Leo Express CEO predicts new operators will win half of PSO tenders within 10 years
The head of private rail operator Leo Express, Peter Köhler, predicts a transformative shift in Europe’s rail market, forecasting that new operators will win half of all public service obligation (PSO) tenders within the next decade. Ahead of launching a new service in Poland, the operator from Czechia believes the Polish rail market is entering a golden age of growth and opportunity, he told Polish newspaper Rzeczpospolita, RailTech reports.
Although Leo Express has not yet won a PSO contract in Poland, Köhler made the prediction in an interview with the Polish economic daily. PSO contracts are government-mandated rail services that are not commercially profitable. Meanwhile, Leo Express is preparing to launch a new commercial Warsaw–Kraków service in March.
Leo Express will expand its passenger operations in Poland with two daily return services between Warsaw and Kraków starting on 1 March 2026. This marks a major expansion for the carrier, which already operates Prague–Kraków trains. That route will increase to four daily return services.
Ukraine
In June, the company will also launch a long-distance service from Przemyśl, near the Polish–Ukrainian border, to Frankfurt am Main.
The train will call at Rzeszów, Kraków, Katowice, Prague, Dresden and Leipzig before terminating at Frankfurt Airport. The route is intended to strengthen cross-border rail connections and attract both business and leisure travellers. Leo Express argues that increased competition acts as a catalyst for better service and lower fares.
Renfe
Since 2023, Leo Express’s largest shareholder has been Renfe, Spain’s national railway operator with extensive high-speed rail experience. Other investors are based in the Czech Republic and abroad, and the company aims to expand across Central Europe.
Unlike fellow private operator RegioJet, which reported difficulties launching services in Poland, Köhler said Leo Express has encountered no such problems.
He noted that the company has been active in Poland for ten years and was the first private carrier to introduce competition to Polish rail. Leo Express has operated the Prague–Kraków route since 2018 and ran bus services earlier. Based on this experience, Köhler said the company has not faced operational obstacles and suggested this differentiates it from competitors.
Köhler also praised Poland’s rail infrastructure, stating that Poland invests more per capita in rail than countries such as the Czech Republic. He acknowledged that this leads to extensive construction works but said discussions with infrastructure manager PKP PLK are ongoing to minimise disruptions.
The company will deploy Stadler FLIRT trains previously used on other routes. Although not new, the units have been refurbished with updated seating and improved Wi-Fi and are fully equipped for comfortable and safe journeys.
Köhler said using familiar rolling stock reduces risks in a new market and minimises risks associated with new technology. He added that Leo Express guarantees full air conditioning and heating functionality, a target the company claims it achieved in 2025 without issuing any refunds.
Beyond commercial services, Leo Express plans to bid for PSO contracts. It has already participated in one tender in Poland and is in discussions with regional authorities, including in Kuyavian-Pomeranian Voivodeship and regions along the Polish–German border.
Köhler said that unlike in the Czech Republic or Slovakia, Leo Express has not yet won tenders in Poland, but participation builds experience. He stressed that procurement schedules must account for long lead times of up to four years for new rolling stock.
European Union market liberalisation under the Fourth Railway Package is creating more opportunities. He expects that within ten years, half of PSO tenders will be won by new operators, improving service quality and reducing costs for contracting authorities.
Competition in Poland is increasing with PKP Intercity, RegioJet and Leo Express operating or planning services, while Poland’s Office of Rail Transport has issued more open-access approvals.
Köhler believes competition boosts passenger numbers and lowers fares. He said the Prague–Kraków route is already profitable and expects the same for the new services. More than 30,000 tickets have been sold in advance, he told Rzeczpospolita. Initial investments in sales systems, marketing and certifications amounted to millions, but he expects costs to fall as the market opens further.