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Four largest regions generate nearly half of construction output

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Ten post dostępny jest także w języku: polski

The top four voivodships (Masovian, Silesian, Lesser Poland and Greater Poland) account for 48% of construction and assembly production in Poland in 2020, according to estimates by PMR Market Experts. Forecasts included in PMR’s latest report, “Construction sector in Poland – regional analysis”, show that this share will decrease only slightly in the coming years, and the group of regional leaders will remain unchanged.

The balance of power on the regional map of the Polish construction market has remained practically unchanged for many years. Traditionally, the largest share (about 17%) in construction and assembly production generated by all construction companies is held by the Masovian voivodship. The next two places with two-digit market share are occupied by Silesian and Greater Poland voivodships.

Engineering construction – infrastructure drives selected regions

The analysis of construction and assembly production in engineering construction, which is carried out on the territory of individual voivodeships is closely related to such factors as:

  • implemented and planned large road investments passing through a given region
  • execution of railroad routes within a given region
  • port and transmission investments
  • large industrial investments affecting a significant volume of infrastructural works (e.g. planned large energy investments, construction of industrial plants (e.g. extension of the PKN Orlen refinery in Płock, construction of the Police Polymers plant, or investments at the Azoty Pulawy plant).

On a positive note, the outlook for civil engineering construction over the 2021-2026 period is decidedly optimistic. Only three regions (Lodz, Greater Poland and Kuyavian-Pomeranian) will experience a slight decrease in activity (mainly as a result of a high baseline).

Road construction – Lublin and West Pomeranian regions with largest investments

Road construction accounts for the largest part of engineering construction in Poland – about 40%. The highest accumulation of road investments will definitely occur in – Lublin, West Pomeranian and Mazovian Voivodships.

Revival in the Lublin region will be caused by the construction of road routes such as S17, S19 and S12.

West Pomeranian voivodship is second in terms of the total length of express roads and freeways which are being built or planned. The most important investments include the 108-kilometre-long S10 section between Stargard and the Pila ring road. Its implementation is planned for the years 2022-2026.

Railroad construction – CPK and Kolej Plus will support the National Railway Programme

Railroads in Poland are almost entirely supervised by PKP PLK. Marginal investments in railroad construction include streetcar infrastructure, present in only 15 urban centers, as well as the Warsaw metro system, which is under construction. Investment scopes in urban infrastructure are much smaller and – except for the Warsaw subway – have a shorter time horizon.

A powerful development impulse for the railroads is associated with the idea of building Solidarity Transport Hub (STH). Within its framework, about three quarters of the total expenditures to be incurred will constitute the railroad component. Railroad investments of STH are in total almost 1,800 km of new lines, which are to be built until the end of 2034. For over 500 km of them preparatory works are already in progress.

The first construction works are to begin in three years. The STH Railway Programme consists of a total of 12 railroad routes, including 10 so-called spokes leading from various regions of Poland to Warsaw and the STH. In total, there are 30 investment tasks and 1,789 km of new railroad lines, whose investor is Centralny Port Komunikacyjny Sp. z o.o (CPK). The entire programme will be implemented between 2020 and 2034.

The Kolej Plus programme will also provide an additional boost to railroad development in the regions. Its implementation is progressing according to the assumed schedule. As a result of the announced call, approx. 100 applications were received, out of which 79 projects for the total amount of over PLN 30bn were qualified for the next stage. As a reminder, PLN 6.6bn was planned for the execution of this program. At present, the second stage of the programme is taking place; local governments will have 12 months to prepare the necessary application documents and to develop a preliminary planning and forecasting study. This study will allow to precisely determine the necessary scope of works and the costs of the planned investment. Thus, this work will take practically the whole of this year and should make it possible to select projects for implementation within the available pool of funds at its end.

An analysis of the ongoing and planned investments shows that the greatest intensity of works should be expected in the coming years in Mazovian voivodship (e.g. extension of the subway, modernisation of Warsaw West), Greater Poland voivodship and Lesser Poland voivodship (e.g. Podleze-Mszana Dolna). At the other extreme are the following voivodships: Opole, Lubusz and Holy Cross.

Engineering construction – the segment that most strongly differentiates the assessment of the potential of voivodships, but also the one most exposed to significant differences between current plans and actual implementation

Due to their characteristics (the most time- and cost-consuming), investments in the engineering segment will be the most differentiated in the assessment of the potential of individual voivodships. Some voivodeships are still facing an accumulation of works in this segment, in other voivodeships they are already taking place and in the following years some calming down will occur. However, it should be remembered that forecasts for this segment of the construction industry are subject to the greatest risk, resulting from delays, changes in deadlines and real costs, and sometimes even the complete abandonment of earlier plans. Therefore, the assessment of the development potential of individual provinces may be subject to certain changes in the future. In this context, systematic verification of the actual results and possible updating of the investment plans (timing and expected outlays) will be extremely important. From this point of view, the West Pomeranian and Lubusz voivodships stand out in particular.

More detailed information and market development forecasts in individual regions are presented in the PMR report Construction sector in Poland – Regional analysis. Market analysis and growth forecasts for 2021-2026.

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