annual report 2019
struction projects. The first project – the The reconstruction of dispatching build tion and result in a manual for high-speed Chart 1 – Total utilisation of subsidies from reconstruction of the Negrelli viaduct – is ings in Kolín, Břeclav, Kralupy nad Vltavou connection design in the documents for OPT2 2014–2020 to be drawn until 2023 already underway. The reconstruction of and Přibyslav was completed. The costliest the zoning permission phase. High-speed (in billions of CZK) the section Praha-Smíchov – Hostivice, ongoing projects include the reconstruc connections will thus be designed for the which should enhance this line’s through tion of the facade on the Prague main sta speed of 320 km/h in the Czech Republic. put, was also completed. tion, the new transfer station in Strakonice The draft agreement between Správa and the reconstruction of the dispatching železnic and DB Netz was completed 39,2 The planned optimisation projects of the building in Havířov. These projects will con for the joint pre-design preparation of Praha-Vysočany – Lysá nad Labem and tinue in 2020. At the end of 2019, tender a cross-border tunnel in Krušné hory. 28,4 Prague main station – Praha-Smíchov – procedures started for large reconstruc Beroun lines and the enlargement of the tion projects of the dispatching buildings in Utilisation of Operational Programme underground corridors at the Prague main Bohumín and České Budějovice. Transport 2 (budget period from station should enhance the quality of the 2014 to 2020). 100 % Správa železnic Utillisation as at suburban transport. Further projects Investment in high-speed In 2019, Správa železnic continued to project allocation 31 December 2019 underway include the preparations for the connections successfully draw EU subsidies from the installation of second rails on the Brno – In 2019, Správa železnic took steps in current programming period 2014–2020 Zastávka u Brna line section including its the zoning and pre-design preparation (OPT2). In 2019, the highest amount of Chart 2 – Total utilisation of subsidies from electrification; and the modernisation of high-speed connections in the Czech co-funding, CZK 1.041 billion, was drawn CEF 2014-2020 (in billions of CZK) of the Hradec Králové – Pardubice line Republic. Intensive work was carried out from OPT2 for the construction of con section (the second rails in the Stéblová – on the preparation of the feasibility study trol-command and signalling units in Brno Opatovice nad Labem line section had for the Prague – Brno – Ostrava branch. main station. A total of 39 projects real already been installed). The guidelines for the area development of ised by Správa železnic received co-fund individual regions continue to be updat ing from OPT2. The total volume of OPT2 21,4 Investment into passenger station ed, which will enable obtaining a zoning funds allocated for the modernisation assets permission. Správa železnic also started of rail infrastructure in the 2014–2020 Investments into passenger station assets the tender procedure for the prepara programming period under Objective 1.1 6,4 are a priority for Správa železnic. The tion of documents required for ruling on was increased by the MT during 2019 to efficient and economical use of individual the project of the first high-speed line amount to CZK 39.2 billion. 100 % Správa železnic Utillisation as at structures as well as enhanced passenger in the Czech Republic to be placed in the project allocation 31 December 2019 comfort and a greater choice of offered Praha-Běchovice – Poříčany line section Importantly, by the end of 2019, Správa services is accentuated. To achieve these (the Polabí high-speed connection). The železnic’s projects in the total financial cated amount had been fully distributed goals, unify binding procedures in project selection of the entity to prepare the volume exceeding this amount had already on approved projects, the managing body preparation, and ensure the efficient use documentation is based on the best value been approved. Thus, upon the complete of MT issued a restriction on the approval of public funds, the Ministry of Transport approach/best value procurement (BVA/ utilisation of means available under OPT2, of projects not concerning the principal of the Czech Republic (MT) approved an BVP) method, which focuses on the quality some projects will be additionally paid TEN-T railway network. The actual utilisa updated policy on the treatment of pas of performance, not only on the lowest bid from national sources. Správa železnic is tion of OPT2 funds is expected in 2021. senger station assets at the end of 2019. price. The outcomes of the cooperation at the same time fully prepared to utilise Investments in dispatching buildings between Správa železnic and SNCF will other funds in OPT2 if they fail to be used exceeded CZK 480 million in 2019. be fully used in the pre-design prepara fully by other beneficiaries. As the allo
36 Organisation’s activities 37 Správa železnic Annual report 2019
CEF (Connecting Europe Facility) CZK 5 237 million) being the second largest for funding from OPD3 and CEF2. In 2020 Chart 3 – Utilisation of funds for construction Within the CEF programme, it is only funding sources. The utilisation of CEF funds onwards, Správa železnic will endeavour preparations in the 2017–2020 period possible to finance projects on the main amounted to CZK 2 740 million. The utilisa to supplement these major EU funds with (in millions of CZK) European rail network (the core network). tion of main subsidies increased year-on- other EU funding sources (no longer solely 1 439 Apart from line modernisation, funds will year by CZK 581 million. Small contributions infrastructure EU funds), such as the Envi also be directed at modernising select- were also received from regions, cities and ronment Operational Programme or the In 1 310 ed junctions and ETCS implementation municipalities. tegrated Regional Operational Programme. 959 757 projects, including their preparation. In 2019, the utilisation of these funds The volume of investment subsidies The final projects to be funded by OPT2 2017 2018 2019 2020 amounted to CZK 2.7 billion. As at 31 De- received in 2019 for the preparation and are expected to be approved in 2020. It Note: The expected utilisation for 2020 is taken from cember 2019, the total amount of funds implementation of investment projects is estimated that the remaining funds the overview of global preparation items approved utilised in the current programming peri- relating to the rail infrastructure totalled from OPT2 will be drawn in 2021, and the by MT. od was December CZK 6.4 billion. In 2019, CZK 19 603 million. remaining project costs will be paid from 28 projects were funded, with the highest national sources. This will further increase CEF – Blending Call amount of CZK 403 million utilised on the Table 6 – Investment grants received for 2019 the demand for national funds, which has A significant subsidy to be utilised by project that increased the line speed in (in millions of CZK) been generated by an increased number of Správa železnic as of 2020 is the so-called the Valašské Meziříčí – Hustopeče nad projects being ready to be launched (see CEF Blending Call, which is a combined Investment grants 2019 Bečvou section. Chart 3), the current restriction on the funding consisting of CEF subsidies, EIB
SFTI for construction and modernisation, possibility of getting co-funding from EU loans and national sources. The funds 19 580 Investment grants state share, OPT, CEF, MT subsidies funds for most projects outside the main shall be utilised for investment projects on Funding for investment construction projects TEN-T network, and finally, by higher bid selected sections of the Trans-European came mostly from public sources (Table 6). In EU funds (pre-financing) 9 prices of project tenders. An increase in the Transport Network (TEN-T) in the Czech
2019, the most significant investment subsi Contributions from cities, municipalities, volume of investment funds is expected for Republic, including the following: 14 dies for construction projects were national regions and other entities dispatching buildings and the enhancement funds provided through the SFTI budget. In Total investment grants 19 603 of level crossings, which will also be covered ——Dětmarovice – Petrovice u Karviné – addition, the subsidies from OPT2 and from solely from national sources. Therefore, state border (project launch 2020) the CEF infrastructure fund were used to Subsidies from SFTI for the construction and the expected growth in investment needs ——Velim – Poříčany (project launch 2020) modernisation include funds from OPT, the CEF fund fund the construction and modernisation and subsidies from SFTI. for the 2021–2023 period is currently being ——Ústí nad Orlicí – Brandýs nad Orlicí – of RI. With respect to the rail infrastruc assessed, together with the possibility of original line (project launch 2020) ture, Správa železnic is acting as the final Further development covering them by national or EU funds and ——Adamov – Blansko beneficiary and investor, and the main entity The utilisation of subsidies from OPT2 all other funding possibilities. In compliance ——Polom – Suchdol nad Odrou responsible for EU fund utilisation in the and CEF within the current 2014–2020 with the above the main priorities for rail ——Brno-Maloměřice Station 6 – Adamov Czech Republic. programming period continued in 2019. infrastructure modernisation are being de ——Choceň – Uhersko The outlook for 2020 and onwards is to termined, both for project preparation and ——Lipník nad Bečvou – Drahotuše National SFTI funds, incl. the sources to continue utilising these subsidies. At the subsequent procurement procedures and cover national contributions towards the same time, preparations are underway for funding of a project’s implementation itself. In 2019, the preparations for all projects European projects (a total of CZK 11 638 mil the coming 2021–2027 programming pe The entire process is being coordinated went according to the schedule. The lion), accounted for the largest share of fund riod in collaboration with MT, and suitable together with MT. preparation of the Dětmarovice – Petro ing in 2019, with funds from OPT2 (a total of projects are being preliminarily selected vice u Karviné – state border and Velim –
38 Organisation’s activities 39 Správa železnic Annual report 2019
Poříčany project was completed in 2019 and Operating the rail Closures Traffic control the tender procedure for project implemen infrastructure In 2019, the planning for closures was sub In 2019, the first and second phase of tation was launched. stantially changed to require the planning the Identification of Bottlenecks project In accordance with the Act on Rail Systems, of closures four, three and two months in was completed. The project is divided Further, individual measures will progres Správa železnic must ensure the operation advance, with the possibility of including into three partial stages in terms of sively be taken in the monitored unification of the rail network for the public benefit. additional requirements in the yearly plan substance and time. The first and second of the railway power supply system in the Operating rail infrastructure means ensur of closures within a time frame of 6 and phase focused on the identification of Czech Republic, to achieve the transition to ing and servicing the rail and organising more months. The model of negotiating bottlenecks first in the TEN-T lines, and a unified AC power supply system. rail transport. The rules and procedures the yearly plan of closures was changed to subsequently, in other lines. The last concerning these activities are specified by include decisive carriers and closure appli phase of the project will focus on the In the years to come, the modernisation of internal policies of Správa železnic. cants in the negotiations. Very positive issue of railway junctions with comple the rail infrastructure forming the main feedback was registered in connection with tion planned in 2020. The project is being TEN-T will continue in accordance with the Rail operation safety system this change. To increase planning effective prepared, based on a new methodology Technical Specification for Interoperability Správa železnic is the holder of a valid ness and closure coordination, employees for the determination of railway capacity (TSI) performance parameters. Atten railway operator’s safety certificate and working on the preparation of timetables included in SŽDC’s newly issued directive tion will also be paid to applying Energy a carrier’s certificate. Under MT Decree were actively involved in the preparation of No. 124 effective from June 2019. This TSI standards and meeting the European No. 376/2006 Coll., the system of ensuring measures for long-term closures. has represented the largest presentation Deployment Plan with respect to the con the safety of rail operation and rail trans of results so far, which may be used in trol-command and signalling unit. port includes the preparation of annual Service facilities the optimisation and consolidation of the reports on the safety of rail operation and As of 1 May 2019, trial operation was acti railway network. Compliance with the above standards is rail transport, comprising yearly definition vated. Employees of the Traffic Manage paramount in developing so-called freight and assessment of safety targets and the ment Section and the Hradec Králové Re At the end of 2019, a new user friendlier corridors, established under Regulation preparation of an accident rate overview. gional Directorate’s employees prepared structure for the table of line conditions (EU) No. 913/2010 of the European Parlia In 2019, the state administration’s super the KAZAS application in a record time of was presented. By providing a source ment and of the Council as a priority for visory body identified no faults in the 3 months, with the help of which carriers readable format, it can be used by the freight transport. In accordance with this Správa železnic’s safety system of rail can order service facilities. carrier for operation purposes. Trial oper regulation, Správa železnic will focus on operation and rail transport. The system ation will be launched on selected lines in building related structures and putting is up-to-date and fully operational. The Training January 2020. the corridors into operation. As part of safety of rail operation and rail transport Training rooms in TCCs for the prepara its future international activities, Správa has long-term been on a high level, and the tion of new employees were further devel TCC Prague železnic expects to actively support the new determined safety targets have been met. oped, regular trainings were provided to In 2019, line sections Ejpovice (incl.) – structure of the TEN-T and to participate in TCC employees, emergency train dis Plzeň main station (excl.), Praha- the general revision of all TSIs as part of the In 2019, the Optimisation of Activities at patchers, operational control employees, Smíchov (excl.) – Hostivice (excl.), EU’s new approach. the Location of an Emergency project was and heads of operation divisions. and Praha-Smíchov (excl.) – Rudná implemented, aiming to speed up the han Preparations were made to transfer the u Prahy – Beroun (incl.), and Plzeň main dling of emergencies on location and at the regular trainings of operational employees station (excl.) – Cheb (excl.) were connected same time, to speed up the re-opening of from Dopravní vzdělávací institut, a. s., (In to remote control system from TCC Prague traffic using the TereZa operating system stitute for Transport Education) to Správa rooms. Also, the remote-control system of of the Správa železnic’s fire brigade. železnic as of 1 January 2020. the line section Plzeň main station (excl.) –
40 Organisation’s activities 41 Správa železnic Annual report 2019
Cheb (excl.) was transferred from TCC in Expenses incurred in ensuring Utilisation of the ARRIVA vlaky s. r. o., GW Train Regio a. s., Plzeň to a TCC room in the Prague building. traffic control Správa železnic’s rail RegioJet a. s., also reported a significant Správa železnic employees perform the infrastructure by carriers increase in the volume of passenger trans Intensive preparations were simultaneous traffic control of railway traffic, dis port outputs. ly made to connect further line sections patcher’s traffic control, operation of to the remote-control system from the control-command and signalling units In 2019, the total number of carriers that In freight transport, total outputs TCC in the TCC Prague building in 2020. and information systems for passengers, have concluded a contract with Správa reported a year-on-year decline, with This specifically concerned the Plzeň preparation of timetables, and path ca železnic for the operation of rail transport trkm decreased by 2.1% in the Správy main station, which is the last missing pacity allocation to carriers. In 2019, the using the state-owned national and re železnic’s network. ČD Cargo, a. s., has part of remotely controlled line sections expenses related to these activities are gional rail infrastructure increased to 107. retained the majority share in the outputs. Beroun (excl.) – Cheb (excl.), and Ústí nad mainly covered by non-investment subsidy Orlicí (excl.) – Lichkov (incl.). from SFTI for the railway operation, The total volume of outputs in passenger CER Slovakia, a. s., METRANS Rail, s. r. o. complemented by Správa železnic’s own transport continued to increase stead and IDS CARGO, a. s., also reported a sig 475 km of rail network is currently con resources. The overall cost less amorti ily. Compared to 2018, train kilometres nificant increase in the volume of freight trolled from the TCC Prague building. sation incurred to operate RI comprise in (trkm) increased by 1.5% and gross ton transport outputs. particular the traffic control ensured by nekilometres (gtkm) by 2.5%, with České TCC Přerov regional directorates and traffic control dráhy, a. s., accounting for the majority of In 2019, the railway station of Bohumín was centres and amounted to CZK 6 484 mil the total outputs. connected to the remote-control system lion in 2019, including the relevant portion as part of the remote-control system of of centrally recorded expenses of the Table 7 – Number of carriers (as at 31 December of each respective year) the line section Ostrava-Svinov – Petrovice Traffic Management Section. u Karviné project. Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Number of 68 75 79 84 98 94 96 99 103 107 The inclusion of the line section Dětma carriers rovice (excl.) – Mosty u Jablunkova, state border, in the remote-control system was started with a launch date planned Table 8 – Percentage share of carriers on passenger transport output in 2019 for 2020. Works were carried out on the Carrier/indicator % trkm % gtkm Modernisation and Electrification project on the Otrokovice – Vizovice line section České dráhy, a. s. 90,77 88,26 and its inclusion in the remote-control RegioJet, a. s. 4,07 9,08 system of TCC Přerov, as well as on the project idea for the Extension of the TCC GW Train Regio, a. s. 1,88 0,58
Přerov Building project. Leo Express, s. r. o. 1,74 1,46
ARRIVA vlaky, s. r. o. 0,77 0,33 520 km of rail network is currently con trolled from the TCC Přerov building. Die Länderbahn GmbH DLB Vogtlandbahn GmbH 0,36 0,13
Other 0,41 0,16
42 Organisation’s activities 43 Správa železnic Annual report 2019
Chart 4 – Output of carriers on network operated by Správa železnic (in thousands of trkm) Table 9– Percentage share of carriers on freight transport output in 2019 between 2015–2019 Carrier/indicator % trkm % gtkm Total Passenger transport Freight transport ČD Cargo, a. s. 61,13 60,16
159 620 163 369 167 711 172 972 174 985 METRANS Rail a. s. 5,44 8,43
123 340 126 699 130 020 134 151 136 107 PKP CARGO INTERNATIONAL, a. s. 6,00 7,20 (former Advanced World Transport, a. s.)
IDS CARGO, a. s. 3,84 3,88
UNIPETROL DOPRAVA, a. s. 3,38 4,29
36 280 36 670 37 691 38 821 38 878 Rail Cargo Carrier - Czech Republic, s.r.o 2,36 3,40
CER Slovakia, a. s. 1,41 1,76
SD - Kolejová doprava, a. s. 1,23 1,72 2015 2016 2017 2018 2019
PKP CARGO SPÓŁKA AKCYJNA 1,08 1,15 Train kilometres (trkm) represent the distance travelled by train in kilometres. Other 14,13 8,02
Chart 5 – Output of carriers on network operated by Správa železnic (in millions of trkm) Table 10 – Number of line sections in timetables according to category (irrespective of carrier) between 2015–2019 Indicator 2018 2019 Total Passenger transport Freight transport Passenger train (Os) 8 597 8 723
58 800 59 724 60 838 63 121 63 044 Limited-stop trains (Sp) 462 541
Express trains (Ex) 505 538
Higher-quality trains (EC, EN, Ex, IC, LE, SC, railjet, 262 298 34 439 34 531 35 118 36 461 35 713 RegioJet, Arriva)
Express freight trains (Nex) 460 449 24 360 25 192 25 720 26 660 27 331
Through freight trains (Pn) 835 826
Slow goods and work-siding trains (Mn, Vleč) 1 221 1 292
Train sets (Sv) 1 135 1 306 2015 2016 2017 2018 2019
Locomotive trains (Lv) 668 646 The number of gross tonne kilometres (gtkm) is the product of the gross weight of the rolling stock (tractive units, railway carriages and other wheeled vehicles) integrated into the train and the distance travelled in kilometres. Správa železnic catalogue (offer) routes 862 873
44 Organisation’s activities 45 Správa železnic Annual report 2019
International cooperation structure managers from neighbouring area was delineated, with specified ba- železnic continued to actively partici- countries on contractual arrangements sic conditions and policies of functioning pate in the bodies of the four national In terms of international cooperation, directly regulating traffic control and for all entities concerned, including rail rail freight corridors. The corridors con- Správa železnic focused on promoting rail transport organisation on border infrastructure managers. In its activi- cerned are: RFC Baltic-Adriatic, RFC the interests of the Czech rail infra- lines. A new contract on rail infrastruc- ties, Správa železnic therefore honours Orient/East-Med, RFC North Sea – Bal- structure, in particular by influencing ture connections between Správa the obligation to meet the provisions of tic and RFC Czech-Slovak which should crucial technical and technological železnic, DB Netz AG and Deutsche the 2012/34/EU directive of the Euro- be integrated into the RFC Rhine-Dan- parameters and relevant legislation. In Bahn Regionetz Infrastruktur GmbH pean Parliament and Council, which ube in November 2020. During 2019, the context of its geographical posi- (RNI) was concluded at the end of 2019. regulates these conditions and policies. Správa železnic participated actively on tion, the Czech railway network cannot In 2019, top-level talks continued to be In 2019, Správa železnic focused on the preparations of the transformation and should not stand isolated if it is to held between Czech and German poli- setting up processes with respect to the of the RFC Czech-Slovak into the RFC contribute to the railway business in the ticians about the investments into the expected implementation of the fourth Rhine-Danube. Czech Republic. It must continue to be Prague – Munich, Prague – Nurnberg railway package, including the support incorporated into major European back- connections and the planned high-speed of state administration bodies. PRIME - Platform of Rail bone networks, jointly offering a reliable Prague – Dresden connection. Further, Infrastructure Managers alternative to overloaded roads used for negotiations were held between the Správa železnic has been actively As a full-fledged member of this plat- both passenger and freight transport. Czech Republic, Germany and Poland involved in the Rail Freight Corridors form, Správa železnic has actively par- The incorporation of the Czech paths in respect of the privileged line section (RFC), the objective of which is to fa- ticipated in the working group for the into the main European routes and between the border stations Hrádek cilitate the planning and control of and definition of indicators describing the European corridors remains a necessary nad Nisou – Zittau leading through the the actual performance of freight train efficiency of individual infrastructure condition for the development of Czech Polish territory. traffic on important European routes, managers. Under the auspices of the railways. Meeting this objective is condi- and to establish the principles of techni- European Commission, the activities of tional on intensive Europe-wide cooper- Správa železnic actively participates cal harmonisation. this platform are subdivided into several ation across all levels of management. in EU programmes and projects, coop- areas, such as digitisation, funding, key erates with EU partner organisations, The interoperability of the European rail performance and benchmarking indi- In 2019, Správa železnic continued to ne- institutions and bodies, as well as with system remains a major issue. To ensure cators, implementation of EU law into gotiate effectively with its international international organisations. It aims to interoperability, Správa železnic has national legislation, safety and security, partners, both bilaterally and within achieve the perception of the railway as adopted an active approach towards in- infrastructure charges, etc. Human international railway organisations and a system of strategic importance for the frastructure parameter harmonisation resources issues, such as increasing the through direct involvement in European key industries of Czech national economy. and new technology implementation for attractiveness of the railway for young Commission’s Committees for railway instance as regards ERTMS and telem- professionals, gender policy issues, and interoperability and safety. Single European railway area atic applications. others are also addressed. The railway plays an irreplaceable role in In the framework of the activities of the transport industry. The EU endeav- RFC – Rail Freight Corridors UIC – International Union of CEN/CENELEC, the Správa železnic ours to increase the efficiency of railway In accordance with the Regulation Railways experts participated in the preparation functioning while at the same time re- No. 913/2010 of the European Parlia- Správa železnic continues to strive of new amendments to the existing specting general priorities. To that end ment and of the Council concerning for the harmonisation of the technical European standards. Správa železnic and to increase the performance of the a European rail network for competitive standards for railways, which has been continued to cooperate with rail infra- rail system a single European railway freight and related legislation, Správa the main role of UIC since its inception.
46 Organisation’s activities 47 Správa železnic Annual report 2019
Správa železnic’s experts participated CER – Community of European Railway OCR – Organisation for Cooperation in transposing UIC regulations into and Infrastructure Companies between Railways the International Railway Solutions Within this organisation, Správa In 2019, the representatives of Sprá- (IRS), continued taking an active part železnic cooperates on the preparation va železnic continued to participate in in various working groups, both perma- of position papers on EU draft legisla- projects of OCR’s Commission V – Infra- nent and ad hoc, and in specific projects, tion affecting rail transport in all areas. structure and Rolling Stock, in particular primarily within the Rail System Forum. Správa železnic experts cooperated in working groups dealing with railway In 2019, Správa železnic’s comments with CER in the working groups focused superstructure (catalogue of rail de- continued to be successfully incorpo- on infrastructure, European corridors, fects), substructure and line diagnostics. rated, thus influencing both new and safety, human resources, ERTMS and revised guidelines. Sharing of experi- other areas. A Europe-wide meeting RISC – Railway Interoperability ence continued in the area of railway of HR directors was held by Správa and Safety Committee superstructure and substructure, železnic in Prague in 2019. In 2019, Správa železnic’s strategy artificial structures, communication director and a representative of the MT and control-command and signalling RNE – RailNetEurope participated again in the RISC meet- units, energy systems, electric traction, Správa železnic actively participated ings. Thanks to its membership, Správa high-speed systems, implementation in the activities of the international železnic has access into the communi- of ERTMS and ETCS. Správa železnic organisation RNE, which is a major cation platform in which the European actively participates in the activities association of European infrastructure Railway Agency (ERA) publishes all of the FRMCS (future railway mobile managers and allocation bodies. All legislation proposals relating to the communication system) working group, RFCs became associated members in implementation of the 4th railway pack- addressing the definition of technical 2016. In 2019, the organisation contin- age. In 2019, these included in particular parameters and operation and user sys- ued to provide support to carriers with TSI proposals. Through comments, the temic conditions. Správa železnic also respect to their cross-border activi- Czech experts try to negotiate the most participated in projects under the UIC ties and on improving the efficiency of favourable terms for the Czech Republic. Environment Platform, in particular in processes of infrastructure managers reducing noise burdens and weed killing. and RFCs, primarily by cooperat- ETSI – European Telecommunica- Ensuring traffic safety and the issue ing in harmonising the conditions for tions Standards Institute of migration waves were discussed at cross-border rail transport, developing Správa železnic is a member of ETSI a number of meetings of the UIC Se- and managing cross-border IS, coordi- which focuses on European telecom- curity Platform. Cyber security issues nating the preparation of timetables munications standards with worldwide were at the forefront of the debates. across Europe and ensured the unifica- impact. As a member, Správa železnic Together with UIC, Správa železnic tion of the marketing and sale of inter- has unrestricted access to all published organised the 15th World Security Con- national paths (including the Statement standards and specifications in this gress in Prague and pledged to continue on railway and Corridor information field. In 2019, Správa železnic experts to preside over the UIC New Technolo- documents). Of particular note was the participated in the meetings of the Rail- gies’ working group in 2019. cooperation of infrastructure managers way Telecommunications working group. with regard to railway operation and RFC development.
48 Organisation’s activities 49 Správa železnic Annual report 2019
Financial performance Table 11 – Financial performance of Správa železnic in 2019 Financial of Správa železnic The EBITDA amounted to CZK 2 106 mil- Indicator 2019 (in millions of CZK) performance lion. EBITDA indicates the difference Revenues from use of RI 3 679 between the Správa železnic’s revenues Revenues from allocated RI capacity 114 and expenses, excluding taxation, inter- est and depreciation. At the same time, Subsidies from SFTI for repairs and maintenance of national and regional lines 19 415 EBITDA is net of non-financial transac- Subsidies from SFTI for the operation of RI 4 253 tions related to provisions for payments to a specialised tax office. Other subsidies 40
Purchase and sale of energy and distribution services 238 Revenue from use of RI represents pay- ments for rail infrastructure by carriers. Materials, energy consumption and services -15 762
This is a significant source of income for Personnel expenses -11 387 Správa železnic, used to cover expenses Accounting depreciation -4 099 incurred on traffic control. Other operating revenues and expenses 2 787 Revenue from allocated RI capacity Operating loss/profit -722 represents Správa železnic’s income pursuant to the Railway Act, which Interest income and expense -23
stipulates that Správa železnic is the Exchange rate differences 5 institution in charge of capacity alloca tion. For more information about Other financial revenues and expenses 6
capacity allocation, see the National and Profit/loss from financial operation -12 Regional Network Statement. Profit/loss before tax -734
Subsidies from SFTI for repairs and Deferred tax -345 maintenance of national and regional Profit/loss after tax -1 079 lines constitute revenue and are used to cover expenses relating to the operabil- EBITDA 2 106 ity of RI. Based on a contract, SFTI pro- vides non-investment funds to finance repairs and maintenance of national and regional lines owned by the state and ad- ministered by Správa železnic.
50 Financial performance 51 Správa železnic Annual report 2019
Subsidies from SFTI for the operability and maintenance provided by external by the Ministry of Finance of the Czech Správa železnic’s financial performance of the RI are provided by SFTI based on suppliers. Republic on behalf of Správa železnic. is regularly assessed and analysed in a contract concluded to finance non-in- order to maintain its business and finan- vestment expenses incurred to ensure Správa železnic’s personnel expenses Exchange rate differences arise in par- cial stability. The mandatory KPIs of all the operability of RI. include wages and salaries, social secu- ticular from the translation of foreign organisational units of Správa železnic rity expenses and social expenses. currency liabilities, loans and interest at will be thoroughly examined so as not to Other subsidies comprise primarily pur- the exchange rate valid as at 31 Decem- exceed the total budgeted expenses. pose-built operation related subsidy from Significant operating expenses also ber 2019. The loans taken over from the SFTI for the studies and a subsidy from include accounting depreciation, i. e. the former state organisation ČD, s. o., are SFTI for Civil Engineering Administration recognition of the depreciation of fixed now denominated only in euro. for small non-investment expenses. assets in expenses. The 2019 result also comprises deferred Purchase and sale of energy and dis- Správa železnic’s other operating rev- tax of CZK 345 million. The individual tribution services includes expenses enues and expenses include other reve- items of the deferred tax are described relating to the purchase of distribu- nue and expense items, e.g. payments to in the notes to the financial statements. tion services and electricity (low- and a specialised tax office, payment of rail high-voltage transfer points outside replacement bus service to carriers due Financial outlook electric traction to cover Správa to a planned limitation of rail operation Správa železnic’s goal is to work closely železnic’s internal consumption and to in accordance with the Network State- with relevant state administration supply electricity to external custom- ment, revenue from the sale of fixed bodies in order to keep cash inflows ers connected to the local distribution assets and materials less their net book and outflows in individual segments of network of the railways) and expenses value. They also include changes in other activity in balance while not increasing relating to the purchase of distribution provisions and adjustments, revenue Správa železnic’s requirements for services and electricity for the supply from external production and leases, state budget funds. and transfer points of electric traction. own work capitalised, revenue from The item also includes revenue from the salvaged materials, expenses incurred Správa železnic’s sources of income sale of distribution services and elec- on property and liability insurance, in individual segments must fully tricity as well as revenue from the sale a contribution for personal protective cover corresponding operating cash of distribution services and electricity equipment to be used at work or mem- outflows in any given year. The main for electric traction. bership fees paid to organisations, taxes limiting factor is the amount of non-in- and other fees. vestment subsidy allocated from SFTI The most significant expense item com- for ensuring the operability of the RI, prises operating expenses relating to Interest expense primarily results from repairs and maintenance of passenger consumption, i. e. consumption of mate- bank loans relating to capital expendi- stations and the pricing policy applied rials and consumables and services. The tures that were taken over from the to the use of the RI. The aim of Správa services mainly include expenses re- former state organisation ČD, s. o., as železnic is to stabilised cash inflows lated to ensuring the operability of the stated in the notes to the financial state- and outflows as to achieve a balanced RI incurred in connection with repairs ments, interest owed to the banks is paid cash flow sum.
52 Financial performance 53 Správa železnic Annual report 2019
Internal audit efficiency of review procedures, risk tion of audit operation risk areas, error Internal The Internal Audit Department is func- identification and management, detection, and the confirmation of the tionally independent and separate from control system efficiency correct set-up and sufficient functionali- audit and the organisation’s managing and exec- monitoring) ty of selected audit procedures. utive structures. It deals with objective, —— ensuring the safety of rail risk assuring and advisory activity aimed at infrastructure operation No serious findings were identified adding value, enhancing the processes —— setting up a strategy for the use of during the internal audit activity under management within the organisation and the effi- immovable assets the provisions of Section 22 (6) of Act ciency of the risk management system, —— digitisation of public procurement No. 320/2001 Coll., on financial control the control processes and corporate —— functioning of the recruitment in public administration and on the management and administration. Its process and the personnel and amendment of certain acts, as amend- independence and objectivity of activi- professional development of ed. No corruption or fraudulent prac ties in the organisation was confirmed employees tices were detected. by the Audit Committee in the report for —— ensuring the completeness, the Council for Public Supervision over correctness and transparency of During 2019, the Internal Audit Depart- Audit for the period from 8 June 2018 to records kept in information systems ment also provided advisory in particular 3 May 2019. —— complying with the principle in the field of risk management, cyber of economy, effectiveness and security, managing controls, public The 2019 Annual Audit Plan approved by efficiency of audited activities. procurement, accounting policies, staff- the Supervisory Board was drafted with ing and modifications of Directive 41 respect to the organisation’s set goals The results of the performed internal (circulation of accounting documents), and needs, the top management’s evalu- audits were discussed with the heads 44 (publicity policies for EU co-funded ation of risk areas and results of internal of the audited sections. Based on the projects in the Transport – Cohesion and external checks and audits. In ac- regular audit findings, 47 recommenda- Fund Operational Programme), 113 (con- cordance with the Annual Audit Plan, the tions were drafted. Specific measures, trols), and 87 (receivable recording and Internal Audit Section carried out a total including deadlines, were subsequently recovery). of 9 regular and 10 follow-up internal au- adopted by the top management of the dits across the organisation, identifying audited sections. Their efficiency will be The director of the Internal Audit De- the following areas based on the residual reviewed by follow-up internal audits partment held a training for internal risk level: in 2020. The 53 remedial measures auditors and coordinated their par- adopted in respect of the 2018 internal ticipation in professional conferences. —— ensuring the compliance of internal audit findings were reviewed by means Selected employees of the Internal policies with applicable legislative of follow-up audits in 2019. The remedial Audit Section actively participated in and regulatory requirements and measures were gradually implemented an international meeting of internal established standards and brought relevant results. The added auditors from Czech and Slovak railway —— ensuring the adequacy and efficiency value of the activity of the Internal Audit organisations. of the management and control Department manifested itself in the system (setting up of control regulation of internal managing and In compliance with the programme of se- environment, correctness and methodological policies, the identifica- curing and enhancing the internal audit
54 Internal audit and risk management 55 Správa železnic Annual report 2019
quality, internal audit quality was inter- The main task of this system is to timely In 2019, Správa železnic managed the Financial risks nally and continuously assessed as part identify risks on the level of risk owners, following risk areas: In terms of finance, Správa železnic is of performed audit engagements, using perform an analysis, do an assessment, exposed to liquidity risk, interest rate self-assessment, assessment by heads propose efficient remedial measures Operational risks risk, currency risk and credit risk. As of audited sections, and regular (annual) and provide important and timely infor- The primary objective of operational risk the organisation’s activities related to assessment, which involved the DG and mation on Správa železnic’s manage- management is to ensure the safe and modernisation, ensuring the operability heads of the Internal Audit Department. ment risks. failure-free operation of RI. With regard and operation of RI are primarily funded to traffic control and operability, risks from subsidies, liquidity in these areas The Internal Audit Section also focused As part of the implementation of the are minimised by recruiting new employ- is managed in relation to the respective on regular activities relating to the entire centralised risk management ees with appropriate physical and mental grants for the relevant fiscal period, recording and assessment of review system, the main task in 2019 was to fitness, who undergo training and take with an emphasis on complying with and audit findings identified by external comprehensively identify risks in Správa exams set for their future position. For conditions for their utilisation and mini- review and audit entities, and on updat- železnic, prepare a risk catalogue and selected professions, periodic training mising possible penalties. In other areas, ing and the regular assessments of tasks determine the most significant risks, sessions and exams including tests of financed primarily from revenues, the identified by the organisation’s Internal that could have an impact on the fulfil- physical and mental fitness are per- key liquidity management tool in 2019 Anti-Corruption Programme and the ment of strategic goals. Throughout the formed. Risk management also involves comprised the continuous monitoring Anti-Corruption Action Plan for 2019. year, the Risk Unit held meetings with developing and constantly maintaining and management of cash flows. Správa professional staff across the entire or- a system of internal policies that define železnic‘s debt portfolio comprised one Risk management ganisation, who subsequently identified the requirements for the individual com- loan from EIB in 2019. The loan is due on As regards the risk management, the and analysed risks in their departments. ponents of the RI as well as the correct 15 December 2020 and is guaranteed strategic objective of Správa železnic The finalised data were submitted to procedures for performing activities by the state. Possible risks are thus is to reduce the identifiable risks to an the Risk Management Committee for related to the RI. In addition, regular eliminated. The credit risk which follows acceptable level. This entails to address discussion. The analysis and assessment examinations and measurements are from the debtors’ inability to pay their the issues arisen timely and to inhibit phase was finalised at the end of 2019 carried out to assess the technical con- liabilities to Správa železnic is regulated the impact of risks on the fulfilment of when the Risk Management Committee dition of the RI. In the event of accidents, through the monitoring and assess- a Správa železnic’s goals, results of op- approved the risk catalogue and the DG the cause and circumstances of their oc- ment of the condition of receivables and erations and on health and human lives. presented a list of significant risks, that currence are identified. Further, respon- the immediate resolution of overdue will be managed centrally. sibility for their occurrence is assigned. receivables using all legal possibilities. At Správa železnic risk management is Remedial measures to prevent such acci- The procedures applied to the monitor- a continuous, systematic and methodi In the next implementation phase dents, including implementation dead- ing, assessment and collection of debts cal activity within the established inter- in 2020, an information system for lines, are proposed and adopted. The are stipulated in an internal policy the nal control system organised at respec- centralised risk management will be implementation of remedial measures is adherence to which is reviewed. tive levels of company management and launched. All data acquired during the subsequently monitored and document- specific areas. To reduce risks to the performed analysis will be input into ed. Where an accident is proven to have Information technology and cyber lowest possible degree and to manage the system. The risks will be operatively been caused by an employee, relevant security risks them efficiently, a centralised risk man- administered and managed based on penalties and compensation of damage Significant risks in terms of informa- agement system was introduced in 2018. these data. are applied. Damage caused to third par- tion technologies include the misuse, Its coordination is ensured by the Risk ties is covered by liability insurance. damage or loss of data and a possible Unit at the Internal Audit Department. breach in the functionality of signifi-
56 Internal audit and risk management 57 Správa železnic
cant information systems. These risks qualifications system. In accordance are eliminated by applying a number of with the continuously updated concept Safety equipment and various measures, primarily a controlled of human resources department, the administration of applications, servers age structure of the key professions bridge reconstruction in and networks. A regular backup of all is analysed, and selected employees vital centrally stored data is performed, undergo special training process in order Brno main station the updated antivirus protection is en- to ensure the succession of key positions. sured and individual stations are contin- uously tested. Regular operating system Observing both external and internal upgrades and the gradual limitation legislation as well as the Collective of redundant individual users’ access Agreement ensures the conditions for rights are also performed. social consensus and a low employee turnover level, which is supported by In compliance with Act No. 181/2014 Coll., a funding guarantee for rail operation on Cyber Security and in order to fulfill and operability by the MT. the requirements in respect of the protection of information and commu- Risk of corruption nication systems of critical information In order to minimise corruption risks and infrastructure, activities in accordance ensure prevention of and response to with the Risk Management Plan were detected corruption allegations, Správa performed in 2019. The requirements of železnic had introduced the Anti-Cor- the new Decree on Cyber Security have ruption Programme with a regular been considered in the Risk Manage- annual assessment of the efficiency. The ment Plan. Newly identified security programme includes the Employee Code threats were analysed. Regular testing of Conduct, the Corruption Risk Cata- has been started to check the current logue and an e-learning course address- efficiency of security measures in the ing internal anti-corruption measures. organisation. A regular update of the Corruption Risk Catalogue was performed in 2019. HR risks Správa železnic’s interests regarding the requirements on future employees have been secured through cooperation with secondary schools and universities, which includes the ‘NádraŽák’ student programme, as well as through the or- ganisation’s participation in the trans- portation sector council’s activities re- garding the preparation of the national
58 Správa železnic Annual report 2019
Employees 147 employees (i.e. by 1.9%). As at 31 De- The average recalculated number Human As at 1 January 2019, Správa železnic cember 2019, the number of full-time of full-time employees was 17 106.44 had 17 146 employees working in 172 pro- employees decreased year on year by in 2019 (a year-on-year decrease by resources fessions across its 18 organisational 98 from 17 234 to 17 136 as at 31. 12. 2019 200.22 employees, i.e. by 1.16 %). units, which operate in individual regions (Chart 6). During 2019, severance pay of the Czech Republic. was provided to 177 employees. The age structure of employees did not change significantly year-on-year Since its inception 16 years ago, when In the second half of 2019, an advisory (Chart 8). As at 31 December 2019, the Správa železnic launched its operation company analysed the set-up of process- average age of Správa železnic’s em- on 1 January 2003 with only 61 employ- es in the existing Správa železnic’s or- ployees was 48.26 years (a year-on-year ees, it has become a major employer ganisational structure. Based on the increase by 0.3%). in the Czech Republic and the largest conclusions of the analysis, Správa employer in the rail transport sector. železnic’s Supervisory Board, at its Rail transport is a male-dominated November meeting, endorsed gradual industry. This is confirmed by the pre- As of 1 January 2019, a major alteration changes in the organisation’s organisa- vailing share of male employees, which of the Správa železnic’s organisational tional structure in 2020 as at 1 January remained at 72% as at 31 December 2019 structure was adopted, consisting of and 1 April 2020 (including a possible (Chart 9) although the share of male em- the centralisation of accounting opera- takeover of activities of the telecommu- ployees declined by 1% year on year. tions into the Centre of Shared Services nication infrastructure), ensuring the organisational unit, the cancellation optimum and most effective set-up of In comparison with 2018, the struc- of the Asset Management Section, the individual processes in the organisation. ture of Správa železnic employees by merger of activities of the Regional Directorate Facility Management under Chart 6 – Number of Správa železnic’s employees from 2003 to 2019 the professional Building Constructions Facility Management within the Rail Op- erability Section, and the merger of the Regional Directorate’s business activi-
ties under professional Business Activi- 54510 8 795 17 765 17 9 929 17 470 17 17 136 17 17 33117 33117 17 20017 17 34917 17 23417 ties Management within the Economics 48917 Section. On 1 January 2019, the organ- isational structure of the Traffic Man- 656
agement Section changed, resulting in 647
a reduced number of operation divisions 61 126 528 598 of regional directorates. Further, the process of rationalisation and optimi- sation connected with putting invest- ment projects into operation continued. As a consequence, the total number 31.12.2011 31.12.2012 31.12.2017 31.12.2013 31.12.2016 31.12.2019 31.12.2015 31.12.2014 31.12.2018 31.12.2010 31.12.20 07 31.12.20 05 31.12.2003 31.12.2006 31.12.2008 31.12.2009 31.12.20 0 4 01.01.2003 of traffic control staff decreased by
60 Human resources 61 Správa železnic Annual report 2019
Chart 7 – Number of employees by organisational units as at 31 December 2019 Chart 10 – Employee structure by educational attainments at 31 December 2019
13,8 % 3 % 2 632
2 350 0,8 % 2 134 2 109 26,9 % Primary education 1 896 Secondary education without school-leaving exam 1 441
1 218 Secondary education with
925 school-leaving exam
519 Higher professional education 310 300 295 312 155 154 130 158 96 55,5 % University degree
RD Plzeň RD ORD Brno FS Prague RD Prague RD TCI Prague TCC Přerov TCC RD Ostrava TCC Prague TCC CSS Prague RGA Prague RD Olomouc RD RGA Olomouc RGA Headquarters RD Hradec Králové Hradec RD RD Ústí nad Labem CEA West (Prague) CEA (Olomouc) East REA Hradec Králové REA Hradec educational attainment did not change ment as of 1 January 2019 to 31 Decem- (RD – Regional Directorate, TCC – Traffic Control Centre, CEA – Civil Engineering Administration, REA – Railway significantly in 2019 (Chart 10). The ber 2019). Energy Administration, FS – Fire Service, RGA – Railway Geodesy Administration, TCI – Technical Centre of Infrastructure, CSS – Centre of Shared Services) share of employees with incomplete, primary or secondary education without A uniform payroll system continued to
Chart 8 – Age structure of employees as Chart 9 – Gender structure of employees as school-leaving exam amounted to 30% be applied. The tariff and motivational at 31 December 2019 at 31 December 2019 (a year-on-year decline of 1%) while wage component was increased, and the share of employees with secondary certain other benefits and bonuses were 0,1 % 7,8 % education with school-leaving exam re- newly adjusted. In 2019, Správa železnic 11,7 % 27,7 % mained at 55%. The share of employees met all of the obligations towards its 11,8 % with higher professional education and employees in terms of remuneration a university degree accounted for 15% and employee benefits. The range of (a year-on-year increase of 1%) . employee benefits provided to stabilise and motivate employees remained the Remuneration and employee same in 2019, with transport contribu- benefits tion added to the range of employee Remuneration principles and the extent benefits at the end of 2019 through of employee benefits provided were ne- the 3rd change of the Collective agree- 36,9 % 31,7 % 72,3 % gotiated in the SŽDC’ Collective agree- ment. In addition to benefits relating ment for the period from 1 February 2018 to working hours and holidays, Správa to 31 December 2019 and its appendices železnic continued to provide, among 18-19 years 30-39 years 50-59 years Male (Appendices No. 2 to 5 were agreed on by other things, contributions towards the 2nd change of the Collective agree- its employees’ supplementary pension 20-29 years 40-49 years 60 years and more Female
62 Human resources 63 Správa železnic Annual report 2019
insurance and life insurance schemes. (a total of 230 new employees were paid No. 4 – Reconditioning stays for SŽDC of occupational health and safety and A total of 2 298 employees performed the recruitment allowance in 2019). employees, and No. 5 – Principles for the during ordinary medical examination. selected professions deemed as par- granting of a recruitment allowance. Under the conditions of a state orga ticularly demanding attended a recondi- Cooperation with trade union nisation, changes were made in the tioning treatment programme at one of organisations Training compensation of all employee work inju- the six designated spa facilities (Jeseník As keeping social peace is the priori- The area of education follows the ries, which is newly centrally ensured by Priessnitz Spa, Poděbrady Winter Spa, ty of its social policy, Správa železnic approved objectives of the Správa Správa železnic’s DG Human Resources Darkov Spa, Trenčianske Teplice Spa, places great emphasis on cooperation železnic’s Human resources depart- Department. Číž Spa and Rajecké Teplice Spa). with trade union organisations. As at ment policy and with the Správa 31 December 2019, nine trade union železnic’s Learning Plan. In 2019, a new In 2019, we recorded a total of 470 work In accordance with the financial princi- organisations – both multi-profession system of learning was prepared, injuries, none of them fatal. A total of ples and the approved budget negotiat- organisations as well as organisations including the establishment of a new 3 work injuries required hospitalisation ed with the trade union organisations, representing a single profession – con- information system for learning and for more than 5 days; 153 work injuries the Cultural and Social Needs Fund tinued to operate at Správa železnic. the transition from regular trainings were classified as other work injuries was used to provide funds for meal In 2019, representatives of the employ- supplied externally to regular trainings with a subsequent sick leave of more vouchers, cultural and sports activi- er and the trade unions held regular ensured by Správa železnic’s own pro- than three calendar days; 2 work injuries ties, including participation in interna- joint meetings, where information was fessional staff. were classified as other work injuries tional railway events and regional and discussed with the social partners in with a subsequent sick leave of up to national qualifiers. The employees were accordance with the Labour Code and Medical care at work three calendar days and the remaining given monetary gifts on the occasion of SŽDC’s Collective Agreement in force. Occupational medical care was provided 312 work injuries were classified as other a life or working anniversary and upon From 28 August 2019, collective agree- to Správa železnic employees through work injuries without any subsequent the first termination of employment in ment bargaining was held about change a contractual healthcare provider. In ad- sick leave. case the entitlement to pension or dis- No. 3 of the SŽDC’s Collective Agree- dition to the prescribed types of medical ability pension arises. In serious cases, ment for the period from 1 February 2018 examinations (entry, regular, extraordi- the employer provided employees with to 31 December 2019, and simultaneous- nary and exit check-ups), it also focused social aid or interest-free social loan. ly, about the new Collective Agreement on workplace monitoring as part of Employees and their family members after 31 December 2019. On 6 Decem- occupational safety and health examina could also use employer-contributed ber 2019, the 3rd change of the existing tions. Job applicants and Správa holiday packages. Collective Agreement was concluded železnic employees used these occupa- effective from 31 December 2019, intro- tional medical care services throughout In accordance with Správa železnic’s ducing the provision of the new employee the Czech Republic, with approximately Collective Agreement, and in order to benefit, transport contribution. On the 100 physicians providing labour-related fill certain long-term vacancies (po- same day, the new SŽDC’s Collective professional services to Správa železnic sitions of electrical engineer of fixed Agreement was concluded for 2020 with through contractual provider. traction and heavy-current facilities, the following appendices: signalling technician, train dispatcher No. 1 – Working hours, on-call duty, hol- Occupational safety and health and licensed engine driver) a recruit- iday, work obstacles, No. 2 – Principles Health and safety activities primarily ment allowance continued to be paid for the SŽDC employee remuneration, focused on eliminating the deficiencies to the new recruits for these positions No. 3 – Boarding and expense refunds, detected during medical examinations
64 Human resources 65 Správa železnic Annual report 2019
Správa železnic fulfils a significant role functioning and security of the railway. prepare preventive safety campaigns. Corporate as the rail infrastructure manager in We are successful in recruiting them Creating an overall positive perception the Czech Republic. Moreover, it belongs thanks to long-term cooperation with of Správa železnic is important when responsi among the biggest employers in the secondary schools and universities communicating with students. Apart country. Therefore, it pays close atten- across the Czech Republic specialising from personal encounters at in-school bil ity tion to corporate social responsibility, in technical fields. We collaborate with and out-of-school events, a specialised both in relation to its own employees 35 secondary schools and 11 universi- web portal serves for active commu- and the public. It develops its activities in ty faculties. Their students regularly nication with students. Students are social, economic and environmental ar- participate in professional traineeships, potential future railway customers and eas. As part of its internal programmes, on-the-job trainings and other events, the people who will decide about the Správa železnic creates conditions for such as an interactive student confer- future of the transport. Unless they es- the personal and professional develop- ence, the Student Cup or the For one tablish a positive relationship to railway ment of its employees, and cooperates day become a… project. Správa železnic transport, little can be changed when with partner entities from the transpor- employees take part in the preparation they are older. At a time when every- tation sector as well as with secondary and implementation of specialised lec- body is exposed to a strong promotion schools and universities specialising in tures, workshops and other events held of individual car transport, this danger subjects relating to transportation. by the schools. Every year, we present is significant. Emphasis is put on the topics for bachelor and diploma theses ecology of railway transport, its speed, The main objective of the implementa- and offer university students profes- flexibility, economy and comfort. tion of corporate social responsibility sional advice and help in the preparation principles into everyday activities of of the theses. Our collaboration with SŽDC team our organisation is to enhance and im- schools generally helps to enhance the Správa železnic is a relatively young prove the image of Správa železnic, to level of education, contributes to the organisation as it was founded only achieve better staff motivation and the popularisation of technology, and offers in 2003. However, with its range of greater probability of recruiting new student support. activities and number of employees, it competent staff. belongs to the fastest growing enti- Another implemented project of the Stu- ties in the Czech Republic. Fast growth Student programme dent Programme is the Správa železnic makes it necessary to reinforce As part of its corporate social responsi- Safe Railway. Our mission is to reduce communication between the individ- bility, Správa železnic as a major state irresponsible behaviour through preven- ual branches and its employees. The organisation decided to focus its Student tion and warn of the negative impacts of primary task of the SŽDC team is thus Programme on young people between 14 such behaviour and risks in the vicinity of to strengthen communication and co- and 24, students of vocational schools, railway lines, level crossings and railway operation inside the organisation. We secondary schools and universities. stations. Understandably, the impact of have established rules of responsible this communication is on the entire popu- communication and enhanced cooper- We are aware of the fact that apart lation, as irresponsible behaviour does not ation and connections between man- from the infrastructure, top pro- concern only young people. We regularly agement and employees. We would like fessionals are needed for the proper organise Train of Prevention rides and to contribute to the strengthening of
66 Corporate social responsibility 67 Správa železnic Annual report 2019
staff pride, loyalty and confidence. We were connected to our festive Christ- Správa železnic is also active in the they fall, threaten the safety of rail want to motivate our employees and mas get-togethers. Euro key project, thanks to which the transport and impede traffic. Správa enhance their professional knowledge accessibility of special public toilets is železnic’s objective is to prevent any and skills. Cooperation with the disabled gradually improving due to them being accidents arising as a consequence Správa železnic systematically makes equipped with a single Euro key. thereof. It has become evident that in Awarding selected employees travelling on the railway accessible to the next period, more attention needs Everybody appreciates being awarded disabled people. There are barrier-free Environment to be paid to vegetation on the land of for their work effort, in particular if this is train platforms in more than half the The environment and its protection other legal entities in the railway buffer done publicly, directly from the manage- stations and stops on the main lines are regulated by both European and zone and look for functional mecha- ment of the organisation. One effective classified under the trans-European national legislation. Respecting legisla- nisms that will lead to the mitigation of way is the company-wide election of the railway network. Adjustments continue tion facilitates the minimisation of any the endangerment level of railway lines. employee of the year. We have announced to be made at railway stations to accom- adverse impacts on the environment. Prerequisite conditions for this were the following categories: Employee of modate the visually-impaired. From the point of view of environmental established by the amendment to the the Year, Newcomer of the Year and the As of 2019, the meeting platform for protection, railway transportation, or Act on Rail Systems, approved at the Správa železnic Hall of Fame, into which representatives of the National Coun- the railways as such, is considered as end of 2019. we induct experienced colleagues. cil for Persons with Disabilities of the a highly competitive means of trans- Czech Republic, passenger carriers and port. Nonetheless, it is necessary to In 2019, a pilot programme was Railwayman of the Year Správa železnic serves to harmonise continue to further mitigate the ad- launched in form of a study monitoring Every year, Správa železnic’s Direc- requirements for barrier-free access verse impacts on the environment, such climatic and weather phenomena im- tor general rewards employees of our to train stations and the necessary as noise, vibrations, dustiness and air pacting railway lines. The programme organisation who contributed to the adjustments of stations. The goal of all pollution and to scale down the amount will loosely continue in the completed saving of human lives and health in involved is to harmonise the infrastruc- of generated waste. project addressing the methodology for performing their duties during the year ture manager’s investment plans with and the effective approach to accompa- or helped to prevent great property the requirements for the establishment Apart from the above, environmental nying greenery, whose objective was to damage or accidents. Many people are of suitable conditions for the travels of protection also includes landscape pro- describe measures to systemically en- indifferent to their surroundings nowa- all persons with limited ability of move- tection and water management. Closely sure safe and smooth railway operation. days. Therefore, it is necessary to laud ment and orientation. Representatives related to railway superstructure those who are willing to help. of people with disabilities thus already maintenance is another area of interest, have been acquainted with our efforts to namely phytosanitary care concerning Roadshow in regions make train stations more accessible in the considerate application of biocides The aim of this project is the proac- the 2020 to 2025 period, e. g. on Správa using modern methods of selective tive communication of the organisa- železnic’s new website, which informs spraying of the railway superstructure. tion’s management with employees in about the barrier-free access level of the regions, the chance for personal stations and stops. Moreover, the expan- In 2019, activities relating to vegetation communication, and acquainting em- sion of the meeting platform is planned management continued. These include ployees with the organisation’s visions for the near future to include other the regular removal of non-indigenous and goals. The events were held at the organisations, e. g. Czech Blind United or tree species of low environmental and end of the year in several regions and the Czech Union of the Hearing Impaired. aesthetic value, which could, should
68 Corporate social responsibility 69 Annual report 2019
On 14 January 2020, the Organisa- Track modernisation Subsequent tion’s new name “Správa železnic, státní organizace” was recorded in Rokycany – Plzeň events the Commercial Register, following 1 January 2020 as the effective date of Act No. 367/2019 Coll., amending Act No. 266/1994 Coll., on Railways, as amended, and other related laws.
The Organisation has assessed the coronavirus epidemic’s possible impact on the need of potential additional funding on the part of the founder if a possible shortfall in revenues from third parties cannot be covered by the organisation’s own sources. The results of this assessment depend on assump- tions about the duration and intensity of such a shortfall, based on publicly available information about key cus- tomers. As at the reporting date, the assessment does not indicate the need of additional financial sources. Poten- tial demands for additional financial sources will be dealt within coopera- tion with the founder once the state of emergency concludes and the real need can be assessed.
Subsequent events 71 Správa železnic Annual report 2019
Financial section Správa železnic Annual report 2019
Opinion of Auditors of the Czech Republic, and statements and our auditor’s report. Independent We have audited the accompanying we have fulfilled our other ethical re- The statutory body is responsible for financial statements of Správa železnic, sponsibilities in accordance with these the other information. Auditor’s státní organizace (“the Organisation”), requirements. We believe that the audit prepared in accordance with Czech evidence we have obtained is sufficient Our opinion on the financial statements Report to accounting legislation, which comprise and appropriate to provide a basis for does not cover the other information. In the balance sheet as at 31 December 2019, our opinion. connection with our audit of the finan- the Founder and the income statement, the statement cial statements, our responsibility is to of changes in equity and the cash flow Emphasis of matter – Settlement of read the other information and, in doing of Správa statement for the year then ended, and bank liabilities and debt remission so, consider whether the other infor- notes to the financial statements, includ- As stated in note 7.1 to the financial mation is materially inconsistent with ing a summary of significant accounting statements, most liabilities of České the financial statements or our knowl- železnic, policies and other explanatory notes. dráhy, státní organizace were trans- edge obtained in the audit, or otherwise Information about the Company is set out ferred to the Organisation as of 1 Janu- appears to be materially misstated. In státní in Note 1 to the financial statements. ary 2003. As further stated in notes 3.14 addition, we assess whether the other and 4.13.2 to the financial statements, information has been prepared, in all organizace In our opinion, the accompanying finan- the long-term payables to banks are material respects, in accordance with cial statements give a true and fair view paid by the Ministry of Finance accord- applicable laws and regulations, in This document is an English translation of the Czech of the financial position of the Company ing to instalment plans. particular, whether the other informa- auditor’s report. Only the Czech version of the report is legally binding. as at 31 December 2019, and of its finan- tion complies with laws and regulations cial performance and its cash flows for Once settled, they are transferred to in terms of formal requirements and the year then ended in accordance with long-term payables to the state and are the procedure for preparing the other Czech accounting legislation. subject to debt remission. Net finan- information in the context of materi- cial income from the operations of the ality, i. e. whether any non-compliance
KPMG Česká republika Audit, s. r. o. Basis for Opinion Organisation is insufficient to cover these with those requirements could influence Pobřežní 1a We conducted our audit in accordance long-term payables and therefore the judgments made on the basis of the 186 00 Prague with the Act on Auditors, and Auditing solution for their payment is subject to other information. Czech Republic Standards of the Chamber of Auditors Resolution of the Government of the +420 222 123 111 of the Czech Republic, consisting of Czech Republic, in which the government Based on the procedures performed, to www.kpmg.cz International Standards on Auditing determined the manner of waiver of the the extent we are able to assess it, we KPMG Česká republika Audit, s. r. o., (ISAs) as amended by relevant appli- payables of the Organisation until the report that a Czech limited liability company and a member firm of the KPMG network of independent member firms affiliated with cation guidelines. Our responsibilities moment of their redemption. Our opinion —— the other information describing KPMG International Cooperative (“KPMG International”), under those regulations are further de- is not modified in respect of this matter. matters that are also presented a Swiss entity. scribed in the Auditor's Responsibilities in the financial statements is, in all Recorded in the Commercial Register kept by the Municipal for the Audit of the Financial State- Other Information material respects, consistent with Court in Prague, Section C, Insert No. 24185 ments section of our report. We are In accordance with Section 2(b) of the the financial statements; and independent of the Company in accord- Act on Auditors, other information is —— the other information has been Identification No. 49619187 VAT No. CZ699001996 ance with the Act on Auditors and the defined as information included in the prepared in accordance with ID data box: 8h3gtra Code of Ethics adopted by the Chamber annual report other than the financial applicable laws and regulations.
74 Independent Auditor’s Report 75 Správa železnic Annual report 2019
In addition, our responsibility is to Auditor’s Responsibilities for the —— Obtain an understanding of internal in a manner that achieves fair pres- report, based on the knowledge and Audit of the Financial Statements control relevant to the audit in order entation. understanding of the Organisation Our objectives are to obtain reasonable to design audit procedures that are obtained in the audit, on whether the assurance about whether the financial appropriate in the circumstances, We communicate with those charged other information contains any material statements as a whole are free from but not for the purpose of express- with governance regarding, among misstatement. Based on the procedures material misstatement, whether due to ing an opinion on the effectiveness of other matters, the planned scope and we have performed on the other infor- fraud or error, and to issue an audi- the Organisation’s internal control. timing of the audit and significant mation obtained, we have not identified tor’s report that includes our opinion. —— Evaluate the appropriateness of audit findings, including any significant any material misstatement. Reasonable assurance is a high level of accounting policies used and the rea- deficiencies in internal control that we assurance, but is not a guarantee that sonableness of accounting estimates identify during our audit. Responsibilities of the Director an audit conducted in accordance with and related disclosures made by the General, Management Board and the above regulations will always detect statutory body. Statutory Auditor Responsible Audit Committee for the Financial a material misstatement when it exists. —— Conclude on the appropriateness for the Engagement Statements Misstatements can arise from fraud or of the statutory body’s use of the Karel Charvát is the statutory auditor The statutory body is responsible for the error and are considered material if, in- going concern basis of accounting responsible for the audit of the financial preparation and fair presentation of the dividually or in the aggregate, they could and, based on the audit evidence statements of Správa železnic, státní financial statements in accordance with reasonably be expected to influence the obtained, whether a material un- organizace as at 31 December 2019, Czech accounting legislation and for economic decisions of users taken on certainty exists related to events or based on which this independent such internal control as the statutory the basis of these financial statements. conditions that may cast significant auditor’s report has been prepared. body determines is necessary to enable doubt on the Organisation’s ability the preparation of financial statements As part of an audit in accordance with to continue as a going concern. If we Prague, 20 March 2020 that are free from material misstate- the above regulations, we exercise conclude that a material uncertainty ment, whether due to fraud or error. professional judgment and maintain exists, we are required to draw at- professional skepticism throughout the tention in our auditor’s report to the In preparing the financial statements, audit. We also: related disclosures in the financial the statutory body is responsible for —— Identify and assess the risks of ma- statements or, if such disclosures assessing the Organisation’s ability to terial misstatement of the financial are inadequate, to modify our opin- continue as a going concern, disclosing, statements, whether due to fraud ion. Our conclusions are based on the as applicable, matters related to going or error, design and perform audit audit evidence obtained up to the KPMG Česká republika Audit, s. r. o. concern and using the going concern procedures responsive to those risks, date of our auditor’s report. Howev- Registration number 71 basis of accounting unless the statuto- and obtain audit evidence that is er, future events or conditions may ry body either intends to liquidate the sufficient and appropriate to provide cause the Organisation to cease to Organisation or to cease operations, or a basis for our opinion. The risk of not continue as a going concern. has no realistic alternative but to do so. detecting a material misstatement —— Evaluate the overall presenta- resulting from fraud is higher than tion, structure and content of the Management Board in collaboration for one resulting from error, as fraud financial statements, including with Audit Committee, is responsible may involve collusion, forgery, inten- the disclosures, and whether the for overseeing the Company’s financial tional omissions, misrepresentations, financial statements represent the Karel Charvát, Partner reporting process. or the override of internal control. underlying transactions and events Registration number 2032
76 Independent Auditor’s Report 77 Správa železnic Annual report 2019
in full format as at 30 December 2019 Name and regist. office of the Company Identification number Balance (in thousands of Czech crowns) Správa železnic, státní organizace 709 94 234 sheet Translated from the Czech original Dlážděná 1003/7, 110 00 Prague 1, Czech Republic
Current period Prior period
Ident. ASSETS line Gross Adjust. Net Net
TOTAL ASSETS 1 182 845 209 -119 234 430 63 610 779 65 647 392
B. Fixed assets 2 175 966 371 -118 862 861 57 103 510 60 587 503
B.I. Intangible fixed assets 3 1 149 751 - 930 811 218 940 210 198
B.I.2. Intellectual property rights 4 1 088 746 - 926 125 162 621 155 700
B.I.2.1. Software 5 1 086 856 - 925 994 160 862 155 700
B.I.2.2. Other intellectual property rights 6 1 890 - 131 1 759
B.I.4. Other intangible fixed assets 7 4 686 - 4 686 28
B.I.5. Advance payments for intangible fixed assets and intangible fixed assets under construction 8 56 319 56 319 54 470
B.I.5.1. Advance payments for intangible fixed assets 9 152 152 152
B.I.5.2. Intangible fixed assets under construction 10 56 167 56 167 54 318
B.II. Tangible fixed assets 11 174 816 620 -117 932 050 56 884 570 60 377 305
B.II.1. Land and buildings 12 143 156 320 -94 696 082 48 460 238 50 978 885
B.II.1.1. Land 13 6 800 996 - 23 165 6 777 831 6 781 651
B.II.1.2. Buildings 14 136 355 324 -94 672 917 41 682 407 44 197 234
B.II.2. Plant and equipment 15 20 127 713 -16 828 045 3 299 668 3 642 413
B.II.3. Adjustments to acquired fixed assets 16 8 443 268 -6 344 642 2 098 626 2 661 511
B.II.4. Other tangible fixed assets 17 4 219 - 1 258 2 961 2 921
B.II.4.3. Other tangible fixed assets 18 4 219 - 1 258 2 961 2 921
B.II.5. Advance payments for tangible fixed assets and tangible fixed assets under construction 19 3 085 100 - 62 023 3 023 077 3 091 575
B.II.5.1. Advance payments for tangible fixed assets 20 297 644 297 644 417 470
B.II.5.2. Tangible fixed assets under construction 21 2 787 456 - 62 023 2 725 433 2 674 105
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78 Balance sheet 79 Správa železnic Annual report 2019
Current period Prior period
Ident. ASSETS line Gross Adjust. Net Net
C. Current assets 22 6 814 762 - 371 569 6 443 193 4 997 645
C.I. Inventories 23 560 134 - 12 434 547 700 461 622
C.I.1. Raw materials 24 559 132 - 12 434 546 698 461 612
C.I.2. Work-in-progress and semi-finished products 25 1 000 1 000
C.I.3. Finished goods and goods for resale 26 2 2 2
C.I.3.2. Goods for resale 27 2 2 2
C.I.5. Advance payments for inventories 28 8
C.II. Receivables 29 2 464 698 - 359 135 2 105 563 1 936 445
C.II.1. Long-term receivables 30 1 210 1 210 32 404
C.II.1.1. Trade receivables 31 31 359
C.II.1.5. Receivables - other 32 1 210 1 210 1 045
C.II.1.5.2. Long-term advances paid 33 1 089 1 089 1 045
C.II.1.5.4. Other receivables 34 121 121
C.II.2. Short-term receivables 35 2 463 488 - 359 135 2 104 353 1 904 041
C.II.2.1. Trade receivables 36 1 583 417 - 342 722 1 240 695 1 257 173
C.II.2.4. Receivables - other 37 880 071 - 16 413 863 658 646 868
C.II.2.4.3. Tax receivables 38 243 502 243 502 348 103
C.II.2.4.4. Short-term advances paid 39 209 103 209 103 106 228
C.II.2.4.5. Estimated receivables 40 378 479 378 479 152 329
C.II.2.4.6. Other receivables 41 48 987 - 16 413 32 574 40 208
C.IV. Cash 42 3 789 930 3 789 930 2 599 578
C.IV.1. Cash in hand 43 3 241 3 241 2 503
C.IV.2. Bank accounts 44 3 786 689 3 786 689 2 597 075
D. Deferrals 45 64 076 64 076 62 244
D.1. Prepaid expenses 46 60 422 60 422 55 817
D.3. Accrued revenues 47 3 654 3 654 6 427
80 Balance sheet 81 Správa železnic Annual report 2019
in full format as at 30 December 2019 Name and regist. office of the Company Identification number Balance (in thousands of Czech crowns) Správa železnic, státní organizace 709 94 234 sheet Translated from the Czech original Dlážděná 1003/7, 110 00 Prague 1, Czech Republic
Ident. LIABILITIES Line Current period Prior period
TOTAL LIABILITIES AND EQUITY 48 63 610 779 65 647 392
A. Equity 49 52 365 096 53 581 498
A.I. Registered capital 50 57 367 174 57 362 715
A.I.1. Registered capital 51 57 367 174 57 362 715
A.II. Premium and capital contributions 52 1 013 355 1 151 107
A.II.2. Capital contributions 53 1 013 355 1 151 107
A.II.2.1. Other capital contributions 54 1 013 355 1 151 107
A.III. Funds from profit 55 2 724
A.III.2. Statutory and other funds 56 2 724
A.IV. Retained earnings (+/-) 57 -4 939 668 -4 403 169
A .IV.1. Retained profits or accumulated losses (+/-) 58 -4 777 299 -4 248 142
A.IV.2. Other retained earnings (+/-) 59 - 162 369 - 155 027
A.V. Profit (loss) for the current period (+/-) 60 -1 078 489 - 529 155
B.+C. Liabilities 61 10 983 774 11 869 504
B. Provisions 62 1 018 971 2 242 423
B.4. Other provisions 63 1 018 971 2 242 423
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82 Balance sheet 83 Správa železnic Annual report 2019
Ident. LIABILITIES Line Current period Prior period
C. Liabilities 64 9 964 803 9 627 081
C.I. Long-term liabilities 65 5 390 880 5 022 306
C.I.2. Liabilities to credit institutions 66 290 400 588 000
C.I.4. Trade payables 67 66 252 60 939
C.I.8. Deferred tax liability 68 3 451 327 3 106 588
C.I.9. Liabilities - other 69 1 582 901 1 266 779
C.I.9.3. Other payables 70 1 582 901 1 266 779
C.II. Short-term liabilities 71 4 573 923 4 604 775
C.II.3. Short-term advances received 72 334 797 197 727
C.II.4. Trade payables 73 2 318 503 2 572 082
C.II.8. Liabilities - other 74 1 920 623 1 834 966
C.II.8.3. Payables to employees 75 561 919 253 913
C.II.8.4. Social security and health insurance liabilities 76 308 232 176 724
C.II.8.5. Tax liabilities and subsidies 77 551 519 1 096 391
C.II.8.6. Estimated payables 78 498 842 307 007
C.II.8.7. Other payables 79 111 931
D. Accruals 80 261 909 196 390
D.1. Accrued expenses 81 244 914 173 699
D.2. Deferred revenues 82 16 995 22 691
84 Balance sheet 85 Správa železnic Annual report 2019
classification by nature Name and regist. office of the Company Identification number Income for the year ended 31 December 2019 Správa železnic, státní organizace 709 94 234 (in thousands of Czech crowns) Dlážděná 1003/7, 110 00 Prague 1, Czech Republic statement Translated from the Czech original
Ident. INCOME STATEMENT Line Current period Prior period
I. Revenue from products and services 1 8 316 808 6 480 726
II. Revenue from goods 2 1 1
A. Cost of sales 3 18 979 710 14 683 954
A .1. Cost of goods sold 4 1 1
A.2. Materials and consumables 5 5 946 551 3 553 430
A.3. Services 6 13 033 158 11 130 523
B. Change in inventory of own production (+/-) 7 - 1 000 - 170
C. Own work capitalised (-) 8 - 658 454 - 703 393
D. Personnel expenses 9 11 387 186 10 534 571
D.1. Wages and salaries 10 8 110 677 7 522 448
D.2. Social security, health insurance and other expenses 11 3 276 509 3 012 123
D.2.1. Social security and health insurance expenses 12 2 740 280 2 529 796
D.2.2. Other expenses 13 536 229 482 327
E. Adjustments relating to operating activities 14 4 141 355 3 842 548
E .1. Adjustments to intangible and tangible fixed assets 15 4 134 088 4 089 769
E .1.1. Depreciation and amortisation of intangible and tangible fixed assets 16 4 098 983 4 111 971
E .1.2. Impairment of intangible and tangible fixed assets 17 35 105 - 22 202
E.2. Adjustments to inventories 18 - 1 124 - 887
E.3. Adjustments to receivables 19 8 391 - 246 334
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86 Income statement 87 Správa železnic Annual report 2019
Ident. INCOME STATEMENT Line Current period Prior period
III. Other operating revenues 20 25 869 196 23 940 747
III.1. Proceeds from disposals of fixed assets 21 40 125 60 009
III.2. Proceeds from disposals of raw materials 22 278 858 233 730
III.3. Miscellaneous operating revenues 23 25 550 213 23 647 008
F. Other operating expenses 24 1 058 532 2 263 951
F.1. Net book value of fixed assets sold 25 6 841 19 743
F. 2 . Net book value of raw materials sold 26 278 845 233 390
F.3. Taxes and charges 27 565 275 1 150 227
F.4. Provisions relating to operating activity and complex prepaid expenses 28 -1 223 452 -1 213 908
F.5. Miscellaneous operating expenses 29 1 431 023 2 074 499
* Operating profit (loss) (+/-) 30 - 721 324 - 199 987
VI. Interest revenue and similar revenue 31 29
VI.2. Other interest revenue and similar revenue 32 29
J. Interest expense and similar expense 33 23 343 41 092
J.2. Other interest expense and similar expense 34 23 343 41 092
VII. Other financial revenues 35 20 534 13 858
K. Other financial expenses 36 9 617 22 450
* Profit (loss) from financial operations 37 - 12 426 - 49 655
** Profit (loss) before tax (+/-) 38 - 733 750 - 249 642
L Income tax 39 344 739 279 513
L.2. Deferred tax (+/-) 40 344 739 279 513
** Profit (loss) after tax (+/-) 41 -1 078 489 - 529 155
*** Profit (loss) for the accounting period (+/-) 42 -1 078 489 - 529 155
* Net turnover for the accounting period = I. + II. + III. + IV. + V. + VI. + VII. 43 34 206 539 30 435 361
88 Income statement 89 Správa železnic Annual report 2019
for the year ended 31 December 2019 Name and regist. office of the Company Statement of changes (in thousands of Czech crowns) Správa železnic, státní organizace in equity Translated from the Czech original Dlážděná 1003/7, 110 00 Prague 1, Czech Republic Identification number 709 94 234
Registered Other capital Other Statutory Retained profits Other Profit (loss) Total capital contributions reserve and other or accumulated retained for the current funds funds losses (+/-) earnings period
Balance as at 1.1.2019 57 362 715 1 151 107 – – -4 248 142 -155 027 -529 155 53 581 498
Assets identified during stock counts and other transfers – 55 – – – – – 55
Free-of-charge transfers of assets and other transfers 5 223 9 950 – – – – – 15 173
Privatised assets -764 – – – – – – -764
Creation of the culture and social needs funds – – – -145 033 – – – -145 033
Use of the culture and social needs fund – -147 757 – 147 757 – – – –
Transfer of the profit (loss) of prior year period – – – – -529 155 – 529 155 –
Other profit or loss – – – – – -7 342 – -7 342
Rounding – – – – -2 – – -2
Profit (loss) for the current period – – – – – – -1 078 489 -1 078 489
Balance as at 31.12.2019 57 367 174 1 013 355 – 2 724 -4 777 299 -162 369 -1 078 489 52 365 096
Balance as at 1.1.2018 57 355 961 1 226 852 36 899 – -3 155 345 -12 999 -1 092 797 54 358 571
Assets identified during stock counts and other transfers – 602 – – – – – 602
Free-of-charge transfers of assets and other transfers 10 078 24 032 – – – – – 34 110
Privatised assets -3 324 – – – – – – -3 324
Creation of the culture and social needs funds – -100 379 -36 899 137 278 – – – –
Use of the culture and social needs fund – – – -137 278 – – – -137 278
Transfer of the profit (loss) of prior year period – – – – -1 092 797 – 1 092 797 –
Other profit or loss – – – – – -142 028 – -142 028
Profit (loss) for the current period – – – – – – -529 155 -529 155
Balance as at 31.12.2018 57 362 715 1 151 107 – – -4 248 142 -155 027 -529 155 53 581 498
90 Statement of changes in equity 91 Správa železnic Annual report 2019
for the year ended 31 December 2019 Name and regist. office of the Company Identification number Cash flow (in thousands of Czech crowns) Správa železnic, státní organizace 709 94 234 statement Translated from the Czech original Dlážděná 1003/7, 110 00 Prague 1, Czech Republic
Current period Prior period
P. Cash and cash equivalents, beginning of period 2 599 578 2 460 701
Net operating cash flow
Z: Accounting profit (loss) from ordinary activities -733 750 -249 642
A .1. Non-cash transactions -20 684 410 -20 403 359
A .1.1. Depreciation and amortisation of fixed assets excluding the net book value of fixed assets sold 4 098 983 4 111 971 and amortisation of adjustments to acquired assets and goodwill
A .1.2. Change in: -24 783 393 -24 515 330
A .1.2.1. Change in other adjustments and provisions -1 181 080 -1 483 331
A .1.3. Profit (-) Loss (+) on sale of fixed assets -33 284 -40 266
A .1.4. Expense and revenue interests accounted for 23 343 41 063
A .1.5. Use of operating grants -23 707 919 -23 139 770
A .1.6. Debt remission 0 0
A .1.7. Other non-cash transactions 115 547 106 974
A.* Net operating cash flow before financial items, changes in working capital and extraordinary items -21 418 160 -20 653 001
A.2. Changes in working capital 368 437 -248 970
A .2.1. Change in receivables from operating activities, estimated receivables and deferrals -179 325 -71 005
A.2.2. Change in short-term liabilities from operating activities, estimated payables and accruals 632 723 -101 465
A.2.3. Change in inventories -84 961 -76 500
A.** Net operating cash flow before financial balances, tax and extraordinary items -21 049 723 -20 901 971
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92 Cash flow statement 93 Správa železnic Annual report 2019
Current period Prior period
A.3. Interest paid excluding amounts capitalised 0 -1 415
A.4. Interest received 0 0
A.5. Operating grants received 23 551 368 23 292 959
A.*** Net operating cash flow 2 501 645 2 389 573
Investment activity
B .1. Acquisition of fixed assets -20 353 693 -20 960 659
B .1.1. Acquisition of tangible fixed assets -654 060 -485 621
B .1.2. Acquisition of intangible fixed assets -125 002 -166 613
B .1.3. Acquisition of tangible fixed assets from investment grants -19 574 631 -20 308 426
B.2. Proceeds from sales of fixed assets 40 125 60 009
B .2.1. Proceeds from sales of tangible and intangible fixed assets 40 125 60 009
B.3. Investment grants received 19 138 419 19 012 227
B.*** Net cash flow from investment activity -1 175 149 -1 888 423
Financial activity
C.1. Change in long-term resp.short-term liabilities from financing 0 -224 995
C.2. Increase and decrease in equity from cash transactions -136 144 -137 278
C .2.1. Payments from funds created from net profit -136 144 -137 278
C.*** Net cash flow from financing activities -136 144 -362 273
F. Net increase or decrease in cash balance 1 190 352 138 877
R. Cash and cash equivalents, end of period 3 789 930 2 599 578
94 Cash flow statement 95 Správa železnic Annual report 2019
Notes to the financial statements Správa železnic Annual report 2019
Contents
1. General information 100 4.10 Provisions 126 1.1 General information 100 4.11 Long-term liabilities 126 1.2 Principal activities 100 4.12 Short-term liabilities 126 1.3 Správa železnic’s organisational structure and bodies 102 4.13 Bank loans and overdrafts 130 1.4 Správa železnic’s organisational structure as at 31 December 2019 104 4.14 Accrued expenses 130 2. Accounting policies and general accounting principles 106 4.15 Revenue from own products and services 131 3. Significant accounting policies and procedures 106 4.16 Consumption of material and energies 132 3.1 Tangible and intangible fixed assets 106 4.17 Purchased services 132 3.2 Inventory 108 4.18 Other operating revenues 133 3.3 Receivables 109 4.19 Other operating expenses 134 3.4 Equity 109 4.20 Other financial revenues 135 3.5 Provisions 110 4.21 Other financial expenses 135 3.6 Liabilities 110 5. Employees, executives and statutory bodies 135 3.7 Loans and long-term liabilities 110 5.1 Personnel expenses and number of employees 135 3.8 Foreign currency transactions 111 5.2 Provided loans, borrowings and other remuneration 136 3.9 Income tax 111 6. Contingent liabilities and other off balance sheet commitments 137 3.10 Grants 112 6.1 Off balance sheet commitments 137 3.11 Revenues 112 6.2 Legal disputes 138 3.12 Use of estimates 113 6.3 Property relations 140 3.13 Change in accounting policies 113 6.4 Projected commitments associated with corridor construction 140 3.14 Debt remision 113 7. Other information 141 3.15 Privatisation 114 7.1 Formation and incorporation of Správa železnic 141 3.16 Sale of assets 114 7.2 Significant factors impacting Správa železnic’s activities and operations 141 3.17 Leased assets 114 7.3 Transactions with major customers ČD and ČD Cargo 142 4. Additional information on the balance sheet and income statement 116 7.4 Privatisation 144 4.1 Intangible fixed assets 116 7.5 Sale of assets 144 4.2 Tangible fixed assets 118 7.6 Leased assets 144 4.3 Inventory 124 7.7 Cash flow statement 145 4.4 Long-term receivables – trade receivables 124 8. Subsequent events 146 4.5 Short-term receivables 125 8.1 Organisation name change 146 4.6 Estimated receivables 125 8.2 COVID-19 146 4.7 Cash 126 4.8 Prepaid expenses 126 4.9 Equity 126
98 Notes to the financial statements 99 Správa železnic Annual report 2019
1. General information lic being charged with exercising the Throughout 2019 the operation of the a licence for electricity trading. This founder’s duties). The governing body railway infrastructure was ensured by activity started on 1 January 2008. 1.1 General information in matters of settling legal remedies Správa železnic’s internal capacities. Pursuant to the amendment to the against Správa železnic’s decisions is Transformation Act, on 1 July 2008, Správa železnic, státní organizace the Ministry of Transport of the Czech Správa železnic provides the railway Správa železnic assumed, through the (“Správa železnic ” or “the Organisation”) Republic. The ministry also acts as the infrastructure for use by carriers. In- purchase of a part of a business, the role was established as at 1 January 2003 un- institutor of České dráhy, a. s (“ČD”) come arising from the use of the railway of the operator of the national railway der the name Správa železniční dopravní and ČD Cargo, a. s. (“ČD Cargo”). SŽ has infrastructure is predominantly realised infrastructure and regional railway cesty, státní organizace as one of two many contractual relations with ČD and with the key users, i. e. České dráhy, a. s. infrastructure owned by the state, in- legal successors of České dráhy, státní its subsidiaries, the most important of (“ČD”) and ČD Cargo, a. s. (“ČD Cargo”) cluding certain activities related to the organizace (“ČD, s. o.”), in accordance which are described in note 7.3. as discussed in note 7.3. operation of the railway infrastructure. with Act No. 77/2002 Coll. (“the Trans- formation Act”). The reporting period is the calendar Správa železnic generates additional Based on a resolution of the Govern- year. The information in these notes to major revenues from grants, which are ment of the Czech Republic, as at 1 Sep- As at 1 January 2003 Správa železnic the financial statements is presented used to cover expenditure related to tember 2011 activities concerning traffic was recorded in the Commercial Regis- in thousands of Czech crowns (TCZK), modernisation, development and main- control at stations and on railway lines ter maintained by the Municipal Court in unless stated otherwise. tenance, as discussed in note 3.10. were purchased by Správa železnic from Prague, section A, file number 48384. ČD. In connection with this purchase, The financial statements of Správa Správa železnic also administers the Správa železnic also took over 9 336 Pursuant to Act No. 367/2019 effective železnic for 2019 have been prepared assets and liabilities set out in Sec- employees. These activities, whose cost from 1 January 2020, the Organisation as at 31 December 2019. tions 20 and 38a of the Transformation was invoiced to Správa železnic prior to bears a new name: Správa železnic, stát- Act. These principally involve assumed the above date, are now performed by ní organizace. Information about a re- These notes have been prepared for the receivables and liabilities, including the Správa železnic’s employees. cord of the new name in the Commercial period starting 1 January 2019 and ending loans of ČD, s. o., and the assets speci- Register is disclosed in note 8 Subse- 31 December 2019 and include significant fied in the Appendix to the Act that had Based on a resolution of the Gov- quent events. The Organisation has events which occurred after this date as been administered by the Czech Minis- ernment of the Czech Republic and been acting under its new name since well as significant changes as of the date try of Transport until 30 June 2004. The a contract on the purchase of a part of the act’s effective date. The Organisa- of Správa železnic’s registration. assumed liabilities are the subject of a facility, a part of a facility, designated tion’s notes to the financial statements debt remission (refer to note 3.14.). as “Railway Stations”, was transferred (including all historical information) have 1.2 Principal activities from ČD to Správa železnic on 1 July therefore been prepared on this basis. On 30 May 2007, having complied with 2016. Since this date, Správa železnic In accordance with the Transformation all the requirements arising from Act has been ensuring the railway stations‘ The address of Správa železnic’s Act, the principal activities of Správa No. 458/2000 Coll., the Energy Act, as maintenance and modernisation and registered office is Dlážděná 1003/7, železnic consist of operating the railway amended, Správa železnic was granted has been leasing vacant premises for Prague 1 - Nové Město, postcode 110 00. infrastructure including rail servicing a licence for electricity distribution by commercial use and any residential units and ensuring its operability, mainte- the Energy Regulatory Office in Jihlava. to individuals for housing purposes. The institutor of Správa železnic is nance, modernisation and development, Správa železnic began conducting this the Czech Republic (with the Ministry as well as maintenance and modernisa- activity on 1 July 2007. On 3 Decem- of Transport of the Czech Repub- tion of railway stations. ber 2007, Správa železnic also received
100 Notes to the financial statements 101 Správa železnic Annual report 2019
1.3 Správa Director General, a Deputy Director The members of the Audit Committee as at 31 December 2019 were: železnic’s organisational General acts and signs in full on behalf Name Position Date structure and bodies of Správa železnic, in the order speci- fied in the Commercial Register. Eva Janoušková Chairperson Since 1 January 2016
Správa železnic is a standalone state Tomáš Čoček Member Since 1 February 2018 organisation and does not hold equity The Director General, Mr Jiří Svoboda is investments in any other entity. Správa the Správa železnic’s statutory rep- Pavel Hrubeš Member Since 1 December 2018
železnic’s bodies include the Manage- resentative, managing its activities Lenka Hlubučková Member Since 1 December 2018 ment Board and the Director General. and acting on its behalf. The statutory Deputy Director General, Mr Mojmír The Director General acts and signs Nejezchleb, authorised to act in the in full on behalf of Správa železnic absence of the Director General, is re- independently. In the absence of the corded in the Commercial Register. The members of the Strategy and Development Committee as at 31 December 2019 were:
Name Position Date
The members of the Správa železnic’s management as at 31 December 2019 were: Ladislav Němec Chairperson Since 1 February 2018
Name Position Date Tomáš Čoček Member Since 1 December 2018
Jiří Svoboda Director General Since 23 March 2018 Martin Kolovratník Member Since 1 December 2018
Aleš Krejčí Deputy Director General for Economics Since 1 June 2012 Ivo Drahotský Member Since 1 December 2018
Mojmír Nejezchleb Deputy Director General for Infrastructure Modernisation Since 1 July 2013 Vít Janoš Member Since 1 December 2018
Marcela Pernicová Deputy Director General for Rail Operability Since 1 May 2018
Miroslav Jasenčák Deputy Director General for Traffic Management Since 1 November 2018
The members of the Supervisory Board as at 31 December 2019 were:
Name Position Date
Pavel Hrubeš Chairperson Since 1 November 2018
Martin Kolovratník Vice-chairperson Since 1 December 2018
Tomáš Čoček Member Since 17 March 2015
Ladislav Němec Member Since 1 January 2018
Jaroslav Foldyna Member Since 25 March 2014
Ivo Drahotský Member Since 1 November 2018
Vít Janoš Member Since 1 November 2018
102 Notes to the financial statements 103 Správa železnic Annual report 2019
1.4 Správa železnic’s Správa železnic’s organisational organisational structure structure as at 31 December 2019: as at 31 December 2019 SUPERVISORY BOARD
DIRECTOR GENERAL
Company‘s bodies
Headquarters
Director General‘s Project Management Human Resources Internal Audit Communication Security and Crisis Office Autonomous Unit Department Department Department Management Department
Deputy Director General for Deputy Director General for Deputy Director General for Deputy Director General Economics Rail Operability Infrastructure Modernisation for Traffic Management
Finance Department Purchase & Public EU Funds Commercial and Contractual Procurement Department Autonomous Unit Relations Section Economics & Controlling Department Track Management High-Speed Lines Preparation Traffic Management Department Autonomous Unit Department Accounting and Taxes Department Signalling and Construction Planning Capacity Restrictions Telecommunication Department Planning and Coordination Internal Management Department Department Department Investment Department Operability Department Timetable Department IT Department Strategy Department Building Construction Railway Operation Legal Matters Department Department Safety System Department Sales and Lease Department Electrical Engineering and Energetics Department
Organisational units Centre of Shared Services Railway Energy Civil Engineering Traffic Control Centre Administration Administration - Prague - East - Přerov Regional Directorates Railway Geodesy - West - Brno Administration - Hradec Králové - Olomouc - Olomouc - Prague - Ostrava - Plzeň Technical Centre - Prague of Infrastructure - Ústí nad Labem
Fire Safety Service
104 Notes to the financial statements 105 Správa železnic Annual report 2019
2. Accounting policies 3. Significant pensed at the date of acquisition and the depreciation plan is updated based and general accounting accounting policies further maintained in off-balance sheet on the estimated useful lives and the principles and procedures records, except for vehicles marked expected residual value of the asset. with a registration sign and, based on individual assessment, significant as- The estimated useful lives were set as Správa železnic’s accounts are main- 3.1 Tangible and intangible sets for which Správa železnic is not the follows: tained, and the financial statements fixed assets first user and which have a significant Number of years have been prepared, in accordance with original acquisition cost (e.g. assets ac- (from-to)
Act No. 563/1991 Coll., on Accounting, Správa železnic administers state assets quired through the purchase of a part of Software 3 as amended; Decree No. 500/2002 Coll., pursuant to the Transformation Act. a business). Easements established over Constructions 10 - 50 implementing certain provisions of Act third-party property are recorded as No. 563/1991 Coll., on Accounting, for At Správa železnic , fixed assets include other tangible fixed assets, irrespective Machinery and equipment 4 - 20 business entities using double-entry assets with an estimated useful life of their cost. Motor vehicles 8 - 25 bookkeeping, as amended; and Czech greater than one year and acquisition Accounting Standards for Business Enti- cost greater than TCZK 40 for plant and Technical improvements totalling more ties, as amended. equipment and for intangible fixed assets. than TCZK 40 in respect of an asset for the period increases the cost of that The useful lives of the fixed assets The accounting records are maintained in Purchased fixed assets are stated at fixed asset. forming the railway infrastructure are compliance with general accounting prin- cost, which includes interest on loans dependent upon the availability of fund- ciples, specifically the historical cost basis provided to fund the acquisition of the Assets identified during a fixed asset ing for their renovation, modernisation except for certain areas (refer to note 3.1), assets until they are available for use count that have not been previously and performance improvement. The the accruals principle, the principle of pru- where assets are financed through included in the accounting records as Organisation’s management expects dence, and the going concern assumption. loans plus other expenses attributable well as received gifts are measured at the amount of subsidies for the renova- to their acquisition. replacement cost. When the compe- tion, modernisation and performance Pursuant to Decree No. 312/2014 Coll., on tence for state assets management is improvement of fixed assets promised requirements for preparing the finan- Land acquired until 1992 is measured at changed free of charge, the valuation for the subsequent accounting period cial statements on behalf of the Czech the arm’s length price prevailing at the of assets follows the valuation in the is in line with the assumptions used in Republic (the state consolidation decree), date of acquisition, in accordance with accounts of the accounting entity which determining the useful lives. Správa železnic has been obligated a decree of the Ministry of Finance. Land is transferring the competence. since 2016 to submit a complementary acquired after 1992 is measured at cost. At the reporting date, adjustments to consolidated statements overview as Low value tangible assets (including IT fixed assets are established based on an at 31 December 2018 by 31 July 2019 at Tangible and intangible assets produced equipment) are maintained in off-bal- individual assessment of the actual con- the latest. An overview as at 31 Decem- internally are stated at internal cost, ance sheet records, at the cost at which dition and future usability of individual ber 2019 will be submitted by 31 July 2020 which includes direct costs and an allo- they were released for consumption. items or groups of assets as part of the at the latest. In terms of consolidation, cation of manufacturing and/or admin- stocktaking process. Adjustments are it is necessary to identify and eliminate istrative overheads. Accounting depreciation expense is established at an amount equal to the mutual relations with entities specified calculated based on the acquisition cost difference between the carrying amount in the list of entities consolidated by the Plant and equipment and intangible and the estimated useful lives of the rel- and estimated selling price of an unused state and other entities. assets costing up to TCZK 40 are ex- evant assets. During the fixed asset use, asset, provided that the estimated
106 Notes to the financial statements 107 Správa železnic Annual report 2019
selling price is lower than the current superstructure, stored primarily in super- 3.3 Receivables Správa železnic , were recorded in the carrying amount. structure material centres, including both registered capital account. In addition, new superstructure and the superstruc- Upon origination, receivables are stated subsidies granted by the Czech Ministry Considering the Organisation’s principal ture salvaged from investment activities at their nominal value. Receivables ac- of Transport for the purchased part of activities and the method of their fund- or maintenance. Other inventories include quired through assignment are carried a business and the part of a business es- ing by means of subsidies, the Organi- prefabricated components, uniforms, at cost. tablishment from ČD were also recorded sation does not create adjustments for personal protective equipment, solid fuels, in the registered capital account. fixed assets based on an assessment of fuels, electrical materials, safety installa- Receivables due within one year of the Changes in registered capital are record- the economic benefits of fixed assets tions, and other operating materials. reporting date are presented as short- ed in respect of transfers of land to the using the discounted cash flow method. term. Other receivables are presented as Land Fund of the Czech Republic, free- The cost of assets acquired after Purchased inventories are measured at long-term. of-charge transfers of assets, privati- 1 January 2002 using grants is reduced cost, which includes the purchase price sation (refer to note 3.15), corrections of by the amount of the respective grant. and other expenses associated with the At the reporting date, the Organisation accounting errors in the register of land Assets funded by grants are recorded in acquisition. established tax-deductible adjust- by matching them with the Real Estate sub-ledger accounts. ments to receivables in accordance Cadastre, or in respect of additional Materials salvaged upon the liquidation with Act No. 593/1992 Coll., on Reserves refinements made to the scope and value Assets acquired through the purchase of fixed assets or repairs are measured for Determining the Income Tax Base, of assets and liabilities taken over by of a part of a business as at 1 July 2008 at replacement cost. as amended. Accounting adjustments Správa železnic as at 1 January 2003. and 1 September 2011 and a part of were recognised in respect of receiva- a facility as at 1 July 2016, were valued Adjustments to inventories are estab- bles based on an analysis of the credit Správa železnic contributes to the reserve by a court-appointed expert and includ- lished based on suggestions of indi- status of customers and the ageing fund when potential profit is generated. ed as part of Správa železnic ’s assets vidual inventory count committees, structure of receivables. In the income at the carrying amounts recognised by which determine the amount of unused, statement, the establishment and Správa železnic contributes to the the selling organisation at the date of damaged or impaired inventories during release of adjustments is presented in cultural and social needs fund in accord- acquisition of the part of the business inventory-taking. Adjustments are “Adjustments to receivables”. ance with Decree No. 310/1995 Coll., on (establishment). established either at an amount equal to the Cultural and Social Needs Fund, as the carrying amount of inventories des- 3.4 Equity amended, by complying with Section 16 The difference between the aggregate ignated for liquidation or, for invento- of Decree No. 114/2002 Coll., on the carrying amount and purchase price of ries for sale, at an amount equal to the The registered capital balance as at Cultural and Social Needs Fund. Since the assets represents an adjustment to difference between the carrying amount 1 January 2003 was equal to the car- the reserve fund had been fully utilised, acquired fixed assets, which is depreci- and net realisable value, provided that rying amount of assets net of liabili- from 2018, Správa železnic makes ad- ated to expenses on a straight-line basis the net realisable value is lower than the ties assumed as at the date on which ditions to the cultural and social needs over 15 years (180 months), in accordance current carrying amount. In the income Správa železnic was registered, as fund from other capital contributions. with Decree 500/2002 Coll., as amended. statement, the establishment and discussed in note 7.1. The fund is utilised in compliance with release of adjustments is presented in Správa železnic ’s approved policies and 3.2 Inventory “Adjustments to inventories”. On 1 July 2004, the assets specified in the respective collective agreement. the Appendix to the Transformation Act, The bulk of Správa železnic ’s inventories Acquisitions and dispatches of invento- which were transferred from the Ministry consists of inventory related to the railway ries are accounted for using method A. of Transport of the Czech Republic to
108 Notes to the financial statements 109 Správa železnic Annual report 2019
3.5 Provisions salaries estimated to be paid to the man- Any part of long-term loans and liabil- Any foreign exchange gains or losses agement primarily based on an assess- ities that is due within one year of the are credited to other financial rev- Správa železnic establishes provisions ment using key performance indicators, reporting date is included in short-term enues or debited to other financial for: litigations; compensation for work including statutory deductions. A provision loans and liabilities, except as disclosed expenses, as appropriate. injuries and occupational diseases (also for statutory severance pay comprises in note 4.13.2. for former employees of ČD, s. o.); extra the volume of expected other personnel Správa železnic does not use any fi- pension payments to former employees expenses paid in connection with the im- Borrowing costs that are attributable nancial instruments to hedge against of ČD, s. o.; severance pay associated plementation of expected organisational to the acquisition and construction of currency risk. with a loss of employees’ work capability; changes that are associated with changes fixed assets and incurred until these as- severance pay provided to employees on in the organisational structure. sets are available for use are capitalised 3.9 Income tax legal grounds; unpaid payroll expenses as part of the cost of the assets. and other personnel expenses; damages; A provision for damages is established Current tax comprises an estimate of tax and potential penalties, contributions and based on a legal opinion on recognised 3.8 Foreign currency transactions payable calculated based on the tax sanctions for budget discipline violations. damages. able income, using the tax rate valid as Transactions denominated in foreign at the first day of the accounting period, A litigation provision is established A provision for potential penalties is es- currencies are recorded at the Czech and any adjustments to taxes payable based on a professional estimate of tablished where a payment assessment National Bank (“CNB”) official rate for previous periods. Taxable income losses arising from legal disputes, and or a similar decision has been issued but at the first working day of the month. differs from the profit recognised in the a detailed analysis of the status of indi- all procedures enabling the elimination Where a foreign currency is purchased income statement as it does not include vidual disputes. of the obligation to pay the penalty have or sold in exchange for Czech currency, revenues or expenses that are taxable or not concluded. The provision equals the the exchange rate of the bank execut- deductible in other periods. In addition, it A provision for payments relating to amount of payment assessments issued, ing the transaction is applied. When does not include items that are non-tax compensation for work injuries and or the amount stipulated by applicable accounting for foreign travel expenses, able or non-tax deductible. occupational diseases and for extra legislation, taking into account the out- the Czech National Bank official rate pension payments to former employees come of the aforementioned procedures. at the date on which the advance was Deferred tax is calculated using the lia- of ČD, s. o., is established at the present provided to the respective employee is bility method based on the balance sheet value of estimated future payments 3.6 Liabilities applied. Where employees on business approach. The liability method involves arising from claims originating as at the trips use company payment cards, re- applying the income tax rate expected reporting date, based on a statistical Upon origination, liabilities are stated at lated travel expenses are accounted for to be valid in the future period in which analysis of available historical informa- their nominal value. using the CNB rate of exchange for the the tax asset/liability is utilised. Under tion. The provision has been reviewed as date the business trip commences. the balance sheet approach, the liability at the reporting date. A similar method Liabilities due within one year of the re- method is based on temporary differenc- is applied in establishing a provision for porting date are presented as short-term. At the reporting date, receivables and es between the tax base of assets/liabil- severance pay associated with a loss of Other liabilities are presented as long-term. liabilities and the final balances of fi- ities and the carrying amount of assets/ employees’ work capability, including nancial assets denominated in foreign liabilities recognised in the balance sheet. statutory deductions. 3.7 Loans and long-term liabilities currencies are converted to Czech The tax base of assets/liabilities is the crowns at the Czech National Bank amount that can be utilised for tax pur- A provision for payroll expenses and other Loans and long-term liabilities are stat- official rate at that date. poses in the future. personnel expenses comprises unpaid ed at their nominal value.
110 Notes to the financial statements 111 Správa železnic Annual report 2019
A deferred tax asset is recognised only if it restoring and modernising the railway 3.12 Use of estimates in Správa železnic’s accounts and are is probable that it will be utilised in future infrastructure and train stations. These presented in long-term liabilities – accounting periods. Deferred tax is rec- grants include funds relating to individual The presentation of the financial other payables. ognised in the income statement, except infrastructure modernisation projects statements requires management to when it relates to items recorded directly approved by the Government, as well as make estimates and assumptions that Revenue from the use of the railway in equity, in which case it is also included in funds relating to the development phase affect the reported amounts of assets infrastructure is insufficient to cover equity. Deferred tax assets and liabilities of specific projects. These funds are and liabilities at the reporting date and expenses related to operating, main- are offset and presented in the balance provided by SFTI, European Union and the reported amounts of revenues and taining and developing the railway sheet on an aggregate net basis. the state budget. Investment grants are expenses for the reporting period. The infrastructure. Consequently, Správa accounted for as a reduction in the cost management of Správa železnic be- železnic does not generate disposable 3.10 Grants of the respective fixed asset(s). lieves that the estimates and assump- funds that could be used to settle its li- Správa železnic records assets under tions used will not significantly differ abilities to the state budget. As a result, Správa železnic receives grants in accord- construction until the moment the from actual results in the following on 30 November 2005 the Government ance with applicable Czech legislation. investment grant is received. After the accounting periods. adopted Resolution No. 1553, defin- grant has been received and payments ing a strategy for forgiving Správa Správa železnic does not account for an to suppliers made, the cost of the fixed 3.13 Change in accounting policies železnic’s liabilities until they are fully entitlement to a grant as a receivable asset under construction is reduced settled. The resolution states that from the grant provider. An undisputable by the grant and the asset is further No changes were made to accounting “subject to compliance with the out- entitlement to a grant only arises upon recorded off balance sheet. policies in 2019. lined strategy for dealing with Správa utilising the funds granted and billing železnic’s liabilities, this entity is con- them to the provider. Until utilised and 3.11 Revenues 3.14 Debt remision sidered to be clear of debts”. billed, the funds belong to the provider. Revenues are recognised on an accrual As at the date of its incorporation, The actual remission of debt occurs, Non-investment grants primarily com- basis i. e. in the period to which they re- Správa železnic assumed long-term and is accounted for, on the basis of the prise grants from the State Fund for late in terms of substance and timing. liabilities arising from guaranteed loan “Debt Remission Agreement”, in accord- Transport Infrastructure (“SFTI”) and agreements related to the financing of ance with the above-mentioned Resolu- from the state budget of the Czech In addition to non-investment grants, rail corridors and other programmes tion No. 1553 dated 30 November 2005. Republic. These grants are intended to the bulk of Správa železnic’s revenues is guaranteed by the state in accordance cover expenses related to ensuring the composed of proceeds arising from the with the Transformation Act; these are The amount to be forgiven in the rele- operability and operation of the railway use of the railway infrastructure. Other presented in long-term liabilities – lia- vant period is submitted for approval infrastructure and the maintenance of significant revenue items relate to elec- bilities to credit institutions. The debt to the Czech Government annually by passenger railway stations. Non-invest- tricity distribution and trading activi- service in respect of all loan agree- each 30 September. ment grants are credited to other operat- ties, in which Správa železnic has been ments is provided by the Ministry of ing revenues, observing the matching and engaged since 1 January 2008, based Finance of the Czech Republic. The amount of liabilities forgiven is re- accrual principle of expenses, for the pay- on a licence granted to Správa železnic corded under other operating revenues ment of which they have been provided. by the Energy Regulatory Office and All payments of principal and interest of the current period. to rental from leased non-residential made by the Ministry of Finance of Investment grants comprise grants premises in railway stations. the Czech Republic are recognised as intended to cover expenditure related to long-term liabilities to the state budget
112 Notes to the financial statements 113 Správa železnic Annual report 2019
3.15 Privatisation 3.16 Sale of assets Track optimisation In accordance with the Transformation In accordance with Section 20 (4) of the Act, as at 1 July 2004, Správa železnic Transformation Act, the sale of assets Beroun – Králův Dvůr took over from the Ministry of Trans- constituting the railway infrastructure port of the Czech Republic assets is subject to approval by the Czech intended for the settlement of liabilities Government. The sale of assets listed assumed from ČD, s. o. in the Appendix to the Transformation Act must be approved by the Super The assets that are the subject of priva- visory Board of Správa železnic. tisation projects are carried at histor- ical cost net of accumulated depreci- 3.17 Leased assets ation (“net book value”). Following the approval of the privatisation projects, Správa železnic leases assets con- the assets are transferred to the Min- stituting the railway infrastructure, istry of Finance of the Czech Republic assets intended for the settlement of at the net book value prevailing at the liabilities assumed from ČD, s. o., as disposal date. In accordance with Czech well as commercial and residential Accounting Standard No. 22, the dispos- premises in the railway stations. al of assets is recognised as a reduction in fixed assets with a charge against Správa železnic’s equity.
In 2019, the Ministry of Finance of the Czech Republic privatised Správa železnic’s assets by selling them to third parties. Based on the respective con- tracts, proceeds from the privatisation are subsequently transferred from the Ministry of Finance to Správa železnic. When received, they are recognised as other operating revenues. For details, see note 7.4.
114 Notes to the financial statements 115 Správa železnic Annual report 2019
4. Additional information on the balance sheet and income statement
4.1 Intangible fixed assets
Other intangible fixed Intangible fixed assets Advances paid Software Other Intellectual Total assets under construction property and rights
Acquisition cost
Balance at 1 January 2019 4 686 54 318 152 975 081 0 1 034 237
Additions 0 13 882 0 110 830 290 125 002
Disposals 0 0 0 0 0 0
Transfers to off balance sheet 0 -9 488 0 0 0 -9 488
Transfers 0 -2 545 0 945 1 600 0
Balance at 31 December 2019 4 686 56 167 152 1 086 856 1 890 1 149 751
Accumulated amortisation
Balance at 1 January 2019 4 658 0 0 819 381 0 824 039
Amortisation expense 28 0 0 106 613 131 106 772
Disposals 0 0 0 0 0 0
Transfers 0 0 0 0 0 0
Balance at 31 December 2019 4 686 0 0 925 994 131 930 811
Net book value 1 January 2019 28 54 318 152 155 700 0 210 198
Net book value 31 December 2019 (balance sheet, line B.I.) 0 56 167 152 160 862 1 759 218 940
Additions to software primarily include the acquisition of technical software applications and central systems.
116 Notes to the financial statements 117 Správa železnic Annual report 2019
4.2 Tangible fixed assets
4.2.1 Continuity schedule in tangible fixed assets
Land Constructions Machinery and Motor Adjustments to Tangible fixed Other tangible Advances paid Total equipment vehicles acquired fixed assets under fixed assets assets constr.
Acquisition cost
Balance at 1 January 2019 6 805 100 136 899 342 18 667 421 1 444 540 8 443 268 2 736 613 3 816 417 470 175 417 570
Additions 5 425 87 514 31 388 126 201 0 19 977 771 392 1 219 349 21 448 040
Disposals -9 529 -933 962 -258 798 -83 244 0 -2 542 0 -1 339 175 -2 627 250
Transfers to off balance sheet 0 0 0 0 0 -19 421 740 0 0 -19 421 740
Transfers 0 302 430 94 590 105 615 0 -502 646 11 0 0
Balance at 31 December 2019 6 800 996 136 355 324 18 534 601 1 593 112 8 443 268 2 787 456 4 219 297 644 174 816 620
Accumulated depreciation 0
Balance at 01 January 2019 0 92 596 409 15 738 579 730 969 5 781 757 0 895 0 114 848 609
Depreciation expense [1] 0 2 724 490 568 551 116 360 562 885 0 363 0 3 972 649
Other additions 0 33 957 272 821 0 0 0 0 35 050
Disposals 0 -822 793 -253 555 -74 669 0 0 0 0 -1 151 017
Transfers 0 -684 2 567 -1 883 0 0 0 0 0
Balance at 31 December 2019 0 94 531 379 16 056 414 771 598 6 344 642 0 1 258 0 117 705 291
Adjustments 0
Balance at 01 January 2019 23 449 105 699 0 0 0 62 508 0 0 191 656
Change in adjustments -284 35 839 33 0 0 -485 0 0 35 103
Balance at 31 December 2019 23 165 141 538 33 0 0 62 023 0 0 226 759
Net book value 1 January 2019 6 781 651 44 197 234 2 928 842 713 571 2 661 511 2 674 105 2 921 417 470 60 377 305
Net book value 31 December 2019 6 777 831 41 682 407 2 478 154 821 514 2 098 626 2 725 433 2 961 297 644 56 884 570 (balance sheet, line B.II.)
[1] Depreciation expense includes depreciation in accounts 551/*, 553/1000 and 557/1000 in accordance with the income statement.
118 Notes to the financial statements 119 Správa železnic Annual report 2019
Major additions to tangible fixed assets in 2019 where the grant used to finance 4.2.2 Investment grants put into use in 2019 include the renewal the constructions has not been account- of a car fleet of TCZK 110 805. ed for before 31 December 2019. Trans- Investment grants received in 2018 and 2019 were as follows: fers to off-balance sheet are made once Major disposals of tangible fixed assets the investment grant that decreases 1 January – 1 January – 31 December 2018 31 December 2019 in 2019 include the liquidation of assets the asset’s acquisition cost is recorded. SFTI for construction and modernisation, state share, as a result of new constructions with an In 2019, subsidised tangible and intan- 19 000 418 19 579 833 PT, EIB, CEF acquisition cost of TCZK 1 035 248 and gible assets totalling TCZK 19 431 228 net book value of TCZK 96 955. (2018 – TCZK 17 838 403) were included Total investment grants from SFTI 19 000 418 19 579 833 in the off-balance sheet records. EU funds 3 350 9 488 As at 31 December 2019 the Organisa- Contributions from cities, municipalities, regions tion records tangible fixed assets under Based on the Methodological Instruction 8 459 13 882 and other entities construction with an acquisition cost of for Recipients of the Subsidy from the TCZK 2 787 456. The balance of tangi- Operational Programme Transport II Total investment grants 19 012 227 19 603 203 ble assets under construction mainly (2014 – 2020), Správa železnic, as the re- represents the construction of railway cipient of subsidies, was allowed to use, corridors (as described in note 6.4), and in respect of payment requests, invoices Investment grants for construction 4.2.3 Assets not recorded in the the construction works to modernise for advance payment, the amount of and modernisation primarily include balance sheet and renovate the railway infrastructure which corresponds with the expected funds from the Operational Programme incomplete as at 31 December 2019. For invoicing for the payment of expenses Transport (“OPTII”), the CEF infra- The amount of fixed assets financed example, this concerns the reconstruc- that will arise at the beginning of 2020. structure fund and grants from SFTI. from grants and other sources recorded tion of Přerov railway station, electrifi- Advances created this way which were SFTI ensures the payment of European off-balance sheet is TCZK 263 331 088 cation of Uničov – Olomouc line, optimi- utilised in 2019 for the acquisition of subsidies and at the same time, it partly as at 31 December 2019. sation of the Praha-Hostivař – Prague investments connected primarily with participates in co-financing. In 2019, main station (II part: Hostivice – Prague construction parts related to the mod- funds of TCZK 11 637 475 were drawn As at 31 December 2018, the acquisition main station), modernisation of the ernisation and reconstruction of railway from SFTI from national sources, includ- cost was TCZK 244 116 139. Rokycany – Plzeň line, optimisation of infrastructure are reported in advances ing sources to cover national shares of the Zbiroh – Rokycany line, moderni- for the acquisition of tangible fixed as- European investment projects. In 2019, The aggregate amount of low-value sation of the Sudoměřice – Votice line, sets and total TCZK 297 644 as at 31 De- funds amounting to TCZK 5 237 441 tangible assets not reported in the redevelopment of the Negrelli Viaduct, cember 2019 (2018 – TCZK 417 470). The were provided from OPT II and balance sheet is TCZK 1 104 208 and optimisation of the Český Těšín – Dět- advances will be accounted for in 2020. TCZK 2 704 917 from CEF. TCZK 1 062 993 as at 31 December 2019 marovice line. and 31 December 2018, respectively. The EU funds in 2019 comprise a subsidy These balances comprise assets costing Additions to tangible assets under from the Integrated Regional Opera- less than TCZK 40 that are kept at his- construction predominantly include the tional Programme (IROP) of TCZK 9 488. torical cost off balance sheet. In accord- acquisition cost of railway corridors ance with the effective legislation, these and construction works to modernise balances are charged to expenses when and renovate the railway infrastructure transferred to consumption.
120 Notes to the financial statements 121 Správa železnic Annual report 2019
4.2.4 Continuity schedule in assets financed from grants and reported in the sub-ledger accounts
Software Other intangible Intangible assets Land Constructions Machinery, equi Motor vehicles Tangible assets Total assets under pment and other under construction tangible assets construction
Acquisition cost
Balance at 1 January 2019 94 923 2 686 1 633 1 129 339 137 857 868 43 100 997 1 222 231 60 706 462 244 116 139
Additions (Transfers from the balance sheet) 9 488 0 0 23 378 72 579 254 037 28 696 19 043 050 19 431 228
Disposals 0 0 0 -844 -88 110 -105 864 0 -21 461 -216 279
Transfers (including assets putting into use) 6 766 -45 -74 10 429 9 591 870 5 997 048 57 610 -15 663 604 0
Balance at 31 December 2019 111 177 2 641 1 559 1 162 302 147 434 207 49 246 218 1 308 537 64 064 447 263 331 088
Tangible assets under construction In 2019, the major disposal of tangi- 4.2.7 Assets acquired Government Representation in Prop- primarily include constructions related ble assets under construction in the free of charge erty Affairs (ÚZSVM), or towns and to the modernisation and renovation off-balance sheet represents the liq- municipalities where the assets are of the railway infrastructure for which uidation of constructions due to new In 2019, Správa železnic acquired free part of the railway infrastructure and occupancy permits have not been construction works. of charge tangible fixed assets at are managed – pursuant to the law – by issued as at the reporting date and the replacement cost of TCZK 9 953 Správa železnic. therefore were not put into use for the 4.2.5 Pledged assets (2018 – TCZK 24 032) and in form of accounting purposes. delimitations of TCZK 5 632 (2018 – Správa železnic held no pledged TCZK 10 320). Správa železnic did not Major additions to tangible fixed assets assets as at 31 December 2019 and acquire any fixed assets by donation under construction in 2019 include the 31 December 2018. in 2019 (2018 – TCZK 20). In total, reconstruction of safety equipment in Správa železnic acquired free of Brno main station, modernisation of the 4.2.6 Assets held under finance charge assets of TCZK 15 585 in 2019 Sudoměřice – Votice line, optimisation and operating leases (2018 – TCZK 34 372). Assets acquired of the Praha-Hostivař – Prague main free of charge and by donation include station (II part: Hostivice – Prague main As at 31 December 2019, Správa assets recorded within tangible fixed station), modernisation and electrifica- železnic reports fixed assets acquired assets and low-value tangible assets tion of Hrušovany u Brna – Židlochovice on a leaseback basis in the aggregate based on a contract, usually a con- line, Rokycany – Plzeň lines, the optimi- acquisition cost of TCZK 376 530 (2018 – tract on free-of-charge transfer or sation of the Český Těšín – Dětmarov- TCZK 376 530). Leaseback arrangements a contract to make a donation. This ice line, and the redevelopment of the are used for leasing low-value rolling concerns assets transferred to Správa Negrelli Viaduct. stock (a motor all-purpose trolley, a car železnic related to induced invest- for catenary maintenance) used to repair ments of entities such as the Road and and maintain the railway infrastructure. Motorway Directorate, the Office for
122 Notes to the financial statements 123 Správa železnic Annual report 2019
4.3 Inventory 4.5 Short-term receivables
1 January – 31 December 2018 1 January – 31 December 2019 4.5.1. Trade receivables
Material in stock 475 027 558 934 Balance at 31 December 2018 Balance at 31 December 2019 Material in transit 144 198 Short-term receivables before due date 1 192 537 1 185 577 Work in progress – 1 000 Short-term receivables past due date 393 614 397 840 Goods in stock 2 2 Total (balance sheet, line C.II.2.1.) 1 586 151 1 583 417 Advances paid for inventory 7 –
Adjustment to inventory -13 558 -12 434 As at 31 December 2019, an adjustment tion since 1 January 2019. The balance Total (balance sheet, line C.I.) 461 622 547 700 for doubtful receivables amounted to was further influenced by advances paid TCZK 342 722 (2018 – TCZK 328 978). to contractors for activities connected with repairs and maintenance of RI and The total balance of inventories was withdrawn but unpaid electricity and The majority of receivables before and advances paid for energy and services affected by the planned increase in the traffic closures in compliance with the past their due date include, similarly related to premises used by Správa inventory of railway superstructure reconciliation agreement and settle- as in the past years, receivables from železnic and leased premises. materials, primarily as a result of an ment agreement concluded in 2015. České dráhy, a. s., ČD Cargo, a. s., and increase in corridor materials and spare The remaining part of a long-term PKP CARGO INTERNATIONAL, a. s., for 4.6 Estimated receivables parts for switches received in stock. receivable arising from withdrawn but using the railway infrastructure. Adjustments of TCZK 12 434 mainly unpaid electricity will be settled in 2020 In 2019, estimated receivables totalled relate to non-moving inventories at the according to the instalment schedule; it The total amount of receivables more TCZK 378 479 (2018 – TCZK 152 329). Regional Directorates in Olomouc and was transferred to short-term receiv- than five years overdue as at the bal- Hradec Králové and in superstructure ables as at 31 December 2019 owing to ance sheet date is TCZK 263 551; these The increase in estimated receivables was material centres in Hranice na Moravě the respective due date. receivables are fully provided for and mainly influenced by recording the esti- and Hradec Králové. Other regional di- relate to the commencement of court mate of ancillary services in the form of rectorates established adjustments for Table of 4.4 proceedings and to bankruptcy or insol- traction electricity supplied to carriers of superstructure components and also for Balance at Balance at vency proceedings. TCZK 265 075 (2018 – TCZK 3 010) which selected types of personal protective 31 December 31 December Správa železnic has been providing to 2018 2019 equipment to be used at work. 4.5.2 Short-term advances paid all carriers using the dependent electric Long-term traction since 1 January 2019. In addition, receivables 31 359 – 4.4 Long-term receivables – before due date Short-term advances paid total estimated receivables are also recorded trade receivables TCZK 209 103 (2018 – TCZK 106 228). for the expected consumption of heat Total (balance The increase in advances was mainly produced internally that will be invoiced sheet, line 31 359 – A decrease in long-term receivables C.II.1.1.) influenced by advances for the purchase to lessees in 2019 after determining ac- results from the repayment of a re- of traction electricity which Správa tual consumption. Another portion relate ceivable from ČD Cargo arising from železnic has been providing to all carri- to legal claims for expected insurance ers using the dependent electric trac- settlements from insurance companies
124 Notes to the financial statements 125 Správa železnic Annual report 2019
Table of 4.10 of TCZK 17 111 (2018 – TCZK 19 065) and a replacement cost of TCZK 55 (2018 – Balance at Additions Utilisation/ Balance at damages claimed from the guilty persons TCZK 602) was included in other capital 31 December release 31 December 2018 2019 of TCZK 25 436 (2018 – TCZK 38 041). contributions. Provision for legal disputes with ČEZ Prodej 752 403 36 570 – 788 973 4.7 Cash Other retained earnings from pre- Provision for other legal disputes 36 075 50 963 35 162 vious years were mainly affected by Total cash as at 31 December 2019 the amount of TCZK 13 593 (2018 – Provision for compensation for job-related accidents and occupational illness 25 654 21 672 25 654 21 672 amount to TCZK 3 789 930 (2018 – TCZK 149 755) paid to SFTI from pro-
TCZK 2 599 578), of which the most ceeds from recoveredmaterial relating Provision for extra pension payments 11 538 8 904 11 538 8 904 significant item is the balance of bank to non-investment projects completed accounts of TCZK 3 786 689 (2018 – in previous years. Provision for unpaid payroll and other expenses 120 000 150 000 120 000 150 000 TCZK 2 597 075). An increase in cash Provision for payments to a specialised 1 296 753 – 1 282 493 14 260 results primarily from a refund of the The Company plans to transfer the loss tax office payment of CZK 1 307 633 424.86 from incurred in the current period to re- Total (balance sheet, line B.) 2 242 423 217 196 1 440 648 1 018 971 ČEZ Prodej, s. r. o., based on a court de- tained earnings. cision (see note 6.2.1). 4.10 Provisions penalties that had arisen and new penal ceived from customers. Other signifi- 4.8 Prepaid expenses ties (payment assessments) were not cant items are retention payments, bid Information about the substance of assessed by the specialised tax office. bonds, security deposits and sureties Prepaid expenses largely include de- individual provisions is presented in associated with construction works. ferred operating expenses of Správa note 3.5. 4.11 Long-term liabilities železnic related to the principal business activities of the following year (licences, A provision for legal disputes is es- 4.11.1 Trade payables lease payments, insurance, prepay- tablished on the basis of the status of ments, highway stamps, etc.). new or pending legal disputes and their Long-term trade payables primarily current underlying court or out-of-court include cash deposits and sureties re- 4.9 Equity proceedings. The important part of the
provision for legal disputes relates to the Table of 4.11.1 In accordance with Czech Accounting recognition of a provision for damages Type of payables Balance at Balance at Standard No. 22, the amount of reg- claimed by ČEZ Prodej, s. r. o., due to 31 December 2018 31 December 2019 istered capital was reduced by the Správa železnic’s failure to purchase Retention 8 423 10 710 net book value of privatised assets of the contracted amount of electricity in TCZK 764 in 2019 (2018 - TCZK 3 324). 2011 (refer to note 6.2.1). As at 31 Decem- Bid-bonds, security deposits, sureties 3 000 2 999 ber 2019, the provision was increased by Cash deposits received from customers 49 516 52 543 In 2019, the registered capital was the default interest for 2019. influenced by delimitation: the net book Total (balance sheet, line C.I.4.) 60 939 66 252 value of assets assumed free-of-charge The decrease in the provision for pay- totalled TCZK 5 221 (2018 – TCZK 10 320). ments to a specialised tax office was Based on the physical counts, assets with caused by settlement of almost all
126 Notes to the financial statements 127 Správa železnic Annual report 2019
4.11.2 Deferred tax 4.12 Short-term liabilities Payables that are more than five years overdue as at the balance sheet date Správa železnic has determined deferred tax as follows: 4.12.1. Short-term advances do not exist. received Item 31 December 2018 31 December 2019 4.12.3 Tax liabilities and subsidies
Tangible and intangible fixed assets -4 141 977 -4 175 927 As at 31 December 2019, short- term advances received amount to Balance at Balance at Adjustments to fixed assets 31 959 38 683 TCZK 334 797 (2018 – TCZK 197 727). Type of payables 31 December 31 December 2018 2019 Adjustments to inventory 2 576 2 362 The increase in short-term advances re- Undrawn investment ceived was influenced by prepayments subsidies from SFTI 889 455 450 244 Trade receivables 24 363 23 892 for the purchase of electricity which Investment contributions Provisions 179 677 190 895 Správa železnic has been providing of cities, municipalities, – 2 999 regions and other entities Tax losses 796 814 468 768 to all carriers that use the dependent electric traction since 1 January 2019. Undrawn non- investment subsidy 2 579 2 805 Total asset +, liability - (balance sheet, line C.I.8) -3 106 588 -3 451 327 The advances received further include TEN-T/CEF
advances for ancillary services re- Other non-investment 156 776 – Správa železnic reports tax losses of Finance, arising from the repayment lating to the lease of residential and subsidies
TCZK 2 467 202 (2018 – TCZK 4 193 760) of loan principal and interest balances non-residential premises, the provision Income tax withheld on 47 044 94 936 for 2015 – 2019 (information for 2019 is which the state has made on behalf of easements, where Správa železnic is behalf of employees based on a preliminary calculation of of Správa železnic under the state the obligated party. Other taxes 537 535 income tax). guarantee (according to individual Total (balance sheet, 1 096 391 551 519 contracts and/or the Transformation 4.12.2 Trade payables line C.II.8.5.) In accordance with the accounting Act). The balances of these payables policy described note 3.9, a tax rate of do not accrue any interest. Balance at Balance at 31 December 31 December 19% was used to calculate deferred tax 2018 2019 The balance of undrawned non-invest-
(2018 – 19%). In 2005, the Czech Government adopt- Payables before ment subsidies as at 31 December 2019 2 559 936 2 278 666 ed Resolution No. 1553 on the remission due date represents a liability from undrawn sub- Payables past 4.11.3 Other payables of these payables (refer to note 3.14). 12 146 39 837 sidies from SFTI. The main reasons for due date not drawing investment subsidies to the Total (balan- Creditor Balance at 31 December 2018 Balance at 31 December 2019 ce sheet, line 2 572 082 2 318 503 full limit amount for 2019 are primarily C.II.4.) Czech Ministry of Finance - payment under the state 102 586 126 428 ex-ante advance payments that will be guarantee for loan interest, after the remission paid and accounted for in 2020. Czech Ministry of Finance - payment under the state 1 164 190 1 456 470 Payables before their due dates pre- guarantee for loan principal, after the remission dominantly relate to Subterra, a. s., The balance of non-investment subsidies Other 3 3 Metrostav a. s., STRABAG Rail a. s., represents a liability to SFTI that was Total (balance sheet, line C.I.9.3.) 1 266 779 1 582 901 Eurovia CS, a. s., ČD-Telematika a. s., financially settled in 2020. and OHL ŽS, a. s., regarding their con- Other payables concern payables to No remission against the state budget struction works. Správa železnic maintains no tax arrears the state, i. e. the Czech Ministry of took place in 2018 and 2019. with respect to the relevant tax authorities.
128 Notes to the financial statements 129 Správa železnic Annual report 2019
Table of 4.13.2 4.12.4 Estimated payables 4.13.2 Summary of maturities of Payable in 2020 Payable in subsequent years Total loans guaranteed by the state As at 31 December 2019, estimated Long-term loans 290 400 – 290 400 payables total TCZK 498 842 (2018 – The repayments of long-term loans Total 290 400 – 290 400 TCZK 307 007) and primarily include an according to guarantees provided by estimate for fees refunded for using RI the state under special legislation or of TCZK 116 000 (2018 – TCZK 116 000) guarantees resulting from the Trans- being able to claim the entitlement to ČD Cargo a. s., decreased, which was and uninvoiced supplies of electricity, formation Act are made for Správa VAT deduction of TCZK 176 158 (2018 – compensated by an increase in income heat, water and gas of TCZK 328 448 železnic by the state, or the Czech Min- TCZK 41 553). generated by other freight carriers. (2018 – TCZK 152 003). The increase istry of Finance. When the repayment is was primarily influenced by uninvoiced made by the state, the relevant balance 4.15 Revenue from own products The increase in the income from the supplies of traction electricity which is reallocated to “Other long-term and services sales of electricity complies with the Správa železnic has been supplying to payables”. In 2019, the Czech Ministry of Act on Railways, as amended, according all carriers using the dependent electric Finance repaid principals amounting to All income was generated in the Czech to which since 1 January 2019 Správa traction since 1 January 2019. TCZK 292 281 (2018 – TCZK 373 581). Republic. železnic has been acting as the provid- er of ancillary services in the form of 4.13 Bank loans and overdrafts Given that Správa železnic’s loans are Income from the use of railway infra- supplies of traction electricity actually repaid by the state and are subsequent- structure for the purpose of trans- consumed of TCZK 1 918 735 (2018 – 4.13.1 Long-term liabilities to ly carried as long-term liabilities, the porting passengers and freight is TCZK 0) for the needs of all carriers credit institutions portion of loans maturing within one approximately at the same level as using the dependent electric traction. year is not classified as short-term in in 2018. Income generated from from Správa železnic’s debt portfolio principal- the financial statements Table of 4.15 ly includes a payable arising from a loan agreement previously held by ČD, s. o., 4.14 Accrued expenses Item 2018 2019 The loan carries a state guarantee and Income from the use of the railway infrastructure by ČD - freight transport 5 713 4 723 was received primarily in connection with Accrued expenses total TCZK 244 914 the financing of the construction and (2018 – TCZK 173 699) and mainly Income from the use of the railway infrastructure by ČD - passenger transport 1 786 278 1 809 153 renovation of railway corridors pursuant include expenses for alternative bus Income from the use of the railway infrastructure by ČD Cargo 973 968 883 024 to Government Resolutions No. 798/1999 transportation from ČD, a. s., amount- Income from the use of the railway infrastructure by external carriers - freight 678 300 754 675 and No. 1201/2000. This loan is subject to ing to TCZK 68 756 (2018 – TCZK 69 398) debt remission (refer to note 3.14). and tax documents received after Income from the use of the railway infrastructure by external carriers - passenger 208 272 227 179
Income from allocated capacity 115 025 114 434 Table of 4.13.1 Rental income 571 983 590 849 Bank Loan Currency Balance at Drawing in Repayments FX Balance at maturities 31 December 1-12/2018 1-12/2018 differences 31 December Income from the sales of electricity 1 645 656 3 456 653 2017 2018
EIB Lucemburk 15/12/2020 EUR 588 000 0 292 281 -5 319 290 400 Income from third-party carriers for provided services (extraordinary shipments, etc.) 2 728 3 007
Total Income from other external services 492 803 473 111 (balance sheet, 588 000 0 292 281 -5 319 290 400 line C.I.2.) Total (income statement, line I.) 6 480 726 8 316 808
130 Notes to the financial statements 131 Správa železnic Annual report 2019
« continue from previous page 4.16 Consumption of material and energies Other 1 688 067 2 072 213
Item 2018 2019 Of which: - repair and maintenance 681 604 791 214
Costs of material consumption 1 614 027 1 947 553 - lease, software under TCZK 60, platform cleaning, etc. 1 006 463 1 280 999
Of which OUA 735 499 1 068 816 Total (income statement, line A.3) 11 130 523 13 033 158
Costs of energy consumption 439 077 519 500
Costs of water consumption 12 381 13 057 contracted based on tender laws and and maintenance of passenger stations form part of SŽ’s Comprehensive Plan from 2019. Costs of heat consumption 65 839 58 495 for Repairs and Maintenance. These Costs of gas consumption 55 505 73 025 services are recorded separately to en- The increase in claims for compensa-
Costs of electricity purchase 1 251 934 3 218 157 hance the transparency of the Organi- tion of shortages and damage relates sation’s records to the received payment of princi- Costs of fuel consumption 98 662 100 710 pal of TCZK 1 115 954 following from Other 16 005 16 054 4.18 Other operating revenues a litigation with ČEZ Prodej, s. r. o (see
Total (income statement, line A.2) 3 553 430 5 946 551 Note 6.2.1). Together with the principal, Non-investment subsidies from SFTI for ČEZ Prodej, s. r. o., also paid the inte- The increase in the costs of electricity pur- consumed for the needs of all carriers operability increased as a result of their rest of TCZ 191 679, primarily including chase was caused by ensuring the traction using the dependent electric traction. consolidation with subsidies for repairs default interest. electricity for carriers. In compliance with the Act on Railways, as amended, since 4.17 Purchased services Table of 4.18 1 January 2019 SŽ has been acting as the Item 2018 2019 provider of ancillary services in the form Repair and maintenance activities of supplies of traction electricity actually (“OUA”) represent projects that are Subsidies from SFTI operability 15 215 710 19 414 884
Non-investment subsidies from SFTI – special purpose 16 472 30 358 Table of 4.17
Subsidies from SFTI for the selected non-investment projects 476 579 – Item 2018 2019
Subsidies for the selected projects co-financed from OPT -25 – Costs of construction repairs and maintenance excluding OUA 107 891 142 474 Subsidies from SFTI for the operation of RI 6 316 847 4 252 625 Costs of repairing apartments excluding OUA 33 628 37 651
Subsidies for repairs and maintenance of passenger stations 1 099 029 – Costs of services provided by the statutory auditor 2 227 1 965
Other susbidies 15 158 10 051 Of which: - statutory audit of the financial statements 1 482 1 125
Proceeds from recovered material 301 470 327 906 - other non-audit services 745 840
Received contractual penalties and default interest 68 139 239 772 Costs of cooperation in allocating the capacity of the railway infrastructure 596 515
Claims for compensation of shortages and damages 63 267 1 182 477 Repair and maintenance 9 298 114 10 778 340
Other 74 362 92 140 Of which: - repair and construction maintenance 7 433 689 9 500 635
Total other operating revenues (income statement, line III.3.) 23 647 008 25 550 213 - other 1 864 425 1 277 705
continue » 132 Notes to the financial statements 133 Správa železnic Annual report 2019
4.19 Other operating expenses 4.20 Other financial revenues 5. Employees, executives and Item 2018 2019 Financial revenues principally include for- statutory bodies Fines and penalties, default interest 1 256 398 737 846 eign exchange gains arising from foreign currency translation. Write-off of receivables 140 023 7 590 5.1 Personnel expenses and Write-off of failed investments 26 659 4.21 Other financial expenses number of employees Retirement pension 5 556 4 877 Financial expenses predominantly in- The following tables summarise the Costs arising from the failure to employ the disabled 35 968 36 000 clude foreign exchange losses from the average recalculated number of Správa Insurance of assets and liability insurance 86 506 95 956 translation of foreign currency loans železnic’s employees and executives and Membership contributions 12 982 9 267 and bank charges. the related current personnel expenses
Shortages and damage 367 422 for the years ended 31 December 2018 and 2019: Liability for damage to third party assets -8 009 15 259
Expenses arising from the Network Statement 393 171 470 293 2018 Average Wages Social security and Other Total Other 151 511 52 854 headcount and salaries health insurance expenses personnel expenses Total other operating expenses (income statement, line F.5.) 2 074 499 1 431 023 Employees 17 301 7 487 297 2 523 713 482 271 10 493 281
Executives *) 6 32 731 5 260 56 38 047 In 2019, the balance of operating ex- part of receivables. These were charged Management Board and – 2 420 823 0 3 243 penses was mainly influenced by a fine to other operating expenses. In con- its committees for a breach of the budgetary disci- nection with this agreement, adjust- Total 17 307 7 522 448 2 529 796 482 327 10 534 571 pline of TCZK 734 558. The budgetary ments to the receivables at issue of discipline was primarily breached when TCZK 262 011 were released. *) Personnel expenses for 2018 (including expenses in respect of former executives) that were utilised in 2018 from the provision established in 2017 for personnel expenses incurred this year amounted to TCZK 13 902. carrying out the following projects: the modernisation of the Prague – Libeň – In relation to the Act on Railways, as Běchovice (1st and 2nd part) line seg- amended, a carrier can claim the ment and modernisation of the west pat expenses incurred in connection with 2019 Average Wages Social security and Other Total of the Prague main station, etc. ensuring replacement bus transpor- headcount and salaries health insurance expenses personnel expenses tation service for suspended public Employees 17 101 8 076 664 2 733 753 536 155 11 346 572 Part of receivables from ČD - Telema- passenger transportation from Správa tika, a. s., of TCZK 132 539 were written železnic. The total amount paid to car- Executives *) 5 31 090 5 536 74 36 700 off as a result of an agreement to settle riers for 2019 was TCZK 470 293 (2018 – Management Board and – 2 923 991 – 3 914 unjust enrichment when using land and TCZK 393 171). The increase in the com- its committees equipment between SŽDC, ČD, a. s., and pensated expenses was caused by an Total 17 106 8 110 677 2 740 280 536 229 11 387 186 ČD - Telematika, a. s., Corrective tax increase in investment activities which *) Personnel expenses for 2019 (including expenses in respect of former executives) that were utilised in 2019 documents amounting to TCZK 114 932 result in limitations of RI operation. from the provision established in 2018 for personnel expenses incurred this year amounted to TCZK 12 995. were issued in respect of the remaining
134 Notes to the financial statements 135 Správa železnic Annual report 2019
As at 1 January 2019, Správa železnic set within Správa železnic’s existing 6. Contingent liabilities as part of the securing of the opera- had 17 146 employees working in 172 pro- organisational structure. Taking into and other off balance bility of the railway infrastructure. In fessions across its 18 organisational account the analysis outcomes, at its sheet commitments case of confirming the originator of an units which operate in individual regions November session, Správa železnic’s Su- environmental accident such costs are of the Czech Republic. pervisory Board approved the gradual 6.1 Off balance sheet being re-invoiced. implementation of changes to the Sprá- commitments On 1 January 2019, Správa železnic’s or- va železnic’s organisational structure, Concurrently, within planned investment ganisational structure significantly setting 1 January and 1 April 2020 as 6.1.1 Environmental liabilities projects it will be necessary to continue changed, involving the centralisation deadlines (including a potential assump- with the gradual removal of the legacy of accounting transactions into one tion of telecommunication infrastruc- Deliverables from the performed noise burden in sections both within and organisational unit – Centre of Shared ture management activities), resulting in across-the-board environmental audit outside the corridors. Services; the cancellation of a re- the optimum and effective setting of the of the assets owned by the state with gional directorate’s asset manage- Organisation’s processes. the right of management for Správa With respect to the modernisation of ment department; the consolidation železnic (2008) and other available ana the railway infrastructure, environ- of activities performed by a regional During 2019, severance pay was provided lyses indicate that the level of proven mental protection is an integral part of directorate’s asset management into to 177 employees. pollution is lower than originally antic- the preparatory project documenta- the building construction management ipated (this also relates to the distri- tion and environmental costs (e. g. the under the Rail Operability Section; and As at 31 December 2019, Správa železnic bution of assets of ČD, s. o., in the past construction of sound barriers or other the consolidation of a regional direc- had 17 136 employees (31 December according to Act No. 77/2002 Coll.). As compensatory measures) are part of torate’s business activities into the 2018 – 17 234), due to the above impacts, such, it will not be necessary to continue the acquisition cost of a new investment business activity management under the number of employees decreased by the intensive monitoring of these areas. construction. the Economics Section. In addition, on 98 as compared with the balance as at However, this was only a partial sample 1 January 2019, the organisational struc- 31 December 2018. of areas with potential legacy contami- In 2019, total non-capital expenditures ture of the Traffic Management Section nation. For this reason, it is not possible related to environment were approx. changed, involving mainly the reduction 5.2 Provided loans, borrowings to calculate the total potential future MCZK 508 (2018 – MCZK 497). Capital of the number of regional directorates’ and other remuneration liabilities arising from damage caused expenditures related to sound pro- traffic management segments. At the by prior activities (potential legacy en- tection when modernising lines were same time, the process of rationalisa- In 2018 and 2019, members of the vironmental burdens including soil and MCZK 22 (2018 – MCZK 121). tion and optimisation connected with Správa železnic’s management did not water pollution, etc.). putting investment constructions in op- receive any borrowings, loans or any Other capital expenditures that primar- eration continued, as a consequence of other bonuses in addition to their basic It is impossible to determine the liabili- ily relate to the planned maintenance of which the number of operational staff in salaries and bonuses agreed in man- ties related to the prevention of poten- buildings owned by Správa železnic the traffic control decreased by 147 employ- agement contracts approved by the tial future damage (predominantly due nature of which helps protect environ- ees (i.e. by 1.9%). Management Board. to accident leakage of harmful sub- ment (by reducing electricity consump- stances in extraordinary events). The tion, for example) were calculated at In the second half of 2019, Správa In 2019, bonuses totalling TCZK 2 923 actually incurred costs for the preven- MCZK 55 in 2019 (2018 – MCZK 145). železnic utilised services of an adviso- were paid to members of the Správa tion of environmental damage (includ- ry firm to perform an analysis of the železnic’s Supervisory Board and com- ing potential environmental damage) method in which processes have been mittees (2018 – TCZK 2 420). are recognised as operating expenses
136 Notes to the financial statements 137 Správa železnic Annual report 2019
6.2 Legal disputes judgement with the Supreme Court on 6.2.2 Grandi Stazioni Česká a related contractual penalty accrued 27 August 2019 as well as a constitu- republika, s. r. o. after 18 January 2017, referring the mat- 6.2.1 ČEZ Prodej, s. r. o. tional petition with the Constitutional ter back to the Prague 1 District Court Court on 16 October 2019. As a result In connection with the purchase of for further consideration. The Organi- In 2008, Správa železnic entered into of the Supreme Court’s revocation of a part of a facility, a lease contract sation’s management does not consider a contract for the supply of trac- the judgements, Správa železnic’s legal concluded with Grandi Stazioni Česká the potential payment probable, there- tion electricity for 2009 –2011 with title involving the payment of damages republika, s. r. o. (“Grandi Stazioni”) was fore, no provision has been established. ČEZ Prodej, s. r. o. (“ČEZ”) pursuant to ceased to exist, resulting in ČEZ’s unjust transferred to Správa železnic, which a tender. Given the changed legislative enrichment. ČEZ refused to return this concerned the lease of the Prague main On 31 July 2017, Správa železnic received conditions, Správa železnic discontinued unjust enrichment to Správa železnic Railway Station. This contract expired a letter from Grandi Stazioni in which supplying traction electricity to carri- and, therefore, Správa železnic filed on 15 October 2016. Under the provi- Grandi Stazioni claims the settlement ers on 1 January 2010 and accordingly an action for the recovery of the unjust sions of this contract, Grandi Stazioni of TCZK 1 255 622 by Správa železnic as decreased the purchase from ČEZ. Even enrichment with the Prague 4 District calculated the value of leasehold im- a result from the alleged title to damages though Správa železnic believes that it Court on 17 October 2017. On 5 Febru- provements on assets performed during from the pre-contractual liability under proceeded in accordance with the con- ary 2019, the Prague 4 District Court the lease term in the total amount of Section 1729 of Act No. 89/2012 Coll., the cluded contract, ČEZ has filed an action issued a judgement fully upholding the TCZK 776 503. Subsequently, Správa Civil Code. Správa železnic responded by to seek damages from Správa železnic action filed by Správa železnic, further železnic asked Grandi Stazioni to sup- its letter dated 3 August 2017 in which it equalling the difference between expect- confirmed by the Municipal Court in port this value with relevant documents. refused the existence of the alleged claim ed and realised complementary sales Prague on 18 September 2019. Based Based on the submitted documents as well as other untrue allegations made in 2010 and 2011. The issue is currently on this judgement, ČEZ paid TCZK 1 115 Správa železnic accepted the amount of by Grandi Stazioni. On 14 August 2017, being dealt with through the courts. As 954 and accessions in the amount of TCZK 565 684 and paid it to the Gran- Grandi Stazioni filed an action on the concerns the damages equalling the TCZK 191 679 thereof to Správa železnic di Stazioni’s account in 2016. Správa merits with the Prague 1 District Court. difference between expected and real- on 9 October 2019. In response, ČEZ filed železnic refused to pay the remaining On 6 March 2018, the court officially ised complementary sales for 2010, on an application for appellate review of the amount of TCZK 210 819. Consequently, delivered this action to the legal repre- 19 March 2015 the High Court in Prague Municipal Court in Prague’s decision with on 2 November 2016, Grandi Stazioni sentative of Správa železnic together satisfied the action filed by ČEZ and the Supreme Court on 9 December 2019. filed an action with the Prague 1 District with related documentation prepared in Správa železnic was ordered to settle the Court for the payment of the above connection with solving the issue of ad- damage claimed totalling TCZK 1 131 262. Concerning damage compensation mentioned amount including appurte- missibility of a part of the action on part Based on an application for appellate re- equalling the difference between con- nances (contractual penalty amounting of courts. On 13 August 2019, the Prague 1 view of the court decision filed by Správa tracted and realised complementary to 0.5% of the outstanding amount and District Court issued a judgement fully železnic, the Supreme Court of the ČR sales for 2011, any court decision has statutory default interest per day). On dismissing the action. In response, Grandi revoked the lower-instance court’s been issued yet, as the appellate pro- 5 April 2019, the Prague 1 District Court Stazioni filed an appeal against this judgements and referred the case back ceedings regarding damages for 2010 issued a judgement dismissing Grandi judgement with the Municipal Court in to the Municipal Court in Prague, which have not yet been completed. As at 31 Stazioni’s action. Within the appellate Prague on 2 December 2019. Related dismissed ČEZ’s action upon final judge- December 2019, Správa železnic estab- proceedings, the Municipal Court in proceedings have not yet been ordered ment on 2 August 2018, confirmed by the lished a provision for default interest for Prague affirmed on 3 December 2019 by the Municipal Court. The Organisa- decision of the High Court in Prague of 2019 of TCZK 36 570. A total provision part of the first-instance court judge- tion’s management does not consider the 20 May 2019. In response, ČEZ filed an for this litigation as at 31 December 2019 ment but revoked the other involving potential payment probable, therefore, application for appellate review of this amounts to TCZK 788 973 (see note 4.10). part of the principal of TCZK 176 392 and no provision has been established.
138 Notes to the financial statements 139 Správa železnic Annual report 2019
6.3 Property relations Implementation of the Transit Railway 7. Other information assets of ČD, s. o., earmarked for the Corridor III from the state border settlement of the payables of ČD, s. o., Správa železnic’s records also include Mosty u Jablunkova – Dětmarovice – 7.1 Formation and incorporation which had passed on to the Czech a number of plots of land with unclear Přerov – Česká Třebová – Prague – of Správa železnic Ministry of Transport under the original ownership titles. These cases are reviewed Plzeň – Cheb, state border was wording of the Transformation Act. on an ongoing basis as the data included approved by Government Resolution On 1 March 2002, the following leg- in the Real Estate Cadastre is digitalised. No. 575 of 5 June 2002. islation entered into effect: Act While the apportionment of the assets Adjustments, if any, are charged against No. 77/2002 Coll., on České dráhy, joint between the successor companies was equity accounts (refer to note 3.4). Implementation of the Transit Railway stock company, on Správa železniční made on a best effort basis to ensure Corridor IV from the state border Horní dopravní cesty, state organisation, the appropriate and legally consistent 6.4 Projected commitments Dvořiště – České Budějovice – Prague and on an amendment to Railways Act apportionment of assets and liabilities, associated with corridor con- was approved by Government Resolu- No. 266/1994 Coll., as amended, and Act alternative interpretations of certain struction tion No. 1317 of 10 December 2001. No. 77/1997 Coll., on State Enterprise, provisions of the Transformation Act as amended (hereinafter the “Transfor- remain. This specifically relates to With a view to fully link the Czech railway In 2015, the Government approved mation Act”). On the basis of the Trans- tangible fixed assets and their source infrastructure to the European infra- the above total expected expenses by formation Act, ČD, s. o., discontinued its of funding. The financial statements structure, Správa železnic is oversee- Government Resolution No. 269. activities and operations on 31 Decem- of Správa železnic do not include any ing the construction of railway transit ber 2002 and Správa železnicDC (now- adjustments that might be necessary corridors. The construction of the 1stt adays Správa železnic) and ČD were as a result of any such future revisions Railway Corridor I was completed in 2004 formed as its legal successors effective of the applied interpretations and and the construction of the 2nd Railway from 1 January 2003. the resulting impacts on the reported Corridor II was completed in 2007. The components and amounts of Správa construction of the 3rd and 4th Railway Správa železnic assumed the assets železnic’s assets and liabilities. Corridor III and IV is currently in progress. comprising the railway infrastructure while ČD assumed the assets used to 7.2 Significant factors impacting Expenses that are projected to be operate railway transportation. In Správa železnic’s activities and incurred are as follows (in TCZK): addition, Správa železnic took over the operations majority of receivables and payables
Balance at Construction work The estimate of the Total estimated while ČD assumed only trade receiv- Správa železnic was formed pursuant 31 December 2018 undertaken to date remaining expenses expenses ables and payables before their due to, and its activities and operations are dates and receivables and payables governed by, the Transformation Act, Corridor I 40 759 568 0 40 759 568 arising from employment arrange- Act No. 266/94 Coll. and other general Corridor II 39 016 291 0 39 016 291 ments with its employees. Both entities legal regulations governing the posi- assumed the assets and liabilities at tion of state organisations. The above Corridor III 50 729 797 7 257 477 57 987 274 their book values. legislation, inter alia, sets out the scope of Správa železnic’s assets or its role Corridor IV 26 762 711 9 700 432 36 463 143 The Transformation Act was amend- in operating and securing the operabil- Total 157 268 367 16 957 909 174 226 276 ed in April 2004 under which, as of ity of the railway infrastructure in the 1 July 2004, Správa železnic took over public interest.
140 Notes to the financial statements 141 Správa železnic Annual report 2019
Under the amendment to the Transfor- mined price which is set in compliance Trade payables including received in the balance sheet as part of trade mation Act, Správa železnic assumed with Pricing Act No. 526/1990 Coll. The prepayments amount to TCZK 125 952 receivables from ČD Cargo, a. s., is the activities of the railway infrastruc- proceeds from payments for the use (2018 – TCZK 92 536). TCZK 246 626 (2018 – TCZK 333 459). ture operator on 1 July 2008. For this of the railway infrastructure are not Trade payables including received reason, the contract between Správa sufficient to offset the costs involved in Significant revenues generated by prepayments amount to TCZK 57 238 železnic and ČD for the operability of operating, maintaining and developing Správa železnic from its relationship (2018 – TCZK 15 365). the railway infrastructure was dis- the railway infrastructure. As such, the with České dráhy, a. s.: continued as of 30 June 2008 and the financing of Správa železnic’s activities is 2018 2019 contract was replaced by individual dependent upon subsidies from the state contracts defining mutual relations and/or other entities. For 2020, the ap- Revenues from using the railway infrastructure – passenger transport 1 786 278 1 809 153 between Správa železnic and ČD. proved funding of Správa železnic from Revenues from using the railway infrastructure – freight transport 5 713 4 723 the State Fund of Transport Infrastruc- Pursuant to Resolution of the Gov ture for investment and non-investment Revenues from allocated railway infrastructure capacity 54 133 51 827 ernment of the Czech Republic No. 486 activities amounts to TCZK 39 170 030 Revenues from electricity 1 435 218 1 639 957 from 22 June 2011 on the transfer of (2019 – TCZK 43 374 372). Správa Fire Safety Services 26 625 1 861 remaining rail operation activities (Rail železnic has also agreed with the Ministry Servicing) from ČD to Správa železnic of Transport of the Czech Republic and Telecommunication network operation services 56 856 55 166 and in relation to the Commercial Code, SFTI on an increase in these funds to the Total 3 364 823 3 562 687 a purchase of a part of the business final amount of TCZK 43 397 803. These was realised on 1 September 2011. funds have not been ensured with SFTI Significant revenues resulting The increase in revenues from electrici- The subject of the purchase was Rail contractually yet. Správa železnic’s man- from transactions carried out with ty results from a change in the supply of Servicing, i. e. traffic control in railway agement believes that these funds will ČD Cargo, a. s.: traction electricity. stations and on railway lines. enable Správa železnic to provide servic- es in the same extent as in 2019. Accord- 2018 2019 Based on Resolution No. 1546 of the ingly, the financial statements have been Revenues from using the railway infrastructure – freight transport 973 968 883 024 Government of the Czech Republic dat- prepared on a going concern basis. Revenues from allocated railway infrastructure capacity 29 059 24 451 ed 21 December 2015 on the purchase of a part of a facility, a part of a facility, 7.3 Transactions with major Revenues from electricity 404 717 160 designated as “Railway Stations”, was customers ČD and ČD Cargo Fire Safety Services 9 900 1 427 transferred from ČD to Správa železnic Telecommunication network operation services 38 760 38 763 on 1 July 2016. The subject of the pur- As at 31 December 2019, Správa železnic chase was land, buildings, movable and recorded amounts due from and to Total 1 052 091 1 664 825 other assets, together with sub-ledger České dráhy, a. s., at the net amount accounts, inventories, receivables, liabil- resulting in a receivable of TCZK 470 As at 31 December 2019, Sprá- Since 1 January 2019, Správa železnic has ities and accruals/deferrals 125 (2018 – TCZK 510 851). The amount va železnic recorded amounts due been the provider of ancillary services in that is reported in the balance sheet from and to ČD Cargo, a. s., at the the form of supplies of traction electric- Správa železnic provides carriers with as part of trade receivables from and net amount resulting in a receivable ity actually consumed in compliance with the railway infrastructure for use in the advances paid by České dráhy, a. s., is of TCZK 189 388 (2018 – TCZK 318 the Act on Railways, as amended. public interest for an officially deter- TCZK 596 077 (2018 – TCZK 603 387). 094). The amount that is reported
142 Notes to the financial statements 143 Správa železnic Annual report 2019
7.4 Privatisation 7.5 Sale of assets 7.6.2 Lease of assets kept within the In the cash flow statement, cash flows Railway Infrastructure Assets circle from operating, investment or financial Správa železnic records assets held for 7.5.1 Sale of redundant activities are reported on a gross basis. privatisation. These assets are sepa- immovable assets – the Railway As at 31 December 2019, Správa železnic rated in the accounting by an account- Infrastructure Assets circle reports 2 423 contracts for the lease of In the cash flow statement, cash flows ing circle – Assets for Remission of apartments. Revenues from these leases relating to interest payments included Debts (“MOZ”). In 2019, revenues from the sales of were TCZK 84 928 (2018 – TCZK 86 183). in the cost of fixed assets were recorded immovable assets approved by the With respect to other immovable assets as part of investment activity, but not In 2019, Správa železnic completed Czech Government within the Railway not included in the residential living fund, as a separate item. These cash flows a total of five privatisation projects for Infrastructure Assets circle totalled Správa železnic records 6 884 lease amounted to TCZK 0 in 2019 (2018 – assets within the Assets for Remission TCZK 33 922 (2018 – TCZK 58 477). contracts with total revenues, including TCZK 1 415). of Debts circle in the aggregate amount movable assets, of TCZK 472 225 (2018 – of TCZK 764 (2018 – TCZK 3 324). 7.5.2 Sale of redundant immovable TCZK 450 284). assets – the Assets for Remission Of the five privatisation projects, in 2019, of Debts circle Total rental revenues were TCZK 557 153 Správa železnic completed one pro- (2018 – TCZK 536 467). ject involving assets other than those Both in 2019 and 2018, no sales of assets included in the residential living fund. were carried out within the Assets for 7.7 Cash flow statement Four projects related to the finalisation Remission of Debts circle. of privatisation of land following the pri- For the purposes of the cash flow vatisation of the residential living fund 7.6 Leased assets statement, cash and cash equivalents were also completed. are defined to include cash in hand, 7.6.1 Lease of assets kept within the cash in transit, cash at the bank and As at 31 December 2019, Správa železnic Assets for Remission of Debts circle other financial assets whose valuation records fixed assets intended for the can be reliably determined and that settlement of payables assumed from As at 31 December 2019, Správa železnic can be readily converted to cash. ČD, s. o., listed in the Appendix to the reports 67 contracts for the lease of Transformation Act in the net book apartments. Revenues from these leas- Cash and cash equivalents as at the value of TCZK 479 217. As at 31 Decem- es were TCZK 2 074 (2018 – TCZK 2 213). year-end are as follows: ber 2018, the net book value of these Balance at Balance at assets amounted to TCZK 481 435. With respect to immovable assets 31 December 2018 31 December 2019
not included in the residential liv- Cash in hand 2 503 3 241 ing fund, Správa železnic records 131 lease contracts with total revenues of Cash at bank accounts 2 597 075 3 786 689
TCZK 12 603 (2018 – TCZK 13 900). Total (balance sheet, line C.IV.) 2 599 578 3 789 930
Total revenues from the lease of real estate were TCZK 14 677 (2018 – TCZK 16 113).
144 Notes to the financial statements 145 Správa železnic Annual report 2019
8. Subsequent events 8.2 COVID-19 Persons Affirmation 8.1 Organisation name change The Organisation has assessed the co- We affirm that the information stated in ronavirus epidemic’s possible impact on responsible the annual report for 2019 is accurate and On 14 January 2020, the Organisa- the need of potential additional funding that no material circumstances known tion’s new name “Správa železnic, on the part of the founder if a possible for the to us that may affect the accurate and státní organizace” was recorded in shortfall in revenues from third parties proper assessment of Správa železnic, the Commercial Register, following cannot be covered by the organisati- annual státní organizace have been omitted. 1 January 2020 as the effective date on’s own sources. The results of this of Act No. 367/2019 Coll., amending assessment depend on assumptions Act No. 266/1994 Coll., on Railways, as about the duration and intensity of such report amended, and other related laws. a shortfall, based on publicly available information about key customers. As at the reporting date, the assessment does not indicate the need of additional financial sources. Potential demands for additional financial sources will be dealt with in cooperation with the founder once Jiří Svoboda the state of emergency concludes and Director General the real need can be assessed.
Prague, 20 March 2020
Aleš Krejčí Deputy Director General for Economics Jiří Svoboda Director General
The closing date of the annual report is 30 March 2020.
146 Notes to the financial statements Persons responsible for the annual report 147 Správa železnic Annual report 2019
Správa železnic by authorised employ- ment cancelled the decision by SŽDC the entity under the Free Access to Annual ees of the Headquarters’ Legal Matters and returned the matter to SŽDC for Information Act. Department in cooperation with all further proceedings. —— As an expression of disagreement report on the organisational units and expert depart- —— Municipal Court in Prague, with the decision on the request. The ments of Správa železnic, depending on Judgement 5A 57/2015 – the court superior body approved the proce- provision of the nature of the request. cancelled the decision by SŽDC and dure adopted by the liable entity as returned the matter for further it found no legal regulation breach or information a. Number of submitted proceedings. The request was breach of the applicant’s rights re- requests for information 128 complied with on 11 July 2019. lating to the decision on the request. Number of issued decisions on —— Municipal Court in Prague, —— As expression of disagreement with dismissal of the requests 25 Judgement 5A 58/2015 (5/2019) – the the decision on the request. The Number of issued decisions court cancelled the decision by SŽDC superior body partially approved on dismissal of a part of the and returned the matter for further the procedure adopted by the requests 15 proceedings. SŽDC issued a decision liable entity as it found no legal b. Number of submitted appeals partially refusing to provide regulation breach or breach of the against the decisions 6 the requested information. The applicant’s rights relating to the Správa železnic, státní organizace c. Number of completed applicant withdrew the appeal. On decision on the request, and in part Dlážděná 1003/7, 110 00 Prague 1 legal proceedings 3 15 August 2019, SŽDC issued decision accommodated the complaint by d. Number of exclusive on an appeal where the appeal was supplementing the initially provided Annual report on the provision of in- licences provided 0 partially complied with. information and elaborating on it as formation in compliance with Section e. Number of complaints submitted enabled by the applicable legal regu- 18 of Act No. 106/1999 Coll., on Free under Section 16a 4 The cost of the legal representation in lation of the Free Access to Informa- Access to Information for 2019 court litigations amounted to CZK 0. tion Act. To note c) of the annual report Other cost related to the court litiga- —— As an expression of disagreement File No. 199/2020-SŽDC-GŘ-O25 Správa železnic presents the following tions amounted to CZK 25 456. with the decision on the request. The lists of administrative court judgements superior body found the reasons for In compliance with Section 18 of Act on actions challenging the decisions To note e) of the annual report the complaint groundless. Having No. 106/1999 Coll., on Free Access to In- of the liable entity’s superior bodies on Správa železnic advises that the com- investigated the matter, it found no formation, Správa železnic releases the appeals against the decisions issued by plaints in respect of the processing of the fault with the procedures adopted annual report for 2019 on the provision them on the (partial) dismissal of the requests for information were submitted: by the liable entity, and therefore, of information (as of the effect of the request to provide information. —— As an expression of disagreement rejected the complaint. amendment to Act No. 367/2019 Coll., i. e. with the decision on the request in as of 1 January 2020, the organisation —— Municipal Court in Prague, Judgement accordance with Section 6 of the Prague, 29 January 2020 changed its name from the original 5A 18/2017 – request for information Free Access to Information Act. Hav- Správa železniční dopravní cesty /SŽDC/ on the amount for which SŽDC leases ing reviewed the procedure adopted to the new name Správa železnic). out points of sale to České dráhy a. s., by the liable entity, the superior body on the placement of notice boards found no fault which would justify Requests made in accordance with the and a ticket machine in the building of the complaint about the incorrect Marcel Baťha above act are processed on behalf of the train station Břeclav. The judge- decision about the request filed by Director of the Legal Matters Department
148 Annual report on the provision of information 149 Správa železnic Annual report 2019
List of abbreviations
BIM Building Information ETCS European Train Control OPT2 Operational Programme Modelling / Management System Transport (EU)
C-ITS Co-operative Intelligent ETSI European RD Regional Directorate transport systems Telecommunications Standards Institute RFC Rail Freight Corridor CEA Civil Engineering Administration FRMCS Future Railway Mobile RI Rail infrastructure Communication System CEF Connecting Europe Facility RMA Repair and maintenance GP Geometric position activities CEN European Committee for Standardisation GSM-R Global System for Mobile RNE RailNetEurope Communication – Railway CENELEC European Committee SFTI State Fund for Transport for Electrotechnical IROP Integrated Regional Infrastructure Standardization Operational Programme SŽDC Správa železniční dopravní CER Community of European IRS International Railway cesty, státní organizace Railway and Infrastructure Standards Companies TCC Traffic Control Centre KPI Key Performance Indicators CFT Contact-free track TEN-T Trans-European Network – LRS Line radio system Transport ČD Czech Railways (České dráhy, a. s.) MT Ministry of Transport of the TSI Technical specification for Czech Republic Interoperability ČD, s. o. Czech Railways (České dráhy, s. o.) OCR Organisation for UIC International Union of Cooperation between Railways ERTMS European Rail Traffic Railways Management System
150 List of abbreviations 151 Správa železnic
Identification and contact details
Organisation name: Správa železnic, státní organizace Established by: Czech Republic (represented by the Ministry of Transport of the Czech Republic)
Date of incorporation: 1 January 2003 Identification number: 70994234
Registration court: Praha Registered under: Section A, File 48384
Registered office: Praha 1 – Nové Město, Dlážděná 1003/7, Postcode 110 00
Phone: 222 335 711 E-mail: [email protected] Website: www.szdc.cz
152 Identification and contact details Správa železnic Slepá ražba štoček desky - zadní strana
szdc.cz