Leo Express CEO: ‘new operators to win half of PSO tenders within 10 years’

The head of private operator Leo Express, Peter Köhler, predicts a transformative shift for Europe’s rail landscape, 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 Czech private operator sees the Polish rail market entering a ‘golden age’ of growth and possibilities in an interview with Polish newspaper Rp.

Despite not having won a PSO contract in Poland yet, Leo Express CEO Peter Köhler made a bold prediction in an interview with Polish economic daily Rzeczpospolita (Rp). While Public Service Obligation contracts (PSO) are government-mandated services that are deemed not profitable, Leo Express prepares for launching a new commercial Warsaw-Kraków service in March.

Leo Express is set to expand passenger operations in Poland with the launch of two daily return services between Warsaw and Kraków on 1 March 2026. The move marks a major expansion for the Czech carrier, which already runs trains from Prague to Kraków. That route will see frequencies increase to four return trips daily.

In June, Leo Express will also launch a long-distance connection from Przemyśl (near the Polish-Ukrainian border) to Frankfurt am Main in Germany. The train will stop in Rzeszów, Kraków, Katowice, Prague, Dresden and Leipzig before terminating at Frankfurt Airport. The route aims to strengthen cross-border rail links and serve both business and leisure travellers. And the added competition is a catalyst for better service and lower cost, according to the private operator.

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Since 2023, the private operator’s largest shareholder is Renfe, the Spanish national railway operator with extensive experience in high-speed rail. Other investors come from both the Czech Republic and abroad, and the operator’s goal is to expand across Central Europe.

‘No problems faced’

Unlike other new entrant RegioJet, which reported operational challenges launching services in Poland such as unfavourable connection times, longer routes, and denied advertising space at stations, the Leo Express CEO said it has encountered none of these difficulties.

“We’ve been in Poland for ten years,” Köhler noted. “We were the first private carrier to introduce competition to Polish rail.” The company has operated trains on the Prague–Kraków route since 2018 and launched bus services before that.  Given this experience with the Polish market, the Leo Express CEO said it has not encountered any problems so far, but the operator also likely wants to set itself apart from its private competitor.

Köhler also praised Poland’s rail infrastructure, rating it highly and highlighting that Poland invests more per capita in rail than, for example, the Czech Republic. This also means more construction sites on the tracks. He states that constructive talks with Polish rail infrastructure manager PKP PLK are ongoing to minimise disruptions.

Leo Express will deploy Stadler FLIRT trains previously used on other routes. Though not new, they are modern units refurbished with updated seats and improved Wi-Fi. “They are equipped with all the necessary devices for a comfortable and safe journey,” Köhler said. Using familiar rolling stock reduces risks in a new market, the CEO stated. “This minimises the risks associated with new technology,” he added. The company guarantees 100% air conditioning and heating efficiency — a promise he said the company fulfilled in 2025 without issuing a single refund.

Next stop in Poland: public service contracts

Beyond commercial routes, Leo Express aims to bid for public service obligation contracts (PSO). It has already participated in one tender in Poland and is in talks with regional governments, including in Kuyavian-Pomeranian Voivodeship and areas along the Polish-German border.

“Unlike the Czech Republic or Slovakia, we haven’t won in Poland yet,” Köhler said, referring to the tenders. But, participation builds experience. He stressed that procurement timelines must account for long lead times — up to four years — for new rolling stock. Market liberalisation under the EU’s Fourth Railway Package opens more opportunities. “I assume that over the next ten years, half of these tenders will be won by new carriers who will bring a new quality of service to customers and lower the costs of regional rail transport for the contracting authority”, Köhler said.

With PKP Intercity, RegioJet and now Leo Express, competition in Poland is growing. Poland’s Office of Rail Transport has issued more open-access decisions, paving the way for further entrants.  Köhler believes competition boosts ridership and lowers prices. According to Leo Express CEO, the existing service Prague–Kraków is already profitable, and he expects the same for the new routes. Over 30,000 tickets have been sold in advance for the service, he told Rp. Initial investments — in sales systems, marketing and certifications — costed ‘millions’, but he expects this to decline as the market opens further.

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