Polish Market No.5 (284)/2019

PU B LISHED SIncE 199 6 No. 5 (284) /2019 :: www.polishmarket.com.pl

international relations • infrastructure • economy

port of gdynia

- Baltic leader 2018 went down in history as a record year.

January figures demonstrated that the Port of Gdynia is growing in strength.

One Hundred Years of the ZÅ‚oty

www.nbp.pl

ONTENT

6 FROM THE PRESIDENT’S PRESS OFFICE 7 FROM THE GOVERNMENT

26 HOW TO PROMOTE POLAND? - ZBIGNIEW KLONOWSKI, CHAIRMAN, ORGANISING COMMITTEE, 60MLN.PL CONGRESS

INFORMATION CENTRE

POLAND - THE CENTENARY OF REGAINING INDEPENDENCE

8 THE ROYAL CASTLE IS UNIQUE ON THE

POLISH AND EUROPEAN SCALE - PROF. WOJCIECH FAŁKOWSKI, DIRECTOR, ROYAL CASTLE MUSEUM IN WARSAW

11 NATIONAL PERFORMANCE 2019 IN TRIBUTE TO MONIUSZKO – MACIEJ PROLIŃSKI

INFRASTRUCTURE

12 CENTRAL TRANSPORT HUB POLAND

ON A NEW TRACK - MIKOŁAJ WILD, GOVERNMENT COMMISSIONER FOR THE CENTRAL TRANSPORT HUB

14 GDYNIA - POLISH LEADER IN THE BALTIC 16 PORTS ARE KEY FOR INTERNATIONAL TRADE- MAREK GRÓBARCZYK, MINISTER OF MARITIME ECONOMY AND INLAND NAVIGATION

17 THE FUTURE OF SUSTAINABLE TRANSPORT

INTERNATIONAL RELATIONS

19 MODERN DIPLOMATIC OFFENSIVE-

SZYMON ANDRZEJ SZYNKOWSKI VEL SĘK, SECRETARY OF STATE, MINISTRY OF FOREIGN AFFAIRS

21 TOP QUALITY POLISH FOOD - TADEUSZ ROMAŃCZUK, SECRETARY OF STATE, MINISTRY OF AGRICULTURE AND RURAL DEVELOPMENT

22 BELARUS AND POLAND EXPAND

BRAND: POLAND

28 POLISH COMPANIES IN GERMANY ON

THE RISE - KATARZYNA SOSZKA-OGRODNIK, SPOKESPERSON OF THE GERMAN-POLISH CHAMBER OF COMMERCE (AHK POLAND)

31 GOOD INVESTMENT OPPORTUNITIES -

MACIEJ BADORA, PRESIDENT, WAŁBRZYCH SPECIAL ECONOMIC ZONE "INVEST-PARK"

32 POLISH CAPITAL INVESTS ABROAD JERZY MOSOŃ

34 KGHM FOREIGN INVESTMENT PROJECTS 36 INSTITUTE FOR EXPERT DEBATE AND ANALYSES - BRAND POLAND

37 JARS LABORATORIES, NEW FOREIGN

PARTNERS AND POLISH MARKET SUCCESSES - MATEUSZ KIRZYŃSKI, VICE PRESIDENT, JARS S.A.

INNOVATION IN MEDICINE

38 THROUGH A KEYHOLE - PIOTR WYCHOWAŃSKI, PhD MD DDS

41 CAN'T TAKE THE DOCTOR'S PLACE -

ANNA JANCZEWSKA, PRESIDENT, MEDIM

42 A POLISH LASER PILL TO REVOLUTIONISE MEDICINE? - PROF. LUDWIK POKORA, DIRECTOR AND ORGANISER OF CTL – CENTRE OF LASER TECHNOLOGY LASERINSTRUMENTS LTD.

CHEMICAL INDUSTRY

46 ANOTHER REVOLUTION IN THE

COOPERATION - VLADIMIR CHUSHEV, AMBASSADOR OF BELARUS TO POLAND

CHEMICAL INDUSTRY - MARCIN OCIEPA, DEPUTY MINISTER OF ENTREPRENEURSHIP AND TECHNOLOGY

23 NETWORKING PLATFORM - KAZIMIERZ

48 POLISH CHEMICAL INDUSTRY AND

ZDUNOWSKI, PRESIDENT, POLISHBELARUSIAN CHAMBER OF COMMERCE AND INDUSTRY

24 UNTAPPED POTENTIAL- HANNA

STYPULKOWSKA-GOUTIERRE, PRESIDENT, POLCHAMBERS - ASSOCIATION OF POLISH CHAMBERS OF COMMERCE ABROAD, FOUNDER, POLISH CHAMBER OF COMMERCE AND INDUSTRY IN FRANCE

ECONOMIC DEVELOPMENT, CHALLENGES FACING THE SECTOR - TOMASZ ZIELIŃSKI, PRESIDENT, POLISH CHAMBER OF CHEMICAL INDUSTRY (PIPC)

50 TALL ORDER - BARTOSZ MALOWANIEC,

HEAD, ENVIRONMENTAL TECHNOLOGY VERIFICATION UNIT, INSTITUTE OF ENVIRONMENTAL PROTECTION, NATIONAL RESEARCH INSTITUTE

EDITORIAL

I

t’s quite sad to note that, after a succession of optimistic forecasts, we are being hit with an avalanche of not-so-good news.

What seemed like a calm sea of international affairs is experiencing another storm, as Trump strikes China, Europe, and Canada with raised tariffs, and backs up the calls to Iran for the renegotiation of the nuclear deal by deploying ships and an aircraft fleet.

And in Europe there is no resolution of Brexit, discord before the elections to the European Parliament, and a eurozone slump. There is also bad news from Venezuela, Libya, Iran, and Russia, as experts claim the oil-price forecast is not realistic. We are in crisis.

And that appears to be the case. All it took was one tweet to disturb the relative peace across the global financial markets. The Bloomberg Commodity Index has fallen to its lowest levels since January, and, specifically, in terms of agricultural products, to its lowest level in decades. In the April edition of the World Economic Outlook report, the IMF lowered its global GDP-growth forecasts for 2019 by 0.2% to 3.3%. It's the worst forecast since the global financial crisis.

Luckily, there are some things going on in the world which make up for it. In 2019, the Polish economy is set to grow at the fastest rate among the countries in our region. Poland's GDP is expected to increase by 3.8%, as opposed to the 3.5% forecast made previously. Poland has reached the 21st position in the European Union in terms of per capita income, and this year it will surpass…

Portugal. 30 years after the fall of communism and 15 years after the enlargement of the European Union to include ten countries from Central and Eastern Europe, the gap between the east and west of the EU is being increasingly bridged.

Poland has made an excellent use of this time.

Both on our own and with help of partners. Over these 15 years we have completed over 200 thousand investment projects with the participation of European Union funding. In 2004, the GDP-percapita ratio was less than 50% of the EU average,

in 2017 it was almost 70%, and in 2020 it should reach 75%. The Polish economy underwent true shock therapy after 1989. Numerous state-owned enterprises collapsed, and new private businesses emerged in their place. Leading businesses grew, and have already achieved global recognition. We have made breakthroughs in many areas. After suffering centuries of poverty we could have hardly dreamt 15 years ago that one day our food would flood EU markets. We are also rapidly becoming a strategic logistical hub of the EU. Our companies are already the third-largest transport force in Europe, and the completion of the Via Carpathia will create a transport route along the Union’s eastern border, enabling us to fully utilise the potential of our expanding Baltic Sea ports.

Poland is also open to private investors – we hold the fifth position in Europe in terms of the value of new investments. The value of Foreign Direct Investment (FDI) in 2018 increased to USD 15.3 billion, with the largest participation of entrepreneurs from the USA and Germany. The emergence of a special kind of cooperation between the Polish and German economies is also worth noting. So far, statistical data have not confirmed forecasts according to which the economic downturn in Germany would significantly weaken the dynamics of the Polish economy. This means that a certain positive feedback effect has taken place instead. And we can look forward to the further development of our relations in the future.

Cris, what crisis? Reporting ‘good news’ is one our top priorities here at "Polish Market". But we do not wear rose-tinted glasses, but rather choose to steer clear of bombarding readers with visions of doom and gloom so common now among the commercial media. And the word ‘crisis’ – according to the PWN Polish Language Dictionary – is a breakthrough moment in the course of a phenomenon, a moment when it is decided whether a given matter or action will proceed further, will be modified, or come to an end. So let’s look on the bright side, because that is all it takes to help us change things for the better.

Krystyna Woźniak-Trzosek Editor-in-Chief President of Rynek Polski Publishers Co. Ltd.

5/2019 polish market

3

69 THE INTERNATIONAL OPERA AWARD GOES TO...

ECONOMY

52 FOURTH INDUSTRIAL REVOLUTION CREATING THE

FUTURE- PROF. ELŻBIETA MĄCZYŃSKA, PRESIDENT, POLISH ECONOMIC SOCIETY

55 THE VOICE OF 500 EXPERTS 56 EUROPEAN ECONOMIC CONGRESS IN KATOWICE 58 POLAND-CHINA ECONOMIC COOPERATION FORUM 60 ENGINEERING MEETINGS - EWA MAŃKIEWICZ-CUDNY, PRESIDENT, FEDERATION OF SCIENTIFIC AND TECHNICAL ASSOCIATIONS NOT

62 TARNÓW - THE BEATING HEART OF INNOVATION 64 GOVERNMENT PLANS AND BUSINESS EXPECTATIONS

70 STAY IN STYLE- KRZYSZTOF SZADURSKI, PRESIDENT, SYRENA HOTELS GROUP

ART AUCTIONS

73. UNDER THE HAMMER ORGANIC FOOD

74. AN APPETITE FOR THE SLOWEST OF SNACKS CEO AFTER HOURS

76. JUST RUN - MICHAŁ MROWIEC, DEPUTY PRESIDENT, KOMPANIA PIWOWARSKA

CULTURE

66 CULTURAL MONITOR 68 JEWELS IN THE CROWN - MACIEJ PROLIŃSKI

5 (284)/2019

WALDEMAR DĄBROWSKI

77 JAN MAZUREK, MICHAEL STRÖM ECONOMIC MONITOR

PUBLISHER: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o.

(RYNEK POLSKI Publishers Co. Ltd.)

Polish Market :: 5 (284) /2019

PRESIDENT: Krystyna Woźniak-Trzosek

international relations • infrastructure • economy

port of gdynia

- Baltic leader

2018 went down in history as a record year.

January figures demonstrated that the Port of Gdynia is growing in strength.

Cover: Port of Gdynia Photo source: www.shutterstock.com, www.commons.wikimedia.org unless otherwise stated

CONTRIBUTORS: Agnieszka Turakiewicz, Mirosław Wdzięczkowski

VICE - PRESIDENTS: Błażej Grabowski, Grażyna Jaskuła

GRAPHIC DESIGN: Agnieszka Charuba, Joanna Wiktoria Grabowska

ADDRESS: ul. Elektoralna 13, 00-137 Warszawa, Poland Phone (+48 22) 620 31 42, 652 95 77 Fax (+48 22) 620 31 37 E-mail: info@polishmarket.com.pl

SALES: Phone (+48 22) 620 38 34, 654 95 77 Marketing Manager: Magdalena Koprowicz m.koprowicz@polishmarket.com.pl

EDITOR-IN-CHIEF: Krystyna Woźniak-Trzosek

DTP: Lili Projekt www.liliprojekt.pl

DEPUTY EDITORS-IN-CHIEF: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl

PRINTING: Zakłady Graficzne TAURUS – Roszkowscy Sp. z o. o., www.drukarniataurus.pl

Jerzy Mosoń j.moson@polishmarket.com.pl ENGLISH EDITOR: Rafał Kiepuszewski

Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o.

Nr KRS 0000080385, Sąd Rejonowy dla m.st.

Warszawy XII Wydział Gospodarczy Kapitał zakładowy 80.000,- zł.

REGON 011915685, NIP 526-11-62-572

WRITERS/EDITORS: Jan Sosna, Maciej Proliński, Jerzy Bojanowicz, Jan Mazurek, Andrzej Kazimierski, Janusz Turakiewicz, Janusz Korzeń

Published articles represent the authors’ personal views only. The Editor and Publisher disclaim any responsibility or liability for their contents.

Unsolicited material will not be returned. The editors reserve the right to edit the material for length and content. The editors accept no responsibility whatsoever for the content of advertising material. Reproduction of any material from this magazine requires prior written permission from the Publisher.

PU B LISHED SIncE 199 6 No. 5 (284) /2019 :: www.polishmarket.com.pl

TRANSLATION: Sylwia Wesołowska-Betkier, Agit

SME

PRESIDENT

STRONG ALLIANCE

U

S President Donald Trump is scheduled to meet Polish President Andrzej Duda in Washington on June 12, the White House has announced. The visit will reaffirm the longstanding historical and cultural ties between the United States and Poland, particularly in view of the 80th anniversary of the start of the second world war. The two heads of state are to discuss the growing Polish-US strategic partnership and a range of mutual interests, including defence, security, energy, and trade. Warsaw and Washington will also celebrate the 20th anniversary of Poland’s membership in NATO and the 30th anniversary of the fall of communism, according to a statement issued by the White House press secretary. In response to the announcement, head of the Polish President's Office Krzysztof Szczerski said: "We express satisfaction with the confirmation by the White House of the date of the presidential couple's visit to Washington." The Polish president is to spend June 12 in Washington, followed by a tour of Texas, Nevada and the Silicon Valley. He will be accompanied by a group of entrepreneurs and representatives of Polish start-ups.

EU EXPANSION BENEFITS ALL OF EUROPE

(Sources: polskieradio24.pl, president.pl, PAP)

F

ifteen years ago, Poland and nine other countries became members of the EU. That expansion came five years after we joined NATO. With those developments, the bloc finally broke through the cold war era division, Polish President Andrzej Duda wrote in a statement for the Financial Times. Poland has largely benefited from our EU membership. So have our partners in western Europe.

We embraced free markets and invited foreign investors, setting up an extremely favourable business environment. We must sustain these positive trends and take full advantage of Central Europe’s potential amid new challenges, including the UK’s vote to leave the EU. That is why Poland and Croatia have pushed for the Three Seas Initiative – a regional forum of twelve EU countries located between the Adriatic, Baltic and Black seas. We are seeking to integrate central Europe along a north-south axis and contribute to Europe’s cohesion and development. The combined gross domestic product of Three Seas Initiative countries is EUR

6 polish 6 polish market market

FAMILY 500+ PROGRAMME

1.7 trillion and it is expected to grow 2.4 per cent annually by 2030. Poland itself has seen its GDP rise by more than 800% since 1989 – it has seen the fastest growth in Europe. In 2017 and 2018, we averaged 5% growth per annum.

We are thinking big when it comes to providing Europe with the security it needs to flourish peacefully. We are part of a group of nine countries on NATO’s eastern flank, known as the Bucharest 9. These two projects have received across-the-board political consent from the participating countries. We are witnessing a rise of a new generation of European policy makers, we have entered a new chapter whereby the political elites of Central European countries are vigorously pro-European and pro-transatlantic, and we have proven that when we meet as a group, we can come up with serious ideas we wish to implement. My wish is that every European nation will one day, sooner or later, have the same opportunity as we did – to democratically say “yes” to Europe. (abridged)

P

resident Andrzej Duda has signed an amendment to a piece of legislation which extends the scope of welfare benefits under the Family 500+ programme. "This law brings us closer to achieving a goal which I set for the presidency, namely, to raise the quality of life for an ordinary Polish family," Andrzej Duda said.

"If we want to follow the same direction in which Western Europe is headed, these types of benefits in support of the family must be introduced. This is the standard in Western countries, he noted." In addition to earlier benefits, monthly benefits will now be paid to all children regardless of a family’s income. The Act includes support for the charges of children’s homes and institutional forms of foster care.

PRIME MINISTER

UPHOLDING EUROPEAN VALUES

P

rime Minister Mateusz Morawiecki said that, 15 years since Poland joined the European Union on May 1 2004, it stands at the forefront of European economic growth. “We are now able to catch up with the countries that joined the Union many years before us and never experienced communism. Our businesses compete with European companies as equals. Being a member of the European Union does not mean, however, that we should abandon Polish interests. Over the last 15 years, we have had to strengthen our position. At times, compromises had to be made. At other times, our values had to be upheld. That is the spirit of the European Community. New decades await the United Europe. It is now time for all Poles to attain the European living standard. This should be the common goal for all political parties present in the Polish and the European Parliaments. We effectively create new European alliances. We find support for strategic projects, such as the extension of the LNG terminal in Świnoujście and the Baltic gas pipeline. Through investment projects such as the Via Carpathia and Via Baltica, we create a genuine basis for the development and safety of our part of the continent.

It is a Polish contribution to strengthening integration. Together we will fight for an EU that protects the weakest, promotes creativity, allows dreams to come true and guarantees economic freedom, freedom of expression, freedom from poverty and exclusion, and personal freedom.” Prime Minister Mateusz Morawiecki said.

CROSSROADS OF MODERNISATION

P

rime Minister Mateusz Morawiecki took part in a discussion on the opportunities and challenges facing Poland in Europe. He said that it is wrong to believe that the state apparatus should regulate everything, but the lack of state support policies had led to the weakening of many areas of public life e.g. in rural areas following the collapse of communism.

“We believe that a modern industrial policy is the cornerstone of the new economy. It is also worth focusing on exports.” Mateusz

“

IT IS NOW TIME FOR ALL POLES TO ATTAIN THE EUROPEAN LIVING STANDARD. THIS SHOULD BE THE COMMON GOAL FOR ALL POLITICAL PARTIES PRESENT IN THE POLISH AND THE EUROPEAN PARLIAMENTS.

Morawiecki said that Poland is not ready to adopt the euro. Given considerable gaps in development, such as between Poland and Germany, it is difficult to recommend integration into the single European currency at the present moment, because it would be a risky experiment. He observed that the flow of services is hindered in the European Union. While French, German and Dutch companies are enjoying complete freedom in Poland, Polish entrepreneurs face many obstacles when they become competitive in other countries, he noted.

NOT JUST ANOTHER AIRPORT

D

uring a presentation of the railway component of the Solidarity Transport Hub to be built in central Poland, Prime Minister Morawiecki said “it is a huge logistical undertaking which will contribute to multiplying the country’s development opportunities,” The hub is to include Poland’s largest airport, which is meant to serve as a transfer point for

passengers from other countries, as well as serving Polish travellers. Building the railway network, which is meant to connect the airport with most of Poland’s urban areas, is to involve the modernisation of the existing infrastructure and the construction of 1,600 km of new lines. Among the advantages of the programme, the Prime Minister listed a comprehensive improvement of transport links and the elimination of transport exclusion in a number of regions. “It is the first programme of new railway construction in Poland in over 30 years. It can become the transport and business heart of Poland,” he said. The presentation was attended by the Minister of Infrastructure Andrzej Adamczyk, Deputy Minister and Government Plenipotentiary for the hub Mikołaj Wild and acting CEO of the CPK company Piotr Malepszak. In a related story, the Prime Minister also took part in the inauguration of expansion and modernisation work on Radom airport 100 kilometres south of Warsaw. Currently the Polish capital has two airports, the Chopin airport and Modlin airport to the north of the city.

5/2019 polish market

7

POLAND THE CENTENARY OF REGAINING INDEPENDENCE

THE ROYAL CASTLE

IS UNIQUE ON THE POLISH AND EUROPEAN SCALE Maciej Proliński in conversation with PROF. WOJCIECH FAŁKOWSKI, Director of the Royal Castle Museum in Warsaw Professor, it is not an exaggeration to say that culture is one of the best Polish brands.

In this special time of celebrating the 100th anniversary of Poland’s regained independence, and other important anniversaries, do you think we have reached a higher level of discourse on Polish culture? Have we demonstrated its true value to the world?

The 100th anniversary of regaining independence was, and still is, a great, natural occasion for commemorating Poland's striking out for independence, which took some years – after all it was not just that one month, November of 1918. Previously, Poland had survived long decades of partitions, thanks to two factors – a strong national identity and the appeal of Polish culture. Bringing out this message and preserving it is now, in my view, the Polish reason of state. This is because PM

8 polish market

contemporary civilisation supports uniformisation – fashion, global exchange of information, production carried out on a mass scale…

However, I think that now, in the present circumstances, we should begin to emphasise the elements which contribute to a certain idiosyncrasy, distinctiveness, a different form and content of a given culture. If we want to achieve economic success, we must simply remember how to bring out the most vital elements in Polish culture. This anniversary is a perfect opportunity to show not only Poland’s reappearance on the maps of Europe, but also to show the world the vital power of Polish culture, and how much our culture is rooted in European culture and civilisation.

This, of course, must be connected with presentations, in our museums and other showpiece locations, of Polish artists who are the most valuable for European culture.

“

OUR RECREATED HISTORIC INTERIORS ARE ALSO OF VALUE. WE SURELY MUST CREATE A BALANCE BETWEEN THESE ASSETS AND THE NEW MEDIA, NEW WAYS OF COMMUNICATING WITH ART LOVERS"

POLAND THE CENTENARY OF REGAINING INDEPENDENCE

The Castle takes special care to ensure that Polish culture and history are presented in a spectacular and appealing way. It also collects works of European culture, in order to demonstrate that all this is a fascinating, continuous, whole. The Castle intends to create an ambitious and attractive background for European culture in Poland. Its plans include the creation of the Gallery of European Sculpture.

We have just purchased the late-16th-century busts of Emperor Charles V and his son Philip II. A guide to European monarchs in the castle interiors will be launched, along with presentations on historical connections between the Polish residence of kings and the most renowned rulers and great monarchies of Western Europe. On the one hand, this will create a background for political and economic meetings, and on the other it will demonstrate the unity of European culture, with Poland in the foreground.

This year marks the 400th anniversary of the completion of the Castle's redevelopment ordered by King Sigismund III Vasa from the dynasty which ruled the Kingdom of Sweden (1523-1654), and the Polish–Lithuanian Commonwealth (1587–1668). Due to this exceptional anniversary, the year 2019 was declared Vasa Year. Let us talk for a while about this anniversary, which is surely less obvious, and on the ways of commemorating this event together… It greatly contributes to this natural, fascinating, dialogue between Polish culture and European culture.

We owe the current form of the royal residence in Warsaw to the architectural redevelopment from the times of King Sigismund III Vasa. The Vasa epoch, which substantially shaped the castle, was a thoroughly European epoch in terms of contacts, and adopting and exchanging models between Western Europe and Poland. This is a perfect opportunity to widen the perspective. The Royal Castle is associated with the 18th century, with the times of king Stanisław August Poniatowski. This year we would like to bring back its earlier history associated with the Vasa dynasty. With the architectural transformation which took place 400 years ago, the Castle became not only the King’s seat, but also a new location for the Polish Parliament and Senate sessions, and a centre of the political and cultural life of the 17thcentury Polish Republic.

This special year is being celebrated in the Castle through a series of diverse events. The first of these, the exhibition was entitled the King is Getting Married. The Stockholm Scroll – the Treasure of the Royal Castle in Warsaw the scroll was displayed from 5 February to 10 PM

March in the Royal Library. The 15-metre Stockholm Scroll was created more than 400 years ago. It shows the ceremonial entry into Kraków of the wedding procession of King Sigismund II and Archduchess Constance of Austria. The study on paper made by an anonymous artist (or group of artists) using the watercolour and gouache technique with gold paint, depicts the procession attended by nearly 600 people. We presented this priceless document to the Castle's visitors for only the second time in our history. The second exhibition in the Castle planned for 2019 will be To Rule and to Dazzle.

Jewels and Jewellery in Poland in the 16th and 17th Centuries, to be opened in late May. The exhibition will be the first in the history of Polish museology devoted to jewels in the Polish–Lithuanian Commonwealth. The exhibition’s aim is to answer the question of whether any typically Polish characteristics can be identified in the noble jeweller's profession. The event goes beyond the usual exhibitions staged at the Castle. The 2019 Vasa Year will be concluded with the exhibition The World of Polish Vasa Rulers.

Space – People – Art, to be held from 24 October 2019 to 14 January 2020. Eleven rooms of the Royal Castle will house almost 300 objects of art and crafts, and documents. The pride and keystone of the exhibition will be a selection of fine portraits of the Vasas and their relatives from European collections, i.e. from Madrid, Vienna and Stockholm. Important elements in the programme for 2019 are also regular educational events for children and adults, and our new publications.

The Royal Castle in Warsaw is a grand place, where history meets the present. One does not need any special recommendation to want to visit it. As a symbol of the identity of Poland and the Poles, and as a brand, for years it has been an attraction on the map of leading cultural institutions in Poland, and also one of the most popular museums.

What are the major challenges you're facing today as the museum’s director?

As far as the museum is concerned, this is certainly the continuation of the Vasa Year. Next springwe are planning a supplementary exhibition on the subject, devoted to Tommaso Dolabella, a famous painter from the Vasa court, one of the major Baroque painters in Poland, who worked in Poland for Sigismund III Vasa, Władysław IV Vasa, and John II Casimir Vasa.

We are preparing the already-mentioned Gallery of European Sculpture. I must admit that we have long planned to do this. It is our intention not to limit the initiative to a series of sculptures of European monarchs, but also to include sculptures representing the style of the epoch, i.e. the 16th century. I hope that we will PM

be able to complete work on the gallery within the next 10 years.

I am familiar with your various achievements, but I would like to ask which of the already-completed achievements at the Castle is particularly important, in your opinion? At a time which still bears special significance for Poles, I think it is worth mentioning the great exhibition (in the literal and metaphorical senses) from late 2018 - Signs of Freedom. About the Endurance of the Polish National Identity…

I also regard Signs of Freedom as a great event, not only in terms of arts and museology, but also in the social dimension. The exhibition was not only presented in a recordbreaking number of 30 rooms, but it included almost 500 works of art acquired from a number of institutions and private collections, and several hundred documentary photographs.

This is also a monumental historical depiction, within a chronological framework from 1914 to 1989, the struggle to establish, defend, and reinforce national sovereignty, perceived as a reflection of the nature of national identity. There are two unique aspects to the exhibition. One is the symbolism, i.e. clear and moving symbols important in the contemporary discourse, our thinking about Poland. Another aspect is emotions. The exhibition was based on a chain of emotions which related to our Polish memories – personal, family memories, sometimes more distant, known only from textbooks and studies. For these reasons the exhibition was something extraordinary, worthy of unwavering attention… The exhibition occupied a vast part of the Castle, which is unprecedented, but thanks to this the Castle gained a new social dimension. Let us remember that the Castle is a museum devoted to the times of the Polish-Lithuanian Commonwealth up to the loss of independence. On the other hand, there is the social and symbolic mission of the Castle, which makes it unique on the national and European scale. We have many marvellous museums with vast collections, but none of them is so illustrious, full of symbols and meaning.

The exhibition was a great contribution to the mission and function of the Castle, strengthening it, and adding new accents to it. The magnitude of the feelings accompanying the walk around the exhibition rooms (through Polish history, as this was also a lesson in Polish history, and at the same time an exhibition of works of art) was really something special.

PM

PM

We are talking just after the opening of the reconstructed Lower Garden of the Castle.

This is at the same time the conclusion of the post-war process of reconstructing the 5/2019 polish market

9

POLAND THE CENTENARY OF REGAINING INDEPENDENCE

Royal Castle, and a beautiful uniting element… also in the discussion of the history and the present of the place…

The Lower Gardens complete the reconstruction of the Castle, and, in fact, of the Old Town in Warsaw. This is the third stage of work after the revitalisation of the Upper Garden, which was opened in 2015, and the reconstruction of the Kubicki Arcades, which opened in 2009. The Castle is now surrounded by splendid gardens on the Vistula side, which will certainly contribute to its appeal.

The recreated garden, in line with the design developed by the Ogród, Park, Krajobraz Studio owned by Jakub Zemła and Tomasz Zwiech, is already open to visitors free of charge. It makes a wonderful reference to the period after regaining independence, and, soon after the outbreak of World War II, the castle garden, renovated after many years, regained its splendid appearance, with Adolf SzyszkoBohusz's design. For us it is a cause of celebration and a challenge. The Castle has opened up to the Vistula again, as it is our intention to encourage tourist traffic also on the lower side along the river.

PM

How are you planning to create a balance between new, popular, ways of communicating with art lovers through technology and the formula of the place?

10 polish market

Contemporary museums are not only about science, i.e. gathering and collecting, but also about seeking relationships – creating a vast artistic environment for these places. In the past they used to be very elitist; now the largest museums in the world are visited by several million people a year. Cultural institutions, including museums, are now the most reliable and appealing point in each tourist package. Thus our programmes are also extensive.

We are introducing musical events, festivals, and a series of concerts, on a large scale, and releasing a number of publications, which constitute a very strong addition to our activities.

We will certainly make use of all the stateof-the-art technologies, such as the Virtual Museum. These are instruments which should be in place in a contemporary museum, not to replace direct contact with art and masterpieces, but to assist people in opening themselves up to art and to supplement their knowledge about it… Undoubtedly, experiencing the works of art gathered in the Castle requires some background knowledge of complex Polish history.

Our recreated historic interiors are also of value.

We surely must create a balance between these assets and the new media, new ways of communicating with art lovers. To build a bridge between history and, for instance, multimedia.

Let us remember that young people are today the most voracious recipients of art, and many

of our initiatives are meant to satisfy them.

This is where the new media, touchscreens, and smartphone apps come into play. But, as I said, their function is not to replace but to supplement…

The Royal Castle in Warsaw is known for its fruitful cooperation with private patrons. What is your recipe for success in this matter?

Our cooperation with private sponsors is successful. We don't treat it as an additional task, but as an integral part of our activities.

We monitor the expectations of the sponsors, we treat them very seriously. This exchange of materials and intangible assets should be based on complete respect and trust between both parties. I must admit nowadays it is quite difficult to attract these generous visionaries. For instance, we are seeking sponsors for purchasing works of art for the Castle Museum. Now is quite a special time, in my opinion, awaiting the mass purchases of outstanding works of art by rich buyers from Asia and the Middle East, that is when these works are still available at relatively affordable prices. If we had a stable group of rich private sponsors who would be willing to buy works of art for the Castle Museum, we would be very grateful, and honour them appropriately.

• PM

POLAND THE CENTENARY OF REGAINING INDEPENDENCE

National Performance 2019

IN TRIBUTE TO MONIUSZKO 5 May 2019 marked the 200th anniversary of the birth of Stanisław Moniuszko, an outstanding composer, teacher, conductor and organist, called the father of Polish national opera, Director of Teatr Wielki in Warsaw, composer of operas, operettas, ballets, cantatas, and nearly 300 songs, and a great patriot who lived in difficult times, when Poland was not an independent country. On this day, the Office of the President of the Republic of Poland invited the public to attend a several-hour-long concert entitled "Viva Moniuszko", held in the courtyard of the Presidential Palace, featuring artists representing various musical styles and genres, including symphony orchestras, soloists, singers, jazz bands, and folk bands, all inspired by Moniuszko's works.

Photo. Krzysztof Sitkowski /Office of the President of Poland

Maciej Proliński

P

resident Andrzej Duda, who attended the finale of the concert, said: “Thank you for your presence, for coming here today to the Presidential Palace courtyard, to this National Performance. (...) I would like to thank the performers, outstanding artists, for their extraordinary arrangements, and beautiful presentations of the works belonging to the oeuvre of undoubtedly one of Poland’s greatest masters of music - Stanisław Moniuszko. (...) His music has specific elements of our folklore, our culture, and our customs. And for this reason, Moniuszko’s music is so strongly imbued with the Polish character. It is safe to say that it is our national music.”

Prof. Piotr Gliński, Deputy Prime Minister, Minister of Culture and National Heritage, who also attended the finale of the concert, wrote a special letter on the occasion of this 200th anniversary.

“Ladies and Gentlemen, Dear Music Lovers, 5 May 2019 marks the anniversary of Stanisław Moniuszko's birth. Despite his extensive contribution to European culture, this ingenious composer, composer of extraordinary operatic works, outstanding songs, profound religious music, and beautiful pieces of chamber music, is yet to be discovered by the world of music. (...) On this special year, declared to be the Year of Stanisław Moniuszko by the Polish Parliament and the UNESCO Council, we not

only have the chance to recall the achievements of one of the greats of 19th Century Polish culture, but we can also do much more, thanks to the involvement of numerous artistic institutions and circles. We can experience a real aesthetic satisfaction by attending a wide range of concerts, operatic, and ballet performances, or through numerous music sheet publications, books and records. Let us listen to Stanisław Moniuszko's works now and in the future. They are more than worth it,” reads the letter.

A colourful, and stylistically diverse concert entitled "Viva Moniuszko", directed by Robert Kamyk, was one of a series of musical events inaugurated on that day as part of the celebrations of the Year of Moniuszko. During the six-hour-long concert in Warsaw, we could listen to many well-known songs and arias by this distinguished Polish composer. The audience had the chance to listen to music, sing, and even dance. The event featured, the Polish Radio Orchestra, conducted by Michał Klauza, the Warsaw Sentimental Orchestra, the Jerzy Semkow Polish Sinfonia Iuventus Orchestra conducted by Marek Broniszewski, Janusz Prusinowski and his Kompania ensemble, and actors from the Stefan Jaracz Theatre in Olsztyn. Soloists representing the world of classical music included Jolanta Pszczółkowska-Pawlik, a pianist and a fervent promoter of Moniuszko’s works, winner of "Polish Market's" Honorary Pearl of the Culture category in 2018, who focused on the song repertoire, and young singers who presented Moniuszko's songs - some well-known, and some which had been forgotten.

Jolanta Pszczółkowska-Pawlik has been a teacher at the Department of Vocal and Acting Studies at the Fryderyk Chopin University of Music in Warsaw for over 20 years. The concert also featured young artists who engaged in a dialogue on this crucial matter of Moniuszko's oeuvre, and performed with Ms Pszczółkowska-Pawlik on that day, and with whom she has cooperated for years when giving concerts and recording music, including Karolina Róża Kowalczyk–soprano, Elwira Janasik– mezzo-soprano, and Katarzyna Szymkowiak–mezzo-soprano, as well as her talented students, Andrzej Lenart–baritone, Mateusz Michałowski– bass, Karol Skwara–bass, Dionizy Płaczkowski–tenor, Donghao Qu– baritone, and Özgür Selim Gülder–bass-baritone. It was a real pleasure to listen to their interpretations, as we were taken to a colourful, and at times nostalgic, world, and we had no doubt that the name of this • world was Poland.

5/2019 polish market

11

INFRASTRUCTURE

MIKOŁAJ WILD,

Government Commissioner for the Central Transport Hub

CENTRAL TRANSPORT HUB POLAND ON A NEW TRACK

A

fter its completion, the Central Transport Hub (CPK) will be the largest junction for air and land traffic in Central and Eastern Europe. Thanks to the hub, Poland will be a transit and transhipment country for goods from Asia to Europe and the other way round. Huge logistics and transport infrastructure, especially rail infrastructure,

12 polish market

will be needed for this purpose. Poland and the area surrounding the cities of Warsaw and Łódź will become a location for investment of unprecedented scale in Poland.

For centuries cities and regions crossed by transport and trade routes have been growing rich and developing. It is for a good reason that towns and cities were built by rivers and seas in the times when waterways were

used for transport. At present, regions are seeking to boost their growth through the expansion of airports and high-speed railway systems. In this connection, one can mention the mega airports - newly built or now under construction – in Turkey, Korea, Singapore, China, Berlin, Moscow and near London. Chinese people have the saying: “If you want to be rich build a road first.” This is

INFRASTRUCTURE

how we should be thinking about investment projects associated with the CPK. In Poland’s case, the construction of an airport at a distance of around 38 kilometres from Warsaw will also produce an additional effect. It will mark the beginning of our thinking about connecting all parts of the country in a new transport system, with access to it ensured for all residents. We have neglected the development of rail infrastructure for a long time, which is a barrier to regional development. In our country, there are more than 100 towns and cities with populations larger than 10,000 without access to rail connections. As a comparison: there is only one such city in the Czech Republic, eight in Slovakia, six in Hungary and five in Austria.

Poland’s existing railway network still reflects to some extent the times of Partitions [when individual parts of Poland were occupied for over 100 years by its neighbours – ed.]. This can be seen, for example in the layout of railway lines and their lower density in eastern Poland.

At present, Poland has some 19,000 kilometres of railway lines. Unfortunately, more than 5,000 kilometres of lines have been dismantled since the early 1990s. Poland has seen no large-scale construction of railway lines since the 1980s when the LHS broadgauge line and earlier the CMK line were built.

Over the past 30 years only 50 km new railway tracks have been laid in Poland: 37 kilometres of the PKM urban railway line in the coastal Tri-city area and several connections to airports, for example to Chopin Airport in Warsaw and Lublin Airport.

The company responsible for the Central Transport Hub project (CPK Sp. z o.o.), the operator of Polish railway lines PKP PLK and the Ministry of Infrastructure have agreed that around 1,600 kilometres of new lines will be built under the project, with 140 kilometres to be constructed as stage zero, which should be completed before the central airport reaches its operational capability. Stage zero of the project will also include the construction of a new railway line linking Warsaw and the Łódź Fabryczna station via the CPK. It is the first stretch of the high-speed railway project, called Y, abandoned in 2012.

The CPK Programme is divided into stages to be carried out by 2040. The railway part of the programme is a web of new lines leading from 10 directions to the CPK and Warsaw.

Thanks to the network, it is to take no more than two hours to reach the central airport by rail from Poland’s largest cities, apart from the north-western city of Szczecin. Passengers

will comfortably travel from this city to the CPK in three hours and 15 minutes because of the distance. Convenient access to the CPK will also be possible from the border areas of the Czech Republic, Slovakia, Ukraine, Belarus, Lithuania and the Kaliningrad District.

Thanks to the CPK Programme, cities which so far cannot be reached by train will appear on Poland’s railway map. These include Jastrzębie Zdrój, Tomaszów Lubelski, Końskie, Busko-Zdrój, Dąbrowa Tarnowska and Węgorzewo. High-speed lines and “spokes” leading to the Central Transport Hub will make the railway network more coherent and will enable its full use. The Multi-Annual CPK Programme, which is to be ready this year, will point to specific airport, railway and road projects to be carried out to serve the Central Transport Hub and determine how much funding will be needed for this purpose.

Each “spoke” will be composed of new sections of the railway network and overhauled or modernised fragments of existing infrastructure. For the purpose of constructing this railway system the investment tasks have been divided between two companies: CPK Sp. z o.o., which is responsible for the airport project and the construction of new railway lines, and PKP PLK, which operates Poland’s rail infrastructure and deals with the modernisation of existing lines.

As regards the construction of high-speed lines – first between Warsaw and Łódź and then to Wrocław, Poznań and other cities – the initial assumption will be to adjust them for a speed of 250 kilometres per hour, with technical parameters making it possible to raise the speed in the future.

The benefits to be gained from the railway projects carried out under the CPK Programme are undeniable. Travel to the CPK from more than 100 Polish cities will take no longer than 2.5 hours. As a result, most of Poland’s important urban centres will get connected thanks to the CPK air and rail hub.

The Central Transport Hub is a project which provides new development boosts and will make Poland an attractive place to live and fulfil one’s career aspirations. The best Polish experts have committed their knowledge and experience to the success of this national programme. It is a programme carried out consistently and with a strategic vision. The investment project, planned for many years-as the idea emerged as early as the 1970s-and analysed by previous governments, is now reaching the stage of implementation.

•

“

IN POLAND’S CASE, THE CONSTRUCTION OF AN AIRPORT AT A DISTANCE OF AROUND 38 KILOMETRES FROM WARSAW WILL ALSO PRODUCE AN ADDITIONAL EFFECT. IT WILL MARK THE BEGINNING OF OUR THINKING ABOUT CONNECTING ALL PARTS OF THE COUNTRY IN A NEW TRANSPORT SYSTEM, WITH ACCESS TO IT ENSURED FOR ALL RESIDENTS. "

5/2019 polish market

13

INFRASTRUCTURE

G D Y N I A POLISH LEADER I N T H E B A LT I C

2

018 went down in history as the busiest year in the history of the Port of Gdynia. For the first time, it handled 23.5 million tonnes of goods and commodities. The boom continues, and in the first quarter of this year, an impressive 14% increase on 2018 figures was recorded. This significant increase in the amount of cargo handled from January to March has made the Port of Gdynia one of the leaders among ports in the Baltic Sea region. “The excelent results that we achieved in the first quarter of 2019 prove that the Port of Gdynia is a solid brand, known for its high quality and efficiency,” emphasises Adam Meller, President of the Port of Gdynia.

“It is a great success which highlights the efficiency of our port development. It also proves that the Polish economy is in good shape. We do our best to maintain the rapid growth rate, which is why we are implementing a broad investment programme. Our goal is to create the best possible working conditions of port terminals. It is a guarantee of further dynamic development.” The steady increase in cargo handling results and favourable forecasts for the coming years provide a solid foundation for the development of the Port of Gdynia. In the past three years, investments made or commenced in the Port of Gdynia have amounted to PLN 1.2 billion. An outer port worth about PLN 5 billion, is also in the pipeline. With an eye on opportunities offered by the New Silk Road, the Port of

14 polish market

Gdynia is undertaking a huge investment programme. It is building a new ferry terminal. It is enlarging the turntable, rebuilding the waterfront, deepening port basins, modernising railway tracks and developing modern warehouses. We want to respond to current market needs and prepare for what the future holds, Port of Gdynia Authority representatives say.

GRAND DESIGNS

The Port of Gdynia is a general-purpose port, as well as one of the leading ports in the southern Baltic. It specialises in handling general cargo, carried in containers and in the ro-ro system (roll-on roll-off loads and vehicles,) as well as bulk cargo which calls for specialised terminals.

In 2018, another record was set by the port in the handling of goods and commodities (23.5 million tonnes.) This year, further rise in cargo handling has been recorded. This perfectly fits into the port development strategy, according to which, by 2027 the cargo handling capacity is to amount to 44.5 million tonnes, as well as, actual transhipments to 32 million tonnes per year. To achieve this, the Port of Gdynia Authority is investing heavily in infrastructure.

So far, among other initiatives, turntable 2 has been enlarged in Basin 9, where ships measuring 366 meters can now dock. As a result, last February, the nearly 345 metre-long container ship hoisting the Danish flag, the Charlotte Maersk, called at the Port of Gdynia, the

“

DEVELOPMENT PLANS: THIS IS WHAT THE OUTER PORT WILL LOOK LIKE. IT WILL HAVE A 2,500 METRE LONG WHARF WITH A WIDTH OF 700 METRES." (WWW.PORT.GDYNIA.PL)

longest such vessel to date. However, more is in store. Ultimately, the turntable is to be enlarged to a diameter of 480 metres.

The port is also planning to expand its entry point facilities. For instance, the central part of the Outer Port is to be a container terminal with a cargo handling capacity of two million TEU (twenty-foot equivalent unit.). The project provides for a reserve area of a further 0.5 million TEU. The Outer Port will have a 2,500 metre long and 700 metre wide wharf. Plans also include a small LNG terminal for direct bunkering of ships, and the construction of

INFRASTRUCTURE

Comparison of containers handling in the Port of Gdynia in Q1 2018 and Q1 2019

an LNG power station. “This is the biggest investment project in the modern history of the Port of Gdynia, aimed at increasing the cargo handling capacity and strengthening the competitive advantage of the port in the Baltic Sea region,” emphasises Adam Meller, President of the Port of Gdynia Authority.

250 000

INTERMODAL ACTIVITIES

NEW TRENDS

In view of the port’s location, its main competitors are the ports of the southern and eastern Baltic, namely Lübeck, Rostock, Klaipeda, Ventspils and Riga. Nevertheless, the fact that the Port of Gdynia handles 23 % of the total cargo mass handled by four Polish ports, gives it a competitive edge. It develops ferry

Handling in TEU

200 000

229 384

150 000

192 510 100 000

50 000

0

Containers

Q1 2018

Q1 2019

Comparison of cargo handling in the Port of Gdynia in Q1 2018 and Q1 2019 in thousand tonnes 7 000,0 6 055,7

6 000,0 5 311,5 Handling in thousand tonnes

The Port of Gdynia has obtained EU financing to the tune of PLN 237 million for the project from the Centre for EU Transport Projects.

Its main purpose is to deepen the port area to a depth of 16.5 meters, which will allow the largest ships, currently operating in the Baltic Sea, to call at the port. Last February, work also began on the new Public Ferry Terminal, which will serve large ferries with lengths up to approx. 240 m, and will make it possible to increase the frequency of ferry services. This is primarily in response to the ever-growing passenger traffic and trade exchange with Scandinavia. In the western part of the Port of Gdynia, 7,000 metres of railway tracks are to be upgraded and electrified, which will increase the efficiency of the railway terminal.

This project, worth over PLN 65 million, will be ready by the end of 2020. “The new warehouse is the first of the four warehouses planned, which will be one of the key elements of the Intermodal Logistics Centre,” says Grzegorz Dyrmo, Vice President of the Port of Gdynia Authority. The Multimodal Platform - "Logistics Valley" Development Project is also being implemented,with respect to which, the port is expanding its boundaries to include part of the Logistics Valley area, covering an area of over 260 hectares, located in the Kosakowo commune. In this way, a zoned area will be created, based on the Transport - Forwarding - Logistics sector, which will provide service facilities for the port. All these activities should bring in fresh investments, increase employment and improve the business environment at the port and its adjoining areas.

This, in turn, is bound to translate into more jobs and better demographic prospects. Like many other Polish cities, Gdynia is struggling with negative trends such as an aging population and migration to neighbouring municipalities. Investments in the Port of Gdynia could well check these negative phenomena.

5 000,0 4 000,0 3 324,8

3 583,8

3 000,0 2 000,0 1 000,0 0,0

658,9

889,7

Coal and coke

229,0

278,8

Other bulk

594,1

822,1 206,4

Grain

Wood Q1 2018

services, including the Gdynia – Karlskrona Motorway of the Sea. The Port of Gdynia boasts the biggest share in the handling of grain and animal feed; it provides excellent infrastructure for ro-ro vessels with road and rail access, as well as offering excellent navigation conditions, because this part of the Baltic Sea never freezes. There are no tides here, either. Gdynia bets on passenger traffic, following the latest trends (sea tourism is currently one of the fastest growing tourism segments in the world). While the neighbouring Port of Gdańsk is leader in terms of the number of vessels which call there, Gdynia is the undisputed leader in the number of passengers served, over 100,000 last year. Gdynia is currently the only Polish seaport able to receive the largest cruise ships, which cross

298,3

150,4 General cargo

330,9

Crude oil & petroleum products

Total

Q1 2019

the Baltic Sea, Port of Gdynia Authority representatives point out.

The Port of Gdynia sets new trends. For example, it is the only port in Europe and one of the world's three which boats the most advanced ship guidance mechanism, RTK-GBS. The system determines vessel position with an accuracy of a few centimetres, which does not just guarantee safety, but also optimises the loading and unloading processes through automation. LNG bunkering facilities are also available. This "fuel of the future," which modern ships are increasingly using, emits less pollution into the atmosphere during combustion than, say, coal. The possibility of LNG bunkering positions Gdynia alongside Gdańsk, on the list of green ports of the TEN-T core network.

• 5/2019 polish market

15

CHINESE-POLISH COOPERATION

P O RT S

ARE KEY FOR I N T E R N AT I O N A L TRADE Seaports perform many functions, making a significant contribution to the functioning and development of the state’s entire social and economic system. Their functions encompass transport, cargo handling, industrial and commercial functions related to fisheries and tourism as well as national defence and security.

MAREK GRÓBARCZYK, Minister of Maritime Economy and Inland Navigation

T

he relationships between ports and the national economy are many and they are very strong. Suffice it to say that without well-functioning port structures, the economic potential of the state cannot be fully exploited. In many cases, ports are key links in international logistical chains which take part in the securing of raw materials supplies, semi-finished products, manufacturing components and finished products for various manufacturers, trading companies and service providers. They are indispensable for a large number of importers and exporters who operate in the international arena, often globally. In fact, there is often no substitute for sea transport, shipping and ports.

UNCTAD and International Chamber of Shipping data show the scale of the involvement of maritime transport in global trade. According to the International Chamber of Shipping (ICS,) 90% of world trade is conducted with the use of sea transport. The latest available United Nations Conference on Trade and Development data for 2017 indicate that some 11 billion tonnes of cargo were shipped worldwide using sea transport. It is expected that by 2023, its growth rate will remain at almost 4%. This means that sea transport will carry even greater loads. Mind you, this form of transport is already recording unprecedented results. By comparison, in 2010, some 8.5 billion tonnes of goods were transported by sea as part of world trade.

16 polish market

Excellent cargo handling results are also recorded by Polish seaports. In 2018, when this country celebrated the 100th anniversary of regaining its independence, over 100 million tonnes of goods and commodities passed through Polish seaports. It was a touching and very meaningful symbol.

Polish seaports, led by the largest ports of major significance for the national economy - Gdańsk, Gdynia, Szczecin and Świnoujście, help Polish entrepreneurs gain competitive advantages. They participate in their expansion into new, often very distant markets. In a way, they bring business partners closer together and also contribute to Poland’s security (including economic and energy security.)

This crucial importance of ports for the whole country, including its business, society, etc., is perfectly reflected in the amount of customs duties, taxes and excise duties collected by the ports’ customs services, as well as in the statistical value of goods cleared.

According to National Revenue Administration statistics for 2018, a sum of PLN 40.6 billion was collected, including VAT, customs and excise duties collected at sea border customs offices. The value of goods and commodities cleared approached PLN 101.4 billion, which accounts for several percent of the total value of state revenue, as well as of the entire GDP. And that’s a lot of money.

By all indications, these figures may be exceeded in the coming years. Thanks to a wide range of investment, legal, commercial and other activities pursued by the maritime administration and other entities, Polish seaports are becoming more and more modern.

Their range of services is expanding, making it possible to handle more and more goods and commodities.

A strategic goal set out in a government programme drafted by the Ministry of Maritime Economy and Inland Navigation, entitled "The development programme of Polish seaports until 2030," is to strengthen the position of Polish seaports as leaders among seaports of the Baltic Sea basin. They are meant to act as key hubs in global supply chains for Central and Eastern Europe. Their participation in Poland’s social and economic development is to be increased.

To achieve this, investment in outer ports is planned: the Central Port in Gdansk, the Outer Port in Gdynia, and the Container Terminal in Świnoujście. Improved sea access to ports is to be provided through the modernisation of the Świnoujście-Szczecin waterway, which is to reach a depth of 12.5 m, and the construction of a canal which will connect the Vistula Lagoon with the Gulf of Gdańsk. There is no doubt that these investment projects will not just serve to stimulate the development of the ports themselves, but also of the entire national economy.

•

INFRASTRUCTURE

THE FUTURE OF SUSTAINABLE

TRANSPORT

“

THE MINISTER OF THE MARITIME ECONOMY AND INLAND SHIPPING MAREK GRÓBARCZYK HAS EARMARKED PLN 25 BILLION FOR THE DEVELOPMENT OF PORT INFRASTRUCTURE."

5/2019 polish market

17

INFRASTRUCTURE

I

n line with the Sustainable Transport Strategy until 2020 (with an outlook toward 2030), which was discussed in greater detail in “Polish Market” 283/2019, the Polish government envisages further economic development, which cannot be achieved without a well-functioning infrastructure. Under the strategy, by 2020 Poland is to have 2,000 km of motorways, 2,800 km of expressways and 350 km of railway lines where passenger trains will be able to travel at a speed of 160 km/h. 41 million passengers are to be served by Polish airports and 60 million tonnes of cargo are to be handled by seaports. When it comes to the latter, not only are the financial results of the most important seaports for 2018 very satisfactory, but also the first quarter of 2019 shows that they are performing very well in the competitive Baltic market. It is thus not surprising that the Minister of the Maritime Economy and Inland Shipping Marek Gróbarczyk has earmarked PLN 25 billion for the development of port infrastructure. This will include investment projects, i.e. improvement of inland and sea access, development of quays, construction of new terminals and deepening of waterways.

The priority projects are the construction in Gdańsk of the Central Port and outer port, a public ferry terminal in Gdynia, a shipping canal across the Vistula Spit, deepening of the SzczecinŚwinoujście waterway to 12.5 meters, construction of a new container terminal in Świnoujście and reconstruction of the entrance to the port in Ustka.

How is the sum of some PLN 25 billion going to be distributed among the main players? According to the Polish Press Agency, PLN 8.6 billion is to go to the Port of Gdansk, PLN 4.5 billion to the Port of Gdynia, and PLN 9.5 billion to the Ports of Szczecin - Świnoujście.

“We hope that thanks to this Polish ports will be able to handle twice as much cargo,” says Minister of Maritime Economy and Inland Shipping Marek Gróbarczyk. He quotes specific figures- within the next few years 200 million tonnes of cargo are to be handled.

In 2018, the three largest Polish ports: Gdańsk, Gdynia and Szczecin-Świnoujście, broke a historic record of shipments, amounting to over 101 million tonnes, which was 16% up on 2017. These figures translated into higher tax revenue from VAT and customs duties. According to the Ministry of the Maritime Economy and Inland Shipping, in 2018 it amounted to PLN 40.6 billion, which was 65% more than in 2017.

PORTS OF SZCZECIN-ŚWINOUJŚCIE

In 2018 the ports handled 28.6 million tonnes of goods and commodities, an increase of 12.5% as compared to 2017. At the top of the two-digit growth list is coal (+61%), followed by ores (+30%) and fuels (+18%). Meanwhile, the amount of grains and cereals handled declined by 25%, and container handling was down 13%.

Interestingly, the amount of goods and commodities handled in the whole of 2017 (25.4 million tonnes) had already been exceeded in November 2018. Dariusz Słaboszewski, President of the Szczecin and Świnoujście Seaports Authority, told a press conference that this record achievement is a source of motivation for the further development of the two ports.

In fact, in the first months of this year, the ports performed 8% better in terms of goods shipment than in the corresponding period of 2018. Both ports have so far handled over 7.3 million tonnes of cargo.

18 polish market

Growth leaders are coal, fuels and other bulk products, whose shipments grew by 25.2, 27.1 and 17.6% respectively. The ports recorded a bigger turnover of coal and coke, both in imports and exports. In the case of fuels other than LNG, more inbound and outbound vessels carrying diesel fuel and heavy oils called at the two ports. More shipments of fertilisers, phosphate, pig iron and aggregate were also handled. In the first quarter of this year, shipments of ores, cereals, and containers declined by 29.8%.

PORT OF GDYNIA

2018 went down in history as a record year. In the Port of Gdynia, a total of 23.5 million tonnes of cargo were handled. An increase of more than 10% was recorded, compared to 2017. In 2018, timber topped the cargo list. An increase was also recorded in general cargo shipments and containers as well as bulk cargo.

There was a slight decrease in the amount of fuels handled by the Port of Gdynia.

The amount of cargo handled by the Port of Gdynia is on the rise. January figures demonstrated that the Port of Gdynia is growing in strength. A significant increase of over 20% was recorded. This trend was confirmed by the Port's results in the first quarter of 2019 - 14% more goods and commodities were handled compared to the first quarter of 2018. The pace of cargo growth has made the Port of Gdynia the leader among Polish ports in the Baltic Sea region.

"Our very good results prove, above all, that the Port of Gdynia is a good brand, known for its high quality and cargo handling capacity," Adam Meller, President of the Port of Gdynia Authority, said.

PORT OF GDAŃSK

There are no surprises there, either. 2018 was a record year, too. The Port of Gdansk handled almost half of the goods and commodities transported via all Polish ports. In 2018, Gdańsk broke its own record. In 2017, 40.6 million tonnes of goods were handled. Last year the figure increased to over 49 million. This marked an increase of 20.7%. Łukasz Greinke, President of the Port of Gdansk Authority, told the news conference that the final result is almost 17% higher than planned. The port recorded particularly high growth in coal shipments, up by 41%, and general cargo, which increased by over 18%. The port also recorded an increase in fuels, up by 18%.

Last year's result of the Port of Gdansk propelled it up Baltic port rankings. It moved up two places to No. 4, preceded only by the Russian ports of Ust-Luga, St. Petersburg and Primorsk.

The target for 2019 is to reach the Top 3 in this ranking, despite ongoing investments. Nevertheless, cargo handling in the Port of Gdańsk in the first quarter of 2019 dropped by 3.4%, or 12.3 million tonnes. But in the five months to May, this negative trend looks likely to be reversed. It is very important for the Port of Gdańsk to maximise its cargo handling capacity.

Internal competition is as important as international competition. It is good news that Polish seaports can compete with other Baltic ports on an equal footing and actually outperform them. It is encouraging that the Polish government is investing in the improvement of infrastructure, which will undoubtedly give this country a competitive edge and attract direct investment both from domestic and foreign sources. The latest results clearly show that Polish ports have a great potential.

•

(Sources: “Polish Market” own reporting, Port of Gdynia, Port of Gdansk, Ports of SzczecinŚwinoujście)

INTERNATIONAL RELATIONS

MODERN

DIPLOMATIC OFFENSIVE Poland is often perceived in a different way than it deserves, in view of its economic successes.

How to change it? In an interview with Jerzy Mosoń, Secretary of State at the Ministry of Foreign Affairs SZYMON ANDRZEJ SZYNKOWSKI VEL SĘK, explains how to replace a defensive strategy with a proactive one.

This year we are celebrating two round anniversaries: the 15th anniversary of Poland’s accession to the European Union and the 20th anniversary of joining NATO. Taking stock of the Polish international relations strategy since 2004, one gets the impression that, following EU accession, we have achieved everything there was to achieve, while in fact, the world poses fresh challenges.

We have definitely not achieved everything there was to achieve. I have joined the Ministry of Foreign Affairs fairly recently, but I have been interested in foreign policy for many years, and I feel there is plenty of untapped potential. Poland’s image abroad often does not correspond with reality. In many western media Poland is shown in a distorting mirror. Although it is a country of economic success, and despite the fact that it introduces large-scale and costly social programmes – which has been made possible thanks to the tightening of the tax system and a rational budget policy - all the time Poland is shown differently from the way things are really like. It is something that calls for a very active public diplomacy.

PM

And not a more active diplomacy?

In international relations, we must naturally pursue certain diplomatic goals at the PM

level of negotiations with elites and politicians, including with the media. But we must also talk to societies - this is an element with untapped potential.

But you will agree that it is still the elite that shapes public opinion, and more precisely, its leaders?

Yes, but there are now many more opinion leaders than a decade or several decades ago. International politics was once largely reserved for a very small circle of people. Currently, thanks to social media, thanks to the fact that discussions on international issues are held in wide groups, the number of those involved in world politics has grown. There are a lot of non-governmental organisations which deal with international issues, also many companies are aware that economic diplomacy pursued by the state is important for the contracts they conclude. All this expands the circle of those participating in international relations.

The response of such ministries as the Ministry of Foreign Affairs cannot be limited to traditional diplomacy. The answer must be more comprehensive. Of course, one should take it into account that the message will not reach everyone, but you should maximise the range of measures, using, among others, social media. A single tweet by an influencer may mean PM

more than a foreign policy statement, which is one of many similar statements.

Are we able to influence the way Poland is perceived abroad through modern image-building tools, including those related to culture?

This is a challenge that we are trying to answer together with the Ministry of Culture, both in the area of modern art promotion and presentations of the Polish heritage and tradition. We currently have 25 institutes involved in the promotion of Polish culture abroad. The latest one was opened in the Georgian capital of Tbilisi last November. We have already achieved some successes. For example, Polish design is a brand which means something in many European countries. It is present at a number of fairs, including those in Milan. In turn, modern technologies and Polish startups stand somewhat in between Polish culture and the economy. They affect the way Poland is perceived.

PM

PM

Speaking about the economy, in what way is Polish entrepreneurship perceived in the world of diplomacy? Does the fact that Polish migrants have made a positive impact on the life of west European societies also affect Poland’s image?

5/2019 polish market

19

INTERNATIONAL RELATIONS Poles are the ambassadors of the success of Polish transformations, of course, given all the shortcomings of this process. Nevertheless, it is a success that testifies to creativity, investing in new technologies, the fact that Polish entrepreneurs abroad think outside the box while doing business, but also investing and exporting their products. This can be seen in the trade balance with many countries, in particular in the investment balance. When we talk to our foreign colleagues, they are often surprised that a company which everyone talks about with appreciation, actually comes from Poland. This is still quite common, because the perception of Polish business, especially in Germany, is influenced by the past, notably the derogatory notion of Polnische Wirtschaft, which is a xenophobic and biased description of the way Polish society is supposedly organised, based on bad management, lack of planning and manners and omnipresent filth. Whenever things look different, this sometimes comes to German people as a pleasant surprise. Sometimes to overcome this bias we must do clever things, as we did in Germany, when we changed the Orlen brand to Star. It turned out that the brand associated with Poland put off German customers to some extent. It was rebranded to make it look more western, followed by higher sales, as well as a gradual change of stereotype.

What other Polish brands are recognisable abroad?

Definitely pharmaceutical and chemical companies.

PM

Where does the rapid expansion of Polish companies from these sectors come from?

It seems to me that the expansion of Polish companies is primarily achieved through the competitiveness of their products and services.

We are able to quickly modernise plants. Our advantage is that, in many industries, we need to shorten the path of development, so modernisation can take place in leaps and bounds.

We do not go through all modernisation stages, because we are able to operate more efficiently and faster due to growing competition.

PM

a positive image of Central and Eastern European countries. I would include Romania and Bulgaria among those countries. Then, there’s the new expanding Three Seas format. Even Germany is keen to join it. All this shows that, in the first place, we look for friends among the countries of Central and Eastern Europe. Increasingly, we are able to successfully reach the German elite with our message. I hope that we will also be more effective in delivering our message to the French elite. As a result of largescale migration, Poles have already become a brand in the UK. At the beginning, they were received with some distrust, now they are a community thanks to which Poland brings positive associations.

What countries can be considered as ambassadors of a favourable Polish image in international politics?

Certainly our friends from the Visegrad Group are interested in the joint building of PM

20 polish market

You can observe that the US and China are vying for influence in Poland, which is, on the one hand, an important point on the New Silk Road, and on the other, a US ally in Europe. Is this country finally able to use its geographical location to its advantage?

Yes, it is. But we want to rely on our business model. We cannot afford to absorb investment because we believe it is the only way to develop. We are in a slightly different position than smaller countries, including those from outside the EU. Poland is now the leader of Central and Eastern Europe, and is looking for closer partnerships and cooperation, rather than just accepting anything that comes its way.

PM

In the wake of Brexit, Poland may, to some extent, take Britain’s place in the European Union. But do Germany and France still have strong common interests? So far, together with the Brits, they have co-decided about the fate of the Old Continent.

That’s the way Germany sees it. It perceives Poland as an ally in many respects. One of them is building a digital market together with Poland. It is such a new field of activity that a relatively small Estonia scores the biggest successes in it, not just in Europe, but on a world scale. But we also have a lot of successes in this field, and this is part of the common agenda with Germany.

PM

Does Germany have enough confidence in Poland to carry out grand projects together with it?

In some areas, Germany still views us with suspicion. But I can observe that there is a growing conviction there, especially in view of Brexit, that Germany needs partners to build and reform Europe. However, there is no hiding the fact that some of our partners are looking for protectionist measures to safeguard their business interests. On the other hand, we are convinced that competition is needed in Europe.

I hope that we will find common ground in this matter. At the moment, it is not all plain sailing.

PM

Could we say that, in terms of military cooperation, Poland is becoming the United States’ chief partner in continental Europe, or is it an exaggeration?

I think that Poland is, for sure, the state which aspires the most to become the largest US ally in Europe, and I believe that it is going to happen. But well into the future. We need to modernise our armed forces. We have programmes for the purchase of mediumand long-range missiles. We are working on strengthening the defence potential because, let's face it, we need to make up for many years of neglect.

PM

Are we learning from mistakes made in the West?

I think that, to a large extent, we are learning from mistakes made in the West, or at least, we learn from what has been done there and what hasn’t. We are also able to develop much faster.

PM

“

POLES ARE AMBASSADORS OF THE SUCCESS OF POLISH TRANSFORMATIONS, GIVEN ALL THE SHORTCOMINGS OF THIS PROCESS."

Speaking of Europe - are Poles ready for Brexit?

Certain privileges have been granted to Poles living in the UK by the British side, but the exact details will be decided by London at a later date. It is now difficult to say when and under what terms the UK is going to leave the EU. PM

We often talk about the need to respond to attacks on Poland, but western countries’ political strategy is to create reality and use defensive measures as a last resort.

Are we ready to influence the way Poland is perceived?

That's the point. When it comes to Polish foreign policy, instead of just responding, the idea is to take the initiative. It is my ambition at the Ministry of Foreign Affairs that public diplomacy should be proactive in allowing the narrative to be shaped by our actions. It is not just about historical matters, it is also about the present. It's getting better and better. We use modern technologies, such as virtual reality, as we did in reminding the world about the 1944 Warsaw Rising. We are at the outset of a difficult road, but I believe that our diplomacy will refer to the best diplomatic tra• ditions of Western countries.

PM

BRAND: POLAND

TOP QUALITY POLISH FOOD TADEUSZ ROMAŃCZUK, Secretary of State at the Ministry of Agriculture and Rural Development

T

he very name of the Economic Forum "Good neighbourliness" defines our relations. I am happy about the fact that I come from a border region - from Podlasie. The Ministry of Agriculture and Rural Development is once again present at this event. We consider it to be one of the most important events in Polish-Belarusian economic cooperation. Proof of this is the fact that this year's edition is held under the patronage of the Minister of Agriculture and Rural Development Jan Krzysztof Ardanowski.

Agriculture is one of the most important elements of economic co-operation between the two countries. Poland and Belarus have strong social, historical and economic ties.

The fact that Belarus is Poland’s next-door neighbour, makes it an important and attractive partner for us. It is also an important element in foreign trade in agro-food products. The value of exports of these products to the Belarusian market last year stood at over EUR 231 million. According to figures for the first quarter of this year, it amounted to EUR 71.3 million, which was up nearly 4% compared to the corresponding period last year. The export leader are apples, in fact Belarus is the number one market for Polish apples. They are followed by vegetables, fruit

and nuts. The value of exports of seedlings of fruit trees and shrubs is also growing. We are pleased that Polish agro-food products are appreciated by Belarusian shoppers. What makes us particularly happy is the fact that Polish food is valued not only for its taste, but above all, for its high quality.

At the same time, we can observe a dynamic increase in the value of imports of Belarusian agro-food products to Poland. In 2018, imports amounted to EUR 27.4 million, which marked a 2.5-fold increase in value as compared to 2017. In the first quarter of this year, a 2.4-fold increase in the value of imports was recorded - to the tune of some EUR 7.7 million. The main agro-food product imported to Poland from Belarus is rapeseed oil.

The geographical and cultural proximity of our two countries, as well as good neighbourly relations, give us more opportunities to develop co-operation. We are aware that the potential of two-way trade is not yet fully tapped. Thus, on behalf of the Polish Ministry of Agriculture and Rural Development, I would like to assure you that we are ready to support all undertakings and initiatives aimed at assisting entrepreneurs who are interested in developing Polish-Belarusian co-operation in the field of agriculture.

I also hope that an intensive dialogue with representatives of the Belarusian Ministry of Agriculture and Food to facilitate access for Polish agro-food products to the Belarusian market, will give tangible effects in the form of further growth of trade between the two countries.

Taking advantage of this opportunity, I would like to cordially encourage entrepreneurs from Poland and Belarus to take part in trade and exhibition events in the agrofood industry organised in our two countries.

The "Good neighbourliness" Forum provides a great opportunity to build new and maintain existing contacts between business, science and administration. I would like to invite you to take part in topical sessions with the participation of Wojciech Kędzia, Deputy Director of the National Centre for Agricultural Support, who will present information on innovative projects in Polish agriculture, and Joanna Trybus of the Ministry of Agriculture and Rural Development, who will outline Poland's achievements in building and management of wholesale markets.

I am convinced that events organised during the Forum will inspire us all to take further steps aimed at deepening mutual relations, implementing joint ventures and building • permanent forms of co-operation.

5/2019 polish market

21

INTERNATIONAL RELATIONS

IN THE RUN-UP TO THE 22 ND “GOOD NEIGHBORLINESS”FORUM:

BELARUS AND POLAND EXPAND COOPERATION Ambassador of Belarus to Poland VLADIMIR CHUSHEV

I

n contemporary bilateral relations, despite some ups and downs inherent in contacts between any two countries, the fundamental approach in Belarus towards Poland, and I dare to conclude from experience that in Poland towards Belarus as well, has been based on the notion of neighborhood.

This notion gave the name to the first Belarus-Poland Economic Forum back in 1998. In view of growing economic exchange between two countries, business communities started to discuss the creation of a bilateral platform for contacts and exchange of opinions. As a result it was decided to organize the "Good Neighborliness" Forum. Its first edition was held in Minsk in 1998. The subsequent ones took place alternately in Belarus and Poland, and by 2019 twenty one “Good Neighborliness” events have been organized.

For more than 20 years of its successful history, the Forum has deservedly proved itself to be one of the main debate platforms, a recognized venue for discussing the prospects of Belarus-Poland relations. At plenary sessions, specialized seminars and meetings as well as on the sidelines of the Forum representatives of business and government exchange views, talk about opportunities, threats and prospects for business in Poland and Belarus, discuss customs regulations, banking and insurance, as well as present and advertise Polish and Belarusian companies.

The 2019 Forum to be held on June 7 includes a plenary meeting and three sections: on interregional cooperation, on logistics and on IT, as well a business matchmaking session. The venue is the National Library of Belarus, which, besides being a modern center of knowledge and a well-known landmark of Minsk, sometimes serves as a conference site, one of the most prestigious in the country.

22 polish market

The main organizers of the event are the Belarusian Chamber of Commerce and Industry and Polish-Belarusian Chamber of Commerce and Industry, which provide electronic registration at their respective web-sites.

To put readers in the context of relations between Belarus and Poland before the upcoming Forum, let me characterize them briefly.

The trend in official contacts is generally positive. Government and parliamentary contacts are growing in number and level.

The latest example is the visit of the Chairman of the Council of the Republic of the National Assembly of Belarus Mikhail Myasnikovich in February, 2019 to Poland, who met with the President of the Republic of Poland Andrzej Duda, the Speaker of the Senate Stanisław Karczewski and the Speaker of the Sejm Marek Kuchciński, Prime Minister Mateusz Morawiecki, Minister of Foreign Affairs Jacek Czaputowicz, Minister of Entrepreneurship and Technology Jadwiga Emilewicz, who also holds the position of Co-Chair of the Belarus-Poland Joint Commission on Economic Cooperation.

Economic relations also show an upward trend. The results of the year 2018 demonstrate that the bilateral turnover in goods and services came close to the 2008 historic high of more than 3 billion USD. Over the past 5 years investment volume from Poland to Belarus has grown almost 2,5 times reaching 445,3 million USD. For several years Poland has been present in the top five of foreign investors in Belarus.

It should also be noted that for both Belarus and Poland bilateral cooperation is a gateway to larger markets: the market of the European Union for Belarusian companies and the market of the Eurasian Economic Union for Polish companies. It should also be added that the present overall trend in EU-Belarus

relations is fairly encouraging. We are moving towards a pragmatic open conversation on many topics including visa-free travel, human rights, international security, nuclear energy and much more.

In Belarus we are very well aware that it is pragmatic economic considerations that attract foreign investment. Therefore every possible effort is made to provide investors with what they require the most: good infrastructure, stable macroeconomic conditions, availability of reasonably-priced raw materials and energy, as well as a qualified workforce. A very competitive taxation system is even more liberal in Free Economic Zones. Similar, or even more favorable conditions are offered for businesses in small and medium-sized towns, in the Hi-Tech Park, and the “Great Stone” Industrial Park. 30 day visa-free travel through Minsk International Airport has been introduced to facilitate contacts. To further develop tourism, including medical tourism, we also decided to introduce a 10-day visa-free regime for parts of Grodno and Brest regions which border Poland.

However, all this, should not be interpreted as a reason to rest on one's laurels. Lots has to be done yet: starting from overstepping a 10-year old trade turnover maximum, through further growth of investment cooperation, to coordinating infrastructural projects in the broad sense of this term – all this to make our cooperation beneficial for Belarus, Poland and for the rest of Eurasia.

Certainly, determining the areas of concrete mutual interest and finding the best solutions is not easy, but very promising. And a substantial part of this work is traditionally done at the "Good Neighborliness" forums, to the next edition of which in Belarus I do cordially invite Polish and Belarusian business.

•

INTERNATIONAL RELATIONS

NETWORKING

PLATFORM

President of the Polish-Belarusian Chamber of Commerce and Industry KAZIMIERZ ZDUNOWSKI in an interview with "Polish Market."

In our report on the Polish-Belarusianbusiness forum in 2017, we wrote that Polish businessmen hope to implement new projects on the Belarusian market, which they consider to be very promising. What is the situation now?

A lot has changed. The Polish-Belarusian Chamber of Commerce and Industry actively supports the development of parliamentary relations between the two countries. We took part in the visits of the Belarusian-Polish Parliamentary Group, which included Chairman of the Working Group Andrei Naumovich, Chairman of the Standing Committee of the House of Representatives on Human Rights, National Relations and Mass Media, Victor Snezhitcky, Deputy Chairman of the Working Group, member of the Standing Committee for Education, Science and Social Development and Ivan Markevich, Deputy Chairman of the Standing Committee for Legislation. The delegation held meetings at the Polish Parliament.

Growing trust is supported by state authorities who are building a positive climate.

The fifth meeting of the Joint Polish-Belarusian Commission for Economic Cooperation took place in Warsaw on November 26.

It was chaired by the newly appointed cochairpersons, Jadwiga Emilewicz, Minister of Entrepreneurship and Technology and PM

Vladimir Koltovich, Minister of Antimonopoly Regulations and Trade of the Republic of Belarus. In other developments, Mikhail Miasnikovich, Chairman of the Council of the Republic of the National Assembly paid an official visit to Poland, while Polish Speaker of the Senate Stanisław Karczewski will take part in the good neighbourliness forum.

The Polish-Belarusian economic and business dialogue was resumed in 2016.

Economic talks are underway. It seems that the Forum has achieved its goal. Why is it worth participating in the 22nd Polish-Belarus Economic Forum?

It has a longstanding tradition, it was first held in 1993. Since then, we’ve had our ups and downs. Good neighbourliness has always been a bridge to allow dialogue and a platform for networking. The Forum is attended by business representatives from the two countries interested in establishing business contacts. We support their partnership.

PM

During the Forum some bilateral documents will be signed. What will these concern, economic relations, education or social issues?

Our Chamber has developed its own programme of personnel training for the economy and enterprises. We have agreements PM

with leading universities in Belarus, which allows Belarusian students to have internships in Polish enterprises. This year we are going one step further. We are to sign an agreement with the Institute for the Improvement of Qualifications and Retraining of Industry Managers and Specialists.

Belarusian managers will undergo training in Polish enterprises. We are going to present economic awards for entrepreneurs who have achieved success in the respective markets.

Polish investors operate in Belarus, among others in the construction, furniture and food processing sectors. Which areas are the most promising?

There is no sector in Belarus in which Polish entrepreneurs could not find a lucrative opportunity. Challenges include the chemical, pharmaceutical and electromobility industries as well as IT and robotics. We will be discussing logistics, the digital economy and information technologies at the Forum in Minsk. There is also the important area of regional co-operation, partnerships between twin towns and regions, cultivating national and regional traditions. This is a very important part of the concept of "good neighbourliness." A special session will be devoted to it this year.

• PM

5/2019 polish market

23

INTERNATIONAL RELATIONS

UNTAPPED POTENTIAL HANNA STYPULKOWSKA-GOUTIERRE, President of POLCHAMBERS - Association of Polish Chambers of Commerce Abroad and founder of the Polish Chamber of Commerce and Industry in France, in an interview with Ewelina Janczylik-Foryś

Where did you get the idea to set up the Association of Polish Chambers of Commerce Abroad?

The idea was born three years ago. At that time, representatives of several Polish chambers of commerce, which function independently on foreign markets, decided that, since they have common goals, namely supporting and promoting the Polish economy abroad, they should unite.

In 2017, the decision was taken to set up Polchambers.

The Association aims to support and professionalise Polish chambers and business organisations which operate outside Poland, as well as to create an international network or platform for Polish entrepreneurs who can seek direct information and support through our affiliated chambers on various foreign markets. At the moment, we have twenty of them on four continents, but the number grows steadily. As they say, there is strength in numbers.

PM

with the local Foreign Trade Office. We have recently cooperated on the occasion of the PAIH EXPO. What sets us apart from PAIH’s Foreign Trade Offices is many years of experience on our part. The offices are new entities. The chambers associated in Polchambers have operated on individual markets for a long time, some for 25 years. Who has a better understanding of a market than an established chamber which has good contacts with local authorities, entrepreneurs and various sectors on a daily basis, and is familiar with local legislation, working in co-operation with experienced Polish-speaking advisors? I believe that the chambers’ potential is not fully tapped and that they offer great added value, in particular from the point of business culture and their valuable contacts developed over the years.

What exactly does Polchambers offer?

Our role is to create the networking framework of associated chambers of commerce for use by Polish entrepreneurs. We support business in a comprehensive way - from consulting and assistance in introducing a company to a specific market, through legal, accounting and PM

Foreign Trade Offices of the Polish Investment and Trade Agency PAIH also work to promote Polish exports. Are you working in partnership with them?

Yes, we have signed a co-operation agreement with PAIH and each chamber co-operates to a certain extent PM

24 polish market

INTERNATIONAL RELATIONS

financial assistance to even helping companies to develop their marketing strategy. This is good news for entrepreneurs who are often simply lost. They do not know in which direction to go. We have the necessary knowledge and experience. Knowing the product or service that the entrepreneur offers, we can indicate specific directions of expansion and support instruments. In this respect, we have a contract with a Polish bank which provides financial support for exports and investment projects. We always encourage entrepreneurs to find out more about a given country before they start investing in the foreign expansion of their company, even by visiting the place as tourist.

“

Do Polish entrepreneurs often make this mistake, lacking sufficient knowledge?

Unfortunately they do. But that’s not the only mistake. Each market has its own rules. If you run a business, it is very important to know the target country’s culture and ways of doing things. Doing business is different in France and Japan. For example, in France, business topics are not very popular before dessert, you simply enjoy the meal, while in Japan, businessmen who hold negotiations often end up naked in the pool (laughs.)

PM

What other mistakes do Polish entrepreneurs make?

May I mainly refer to the French market, because it is the closest to me (ed. Hanna Stypulkowska-Goutierre is a co-founder of the Polish Chamber of Commerce and Industry in France, which has since 1994 actively participated in the development of economic co-operation between Poland and France. The Chamber was established by ministerial decrees of the Polish and French governments of May 1994 on the basis of the France Pologne Entreprises association formed in 1992.) Large companies are able to obtain all the necessary information about how to operate on foreign markets, because they have large budgets.

We try to help companies from the SME sector - I believe that they have great potential, but they lack knowledge of business culture and law. Sometimes companies don’t know how to tread in a foreign business environment, they don’t have a strategy, they don’t know what kind of contract to sign. It happens that a contract is not signed with the right entity. Polish firms do not always check contractors. When a French contractor delays payments, they should be more decisive, they should send a final demand for payment by registered mail, instead of calling or sending e-mails. They simply lack such basic knowledge about running a business in a given market. They don’t spend enough on consulting but it is cheaper to use preventive measures than to be treated as a patient.

PM

How well recognised is the Poland brand? Does the origin of a company matter?

Unfortunately, I must admit that we are still struggling with the stereotype of a Polish product identified with low quality. We also have a complex of being a junior partner from a post-socialist country. It's a mistake. Polish companies which enter a foreign market often operate either in a consortium with a foreign company or under a foreign PM

WHO HAS A BETTER UNDERSTANDING OF A MARKET THAN AN ESTABLISHED CHAMBER WHICH HAS GOOD CONTACTS WITH LOCAL AUTHORITIES, ENTREPRENEURS AND VARIOUS SECTORS ON A DAILY BASIS, AND IS FAMILIAR WITH LOCAL LEGISLATION, WORKING IN CO-OPERATION WITH EXPERIENCED POLISHSPEAKING ADVISORS? "

name. Regrettably, we do not create, we do not display our own brands. But there’s strength in good brands. And Poland already has global brands. A good case in point are the Nowy Styl Group, Comarch and Solaris, which respectively produce furniture, software and modern buses, and develop under their own brands. Each of them works on its own. Polish companies should follow this direction, and as a chamber of commerce, we can help them register their brand for copyright purposes.

Apart from the low recognition of the Poland brand, are there any other barriers?

Each country has its own obstacles but they can be overcome. France, like Germany and the Netherlands, is no exception in Western Europe. It is a protectionist country, it focuses on local business. Successful foreign companies are treated as dangerous competitors. Tenders are often written in such a way as to favour French business.

For example, when you make a bid, you need the NF certificate and you need to apply French standards, which is incompatible with European law. Therefore, the Polish government must also focus on Polish companies, and whenever necessary, it must defend our interests abroad.

Of course, with the support of the Polish Chambers of Commerce, whose role is precisely to defend the interests of Polish companies, the way other countries around the world defend their companies.

• PM

5/2019 polish market

25

INTERNATIONAL RELATIONS

HOW TO PROMOTE POLAND? ZBIGNIEW KLONOWSKI, Chairman of

the Organising Committee of the 60MLN. PL Congress, talks to ”Polish Market".

Last year, there were three editions of the 60 million Congress - the Global Congress of the Polonia, or the Polish diaspora. The idea behind the event is to bring together Polish business, scientific and cultural circles in Poland and abroad. Why is it important to integrate Polish entrepreneurs around the world?

Following the example of other diasporas, we want to build our position on the world map through strong economic ties.

It will be to everyone’s benefit. Economic co-operation will translate into the development of culture, the growth of our compatriots' position in companies and international organisations, and so on and so forth.

Four editions of the congress have already been held, three last year and one, in Miami, this year. The idea of the congress was born during talks between Poles who live at home and abroad, about the need to build mutual relations both in the geographical sense between compatriots resident in different countries and between the "old" and new expatriate communities. We have built a platform, and thus we offer a chance to develop and strengthen co-operation among 60 million Poles and people of Polish origin scattered around the world. This is the basic goal of our meetings, which will enable the development of a global network of business contacts based on Polish values.

PM

PM

2019 sees the next edition of the 60 million Congress. The programme of events includes discussion panels. What can we expect this time? What conclusions are

26 polish market

likely to be drawn? And are they going to differ from the ones we heard last year?

Intensive preparations for future editions are underway. The next one is scheduled in Berlin on June 13, and the results of our activities are already quite tangible. We have examples of companies which have opened offices in foreign countries in the wake of the congress.

Following the congress in Miami, a group of entrepreneurs has submitted an appeal to the Vice-Minister of the Maritime Economy and Inland Shipping Grzegorz Witkowski to launch a direct container link between Poland and the US. Work on the project is in progress with the Port of Gdynia Authority. The next editions of the congress will be dominated by panels on investment, tourism, medicine, and finances, taking into account the specific characteristics of different countries.

Why did you pick London and Berlin this year? Brexit and the situation of many Poles in the UK is something which clearly needs to be discussed in London. But what about Berlin?

There are many Poles both in London and Berlin. So we could not afford to neglect these two large communities. In addition, due to the proximity of the German capital to Poland, Germany is naturally our closest and largest trading partner. A lot of our compatriots have built successful careers there. I believe that negative stereotypes of Poles in Germany, which date back to the communist era, have been replaced by the image of a hard-working and resourceful Polish professional. In Polish-German relations, what matters most to PM

us is this: many Germans come to Poland not only to shop, but they also increasingly see us as potential business partners. In Britain, the diaspora includes post-WWII Polish immigrants and newly arrived migrants who have decided to seek greener pastures there. Everyone is worried what will happen in all walks of life once Britain is separated from Europe.

We need to talk about it and be prepared for it.

A report by the Polish-German Chamber of Commerce and Industry (AHK Polska,) based on a survey conducted among Polish companies operating in Germany last October and November, shows that 51.4% of Polish entrepreneurs present there assess the condition of the German economy as "good." It seems that Polish entrepreneurs are doing very well in an international environment, and the fact that products and services originate from Poland increases their value.

Germany has always been a powerhouse in Europe and an important player in the world.

It is our next-door neighbour, so there is a natural integration of business processes. Thanks to membership in the European Union and the abolition of restrictions on the labour market, these contacts have become much easier. It should be noted that in some areas, the level of Polish engineering solutions is among the world's most advanced, and the German market is very receptive to modern technologies.

However, we believe that too few Polish companies venture into foreign markets and there are many more spectacular successes ahead of them.

• PM

ABOUT CONGRESS The 60 Million Congress - the Global Polonia Congress is an event that, by strengthening Polish-Polish bonds, builds international business relations corresponding to the trends of the 21st century. Defining the opportunities for development and strengthening the cooperation of 60 million Poles around the world is the basic goal of our meeting, the achievement of which will allow the development of a global network of business contacts based on Polish values

2019

BERLIN 13 - 15 June

MIAMI

7 - 10 February

contact@60mln.pl

LONDON

30 May - 1 June

BUFFALO

19 - 21 July

www.60mln.pl

RZESZĂ“W

28 - 30 August

NEW YORK

3 - 6 October

+48 605 688 536

BRAND: POLAND

POLISH COMPANIES IN GERMANY ON THE RISE

KATARZYNA SOSZKA-OGRODNIK, spokesperson of the German-Polish Chamber of Commerce (AHK Poland) GERMANY - THE FIRST INTERNATIONALISATION MARKET

Germany, the first market for the business internationalisation of Polish small and medium-sized enterprises, but often also large companies, is undoubtedly an attractive export and investment market. The value of the two-way trade between Poland and Germany in 2018 amounted to about EUR120 billion, up 9% on 2017. This was caused by numerous

28 polish market

objective factors, such as geographical proximity, strength of economic relations between the two countries, a similar structure of the two economies based on the SME sector, well-developed infrastructure, "market depth," which means 82 million German consumers more affluent than their Polish counterparts and 3.5 million commercial customers. But the institutional environment and Germany's economic policy are also important, including: favourable attitudes of public

administration toward entrepreneurs, stable laws regulating economic turnover, access to EU funding.

Germany is a saturated and often hermetic market. That’s what many Polish entrepreneurs believe, as they try to position their products in popular German sales networks, competing with local suppliers. It can be a bumpy ride: quality certificates, mandatory registration in a packaging recycling system, placement fees to be paid to supermarkets. The

BRAND: POLAND process of entering the German market is for the patient and consistent. Not infrequently, to convince an entrepreneur or a consumer to place an order, you must emphasise your presence on the market by establishing a branch or taking over a German company, which requires adequate legal and financial support.

acquire new competences or gain access to new technologies. Some quote other reasons, for example, having reached a plateau on the Polish market. For many Polish companies, the German market is the best springboard to other markets in Western Europe or nonEuropean markets.

UPWARD TREND

ADVANTAGES AND DISADVANTAGES

The number of Polish companies present on the German market, estimated at around 1,000-1,500, is constantly growing, along with additional tens of thousands of selfemployed Poles who also work there. Since 2016, the German-Polish Chamber of Industry (AHK Poland) has been conducting surveys on Polish companies in Germany, whose aim is to assess the current economic situation in the German economy, provide forecasts for companies, and assess the attractiveness of the German market in the opinion of Polish businesses. The latest, third edition of the survey, carried out in October and November 2018, encompassing a group of 70 Polish companies which operate in Germany, shows that Polish companies feel more confident in the western neighbour's market. 97% of them emphasise that, if faced with the decision whether to enter the German market again, they would decide to do so. Favourable attitudes towards the German market are reinforced by the country’s favourable economic climate. Over half (51.4%) of the respondents in the latest AHK Poland survey of entrepreneurs who operate in Germany, say the condition of the German economy is "good". Another 40% estimate that the situation in Germany is "very good." At the same time, almost half of the respondents (45.7%) claim the prospects for the German economy in 2019 are better than in 2018. Two-thirds of the respondents (65.7%) say the business situation of their company is good or very good.

Three quarters (75.7%) of entrepreneurs presume that the company's turnover will increase in 2019 compared to 2018, another 20% say it will remain unchanged. A clear positive sign is the willingness to increase employment in the next year of activity (in the case of 42.9% of the surveyed companies) and to increase investment spending (50% of companies.) A large percentage of companies also report that they will keep investment spending at the current level (47.1%.)

TAKING THE PLUNGE

Over half of the surveyed enterprises (54.3%) indicate that the reason they entered the German market was to gain access to new customers. 31.4% wanted to increase the scale of operations. Almost 23% admit that the new market also means the opportunity to

The survey respondents assess the market of Poland's western neighbour according to attractiveness factors included in the survey. In its latest edition, top marks were given to the quality of German infrastructure transport, communications, IT and energy meaning: (75.5% of satisfied or very satisfied companies), payment discipline among contractors and Germany's stable economic policy (70% of satisfied and very satisfied respondents), as well as a business-friendly climate (55.7%.)

The highest percentage of critical responses concerned, as in the previous year, the cost of labour, tax rates and growing shortages of qualified workforce. Just over 28% of companies appear satisfied with the availability of manpower.

Among the most urgent challenges for German economic policy, respondents consistently quote the need to increase the availability of manpower and to cut taxes (12.9% in both cases.) Further recommendations include: the need to increase the availability of new technologies, to simplify the tax system and to open up the labour market to foreigners (5.7% of responses, respectively.) In the previous edition of the survey, in the autumn of 2017, companies most often postulated a reduction in labour costs and taxes, a more flexible labour law and the need to create conditions to improve staff qualifications.

HOW TO MAKE A GOOD START?

Running a business in Germany can take a variety of forms, from placing Polish goods in retain chains, to cross-border provision of subcontracting services without registering operations in Germany, opening a company office, registering a company, to taking over a local company. The more involved you are in the foreign market, the more important it is to seek the help of a competent guide. Find out about the legal conditions of your project in Germany, select the form of the company according to your needs, win a partner who will support you in a meaningful way when entering the German market and do not skimp on legal and tax consulting. The consequences of disregarding the law in Germany are much more costly.

•

PIOTR LESIAK, AHK POLSKA PURCHASING PROCESSES OF GERMAN COMPANIES AND OPPORTUNITIES FOR POLISH SUPPLIERS Procurement is an important aspect of the operations of German companies, as evidenced by a very large percentage of enterprises, also in the SME sector, which have extensive procurement departments.

Large automotive producers employ up to several hundred people in their procurement departments.

Why are these so important? Suppliers nowadays generate sometimes more added value of products than the final producers, for example in the automotive industry up to 70-75%. New trends in the procurement policies of companies in Germany are e-procurement and Procurement 4.0. They are largely based on digitalisation and the introduction of systems that enable the automation of orders and deliveries, help reduce procurement costs and ensure a faster information flow. These new trends in the procurement policies of German companies open up new opportunities for Polish companies.

How to increase your chances as a supplier to the German market? Firstly, register in the e-procurement system of the potential recipient of the products you are interested in, and after registration, be patient.

You may need to wait a bit for an initial inquiry, but attempts to speed things up are frowned upon. The German B2B market has become more like online shopping and the recipient is more and more often following the well-known principle "search-comparedecide-order". And it takes time. You can also register on one of the marketplace-like platforms which collect information about suppliers, such as www.supplyon. com/en/, which maintains subdirectories for railway sector suppliers www.supplyon.com/de/loesungen/ railsupply/ and aviation www.supplyon.com/de/ loesungen/airsupply/. And once you are selected in the bidding process, it is a good idea to be punctual, diligent and well-organised while working with the German companies.

GOOD PRACTICES IN COOPERATION WITH GERMAN COMPANIES "While presenting your offer to a contractor in Germany, emphasise the advantages German entrepreneurs quote when assessing the attractiveness of the Polish market, such as geographical proximity, competitive prices, quality and flexibility of co-operation. Follow German business standards, such as timeliness, conscientiousness and good organisation - this creates trust and builds a professional image. Take into account that what you successfully sell on the Polish market, may not necessarily be equally acceptable on the German market. Get very well prepared before taking the plunge. Find out what certificates apply in your industry, what your target group is. Think about what you can offer and on what terms. Size up your competition and analyse consumer behaviour.

Develop a long-term strategy - entering Germany is a process which requires time and consistency," emphasises Paweł Kwiatkowski, director of the Market Advisory Department at AHK Poland.

For more information visit: www.ahk.pl 5/2019 polish market

29

BRAND: POLAND

GOOD

INVESTMENT

OPPORTUNITIES German investors are valued partners of the Wałbrzych Special Economic Zone "INVEST-PARK", emphasises WSEZ President MACIEJ BADORA.

“

We are glad that entrepreneurs from Germany, the most important economy in Europe, have decided to locate 34 plants in our area of activity, constituing the largest foreign group of investors who operate in the WSEZ,” says Maciej Badora. The President of the Zone points out that both German global corporations and family-owned companies, as well as small and mediumsized enterprises, such as Wessel-Werk, Suer, Kamex and RUPF, have decided to invest in the Zone.

“Such spectacular projects as Volkswagen's investment project in Września and Mercedes’s investment project in Jawor, show that the Wałbrzych zone meets the highest expectations of entrepreneurs. It is excellently prepared for new investment projects. Subcontractors who operate in the zone are ready to establish co-operation with new partners,” he points out.

“The added value of all these investments: new courses introduced at vocational schools, the creation of a supply chain and a network of business links, cannot be overestimated. For many Polish companies, investing in the zone is the opportunity to establish contacts with global corporations and open the way to world markets,” President Badora notes.

“Another stage of German investments in Poland has begun. The advantages offered by the Polish market, and the positive experience gained during many years of co-operation, are prompting more and more premium brand investment projects to bring in new technologies. New, highly-paid, specialised jobs are created. These investment projects also attract excellent German managers to Poland who, while managing Polish branch offices, become the ambassadors of our offer,” • Maciej Badora says.

DR ANDREAS SCHENKEL, PRESIDENT OF MERCEDES-BENZ MANUFACTURING POLAND Poland is a country with potential, and Lower Silesia has a lot to offer foreign entrepreneurs. We experience this on a daily basis in our work. The Jawor site in the Wałbrzych Zone has turned out to be an ideal place to locate our investment.

Thanks to the involvement of many people, authorities and institutions, including representatives of the WSEZ, the preparation of the project took place in a friendly atmosphere and in a very professional manner.

5/2019 polish market

31

BRAND: POLAND

POLISH CAPITAL INVESTS ABROAD Last year, Polish direct investments in foreign countries amounted to PLN 3.1 billion, according to National Bank of Poland estimates. It may be far less than in previous years, but the overall value of long-term, accumulated investments is nevertheless impressive, reaching hundreds of billions of zlotys. Polish firms invest in both private and public companies. Who are the leaders?

Jerzy Mosoń

32 polish market

WHAT'S GOING ON?

The decline in foreign investment by Polish companies stems, among other things, from lower reinvestment of profits and net debt payments. However, this seems natural and a sign that a country’s economy moves on to another stage of development. Companies coming from the most highly developed countries are able to achieve much higher returns on investment given relatively lower investment amounts.

One example are foreign retail networks and industrial companies which invest in Poland. Polish companies have not reached this stage just as yet, for now Poland must rely on profits earned by large companies which invest in the processing industry. Among them, the leaders are KGHM Polska Miedź and PKN Orlen. The snag is that their profits largely depend on commodity prices which are susceptible to market fluctuations. But, other initiatives also appear.

BRAND: POLAND

BIG RISK - PROFIT POTENTIAL

State-owned companies have been the leaders of Polish foreign investment for years. In 2011, KGHM took over the Toronto-listed Quadra for approximately PLN 9 billion. In addition to several operating copper and other non-ferrous metals mines in Chile, Canada and the US, it increased its foreign assets. (You can find out more on KGHM investments in a separate “Polish Market” story.)

To improve Poland's energy security, in 2006 the largest Polish fuel company PKN Orlen invested in the takeover of a Lithuanian refinery in Mazeikiai to the tune of over USD 4 billion. For quite a time, the project seemed to be doomed to failure because the Lithuanian side dismantled a 19 km section of railway track which connected the refinery with the Latvian village of Renge. The European Commission finally came to the rescue. In 2017 it imposed a penalty of EUR 28 million on the Lithuanian rail operator and ordered it to rebuild the tracks. In the past few years, political relations between Warsaw and Vilnius have improved. Recently, Orlen bought a license for what is known as hydrocracking of crude oil. This will enable the Polish giant to obtain lighter fuels and, as a result, to increase production efficiency. The transaction value has not been revealed.

GAS, FUELS, SANITARY PRODUCTS, AND POLISH BRANDS

PKN Orlen has also invested in a network of petrol stations in Germany under the STAR brand, because the Orlen brand did not enjoy the confidence of German customers at that time. In the autumn of last year, the Polish giant had 582 stations in Germany, 406 in the Czech Republic, and 25 in Lithuania. This largest Polish fuel company has also invested in retail trade and catering by opening cafes and convenience stores. In total, by the end of the third quarter of last year, there were 248 Stop Cafe points in the Czech Republic, 23 in Lithuania and 45 Star Connect points in Germany. It is worth mentioning that Orlen has also invested in the TriOil Resources exploration and production company in Canada.

Before it was acquired by Orlen, Gdańsk-based Lotos purchased a stake in Norwegian North Sea oil and gas concessions from Centrica. Grupa Azoty’s foreign acquisitions may not have been on such a scale, but the company has made inroads into foreign markets as well. In 2013, it acquired a USD 29 million controlling stake in the Dakarbased company African Investment Group, which holds licenses for the processing of phosphate rock and ilmenite sands in Senegal. As a result, Grupa Azoty has been able to produce fertilizers from its own raw materials and sell them in the African market.

PRIVATE FIRMS KEEP GROWING

One private company which invests considerable amounts of money abroad is TZMO, whose personal hygiene and sanitary products are available to a third of the world's

“

STATE-OWNED COMPANIES HAVE BEEN THE LEADERS OF POLISH FOREIGN INVESTMENT FOR YEARS."

population. The TZMO Group has over 55 companies in 18 countries. In 2018, it carried out investments in such markets as Germany, Slovakia, Hungary, the Russian Federation, Ukraine and India. Of course, TZMO also continues to invest in Poland.

Another well-known company is Kulczyk Investments, which has invested capital in the Navachab open-pit gold mine in central-western Namibia and the Canadian exploration and production company Winstar Resources.

Hot on its heels comes Boryszew, which invests in the automotive industry in Mexico. In 2015 Wielton, a manufacturer of trailers and semi-trailers, took over the French company Fruehauf which has a modern manufacturing plant in Auxerre. It then went on to acquire the Italian company Compagnia Italiana Rimorchi. It is now about to enter Spanish and Portuguese markets. By 2021, a leisure complex worth some USD 1.5 billion is to be built in Baia Formosa in Brazil over an area of 2.57 thousand hectares, with a 6.5-kilometer of coastline, by Gremi International SARL (Gremi Intl) owned by Grzegorz Hajdarowicz, in partnership with the global hotel giant Six Senses.

POLISH CLOTHING AND COSMETICS

Polish clothing companies are getting stronger and stronger on foreign markets. LPP and OTCF outsource their production in foreign countries. They also run stores abroad under their own brand. The CCC retail network is known not just in Poland, but also in the Czech Republic, Hungary, Germany, Slovakia, Austria, Croatia, Slovenia, Turkey and Bulgaria. Foreign stores are also operated by Polish-owned brands Gino Rossi, Kazar, Wittchen and Inglot, for which expansion in distant markets has become a development model. Currently, Inglot products are available in nearly 70 countries. Irena Eris and Oceanic are also expanding to foreign markets, focusing on exports to Japan, the Philippines, Vietnam, the Middle East, South Africa, Colombia, the US and Canada, while maintaining a manufacturing base in Poland.

• 5/2019 polish market

33

BRAND: POLAND

KGHM FOREIGN

INVESTMENT PROJECTS

The well-known Sierra Gorda copper and molybdenum open-cast mine in Chile is one of the most important investments of KGHM Miedź Polska S.A., and at the same time one of the largest Polish projects implemented on foreign markets. However, KGHM does not rest on its laurels and constantly improves its results.

T

he Polish company is involved in mining also in several other places - in the US and Canada. As a global leader in the mining of various minerals, it also conducts significant development projects which will allow the company to further increase its market competitiveness in the future.

CHILEAN PEARL IN THE CROWN

The Sierra Gorda mine is located at an altitude of approximately 1,700 m above sea level in the Atacama desert in the Antofagasta region of Chile, about 60 km southwest of the city of Calama in the north of the country. Currently, KGHM conducts mining operations in the Catabela area to the target depth of approximately 1,000 metres. It is not just a copper, but also a molybdenum deposit, which includes both copper sulphide and oxide ores. The Sierra Gorda deposit was discovered in 2006, and from September 2011 the project has been operated as a joint venture. The 55% controlling stake is held by KGHM Polska Miedź S.A., and the remaining shares belong to Japan’s Sumitomo Metal Mining - 31.5% and Sumitomo Corporation - 13.5%.

OVERHAULS TO INCREASE OUTPUT AND SAFETY

In 2018, the company carried out preventive repairs and replaced installation parts, which enabled it to lengthen periods between major overhauls at the Ore Enrichment Plant from two months in 2017 to three months in 2018. Consequently, the volume of processed ore

34 polish market

was increased by 7 %, as compared to 2017. It is worth noting that in 2018, the average daily volume of processed ore amounted to 109,000 tonnes, compared to 102,000 tonnes in 2017. In 2019, the figures are set to improve even further. As part of the production optimisation

BRAND: POLAND

programme conducted at Sierra Gorda, it is planned to increase the average daily processing level to up to 130,000 tonnes as of 2020. At present, profits generated by copper mining stand at over 80%, while profits from molybdenum mining stand at around 58%, considering that the volume of processed ore is growing, while the molybdenum content in ore is declining.

VALUED LABOUR RELATIONS

KGHM also takes care of the social aspect of its activities: last winter agreements were reached with three trade unions operating in the Sierra Gorda mine, which in line with Chilean labour law, will be in force for the next three years. But that is not all. Out of concern for the safety of the post-flotation waste tank, the company conducts its constant monitoring, working together with local authorities. One of the key success factors at the Sierra Gorda mine is the fact that a longterm relationship has been built with Sumitomo Metal Mining and Sumitomo Corporation, co-owners of the Sierra Gorda mine. KGHM Polska MiedĹş S.A. aims to sustain and develop existing relationships with partners at all operational levels.

NOT JUST SIERRA GORDA

KGHM mining operations in Chile are not limited to the Sierra Gorda mine. The Polish company is also involved in the Franke open-pit mine located in the Atacama desert in the Altamira region of Chile.

The mine is situated at an altitude of about 1,730 m above sea level, and the professionalization of mining operations there only started in 2009. The method applied at the Franke mine is rock mining with the use of explosive materials and transport of the yield by cart. The production of copper at the Franke mine is based on the extraction and electric separation process, during which ore heaps are treated with sulfuric acid. The enriched pregnant leach solution is pumped from the site and after initial mechanical cleansing, it is subjected to the SX process, followed by the electric separation process. The final product is copper cathodes.

PRESTIGIOUS US INVESTMENT PROJECT

The Polish company KGHM is not just involved in Chile. It also invests in the United States and Canada. The Carlota mine is located in the Miami-Globe mining region of Arizona in the western part of the US. Extraction there was started in 2008. In the same year, the first copper cathode was obtained from this American deposit. In 2014, extraction in the open-cast mine was halted, however, copper production

PRODUCTION IN SIERRA GORDA Extraction encompasses mining with the use of explosives, loading and transport of ore to the processing plant with a capacity of an average of 110,000 tonnes a day, where extracted ore is crushed and ground. For flotation purposes, an installation is used which separates concentrated molybdenum from the rest of the yield. By optimising the use of existing infrastructure and through necessary investments, it is planned to increase the plant's processing capacity.

The copper concentrate produced in Sierra Gorda is transported, among others, to the port of Antofagasta, from where it is shipped by sea to smelters in other countries. Areas adjacent to the mine have also been proved to be of interest for exploration purposes.

Sierra Gorda uses sea water coming from power plant cooling systems in the city of Mejillones. Instead of being returned into the ocean, the water is pumped to the mine through a pipeline which is about 144 km long.

was continued by leaching the heap with the use of surface and underground methods. In 2018, mining operations in the Eder South area resumed. The production of copper in the Carlota mine is based on the extraction and electro-separation process, by subjecting the ore heaps to sulfuric acid.

Robinson, another KGHM mine, lies in White Pine County, Nevada.

The mine is located at an average altitude of 2,130 m above sea level, and includes three large excavations: the currently operated Ruth and Tripp-Veteran and Liberty sites where mining has been discontinued. Interestingly, not just copper, but also gold and silver, and recently molybdenum, are obtained there.

UP NORTH

The Sudbury Basin is located in central Ontario, Canada, about 400 km north of Toronto. It is there that KGHM has a number of assets as copper and nickel ores are mined along with precious metals. The most important of them is the McCreedy West underground mine. It features deposits of nickel, but also of copper and precious metals.

Due to the diverse geological structure of the deposits, miners need to use various mining methods. However, the predominant mechanised method is selective extraction with back-filling of subsequent levels and subsoil separation.

KGHM's foreign assets arouse great interest and high emotions, but one should bear it in mind that they generate 20 percent of the company's output, and that the heart of KGHM beats in Lower Silesia in Poland. • 5/2019 polish market

35

BRAND: POLAND

INSTITUTE FOR EXPERT DEBATE AND ANALYSES

BRAND POLAND

The expert debate “Brand Poland” was held by the Institute for Expert Debate and Analyses (IDEiA) quant tank at the Warsaw School of Economics on May 8, 2019. The panellists were Vice-President of PKO BP MAKS KRACZKOWSKI, CFO at Orlen Deutschland OSKAR SKIBA, Member of the Board at Jeronimo Martins Polska (Biedronka) JAROSŁAW SOBCZYK, one of the founders of the 60 Million Congress and its President KAMIL SZYMAŃSKI and President of Poland Business Centre World PIOTR WINIARSKI. The debate was moderated by STANISŁAW KLUZA, PhD, the founder of the IDEiA quant tank.

Compiled by Jerzy Mosoń

A

ccording to Maks Kraczkowski of PKO BP, Poland is becoming an increasingly recognisable brand for quality, creativity and innovation, one no longer distinguishable on the international market only by price. “It seems very likely that this trend will not only continue, but will also strengthen in coming years. Many businesses are building their strategies based on international expansion,” said the expert. However, in the opinion of Oskar Skiba of Orlen Deutschland, Poland has already lost enough time in the economic life of Europe and the world. “For 20 or so years after the start of transformation we were becoming an outlet for products, selling off our “crown jewels,” and nobody took care to build Polish brands. One should ask the question: Why was that the case? It is only thanks to the recent years and the government’s very determined policy in this respect that we have strong Polish banks, airlines, and energy, fuel, food, transport and construction companies,” he stressed. Jarosław Sobczyk of Jeronimo Martins was more optimistic in his assessment of the situation. In his view, Poland is perceived as a country which has achieved unprecedented success over the past 30 years: turning from a bankrupt into the world’s 22nd largest economy.

“In fact, this builds brand Poland,” he said. But he also made a critical remark about Polish enterprise: “Polish firms, however, were unable to build global brands. It is difficult today to find brands which could be clearly associated with Poland. It is only in new technologies, computer games, that we have firms and products recognised across the world.”

“

POLAND IS PERCEIVED AS A COUNTRY WHICH HAS ACHIEVED UNPRECEDENTED SUCCESS OVER THE PAST 30 YEARS: TURNING FROM A BANKRUPT INTO THE WORLD’S 22ND LARGEST ECONOMY. POLISH FIRMS, HOWEVER, WERE UNABLE TO BUILD GLOBAL BRANDS."

Stanisław Kluza, who moderated the debate, remarked: “The experience of the 20th and 21st century show that an important global brand can be built swiftly only in the area of new technologies. In other cases, this requires very long and hard work. This is coupled with the need to consistently deliver products of top quality and make large outlays for marketing.” Piotr Winiarski, who represented businesses run by expatriate Poles, said that ministries responsible for economic matters, the foreign ministry and embassies, and other government agencies, like for example the Polish Investment and Trade Agency (PAIH) and National Centre for Research and Development (NCBR), should create

36 polish market

a model for cooperation with businesses run by Poles living abroad. In response, Oskar Skiba stressed that one should not contrast the strategy of the state in building Poland’s value as a brand with the independence of private firms. A strong state, making law independently and deciding about elements of socio-economic development, has a sufficient number of tools to support on foreign markets all Polish businesses, irrespective of the kind of their activity.

“The foreign expansion of Polish firms is a fact,” said Maks Kraczkowski. He added that in order to fulfil their dreams of activity on international markets they must remember about acquiring knowledge and setting aside enough money for this purpose.

The panellists pointed to the great potential offered by Polish emigrants. According to Kamil Szymański of the 60 Million Congress, Poles living outside Poland represent a huge, but still untapped, potential for building Poland’s reputation as a nation, showing and promoting Polish brands, and building brand Poland. “We are 60 million people, of which 22 million live beyond the country’s borders,” he said. He was seconded by Piotr Winiarski: “Exploiting the potential of Poles living abroad is key to the development of the Polish economy. The first step is to identify outstanding individuals and organisations abroad, and • to mobilise them to cooperate with Poland,” he summed up.

Source: Institute for Expert Debate and Analyses

BRAND: POLAND

JARS LABORATORIES

NEW FOREIGN PARTNERS AND POLISH MARKET SUCCESSES “We are a growth leader in the Polish laboratory test market. We develop our operations with both our Polish enterprises and large foreign contractors,” says MATEUSZ KIRZYŃSKI, vice president of JARS S.A. which offers professional laboratory services. In an interview with Jerzy Moson, he talks about a contract which can help entrepreneurs enter the US market, the demand for specialists and the company's philosophy, which has enabled JARS to break new sales records for the second year in a row.

Where does the growing role of JARS and of the whole Polish laboratory service market come from?

The quality of services and products offered in Poland is very high, yet reasonable production costs are maintained. As regards the level of wages, we are slowly approaching the European average, but production costs remain lower compared to the rest of the EU. We are an educated, relatively young, ambitious and hard-working nation. Poles have high aspirations. The combination of these factors determines the competitive advantage of our country and economy. The goal is to develop and catch up with the fastestgrowing European countries.

PM

Who is JARS currently competing with?

What are your advantages in the market?

There is no other company in Poland with such a wide range of activities as JARS. Our main rivals are foreign corporations. Our company was founded and built in Poland.

Our advantage is know-how, management standards and human capital - teams of experts and employees who closely adhere to the company's principles and values: reliability, comprehensive service, loyalty and steady improvement.

PM

In addition to competition, co-operation is also important. You have recently started a partnership with the US Registrar Corporation. What is your common scope of activities?

Thanks to cooperation with Registrar Corporation, we can help Polish entrepreneurs to enter the huge American market, not just by testing their products, but also by facilitating their registration in the US. Entrepreneurs do not need to fear that their product will be withdrawn by the FDA (Food and Drug Administration.) We verify and prepare labels for the US market, and thanks to this service, many Polish companies which offer quality products will be able to gain a foothold in the US market, showing how our products can be valued on international markets.

PM

Once, anyone who wanted to test a sample of water, for example, knew that they had to approach the State Sanitary Inspection known as SANEPID. How is JARS positioned on a market which a large number of Poles still believe is controlled by a state institution of this kind?

We can say that we are a private, very innovative, professional and customer-friendly "private SANEPID of the 21st century" (laughs).

PM

“

WE CAN HELP POLISH ENTREPRENEURS TO ENTER THE HUGE AMERICAN MARKET."

Of course, we do not want to take away work from state institutions. Specialists who work there, however, place greater emphasis on Polish market controls, not commercial sample testing. When it comes to the price of private services for business, it is always adjusted to the needs of entrepreneurs and natural persons in relation to the subject and scope of the study. We are ready to provide the best service to each client. Proof of this is the fact that we serve over 500 companies from Poland and the European Union on a permanent basis, and JARS laboratories examine nearly 2,000 samples each day.

• 5/2019 polish market

37

INNOVATION IN MEDICINE

THROUGH a KEYHOLE PIOTR W YCHOWAŃSKI, PhD MD DDS, who deals with innovations, explains in an interview with Jerzy Mosoń how modern maxillofacial surgery can cope with pain and speed up healing, even after such complex procedures as a dental implant.

38 polish market

INNOVATION IN MEDICINE

Could tell me what your secret is: how do you do it that it doesn’t hurt at all?

Pain corresponds to the stimulus that has triggered it.

The more extensive the procedure, the more painful it is.

One of the factors responsible for pain and tissue healing time, is the size of the operating field. Imagine the appendectomy. Instead of a ten-centimetre-long incision across the stomach, we would all prefer laparoscopy to be used, which requires three incisions, but none of them exceeding 1.5 cm in length. It’s similar in dental surgery. I try to do what I can through a "keyhole." It is possible without cutting tissue, making incisions in gums and applying stitches, while using the body’s regenerative abilities. It's a micro-invasive method. That's what we can call it, because after all, each procedure is invasive to some extent.

PM

“

that the best solution is an implant. Once, when you lost a tooth, a removable prosthesis was made. Later, this solution was slightly improved, fixed prostheses were made in the form of bridges fixed to adjacent teeth. Sometimes three crowns over missing teeth rested on one root. It's as if one climber ascending Mount Rysy had to carry three backpacks - theirs and their friends’. What's more, crowned teeth, deprived of their own roots, were just for the show. The point is for the replacement tooth to enable the patient to use it to bite through pieces of food just like using the original tooth. It is now possible because we have the technology to rebuild the root in the form of a screw. The rest is a crown. If we make an implant, we have a chance to prevent bone atrophy. We do not overload other roots.

WE CAN BUILD UP A BONE FROM SCRATCH, TO PERFORM A XENOGENEIC TRANSPLANT USING MANMADE MATERIAL WHICH IS INSERTED INTO THE ALVEOLUS. USING THIS METHOD, GUMS DO NOT RECEDE. IT CAN BE USED IN 95 % OF PATIENTS."

What do you need to watch out for to avoid causing pain?

Imagine a sealed packet of meat from a supermarket.

From the point of view of biology, the human body, too, has a kind of packaging: the pleura, peritoneum, dura mater and periosteum. Now, the lung as an organ is not innervated, which means that if you slice through it, it does not hurt. It can be easily destroyed by cancer because the patient can’t even notice it. The first sign that something is wrong is when pleural infiltration has occurred, only then does it get painful. In maxillofacial surgery, pain is a sign of periosteal abnormalities. The problem is that in order to get to the organ, you need to cut through the periosteum, pleura or peritoneum, that is all the "packaging." Cutting through the periosteum, exposing the bone and then making a suture, is enough for the tissue to swell and for the patient to feel pain. The micro invasive method in implantology, in which I specialise, consists in that I try not to cut through the periosteum. As a result, it is less painful.

PM

I cannot imagine how exactly you manage to do all that "through a keyhole." What is the advantage of an implant over crowns and bridges? Why have patients opted for this method for years?

If you lose a tooth, you want it back as soon as possible. The Oral Health Related Quality of Life index shows

PM

What is the future of implantology?

Using micro-invasive implants, we try to shorten the time from tooth loss to implant placement. The standard protocol is that if you break a tooth, after having it removed, you should wait six months for the bone to heal.

Then we introduce the implant. We wait four to six months again. Then you can put on a crown. We try to eliminate the first part, i.e. remove the root and put the implant in its place right away. This allows you to cut treatment time by half, thus avoiding the risk of bone loss. If you remove the tooth through the "keyhole" and put the implant through it, without incisions, that’s it. It’s a stateof-the-art technique. The challenge is that, having removed a front tooth, in 95 % of cases the bone is less than two millimetres thick. Once the tooth is removed, the bone is so damaged that it atrophies, followed by receding gums. If you then put in an implant, the screw will show over the receding gums. But our innovative method developed with the Harvard School of Dental Medicine, is effective even for patients who do not have any bone left.

We can build up a bone from scratch, to perform a xenogeneic transplant using man-made material which is inserted into the alveolus. Using this method, gums do not recede. It can be used in 95 % of patients.

PM

PM

It seems that implants could soon replace even your own teeth - after all, an implant won’t rot.

5/2019 polish market

39

INNOVATION IN MEDICINE

“

IF YOU LOSE A TOOTH, YOU WANT IT BACK AS SOON AS POSSIBLE. THE ORAL HEALTH RELATED QUALITY OF LIFE INDEX SHOWS THAT THE BEST SOLUTION IS AN IMPLANT."

If implants were better than your own teeth, dentists would be the first to replace their own teeth, and they don’t. The basic problem is that bacteria accumulate at the place where the screw meets the gum, which causes an inflammation around the implant called "periimplantitis."

It leads to bone loss and even loss of the implant. There are up to 500,000 cases like that in the US each year. The biggest problem is that we are unable to inject drugs directly into the infected area.

Would it not be enough to use silver or graphene for the implant – these are germicidal materials?

It's not as simple as that. The problem with materials is that they are not always accepted by the body. A material implanted into the bone must be compatible, to be integrated into the bone, while at the same time hindering the growth of bacteria. Silver is not compatible with jaw bones. When it comes to graphene, although it is a promising material, I have not heard about it being successfully used for coating bone implants. The most suitable material used for implants is titanium – it is not rejected by the human body.

PM

So, we have a problem there.

Not exactly. There are different methods of managing periimplantitis, for example, surgery. Instead of traditional implants with a rough surface, I use hybrid implants.

They make it easier to cope with possible local periimplantitis, although the healing process of the tissue is slightly longer than in traditional cases. In events like this you can apply my invention: a modified healing screw, which is solid (it is used to shape the gum.) My screw retains all PM

40 polish market

these features, and additionally it has pharmacological effects. It is enough to painlessly screw it onto the implant.

Prototypes of these screws already exist, I have a patent, an EU programme which which covers it and a clinical grant for this purpose.

Given advanced technologies like this, why don’t some implants hold in place?

Implants get stabilised, among other things, thanks to mechanics - screwing the implant into the bone which holds it there. But damaged bone atrophies over time. So the stability of the implant obtained during a visit to the dentist is partly lost. Secondary fixing finally stabilises the implant.

The patient's cells build up around the implant, holding it in place. The stability of the implant thus results from the declining primary and growing secondary stabilisation.

PM

Is dentistry going to surprise us with new discoveries in the near future?

We have a new product which features a modified titanium surface. It turns out that holes arranged in a certain pattern encourage some cells to grow inside them. Thanks to the Warsaw University of Technology, we have the first bioactive titanium implants, which means that an implant can be injected into the bone repetitively thanks to 3D porosity, which is compatible with bone porosity. I am working on a system which will allow the human body to do the healing in dentistry. In ten years’ time, an implant is going to be embedded inside a living bone specially built by the human body. The bone will grow around the implant. All we will need to do is encourage the body to • do so.

PM

INNOVATION

CAN'T TAKE THE DOCTOR'S PLACE

Minimally invasive surgical techniques are set to become more and more helpful in treatment. It’s unstoppable, ANNA JANCZEWSKA, President of Medim, a company which promotes the latest solutions in medicine, tells Jerzy Mosoń.

Before we sat down to talk, I was wondering if those who are afraid of going under a knife, but who need surgery, can finally breathe a sigh of relief?

Many of them certainly do. We’ve been promoting minimally invasive surgery for almost 30 years. After initial difficulties caused by the fear of the unknown, and having overcome the financial barrier at the outset of Poland’s free market transformation, Polish hospitals can now benefit from many achievements of science and technology. Medim is trying to encourage them to use the latest solutions, showing the benefits that these techniques can bring in medicine. We conduct these activities in conjunction with the global leader and pioneer in these minimally invasive technologies, the German company Karl Storz. As part of the these technologies, for several years we have also promoted surgical robots in Poland, doing some trail-blazing work. The pioneer on the medical side is Professor Wojciech Witkiewicz of the Province Specialist Hospital in Wrocław. In 2010 it was the first hospital in Poland to purchase the Da Vinci robot. Professor Witkiewicz is very open to innovation in medicine, he’s a visionary.

PM

Do Poles like new products?

Polish doctors are open to new things and learn quickly. Patients are also interested in getting back into shape as soon as possible. If instead of a traditional operation, which is very traumatic, the patient can choose a minimally invasive method, it’s a simple choice.

I would also like to stress that medical technologies are among the fastest growing and most innovative areas of the global economy.

They include over 500,000 products used in diagnosing diseases and disabilities. Technological progress and innovation brings immediate benefits to patients - each new generation of PM

products is less invasive. It offers better clinical results, and contributes to shortening the time of recovery. On average, after 18 months, a given medical product is replaced with its improved version.

I wonder what is going to happen ten years from now, who knows, you can’t stop progress...

Nothing can take man’s place. When it comes to therapy, at the outset there is always a physician. Artificial intelligence can’t make decisions as yet.

PM

My concern is different. I can imagine that the operator of a digger which breaks down is able to grab a shovel and dig a pit. But will someone who tweaks the knobs of a medical robot be able to perform a traditional operation in ten years’ time when the machine breaks down?

In order to be a good operator of a medical robot, you first need to explore the intricacies of classical surgery. Even now, given the less invasive technique, you need to be able to perform traditional surgery as well. That should be the case in the future.

PM

But robots don’t have feelings and emotions. Medical doctors do. Can empathy – or lack of it - determine the effectiveness of treatment?

There are all sorts of people. And in order to do a good job as a medical doctor, you need to be passionate and empathetic. Some people fail. On the other hand, when you frown on a physician’s attitude, you should think about the conditions in which they work. They don’t always have much to smile about.

PM

PM

Is a good atmosphere so important in effective treatment?

It is, because all tests confirm how important the human psyche is in a patient’s recovery.

What’s your solution, what to do to prevent routine from blocking empathy?

You should empathise with the patient and ask yourself how you would like to be treated if you were in their shoes.

PM

Have you ever thought about becoming a doctor?

Yes, I wanted to study medicine. Unfortunately, I was scared that I wouldn’t be able to cope with the sight of blood during surgery.

But life has its bitter ironies. When I sell medical equipment, I sometimes need to witness surgical procedures which involve a lot of blood. I have no problem with it. So my fears have turned out to be exaggerated.

PM

What do you think the future of medicine will be like?

For sure, artificial intelligence is set to develop dynamically. I’m really impressed with it and I can see it’s going to have a great future. Virtual Surgery Intelligence, which is essentially smart medical software for surgeons, is based on mixed reality and AI. It allows the medical staff to be better prepared for surgery. It is easier to obtain images of all anatomical structures during the procedure and to communicate with consultants and assistants, thus achieving faster and better treatment results. This technology is also used to assess the course of operations and is very useful for teaching purposes. Artificial intelligence, which makes use of a huge amount of data and algorithms, will be able to help physicians diagnose patients quickly and accurately. It will also suggest methods • of therapy.

PM

5/2019 polish market

41

INNOVATION IN MEDICINE

A POLISH LASER PILL TO REVOLUTIONISE MEDICINE? A laser pill developed by PROF. LUDWIK POKORA, director and organiser of CTL – Centre of Laser Technology - LASERINSTRUMENTS Ltd., is able to diagnose and cure early stage neoplastic lesions. It can help prevent the amputation of fingers and feet in diabetic patients. It can even help you lose weight. It can heal, without the use of drugs, hard-to-heal wounds and injuries, especially following surgical procedures in diabetic patients.

In addition to diabetes complications, laser light photons, which are suitably selected and configured in a way similar to the way an ordinary pill is made up, can cure over 600 diseases and other complaints.

Three groups of such small-sized lasers have recently been awarded the "Product of the Year 2019" emblem. “Now is the time to let the world know about my projects,” Professor Pokora tells Jerzy Mosoń. “I would like others to commercialise the device - professionals dealing with production management, marketing and globalisation.

I would like to pursue other projects which are equally important to patients in need of help,” he adds. What projects? Projects that can revolutionise medicine?

42 polish market

Warszawa, dnia 10.05.2019 r.

Nr licencji: PSZ1804201918 Szanowny Pan Ludwik Pokora Prezes Zarządu CTL Centrum Techniki Laserowej LASERINSTRUMENTS Sp. z o.o.

G R AT U L A C J E Szanowny Panie Profesorze,

mamy zaszczyt poinformować, że decyzją Kapituły CTL Centrum Techniki Laserowej LASERINSTRUMENTS Sp. z o.o. zostało Laureatem Godła Firma Roku 2019 oraz Produkt Roku 2019 za produkty: - Laser do diagnostyki i terapii nowotworów; - Laser do profilaktyki stopy cukrzycowej; - Tabletka laserowa zamiast lekowej.

Składamy na Pańskie ręce serdeczne gratulacje i cieszymy się, że tak znamienita postać jak Pan dołącza do grona Laureatów. Jako ceniony autorytet na całym świecie i wybitny naukowiec, wnosi Pan w nasze życie rozwiązania, których wyczekujemy od lat, zmieniając tym samym nasz świat na lepsze.

Jesteśmy zaszczyceni Pańską obecnością w Programie. Imponuje nam fakt, że tak dalece posunięte innowacyjność oraz kreatywność dają Panu przestrzeń do tworzenia tak wyjątkowych urządzeń i produktów.

W imieniu całego Zespołu Programowego raz jeszcze serdecznie Panu gratulujemy sukcesu i z wielkim zainteresowaniem będziemy śledzić dalsze Pańskie osiągnięcia.

Z wyrazami uznania: Koordynator Programowy: Przemysław Szulczewski

Dyrektor Kapituły: Marcin Andrzejewski

Prezes: Elżbieta Michalska

INNOVATION IN MEDICINE

“

I HAVE DEVELOPED A SMALL-SIZED LASER WHICH GENERATES BLUE DIAGNOSTIC LIGHT AND RED LIGHT TO DESTROY CANCER CELLS."

What is the significance of your projects?

In my assessment, I have developed the world's first laser with broad applications in healthcare, to help patients who cannot be treated with the use of pharmacotherapy. Especially in the fight against cancer, pain, injuries and diabetes problems. As a specific source of light, the laser has been known since 1960. Laser light differs from artificial light or sunlight in that it is monochromatic. In other words, a laser is a light of one colour. At present over 1000 different lasers are available commercially or in laboratories, each of them generating a different wavelength. This basic information goes a long way toward explaining the importance of my projects. Each of the lasers I have developed produces two, three or even four wavelengths. For the diagnosis and therapy of early neoplastic lesions, I have developed a small-sized laser which generates blue diagnostic light and red light to destroy cancer cells.

PM

PM

It seems a genuine breakthrough, because cancerous lesions can be detected before the physician and patient

can see them. Where did the idea for such laser applications come from?

The inspiration to develop this kind of laser to detect and treat cancerous lesions of the mouth, came from dental specialists who are professors at the Medical University of Warsaw. During a session of the Scientific Council of the Institute of Dentistry, of which I used to be a member, some terrifying results of studies were quoted - a large number of deaths was reported of patients who were diagnosed with cancer too late. So I decided to develop a simple and a safe tool to mount on a standard dental chair which would allow the doctor to spot a cancerous lesion which cannot be seen with a naked eye.

How does this device work?

Biological tissue in the mouth is illuminated with blue light, like with a regular lamp. If it encounters cancerous cells in the illuminated area, they shine in red colour. This physical phenomenon is known as fluorescence and has been known for a very long time. The doctor locates the lesion, and then presses the on-off button on PM

5/2019 polish market

43

INNOVATION IN MEDICINE

the hand piece of the device for the second time, switching the laser to red light, and pointing it to the identified cancerous lesion. Having absorbed the photons, after one minute of exposure, cancer cell are destroyed. This can be used in dentistry, gynaecology, dermatology, urology and veterinary medicine.

I'm impressed. It sounds a bit like fantasy. If it weren’t for other specialists’ rave reviews, and the many awards you receive, I would probably think it comes from the script of the next "Star Trek" episode.

Light therapy has a long history. It was already known in the ancient world, but leaving that aside, light was used in the 19th century to treat skin diseases, rickets and tuberculosis. At the end of the 19th century, the Danish physician Niels Ryberg Finsen, founded the Institute of Light Therapy in Copenhagen. For his pioneering work, he was awarded the Nobel Prize in 1903. The Hungarian scientist Endre Mester is regarded as the pioneer of laser therapy.

PM

His first publications came out in 1969, concerning the laser treatment of hard-to-heal injuries and ulcerations. In Poland, Professor Tadeusz Mika is considered as the pioneer of laser therapy used in the treatment of a number of diseases and complaints. Biological, biophysical and biochemical processes, interactions between light photons and organic and man-made materials, have been known and studied for a long time. They have been described in thousands of publications around the world. My several dozen publications are a drop in the ocean of global knowledge. I do not consider myself a discoverer of phenomena and processes, which are known and used. My contribution, namely, the "laser pill," two-, three- and four-wave lasers, is the selection of appropriate laser light parameters suited for specific diagnostic, regenerative and surgical processes, and the construction of simple and safe devices equipped with interchangeable applicators, depending on the required procedures. Working together

44 polish market

“

WORKING TOGETHER WITH OTHER MEDICAL SPECIALISTS, I HAVE DEVELOPED SPECIFIC PROCEDURES AND TESTED THEM IN LABORATORY AND CLINICAL CONDITIONS."

with other medical specialists, I have developed specific procedures and tested them in laboratory and clinical conditions.

Does laser therapy have any side effects?

Using a properly developed and tested procedure, you can do no harm to the patient. However, it is recommended to wear glasses to protect your eyes from specific laser light colours.

PM

PM

May I congratulate you on your next Product of the Year 2019 award. I wish you every success in gaining partners for the commercialisation of your projects, and in securing the necessary financial support for the implementation of further amazing laser methods to combat Alzheimer's and Parkinson's disease, which you have briefly mentioned during our meeting.

•

SOMETHING MORE THAN JUST PROFESSIONAL HOSPITAL EQUIPMENT...

"

INMED PRODUCTS ARE THE PART OF HEALING ENVIRONMENT, ENCOURAGE WARMER FEELINGS AND HELP THE PATIENTS TO RECOVER FASTER

• INMED bed heads create the design of any hospital's interior • INMED ceiling pendants and beams meet the need for both functionality and inspiration

INDUSTRY 4.0

ANOTHER REVOLUTION IN THE CHEMICAL

INDUSTRY MARCIN OCIEPA, deputy Minister of Entrepreneurship and Technology

T

he chemical industry is one of the pillars of modern economy. It not only provides it with a material base, but also has an important role to play in the sphere of healthcare and environmental protection. With a view to improving conditions for the development of the chemical sector and supporting its technological and organisational advancement compatible with the concept of Industry 4.0, we appointed in March a Team for the Competitiveness of the Chemical Industry.

This interdisciplinary group at the interface of public administration and chemical business will be responsible for enhancing the competitiveness of the Polish chemical industry. It is a broad and multidimensional challenge. This is why we have asked officials of the Ministries of Energy, Finance, Environment, Maritime Economy and Inland Navigation, Investment and Economic Development, and Agriculture and Rural Development to work in conjunction with us. Importantly, a wide range of organisations and industry stakeholders will be involved in the work: the Polish Chamber of Chemical Industry, Polish Union of Plastics Converters, PlasticsEurope Polska, Polish Cosmetic Industry Association, Polish Association of Cosmetic and Detergent Industry, and Polish Tyre Industry Association.

At the Ministry of Entrepreneurship and Technology, whose task is to create Poland’s long-term economic policy, we particularly care about the development of the Polish chemical sector in harmony with global economic mega trends. This is why we are looking at the chemical sector through the prism of circular economy and Industry 4.0.

The chemical sector is facing challenges as big as these global economic transformations. The management of materials is central to circular economy and is inseparably connected with innovation in the chemical industry, new business models and a change in the environmental awareness of the public.

With this in mind, the Team for the competitiveness of the chemical industry will be dealing in its work with some aspects of circular economy, like for example regulations on plastics, waste and recycling,

46 polish market

and amendments to regulations on water management and waste management. An undoubted strong point of the Team, as a platform for supporting the development of the chemical sector, is that representatives of the chambers, associations and other industry organisations – which means practitioners – will be shaping together the agenda of the Team’s work.

One of the challenges facing the chemical industry is its energy consumption. Energy is a basic input in chemical production: natural gas and petroleum are used in the production of most chemical products.

Large volume chemical production involves oil and gas processing to obtain key products, which are then used in further chemical processing. The chemical industry depends to a large extent on access to raw materials, including energy commodities such as natural gas.

But for the sector to be able to further develop it is necessary to reorient chemical production towards alternative energy sources, including energy derived from the recycling of waste, like for example plastics. This is why special attention will be paid in the work of the Team to alternative energy sources for the chemical industry.

Industry, the chemical sector included, is facing another revolution.

Digitisation and circular economy are two factors which in the near future will cause big changes to the way business activity is conducted. The concept of Industry 4.0 is about changes in the area of both technology and organisation. The objective of the changes is to enable producers to keep their competitive advantages on markets. Polish companies have to apply the latest solutions. We are glad that many chemical companies are already actively investing in the digitisation of their processes and business operations. The chemical sector is one of those which use modern solutions most widely, but it still faces many challenges when it comes to their introduction. The establishing of the Team for the Competitiveness of the Chemical Industry is a clear sign that the state is on the chemical industry’s side and is determined to support it in exploiting its opportunities and potential, and help it to meet the • pressing challenges of the transforming global economic system.

POWER INDUSTRY

AUTOMATIC CONTROL

TELECOMMUNICATION

TECHNOLOGY

It is not the quality that costs, but its lack

CHEMICAL INDUSTRY

POLISH CHEMICAL INDUSTRY AND ECONOMIC DEVELOPMENT CHALLENGES FACING THE SECTOR TOMASZ ZIELIŃSKI, PhD (Eng), President of the Polish Chamber of Chemical Industry (PIPC)

E

very year the Polish, European and global chemical industry is affected by the changeable situation in respective regions and new global trends to which one needs to respond dynamically. It is the trends that define the behaviour of businesses these days and have started to have a major impact on the strategy of the sector. We can look at trends from two perspectives. One of them is the prism of hard economic and industrial transformation. An example is changes to the raw materials policy of the United States, including its shale gas policy. These changes have had a major impact on the direction of investment in the petrochemical and other sectors in the world. Another trend, quite vital in recent years, is access to cheap energy rather than, as was important in the past, access mainly to cheap labour force. The second perspective involves soft trends, including consumer behaviour, pro-environmental attitudes and product needs. These are the trends that undergo the most frequent changes and modifications. There are a multitude of types of directions of change impacting the chemical sector. One thing is for sure: market behaviour, including trends, may have a significant influence on the chemical industry while its products are present in every sphere of life and economy. And here we come to what is probably the most important challenge that the chemical sector, in particular the European and Polish one, is facing. I mean competitiveness. One should remember that

48 polish market

competitiveness has always been a key component of a developing and developed economy, and especially of any kind of industry and enterprise. Maintaining one’s competitiveness at an appropriate level is definitely challenging. In the chemical sector, given the numerous changes in its environment, it requires constant effort. To be competitive one needs to take various measures on an ongoing basis. One needs to work continuously to keep the highest level of competitiveness and take measures to strengthen it.

This is important because the chemical sector is much more sensitive than other industries to many factors influencing competitiveness. I mean regulations, and access to cheap raw materials and energy. As individual factors shaping competitiveness, including access to cheap raw materials, are beyond the control of Polish chemical companies, they are facing an additional challenge and have to devote even more work to deal with it. What is more, many factors in the companies’ daily activity build competitiveness or help to strengthen it to a different extent.

The situation of the Polish chemical industry is much more difficult than it is in other parts of the world. In the absence of cheap raw materials and cheap energy, and given the costs resulting from EU and national regulations, we are forced to constantly look for alternative areas to strengthen our competitive advantages. We are on the lookout for solutions when it comes to technology, energy and process efficiency, and cooperation. The

more it is necessary to strengthen competitiveness, the more areas are exploited and improved. Being aware of the negative consequences coming from other areas strengthens the sector’s responsibility. Security in the chemical sector has started to take on a different meaning. The highest level of security means a lack of breakdowns, continuity of production and secure margins. Chemical companies know that this has a real impact on competitiveness.

Human capital is one of the most important factors determining the competitiveness of the Polish chemical industry. Thanks to the advantage of our excellent technological and engineering know-how, the sector is able to overcome many difficulties, including those related to the implementation of new regulations and their consequences. Having no access to cheap raw materials, the Polish chemical sector has been forced for years to constantly work out new solutions which raise efficiency. But in today’s globalised reality this is no longer enough. The present day puts new challenges in front of us and makes us think about the future of our human resources. The chemical industry in Europe, especially in Central Europe, has started to grapple with the problem of developing human resources for the sector. The development of human resources will be an important competitiveness-enhancing factor, especially in the times of transition to Economy 4.0.

Additionally, we are facing a test for our effectiveness in the form of regulations and

CHEMICAL INDUSTRY the problem is mounting. Support from industry organisations working with the public administration sector and other stakeholders significantly enhances competitiveness, in particular in the area of regulations.

There is a need for cooperation. Cooperation among companies, between industry and science, industry and industry organisations and the public administration sector is key to success in shaping a stable level of competitiveness.

The efficient functioning of industry organisations, including the Polish Chamber of Chemical Industry (PIPC), is one of the key elements of support for the sector. Such organisations as PIPC create areas for mutual cooperation within the sector, among companies, and outside the sector with its regulator – the administration. PIPC does so within the framework of its 11 thematic commissions, which bring together over 400 experts: representatives of member companies and institutions who jointly take part in advocacy and legislative processes. Six new commissions and four sub-commissions have been established over the past six years and they held more than 200 meetings.

In the regulatory sphere, there may be many additional elements which will influence the sector’s strategic and development plans. Cheap raw materials offer an excellent competitive advantage but regulatory restrictions, like for example environmental ones, may make it impossible to fully benefit from it. And here comes the additional element already mentioned: cooperation with the public administration sector at the stage of drafting regulations, and then implementing them and adjusting. Being a party to this dialogue, in the past six years PIPC has taken part in over 200 meetings with Polish and EU authorities, presenting almost 300 standpoints.

Companies also take numerous measures to enhance the competitiveness of the sector.

One can build competitiveness through many factors with which the company has direct contact and through factors which can be accessed by establishing cooperation with other businesses and institutions. Sharing the best practices and experience when carrying out projects dedicated for the chemical industry is an effective way of establishing cooperation and developing tools and activities building competitiveness. And here there is room for the activity of industry organisations supporting the Polish chemical industry. In the past six years, PIPC has developed numerous projects and initiatives thanks to which we are able to support our members and conduct activities offering a chance of development, outlining the most important trends, and creating space for building networks of

“

HUMAN CAPITAL IS ONE OF THE MOST IMPORTANT FACTORS DETERMINING THE COMPETITIVENESS OF THE POLISH CHEMICAL INDUSTRY."

relations and ultimately contributing to enhancing the competitiveness of the whole sector. Thanks to PIPC projects, more than 70 meetings, conferences and workshops, attended by 6,000 participants, took place in that period. This shows how important thematic industry meetings are in the whole process of building and strengthening competitiveness.

Research programmes carried out with research institutes and universities are one of many important elements in improving the companies’ activity and looking for innovative product and technology solutions.

It is also an important area associated with some global trends: Industry 4.0, pro-environmental innovations, and regulations, like those related to circular economy, forcing the development of new products or their new applications. One can say that the circle is complete, or that work on building, enhancing and protecting competitiveness is

a continuous process and should focus on every aspect of the functioning of the chemical industry which may strengthen competitiveness.

One can talk a long time about competitiveness, especially the competitiveness of the chemical industry, which is susceptible to an enormous number of factors influencing its position and ability to compete on various markets. Today, the competitiveness of the chemical industry depends on the special characteristics of a given region, regulations, access to raw materials, consumer needs and many internal factors in every company. One thing is certain: the Polish chemical industry, whose competitiveness has to be always protected and enhanced, is in particular need of cooperation within the industry and support from the public administration sector because its competitiveness is of key importance for the competitiveness of the wider Polish economy.

• 4/2019 polish market

49

CHEMICAL INDUSTRY

TALL ORDER Is the circular economy an opportunity, a challenge, or perhaps a necessity for the Polish chemical industry?

These are the questions BARTOSZ MALOWANIEC, Head of the Environmental Technology Verification Unit at the Institute of Environmental Protection, National Research Institute (IOŚ PIB), asks in the following remarks written for “Polish Market.”

T

he Polish chemical industry is currently facing major challenges. Shortages of cheap raw materials and rising production costs, make it necessary to undertake various activities to stay competitive on international markets. To this end, modern technological solutions, energy and process efficiency are needed. Improvements in these areas are now possible because Polish industry is introducing the principles of sustainable development and elements of the circular economy on an ongoing basis.

In April 2018, the European Parliament adopted a package covering six directives which set new targets for the recycling of waste and place restrictions on landfilling. These regulations form the basis for the implementation of the circular economy. In addition, in January 2018, the European Commission adopted a plastics strategy, which will govern the way they are used and disposed of, with a special focus on recycling. The near future is set to bring a number of regulatory changes on the way toward a circular economy which the chemical industry will be required to implement in its operations. Depending on the directions of these changes and the involvement of industry, the circular economy can be an opportunity, as well as posing a threat to the Polish chemical industry. Now is the time for the chemical industry to implement large-scale business models based on close cooperation between research institutions, entrepreneurs, other industries as well as public administration. This co-operation is meant to help to both streamline current activities and search for innovative product and technological solutions, creating a product value chain for the circular economy. It will be the key foundation for the successful shaping of international competitiveness of the industry.

One of the challenges posed by the introduction of the circular economy is the need

50 polish market

to implement innovations in the production of plastics. Chemical industry manufacturers will need to withdraw or replace substances which interfere with the recycling process.

Made from alternative raw materials, including organic materials, the products will be required to decompose in seawater and fresh water. The chemical industry should view this as an opportunity to develop its activities in these fields, in particular through co-operation with science.

This approach is promoted by the European Commission, which provides funding for the development of smarter, recyclable materials. It gives Polish scientists and entrepreneurs the opportunity to develop modern solutions to speed up the transition to the circular economy, benefitting from the process along the way.

The revised waste directive, also concerning packaging waste, imposes recycling targets on EU member states. In the case of municipal waste, the minimum is 55%, and in the case of packaging plastics 50% by end-2025.

Such strict requirements mean the need to develop a number of new features in the life cycle of products to meet required targets. For example, products are now to be made of homogeneous polymers. Older plastics contain chemical compounds which give them specific properties (plasticisers, antypirins, stabilisers, etc.) whose use is now banned. The list of banned substances will be updated in the future. It is not allowed to recycle waste containing unauthorised substances, while the use of modern technologies capable of removing these substances, e.g. chemical recycling, will not necessarily be economically justified. A number of modern recycling technologies are still in their infancy, or in the research phase, and it may take years for them to be introduced on an industrial scale. Economic and technological considerations play

an important role in the selection of technologies, however, in the circular economy model, possible solutions should be subjected to Life Cycle Assessment analyses, which will pinpoint those which are the most environmentally justified.

One should bear it in mind that circular economy solutions will not just be introduced in the polymer industry. Important challenges include recycling and regeneration of used solvents, acids and sorbents, regeneration of used oils, or use of recycled substances for the production of artificial fertilisers, e.g. from recovered phosphorus. In each of these cases, the technologies used should allow these processes to be carried out in an economically justified, efficient and environmentally friendly manner.

The implementation of circular economy solutions on a large scale is set to bring many benefits, especially when it comes to their impact on the environment. These include reducing energy consumption, and consequently CO2 emissions, throughout the entire value chain, and gradually reducing the use of fossil fuels. In addition, the implementation of the circular economy in manufacturing plants will make them less dependent on the rising prices of recycled materials.

The money spent on upgrading infrastructure will be quickly recouped.

It is necessary to adapt to the requirements of the circular economy in the long term. The faster required solutions are implemented in the Polish chemical industry, the more it will be competitive on global markets. Each chemical industry company will need to assess the impact of changing demand for itself. However, it is important to develop and use home-grown solutions and resources to prevent Polish industry from having to purchase technologies on foreign • markets.

ECONOMY

FOURTH INDUSTRIAL REVOLUTION

CREATING THE FUTURE PROF. ELŻBIETA MĄCZYŃSKA, President of the Polish Economic Society.

T

he accelerating pace of changes, driven first of all by the digital revolution and the Internet, is one of the most prominent and undeniable features of today’s world and economy. As a result, there is an ongoing change in the global civilisational paradigm, a change in which the industrial civilisation is being squeezed out by a post-industrial one. The latter, still not properly defined, is called a knowledgebased economy, a term which is probably quite inopportune. In publications on this topic, the authors point out that our civilisation is now at a turning point, or turning points if one takes into account differences in the development stages of individual countries. In developed countries, this means transition from an industrial to post-industrial civilisation, which is still not sufficiently studied or defined and which is called in different ways (knowledge civilisation, digital civilisation and so on). The dynamism of the transformation is so great that the changes described

by A. Toffler in his famous “The Third Wave,” brought about by computerisation, are now history – a distant past. The present day is nano- and biotechnology and further “new waves” driven by progress in robotisation and artificial intelligence. An opinion expressed many years ago by outstanding Polish journalist

52 polish market

November 28 – 29, 2019 HOTEL SHERATON W WARSZAWIE

10th CONGRESS OF POLISH ECONOMISTS

ECONOMISTS FOR DEVELOPMENT

The subject matter of the 10th Congress of Polish Economists has been proposed by the Programme Council, which is a broad representation of Polish economists, not only those connected with the Polish Economic Society and its Scientific Council. The congress is conceived as a forum for all economists and thus provides a unique opportunity for an exchange of views between theoreticians and practitioners, economists representing various centres and theoretical trends and representatives of other sciences.

Session I – Uniformity or pluralism?

The state and prospects for the development of economic sciences, including the place of Polish economics against the background of the world economy (also meta-economic topics, including a methodological reflection on the economy.)

Session II – Economic realities Opportunities, threats and challenges related to objective technological, social, political, demographic and consumption trends.

Session III – Economic regulation The role of institutions, the state, economic policy with particular emphasis on macroeconomic stability, supranational organisations, self-governing economic bodies and organisations, works councils and trade associations, microeconomic efficiency.

Session IV – Culture and economic education Relations between economy and culture. The ethical dimension of business operations and corporate social responsibility.

For more information on the programme, presentations and applications:

kongresekonomistow.pl Media Patronage

ECONOMY

Ryszard Kapuściński is gaining in importance and topicality. He said that these days “the past does not become history, it immediately becomes archaeology … with which we no longer have any emotional connection.

It is a great weakness and misfortune of contemporary man. He is unable to anchor to history because past events disappear from his consciousness.” Futurologist Kevin Kelly has now come to a similar conclusion. In his book with the revealing title “The Inevitable. Understanding the 12 Technological Forces that Will Shape Our Future,” he forecasts that most of the technologies that will come to dominate the functioning of economy and society 30 years from now have not been invented yet. As a result of the unprecedented dynamism of change, “we live in the times of ‘becoming’ and we are all becoming newbies.” The “volatile world” described

by Grzegorz W. Kołodko more than a decade ago is going to gather paceeven further.

The world is now on the verge of the Fourth Industrial Revolution (Industry 4.0), which involves the development of artificial intelligence combining physical, digital and biological potential. Industry 4.0 (Industrie 4.0) is a notion coined in 2011 by German hightechnology specialists: H. Kagermann, W.D. Lukas and W. Wahlster, and popularised

by Klaus Schwab, the founder and executive chairman of the World Economic Forum in Davos. The steam engine, electricity (electric bulb) and computer are the symbols of the three previous industrial revolutions. Meanwhile, the symbol of the fourth revolution is artificial intelligence, which combines the physical, digital and biological world.

Sharing economy, social networks and the Internet of Things are developing thanks to the Internet. New forms of business activity, unknown just a few years ago, are appearing. They are based on network relations between producers and buyers, relations which do not require the producers to engage their own manufacturing resources. What until recently could be regarded as paradoxical is becoming the new normal because the digital revolution continues to create new phenomena, shaping a new economy and its actors. The incredibly fast pace of change is more and more often too rapid for us to get ready for it in advance. Relations based on the ownership of production resources are being replaced with relations oriented at access to them. This is coupled with a fall in marginal costs, almost to zero, due to the development of digital technologies.

Therefore, “technology proposes, humanity uses.” But there are many signs indicating

54 polish market

that it is not always done in a socially beneficial way, despite the growing resources of knowledge and information. In many cases, we have to do with a dichotomy of knowledge and wisdom. In its forward race, the world is visibly unstable, which is reflected in various kinds of deep global imbalances.

These include in particular income disparities resulting in the risk of social revolt and other inequalities leading to social exclusion, a world of arrogant consumerism, on the one hand, and pockets of poverty, on the other, a world of technological progress and a world of ecological degradation.

The growing pace of change and the volatility of the contemporary world is translated into the widening of areas of uncertainty in socio-economic life, including difficult challenges faced by business owners, managers, partners, employees and other stakeholders. The primary challenge is the need to deal with this syndrome of omnipresent newbies. A fundamental question arises: Is shaping the future in a rational way at all possible under such conditions, is it possible and necessary to work out long-term development strategies? At the same time, it is also the question of whether the diktat, if not terror, of change typical of contemporary economy forces businesses to succumb to the stormy waves of change. This, however, means a serious risk of drifting and being smashed against the hard rocks of the unknown, unpredictable and often brutal world of business. These are questions about the culture of strategic thinking. Research into the functioning and bankruptcies of businesses shows that they approach this issue in very different ways, which has an impact on their fate on the market.

However, scientific studies and practice both prove that the most developed countries have the highest level of strategic thinking culture. Studies on the future are being developed intensively in these countries, creating the patterns and basis for strategic thinking, which is useful at individual decision-making levels in the economy and in businesses.

In shaping development strategies, it is important to take into consideration three time dimensions: the past, present and future. Marginalising any of these dimensions has a negative influence on the functioning of businesses. Prof. Krzysztof Obłój, a well-known Polish scientist and management expert, compares the comprehensive approach to the three time dimensions in strategic thinking to a system of gears of different diameters. The system works as long

“

SCIENTIFIC STUDIES AND PRACTICE BOTH PROVE THAT THE MOST DEVELOPED COUNTRIES HAVE THE HIGHEST LEVEL OF STRATEGIC THINKING CULTURE. STUDIES ON THE FUTURE ARE BEING DEVELOPED INTENSIVELY IN THESE COUNTRIES, CREATING THE PATTERNS AND BASIS FOR STRATEGIC THINKING, WHICH IS USEFUL AT INDIVIDUAL DECISION-MAKING LEVELS IN THE ECONOMY AND IN BUSINESSES."

as the gears mesh properly. But when one of the gears starts rotating faster or slower the whole system gets blocked. He illustrates in this way the significant interdependence between the past, present and future, pointing to the need to prevent “any of these time perspectives from becoming the only and dominant anchor of the strategy, the only gear in the whole mechanism. This one of a kind journey across time is methodologically indispensable for us to be able to deal in a sensible way with the wide range of economic problems and challenges associated with the Fourth Industrial Revolution. Strategic thinking may be an early-warning “mindopener.” It is indispensable, the more so as, given the accelerating pace of chance, both the future and the present day seem to be less and less clear and often more and more chaotic and difficult to understand, in particular in the situation of information sources multiplying as a result of the development of digital technologies.

•

ECONOMY

THE VOICE OF 500 EXPERTS The second edition of the Vision for Development Forum, the largest economic event in northern Poland will take place in late June.

100 debates to commemorate the 100th anniversary of Poland’s regained independence, 5,000 participants and 500 experts in 19 sections - this is the second edition of the Vision for Development Forum in a nutshell. The event will take place on 24-25th of June at the Polish Naval Academy in Gdynia.

T

he Forum is organised under the auspices of prime minister Mateusz Morawiecki and focuses on the most important challenges facing of the Polish economy. The Forum will tackle a wide range of issues, including investment, security, research and development, health, maritime economy, arts and culture as well as technologies of the future.

The event will also promote Polish products, solutions and companies. The Forum is designed as an opportunity to bring down barriers in the development of Polish business and to give Polish companies favourable conditions for growth.

"Just like during the first edition we want to encourage and facilitate true debate about the vision of the Polish economy," says Andrzej Michalak, president of the Vision for Development Foundation.

"We invite experts from the world of business and science, media and politics. We are keen to work out specific solutions, create innovative plans and projects beneficial for the Polish economy."

The Forum has 8 ministries as partners: Ministry of Digital Affairs, Ministry of Finance, Ministry of Investment and Economic

Development, Ministry of National Defence, Ministry of Agriculture and Rural Development and the Ministry of Entrepreneurship and Technology. Other partners are the Ministry of Labour and Social Policy and chairwoman of the Parliamentary Committee for Senior Citizens Affairs' Małgorzata Zwiercan.

•

MAIN PARTNER: Totalizator Sportowy Sp. z o.o., Fundacja KGHM Polska Miedź PARTNER+: PKO BP STRATEGIC PARTNERS: Bank Gospodarstwa Krajowego, PKN ORLEN, KGHM Polska Miedź S.A., LOTOS S.A. RAILWAY PARTNERS: PKP S.A., POLREGIO Sp. z o.o.

OTHER PARTNERS: Agencja Rozwoju Przemysłu S.A., DGT Sp. z o.o., Jastrzębska Spółka Węglowa S.A., Polska Agencja Rozwoju Przedsiębiorczości, Pomorska Specjalna Strefa Ekonomiczna Sp. z o.o., Zarząd Morskiego Portu Gdańsk S.A. i Zarząd Morskiego Portu Gdynia S.A.

5/2019 polish market

55

ECONOMY

EUROPEAN ECONOMIC CONGRESS IN KATOWICE Over 150 topical sessions, over 1,000 speakers, 12,500 participants - the 11th European in Katowice Economic Congress (EEC) was held in the southern city of Katowice May 13-15. A lot of attention was devoted to the future of Europe, digital transformation and energy. European Start-up Days, a side-line event, brought together over 3,000 participants.

Winners of the Investor Without Borders title

T

he Polish government was represented at the congress by Andrzej Adamczyk, Minister of Infrastructure, Teresa Czerwińska, Minister of Finance, Jadwiga Emilewicz, Minister of Entrepreneurship and Technology, Jarosław Gowin, Deputy Prime Minister and Minister of Science and Higher Education, Henryk Kowalczyk, Minister of the Environment, Jerzy Kwieciński, Minister of Investment and Development and Krzysztof Tchórzewski, Minister of Energy.

The inaugural session entitled "New Union - Young Union: European social challenges and a healthy economy” was attended by Jadwiga Emilewicz, Minister of Entrepreneurship and Technology, Luca Jahier, President of the European Economic and Social Committee, Iveta Radičová, former Slovak Prime Minister, and Konrad Szymański, Secretary of State for European Affairs. A video message was delivered

by EU Commissioner for Budget and Human Resources Günther Oettinger. Representatives of young Europeans invited to join the debate were represented by Kamil Baran, President of the European Law Students Association ELSA Poland, Julia Grzybowska of the Association of Young Diplomats Forum, Patrycja Serafin, Chairwoman of the Independent Students' Association and Maciej Tomecki of the University of Cambridge. The debate was led by Jerzy Buzek, Member of the European Parliament, former President of the European Parliament and former Polish Prime Minister. “Europe is

56 polish market

changing every 40 years, and not every problem should be described as a crisis,” said Iveta Radičová. “Many European countries are doing well or very well economically, but the average citizen cannot feel it.” she added. “We must enter a period of new renaissance,” suggested Luca Jahier. “We should put culture in the centre of change. We must ask who we are, where we come from and what our identity is,” he argued. Jadwiga Emilewicz, Minister of Entrepreneurship and Technology, agreed with him. “The European Union needs to undergo a profound reform. We need this, because, even though Europe is in the vanguard of economic change as the world’s second largest economy, it doesn’t see itself as such. Only 9% of those asked if the EU economy is modern say it is. We need to renew standardss and values, those on which the European community was built, i.e. the free market and international cooperation. Jadwiga Emilewicz added that social unrest such as the yellow vest strike in France, is caused by the fact that in Europe, some political elites do not understand the social processes that take place witin it. “The core of the reform should be to renew the conviction that the European Union is able to maintain peace and stimulate development on the continent.

We focus on economic indicators, and today the level of acceptance of the EU is about 42%.

In Poland, support for the European community is much higher. When it meets these conditions, the EU will be able to carry out economic

reforms and compete with China and the United States. If we compete internally, we will lose track of where the game is played.”

Participants in the debate entitled "Robots among us. Technologies and society” looked for answers to questions like how technologies change the world, how a new 4.0 company should be managed and what competencies business will need in the future. Deputy Prime Minister Jarosław Gowin said that he agrees with the definition that the robot cannot harm humans purposely or by default. Despite criticism and suggestions that this definition is idealistic, no-one has come up with a better one.

There is a trap in the efficiency of using technology and innovation. We may forget why they were created. They are meant to support us, not replace us, we are supposed to live better lives thanks to them, and not become their slaves," said Jarosław Gowin. “With the rapid development of new technologies such as artificial intelligence and robotics, Man’s ability to solve problems is still crucial. Although competences are acquired in various ways, the education system plays an important role in this process. Without a well-thought-out and value-based education, we can lose the battle for humanity,” he added. Minister Gowin said that he has been reforming the Polish education system for three and a half years. In addition to academic excellence and technological development, it is necessary to recognise social needs, not only those close to home, but also the social

ECONOMY

“

THE CORE OF THE REFORM SHOULD BE TO RENEW THE CONVICTION THAT THE EUROPEAN UNION IS ABLE TO MAINTAIN PEACE AND STIMULATE DEVELOPMENT ON THE CONTINENT."

needs of the "global village" in which we live today. Jarosław Gowin admitted that educational processes take years and technology develops much faster. "To quote Immanuel Kant, the measure of the intelligence of an individual is the ability to deal with multiple uncertainties.

Artificial intelligence solutions are based on the creation of algorithms based on large sets of data - known things. In my opinion, it will take a long time before artificial intelligence in line with Kant’s definition, is developed. This time should be used to develop the education system so that technologies created by future generations support the development of Mankind and do not threaten it.”

Chip Espinoza said that technological progress is supposed to make life better. “As for threats, I do not believe that technology is one of them. It is not technology that threatens humanity. Because we really benefit from the changes which are taking place,” he argued.

“In Poland, we should be prepared to take advantage of the digital transformation as soon as possible,” said Jadwiga Emilewicz, Minister of Entrepreneurship and Technology. She added that automation and robotics will rebuild the way society functions, including the labour market. “Automation and robotisation means cutting jobs based on simple, repetitive tasks.

This confronts us with the challenge of managing employees who lose their jobs. We need to raise their qualifications so that they perform more creative jobs. This is the challenge we face,” said Sanjay Samaddar, Vice President of ArcelorMittal.

During the event, the planned infrastructure layout of the Solidarity Transport Hub was shown. “It’s no longer a question whether to

Jarosław Gowin, Deputy Prime Minister and Minister of Science and Higher Education

Jadwiga Emilewicz, Minister of Entrepreneurship and Technology during the debate entitled "Robots among us. Technologies and society”

build it but how,” said Mikołaj Wild, secretary of state at the Ministry of Infrastructure. He noted that cooperation with all interested parties is crucial. Only this will cause the project to be well received by stakeholders. “We want to build an airport which will be in the top 10 of passenger airports,” he stressed. The complexity of the investment was emphasized by Dariusz Sawicki, board member of the CPK company in charge of the hub’s development. “Building the airport hub is a huge challenge,” he said. “The list of risk factors which accompany such a large investment project is long. One of them is demand, if it turns out that the number of airline passengers decreases. Another risk is supply, namely, the potential of the new airport can be untapped,” he said. Poland has no experience in implementing projects on this scale. It means that it is necessary to prepare this investment project in a particularly insightful way. Especially that the construction of the Solidarity Transport Hub is a bit like an iceberg. Only about 10% is visible to passengers, the rest is hidden. One of the institutions which needs to prepare for the construction of the hub is the Polish Air Navigation Services Agency. “A complete change in the management structure awaits us. It will also be necessary to invest in equipment,” emphasised Janusz Janiszewski, acting president of the Polish Air Navigation Services Agency. “The number of aerial operations is expected to double.”

In addition to the panels, international economic forums were held: Central Europe - Africa, Poland - Latin America, and the PolishChina Economic Co-operation Forum. "Polish Market" extended media patronage over the latter event. A detailed account of the debate at the forum is included in this edition of the magazine.

As part of the European Start-up Days, the results of the Start-up Challenge competition were announced. This year, a record number 300-odd start-ups from several continents joined the competition. The winners included: Bioceltix, MakeGrowLab, QNA technology, Hyper Poland, ProperGate and Salesbook.

Wojciech Kuśpik, President of the PTWP Group, the initiator of the European Economic Congress, said: “to sum up congress statistics, it is worth noting that one person holds about seven meetings in three days, which translates into a total of over 100,000 business talks. Concrete projects are born during these meetings.

Add to that the opportunities for start-ups which arise from meetings with potential investors.

Thus, the congress provides a positive impulse for the development of the Polish economy.”

Co-hosts of the European Economic Congress in Katowice were the city of Katowice and the Silesia Province.

• Sources: “Polish Market” own reporting, European Economic Congress

5/2019 polish market

57

ECONOMY

POLAND - CHINA

E C O N O M I C C O O P E R AT I O N F O RU M

“Polish Market” was a partner of the Poland-China Economic Cooperation Forum held on the second day of the European Economic Congress. Experts taking part in the session discussed the state of Polish-Chinese economic relations and the impact of the international situation, including trade wars, on the Chinese and global economy.

P

rof. Grzegorz Kołodko said that, although in the short term it was likely that China would be growing slower than the United States, the latter would ultimately lose as a result of its confrontational policy. “China’s power is unstoppable,” said the lecturer of the Kozminski University. He also stressed that, even though Poland is a small country from China’s perspective, its importance is very significant because of its geographical location. It is worth stressing that in 2017 exports from Poland to China were worth as much as USD2.6 billion, with food exports expanding increasingly fast, in particular dairy products and poultry.

CHINA MAY BUY MORE FOOD, BUT… The problem for exporters is the country’s licence system. For the time being, Russian businesses are coping with it better than others. When it comes to European Union countries, Poland has been quite successful in this respect.

“China is doomed to import food,” said Piotr Kulikowski, President of the poultry-processing company Indykpol and the National Poultry Council. “One should only ask the question: Who is going to deliver this food? Access to the Chinese market is regulated by licences. Only five poultry-processing plants from the European Union are authorised to export poultry to China. All the five are located in Poland.

Meanwhile, 23 Russian plants have alreadybeen authorised.”

Małgorzata Cebelińska, Director of the Trade Department at the Mlekpol dairy cooperative, talked about the need to work out a coherent strategy to suport exports to China in conjunction with the government. “We need, for example, to organise Poland days in China, with the prime minister’s visit to the country, strong support and measures taken by whole sectors rather than only individual businesses,” she said.

58 polish market

WE WILL CIRCUMVENT THE RUSSIAN EMBARGO There is very good news for Polish food exporters. The impact of the Russian embargo on exports to China are bound to become less of a problem. “Thanks to agreements signed recently with Chinese partners, businesses operating in the food industry will be able to use the southern corridor (TMTM), which makes it possible to export food to China bypassing the Russian embargo. It enables faster transport than by sea and cheaper than by air,” said Zbigniew Tracichleb, President of the PKP LHS company.

WE HOPE FOR MORE CONNECTIONS TO CHINA The Polish national carrier PLL LOT has also noticed a chance for expansion in relations with China. In 2018, the number of passengers who travelled by air between Warsaw and Beijing amounted to 71,500, of which 36% used the services of PLL LOT. There were 38,500 travellers on the Warsaw-Shanghai route. All in all, 185,000 passengers travelled

between China and Poland, with PLL LOT accounting for for almost 14% of the traffic.

At present, the Polish national carrier operates three flights a week to Beijing, but there are plans for more.

CENTRAL TRANSPORT HUB – A GREAT OPPORTUNITY The situation is expected to improve after the completion of the Solidarity Transport Hub. “We have the ambition to become a gateway for traffic from China in this part of Europe,” said Rafał Milczarski, President of PLL LOT. The hub is to be a gateway for traffic not only from China, but also India and Far Eastern countries. “Ultimately, after the opening of the new airport, we would like to fly to China as many as 98 times a week, to many airports,” added Rafał Milczarski. The carrier plans to fly 21 times a week to Beijing alone. The Chinese side also pins hopes on the new airport. “We are interested in the Polish project,” said Kong Tianping, Senior Research Fellow, Institute of European Studies Chinese Academy of Social Sciences.

•

ECONOMY

ENGINEERING

MEETINGS

EWA MAŃKIEWICZ-CUDNY, the President of the Federation of Scientific and Technical Associations NOT, talks to “Polish Market’s” Jerzy Bojanowicz.

Your Federation is getting ready for another Congress of Polish Engineers…

The First Convention of Polish Engineers held in Krakow in 1882 gathered Polish engineers from the Austrian, Russian and Prussian occupation zones and those resident in other countries. A congress held in Warsaw in 1917 was very important. At that time, Poland did not exist on the map of Europe, but everyone believed in its rebirth and engineers discussed its future industrial, administrative and legal system, to enable the country to catch up with rapid technological progress in Europe. In the Second Polish Republic (19181939,) it was important to include engineers in the construction of flagship investment projects, such as the Central Industrial District, the port of Gdynia, col mines, armaments and aviation industries, as well as the unification of infrastructure, which in technical terms was different in each former occupation zone. This concerned, among others railways, roads, water supply and construction.

Also, engineering industry organisations started to emerge, which participated in subsequent congresses: in 1937, the Chief Engineering Organisation, and a year later - the Chief Organisation of Technical Associations.

After World War II, a group of engineers who survived the war set up the Main Organisation of Engineers NOT. It was considered that one organisation should be created, as competition between technicians and engineers was thought unhealthy at the time. Again, the main goal of the reactivated associations and PM

60 polish market

NOT was the reconstruction of the country and industry. As far as it was possible, they tried to be independent of the authorities.

They organised congresses, which focused on many topics related to the implementation and transfer of the latest achievements in science and technology to Poland. Engineers soon noticed the drawbacks of central economic planning and took steps to remedy the situation in their own factories. The ”Przegląd Techniczny” magazine, which was set up in 1866, started publishing critical reports on individual branches of the economy in the 1970s, pointing to how mismanaged they were. A congress held in the city of Łódź in 1982 was very important. It referred to one organised one hundred years earlier.

It was decided that the congress numbering should be standardized. It turned out that it was already the 20th congress.

What about after the collapse of communism?

Past traditions were referred to, and it was decided to invite Polish engineers resident in other countries to the congress. The twostage 23rd Congress of Polish Engineers and Technicians (1991, 1992) summed up the absurdities of the centrally managed economy, but at the same time highlighted the merits of engineering organisations and scientific and technical associations in conducting training, publishing magazines and books, organising congresses which served as a platform for exchanging experiences and the latest PM

technological achievements. For many people, membership in scientific and engineers’ associations had provided a form of escape from communism. The congress also paved the way for the building of the engineers’ professional organisations in the market economy. It was decided that NOT should become a Federation of Scientific and Technical Associations (FSNT-NOT.) One of its goals was to take care of the prestige of the engineering profession and to establish close collaboration with Polish engineers who live and work abroad. It was important for scientific and engineers’ associations and NOT to join international organisations. But the main goal was to assist in the transformation of the economy into a modern one, which was emphasised at the 24th congress in Poznań (2002) and the involvement of engineers’ organisations in its adaptation to EU standards.

It required, among others, a new approach to standardisation and quality control - ISO standards and the voluntary CE mark, and the implementation of various directives regarding the manufacturing process.

Representatives of Polish engineers’ organisations set up in foreign countries participated in the 23rd Congress in Warsaw in 1992, didn’t they?

It was decided to organise symposia under the slogan "Poles Together,” to highlight the achievements of Polish engineers abroad.

Until then, the congresses focused on domestic matters. The first symposia (1996, 1998) PM

were organised by NOT in Warsaw. They were mainly devoted to history: the achievements of such figures as Ernest Malinowski, Ignacy Domeyko and Rudolf Modrzejewski. The role of Poles living in the West who occupy important positions, such as Wojciech Rostafiński, Paweł Baran and Mieczysław Grzegorz Bekker, was also emphasised. One event took place in London, because the Association of Polish Technicians in Britain, established during World War II, joined the FSNT-NOT, which highlighted the fact that it carries on the traditions of pre-war Poland. Engineers who found themselves in the U.K. after the war were largely unable to return home and organised associations which referred to prewar organisations. Later, the Association of Polish Engineers in Canada joined FSNT-NOT. The achievements of Poles living in Eastern Europe were also highlighted. We supported the reactivation of the Association of Polish Engineers in Lithuania, which existed before the war. That is why the 4th symposium took place in Vilnius (2004.) In that year Poland and Lithuania became members of the European Union.

At the 5th symposium in Vienna (2006,) it was decided to expand the formula. The European Federation of Polish Scientific and Technical Societies was established. In the US, the Council of Polish Engineers of North America was formed to bring together associations which exist in the US and Canada. Representatives of Polish universities of technology and research institutes also participated in the meetings which they organised. That is why the idea of the World Congress of Polish Engineers was proposed by the Council of Polish Engineers of North America (2009.)

The idea was supported by the Warsaw University of Technology and FSNT-NOT. It took place in 2010 and gathered about 500 Polish engineers from Poland and foreign countries.

It was difficult to reach non-engineering organisations, but as part of the "Engineers of Poland and the world" formula, the event paid tribute to the role of engineers in the development of civilisation. It was attended, among others, by Polish engineers who work in Dubai and South Africa. The congresses were to take place every three years.

But at the 24th congress in Łódź in 2011, it was decided that the World Congress of Polish Engineers and Congresses of Polish Technicians have practically the same message, themes and participants, so the jubilee 25th Congress of Polish Engineers took place in Wrocław in 2016 alongside the Third World Congress of Polish Engineers. Its organisers were FSNT-NOT, the Council of Polish Engineers in North America, the European Polish Federation of SNTs, the Engineering Academy in Poland, the Main Council of Research

Photo: NOT

ECONOMY

Dom Technika in Krakow

Institutes, the Conference of Rectors of Polish Universities of Technology and the Wroclaw and Warsaw Universities of Technology.

It was also decided to broaden the scope of meetings and look into the future. Therefore, the 26th Congress of Polish Engineers and the Fourth World Congress of Polish Engineers (Krakow, 13-15.06.2019), are organised jointly with the AGH University of Science and Technology in Krakow, which is celebrating its 100th anniversary, the Krakow University of Technology and the FSNT-NOT branch in Krakow, under the slogan "Engineer of the future." The event is part of the longterm Niepodległa Programme marking the centenary of the regaining of Poland’s independence in 1918 under the patronage of the Polish President Andrzej Duda, Prime Minister Mateusz Morawiecki, Minister of Science and Higher Education Jaroslaw Gowin and the Ministry of Enterpreneurship and Technology.

The inaugural lecture will be given by Prof.

Jan Szmidt, chairman of the Conference of Rectors of Polish Universities, rector of the Warsaw University of Technology.

We will remind the participants of the role of engineers in the construction of statehood after both wars. We will also show that today's demographic, climate, raw material, cultural and social problems, cannot be solved without engineers.

The programme includes panel sessions and scientific and technical conferences.

Moderators will include persons representing General Motors Canada, the Association of Polish Engineers and Technicians in Austria, Stanford University and the Association of Polish Technicians in the UK. The adoption of the Resolution of the 26th Congress of Polish Technicians and the Message of the Fourth World Congress of Polish Engineers is planned. Awards, medals and distinctions will be presented: Przeglad Techniczny Golden Engineer, "Master of Technology FSNT-NOT" Piotr Stanisław Drzewiecki, EFPSNT medals and the TECHNICUS 2019 competition award. Visits to the Cyklotron Center in Krakow and Huta Sędzimira steelworks and the historical center of Krakow are also planned.

And why Krakow?

Centers are selected which have something to show and somehow relate to the history of the association movement. In the Austrian partition zone it was the strongest, because Austro-Hungary was the least repressive and allowed Polish organizations to be established and develop. In 1906, Dom Technika was built from donations in Krakow.

This year, we celebrate the 100th anniversary of AGH. • PM

What can we expect from the event?

Challenges facing engineers will be discussed – how to educate young engineers.

Within 5 years, many professions will disappear. The vision of a world controlled by artificial intelligence is exaggerated, but it will certainly have a significant impact on our lives. So what will be the role of engineers in this changing world? Also in Industry 4.0 and the changing city infrastructure, because it is said that, Shanghai and Beijing will each have 100 million people inhabitants.

PM

More information: www.szip.org.pl/program/

5/2019 polish market

61

ECONOMY

TARNÓW

THE BEATING HEART OF INNOVATION

S

tart-ups have gripped the collective imagination of business circles with the force of a revolution. This revolution has been going on for several years now. For young entrepreneurs, start-ups are a chance for spectacular success.

Investors see them as an explosion of initiative and creativity which can be turned into profit.

State administration views them as one of the pillars of the innovative economy. To function properly and become a success, start-ups need a special environment, namely other start-ups, investors, large companies, support institutions and R&D centres.

There is no better chance to talk about young Polish inventors and their creative ideas than at the Innovation Forum in Tarnów. A recently published report by the ABSL Business Services Sector Network, shows that Rzeszów is the second best place in Poland to invest money in new technologies.

The first thing that comes to mind when you say start-up, are new technologies. Most start-ups are in some way connected with the IT sector. The idea is primarily to create an environment in which new companies come up with a way to grow and earn money. It is no coincidence that "looking for a business and financial model that will help start-ups develop" was included in the definition of a startup which is used by the Ministry of Entrepreneurship and Technology. It is no coincidence either that the concept of the exchange of ideas is crucial to understanding how a start-up ecosystem works.

Although new companies appear on the business scene all the time, their products are often nothing new. Labour costs have gone up in recent years, and thus companies must fight for a client, especially a foreign client, with a modern product. This is certainly not easy, because when it comes to research spending, the latest Eurostat report shows that Poland ranks 24th in Europe in this respect. This is unlikely to change any time soon, because as MP Jerzy Meysztowicz pointed out in Tarnów, the share of budget spending on promoting innovation has been cut to 0.97% of GDP. The way out for Poland - and all other countries of the

62 polish market

Start-up Award went to STEC ROBOTICS

New European Union which are in the same shoes – is to use EU funding or business incubators that allow the promotion of new companies in foreign markets.

The race is on in every field, and Polish companies are eager for a share of the cake. For now, it is difficult to catch up with Israel, Singapore or even Estonia and Lithuania, the latter doing particularly well in the FinTech market. However, Poland must join the race because the rewards promise to be lucrative. During the Innovation Forum, there was a lot of talk about the future, both the near future and long-term prospects. Voices were raised that we will soon need to part with traditional ways of thinking about the way a number of goods are produced, and even about health care. Physicians may be replaced by robots whose diagnosis will be based on scanning the patient's body, and artificial blood will be flown to the patient’s home by drone. By all indications, this could well come true within the next few decades.

Regardless of the future, you need to invest in an innovative economy right now, because only in this way can you help the country develop and grow. Venues such as the Tarnów forum provide the opportunity to exchange views and highlight the most important challenges.

“Over the nearly thirty-year history of the Economic Forum, we have observed very different economic trends. Our task has been to capture those that were to become important components of the Polish and global economic landscape and make them part of discussions at the Forum. The current trend is toward innovation and start-ups. We want to support them. We don’t just give them the opportunity to present themselves to investors, big business and public administration. We also grant awards for the best ideas, we present considerable financial prices,” says Zygmunt Berdychowski, originator of the Innovation Forum and chairman of the programme board of the Economic Forum in Krynica.

From among over 100 start-ups which were featured during the Forum, the highest PLN 80,000 prize went to STEC Robotics, which is involved in the automation and robotisation of manufacturing processes. A noteworthy initiative was the Programme Tarnów Hackathon, during which 10 teams competed for 36 hours to build an app or a mobile game which could improve the life of Tarnów residents. The winner was an app to inform residents about free parking spaces using the municipal surveillance network.

•

ECONOMY

GOVERNMENT PLANS AND BUSINESS EXPECTATIONS "Polish Market" once again extended media patronage over the EuroPOWER Energy Conference which was organised by MMC Polska at the Westin Hotel in Warsaw on April 24-25. We take a closer look at some of the current problems and latest trends in the energy sector raised at the conference.

A

ccording to the "Polish Power Industry 2030" report compiled by the Friendly State Foundation, Poland urgently needs to hold a public debate on the reconstruction of the electricity generation and supply system and a new energy mix. These and other questions were tackled by speakers who took part in the debate, based on the two key government documents, the National Plan for Energy and Climate 2021-2030 and Poland's Energy Policy until 2040.

The conference was opened by Chairman of the Programme Council Leszek Juchniewicz.

Then the guest of honour, Tomasz Dąbrowski, Undersecretary of State at the Ministry of Energy took the floor. He said that the need to transform the energy industry is caused by global trends. “Aware of the need to accelerate changes in the energy sector, the Ministry of Energy has released a draft of the Polish Energy Policy until 2040. This document sets out ways of transforming the energy industry in an evolutionary, economically sustainable and socially responsible manner. For Poland to develop further, it is necessary to ensure stable production capacity. This is a priority not just for the energy industry but also for economic policy. Progress in the energy sector must ensure adequate power supplies, transmission and storage. The industry is not prepared for a rapid development of renewable energy sources. This process must be evolutionary," Tomasz Dąbrowski said. He added that there will be a gradual decrease in the share of coal in power generation from the current level of 80% to around 60% by 2030. The increase in demand is to be covered with the use of renewable energy sources, but also with the use of nuclear energy. During the ensuing debate, the speakers discussed

64 polish market

"Leaders of the Energy World"

the government strategy in the field of energy and climate. A video address was delivered by Michał Kurtyka, Secretary of State at the Ministry of Environment, President of the COP24 international climate summit which had been held in Katowice last year. He outlined the goals agreed upon at the summit regarding global climate policies. The topics discussed in this segment of the conference included the reduction of energy price increases, air quality improvement and the outlook for renewable energy, wind and nuclear energy.

How to finance the transformation of the energy industry? The invited participants

tried to answer this question posed by "Polish Market” Deputy Editor-in-Chief Jerzy Mosoń.

Jerzy Orliński, Director of the Department of Infrastructure Programmes at the Ministry of Investment and Economic Development, explained which programmes have the best chance of winning co-financing from EU funding and why nuclear energy does not figure among them. Anna Chmielewska, Associate Director at the European Bank for Reconstruction and Development, pointed to the most profitable investments in renewable energy sources. Ilona Wołyniec, Director for Strategic Client Relations and Project Finance,

ECONOMY

PKO BP, spoke about a programme for financing building insulation, which reduces energy losses and is important from the point of view of co-operatives and housing associations. Kamil Szydłowski, Public Affairs Manager CEE, InnoEnergy Central Europe spoke, among others, about new opportunities for start-ups, which he said are best at spotting possibilities of earning money. The panellists also took up the crucial topic of the profitability of wind energy, which - according to their opinion - is the most promising one because of wind patterns prevailing in Poland. The panellists also expressed the hope that barriers related to legal regulation of investment flows in this sector are a thing of the past.

The climax of the first day of the congress was the "Leaders of the Energy World" Grand Gala during which statuettes were awarded in the "Leaders of the Energy World" competition.

The winners of the 2018 competition are: • Manager of the Year - Henryk Baranowski, President, PGE Polska Grupa Energetyczna Supplier of Solutions for the Energy Industry - MindMade Sp. z o.o.

• Innovation of the Year - Apator Metrix • Supply and Trading Operator of the Year - PGNiG Obrót Detaliczny • Producer of the Year - Tauron Dystrybucja • Man of the Year - Michał Kurtyka, Secretary of State, Ministry of the Environment • (“Polish Market” own reporting, EuroPOWER)

Chairman of the Programme Council Leszek Juchniewicz

How to finance the transformation of the energy industry? The invited participants tried to answer this question posed by "Polish Market” Deputy Editor-in-Chief Jerzy Mosoń.

“ Tomasz Dąbrowski, Undersecretary of State at the Ministry of Energy

THERE WILL BE A GR ADUAL DECREASE IN THE SHARE OF COAL IN POWER GENER ATION FROM THE CURRENT LEVEL OF 80% TO AROUND 60% BY 2030.

THE INCREASE IN DEM AND IS TO BE COVERED WITH THE USE OF RENEWABLE ENERGY SOURCES, BUT ALSO WITH THE USE OF NUCLEAR ENERGY. "

5/2019 polish market

65

CULTURAL MONITOR

JUNE 2019 “POLISH MARKET’S” MACIEJ POLIŃSKI INVITES YOU TO A SELECTION OF FESTIVALS, CONCERTS AND OTHER CULTURAL EVENTS TO BE HELD IN POLAND THROUGHOUT THE SPRING AND SUMMER SEASON. SUMMER AT THE SINFONIA VARSOVIA The acclaimed Sinfonia Varsovia Orchestra kicked off the season on May 17. For the second year in a row, audiences will be able to spend spring and summer weekends at the Grochowska 272 Sinfonia Varsovia venue until September 22. Over 70 events will take place, providing a rich and varied fare for the summer season. The orchestra's musicians, along with recognised soloists, will present a vast repertoire - from opera arias, to works by Polish composers, to Russian and American music, at a series of symphonic concerts to be held at 7.30 p.m. The Music Feast on June 21 will see a concert featuring the “Fable” overture by Moniuszko, along with pieces

by Russian composers Tchaikovsky and Rachmaninoff. The soloist will be the talented pianist Andrei Korobeinikov, and the conductor will be Alexander Vedernikov. In the August edition (August 30) the music will take on a more danceable character - the programme will include works by the legendary Astor Piazzolla and Aleksander Tansman, the Polish-Jewish composer who spent most of his life in exile in the West. Guitar virtuoso Krzysztof Meisinger will be accompanied by the orchestra’s musicians. A series of afternoon chamber music concerts will be held, just like last year. Both renowned artists and rising classical music stars will perform at 4 p.m. every Saturday and Sunday.

OPEN'ER The Open'er Festival is one of the most important summer music festivals in Poland. It features pop music and has taken place in the Baltic city of Gdynia since 2003. The event attracts crowds of music fans from Poland and abroad. At the Gdynia-Kosakowo Airport on July 3-6, star performers will include the US blues-rock band Greta Van Fleet, compared to the legendary Led Zeppelin, one of the most iconic American rock bands the Smashing Pumpkins and one of the hottest names on the modern jazz scene, saxophonist and composer Kamasi Washington. The Open'er Festival has been promoting the best in young Polish music for years now. This year will be no exception. A host of Polish performers will join the international stars. On the first weekend of July, the Gdynia event will feature Daria Zawiałow, who has released one of the most exciting pop albums this year, and intriguing newcomers Kwiat Jabłoni, Hania Rani and Coals.

WORLD JAZZ IN WARSAW The Warsaw Summer Jazz Days 2019 will be held at the Stodoła Club on July 4-7. The event is an original project of Mariusz Adamiak. While maintaining its pioneering, avant-garde style, the event has for years become perhaps the most important presentation of world jazz in Poland. This year, the Stodoła Club will play host to the Stanley Clark Band, set up by the legendary American jazz musician, whose innovative bass guitar style has made a huge impact on jazz, the Scott Henderson Trio, whose leader is considered one of the most talented and original guitarists in the history of jazz, the Kenny Garret Quintet, a band formed by one of the best alto saxophonists, known for his five-year stint in the Miles Davis band, and the Benny Golson Quartet led by one of the best tenor saxophonists ever, a legendary musician and composer who has turned 90 this year. "The global position of the Warsaw festival is unquestionable today. Warsaw has a reputation as being a bold contemporary jazz market. Many musicians from around the world are perfectly aware of what the Warsaw Summer Jazz Days is all about – a confrontation of prevailing trends with bold art. The aims of our festival remain unchanged – to promote contemporary jazz regardless of where it comes from, presenting what is the most creative in contemporary jazz,” says Mariusz Adamiak.

ART HOUSE CINEMA FESTIVAL The 19th New Horizons International Film Festival will take place in the south-western city of Wrocław on July 25 - August 4. It was first organised in 2001 to spotlight artistic cinema which transcends the boundaries of conventional movies. The mission of the festival is to present works by rebellious masters of the cinema and discover productions by lesser-known artists, who are very important for the festival organisers. The event has already seen retrospectives of films by Pier Paolo Pasolini, Sergey Parajanov, Federico Fellini, Wojciech Jerzy

66 polish market

C

CULTURAL MONITOR

Has, and the Quay brothers. Over the years, the New Horizons has also become the most-visited festival in Poland and one of the most popular events of its kind in this part of Europe (over 100,000 participants each year.) During this year's edition you will be able to see, among others, new films by renowned Asian directors, including Tsai Ming-liang, Shengze Zhu, Bi Gan and Zhang Lu. There will also be a much-awaited Poland’s first retrospective of works by Terayama Shūji (1935-1983,) one of the most prominent avant-garde reformers of the Japanese cinema and theatre. The programme also features films appreciated by audiences and critics of the Berlin, Toronto and San Sebastian festivals. Among them will be Silver Bear winner, François Ozon’s latest movie "By the Grace of God" (Grâce à Dieu,) which electrified audiences at this year's Berlinale.

CONTEMPORARY TAKE ON SHAKESPEARE The 23rd Shakespeare Festival is scheduled in Gdansk on July 26 - August 4. It is one of the largest international events to which the organisers, the Gdańsk Shakespeare Theatre company and the Theatrum Gedanense Foundation, each year invite the best Shakespeare productions by some of the most outstanding directors from around the world. Previous editions featured such stars as Luk Perceval, Edward Hall and Giuseppe Dipasquale. Interpretations of Shakespeare's plays have been shown by companies from the U.K., Russia, Germany, Cuba, Israel, the Czech Republic and Zimbabwe. Since 2000, foreign productions shown during the festival have been officially recommended by the International Association of Theatre Critics.

This year's edition will be partly related to the Shaking the Walls joint European project implemented by Gdańsk Shakespeare Theatre company, co-financed from the EU Creative Europe Programme. The central theme, walls that exist between people, will provide the inspiration for this year's event. As part of the Around Shakespeare strand, works by Shakespeare's contemporaries and contemporary playwrights referring to the bard's works, will be shown. The programme includes performances from Italy, Croatia, the U.K. and Russia.

CM OFF FESTIVAL KATOWICE

OFF Festival Katowice 2019, described as one of the best alternative venues in Europe, will take place at the Dolina Trzech Stawów park and recreation complex in the southern city of Katowice on August 2-4. The first edition of the event took place in 2006. The man behind it and its artistic director is the 1990s Polish rock music icon, vocalist Artur Rojek born in the Upper Silesian town of Mysłowice. "I wanted to create the first event in Poland which will connect music fans and artists from all corners of the world. I wanted to do things that others told me I wasn’t doing. Mixing genres, rapid changes of epochs and sounds? Well, we do it all," assures Rojek. Among the announced Off Festival 2019 guests there is no shortage of alternative artists from Poland and the outside world: the revived Stereolab, Foals, whose gigs are truly legendary, BBC Music Sound 2019 winners Octavian, who have just released a new album, the well-known producer Ammar 808, Tirzah, who recorded one of the most highly acclaimed albums of 2018, and a great jazz trio led by one of the most captivating Polish pianists of the younger generation, Marcin Masecki.

CHOPIN AND HIS EUROPE 2019

The event has been dubbed Warsaw’s most valuable festival. Organised by the Fryderyk Chopin Institute, it was held for the first time in 2005. Its aim is to promote Polish music culture by organising what organisers say is “an event of the highest calibre, permanently inscribed in the calendar of European events.” The idea is to present Chopin's creative genius in a broad cultural context, to reach for multiple sources of his style, discover relationships with his contemporaries and composers of the subsequent generations, through a broad presentation of European works from the 18th century to the present. During the 15th edition of the event, held under the motto "From Chopin to Moniuszko," to last from August 14 to September 1, the featured artists will include the excellent Europa Galante with soloists baritone Mariusz Godlewski, soprano Ewa Tracz, tenor Matheus Pompeu and bass Krzysztof Bączyk, under director Fabio Biondi. The music will include Moniuszko’s opera "Flis.” Among star performers will be piano virtuosos Martha Argerich, Nelson Freire, Kevin Kenner, Charles Richard-Hamelin and violinist Alena Baeva. The inaugural concert will take place at the Holy Cross Basilica. The Collegium Vocale and Collegium 1704 under Vaclav Luks will perform Cherubini's Requiem in C minor, and Kurpiński's "Te Deum."

PODSIADŁO AND TACO HEMINGWAY AT PGE NATIONAL STADIUM

Two of the biggest names among Poland’s younger generation artists, Dawid Podsiadło and Taco Hemingway, will appear at one of the most keenly expected gigs at the PGE National Stadium in Warsaw on September 28. This will be their sole joint appearance this year. No Polish artist has ever performed solo at this venue. Podsiadło and Hemingway have decided to join hands to blaze the trail for other Polish artists. Podsiadło has spent the past six months touring all over Poland. Hits from his latest album "Small town" could be heard at sold out concerts in both the largest concert venues and small community centres. Just like Podsiadło, Taco Hemingway has spent the past year promoting his album "Café Belga" during a sold out tour.

5/2019 polish market

67

CULTURE

JEWELS IN THE CROWN

This year marks the four hundredth anniversary of the completion of the reconstruction of the Royal Castle in Warsaw, commissioned by King Sigismund III Vasa. The king came from a dynasty which ruled Sweden (1523-1654), and the Polish-Lithuanian Commonwealth (1587-1668.) To mark this anniversary, 2019 has been declared Vasa Year. Among a number of commemorative events at the Castle is the exhibition "To Rule and to Dazzle. Jewels and Jewellery in Poland in the 16th-17th Centuries," to last until August 4. It is the first exhibition in the history of Polish museums dedicated to jewels in the Polish-Lithuanian Commonwealth.

Maciej Proliński

“

There has never been an exhibition like that at the Royal Castle, other places in Poland, or the rest of the world. It is one of the most closely guarded exhibitions in history.

Among more than 400 exhibits on loan from several dozen owners, there are those which can strictly be described as Polish, documenting the art of jewellers from all over the PolishLithuanian Commonwealth. Fortunately, they have survived historical turmoil, including wars, partitions and looting. They feature designs which were once all the rage among European elites, but also bear specific Polish traits when it comes to the choice of jewels, enamel colour and ways of setting stone in metal. Facing each other at the exhibition, they remind us of big aspirations, also artistic ones, of our titled ancestors," said exhibition commissioner Danuta Szewczyk-Prokurat.

This unique and impressive exhibition features royal jewellery, funded by Polish monarchs, notably Queen Bona Sforza (1494-1557) and Sigismund II Augustus (1520-1572). It testifies to the rank of the monarch's artistic patronage and the role of valuables in ceremonial

68 polish market

occasions and the creation of a dynastic policy. Jewels on show come not only from national collections, but also from the Louvre in Paris, a private collection in London, and museums in Florence, Munich and New York.

A particularly captivating exhibit, a colourful drawing of the royal crown, is on loan from a Berlin collection.

As the exhibition's commissioner adds, even works which have already been displayed in Poland, such as jewels and portraits of many dignitaries, obtained from Polish collections the Royal Castle in Krakow and the King John III Sobieski Museum in Warsaw - shine in Warsaw with a new, often surprising light. They are juxtaposed with precious gold goblets, monstrances and reliquaries, which have never been on show before, and which used to serve liturgical purposes. A real feast for history lovers and art connoisseurs is the most valuable jewellery owned by the Paulite Fathers of the Roman Catholic Jasna Góra shrine in the city of Częstochowa. The organisers of the event tried to obtain the Order’s permission to put the precious religious objects on display for years. For the first time, the oldest robes of the miraculous

icon of Our Lady of Czestochowa, the ruby and diamond ones, can be admired up close. Each of them is studded with several hundred jewels, which bears an eloquent testimony to the pious generosity of our ancestors. The ruby robe of Our Lady of Częstochowa has 880 jewels sewn into its fabric. Next to it, there is an over one meter high gold monstrance of 1672, made by a Warsaw jeweller with the use of several thousand precious stones, in remembrance of the sparing of the Jasna Góra shrine during the Swedish invasion of 1655-1660, known in Poland as the Deluge. The Jasna Góra sanctuary with a Paulite monastery in Częstochowa is one of the most important places of the cult of the Virgin Mary in Poland, and the most important destination for Polish Roman Catholic pilgrims. The exhibition also includes unusual valuables, such as gold enamelled amulets decorated with precious stones, a flower bouquet grip, a device for ear and tooth hygiene, and a diamond measuring device. The extensive catalogue which accompanies the exhibition illustrates the qualities of all these valuables and explains the intricacies of their often • complex and sophisticated form.

CULTURE

THE INTERNATIONAL OPERA AWARD GOES TO...

WALDEMAR DĄBROWSKI On 29 April this year, Waldemar Dąbrowski, Director of Teatr Wielki – Polish National Opera in Warsaw, received a special award in the Leadership in Opera category at the International Opera Awards held in the Sadler’s Wells Theatre in London, in recognition of his exceptional achievements in managing an opera house.

Maciej Proliński

T

he award was granted for the third time ever, its two previous winners being Bernard Foccroulle, a Belgian organist, composer, conductor, and General Director of La Monnaie and the Aix-en-Provence Festival, and Bernd Loebe, Managing Director and Art Director at Oper Frankfurt.

This year, Waldemar Dąbrowski, founder of many institutions important for Polish culture, and organiser of the Chopin Year (2010) and the Moniuszko Year (2019) celebrations, who has held the function of Head of the Polish National Opera in Warsaw for many years, has joined this excellent company.

In the 1970s Waldemar Dąbrowski was a co-founder and Director of the legendary Warsaw Riviera-Remont Club known for high-quality jazz and rock music, among other genres and styles, from both Poland and abroad. In 1982, together with Jerzy Grzegorzewski, he took on the leadership of the Centrum Sztuki Studio in Warsaw, a leading cultural institution at that time, for the purpose of which he established an autonomous agency to promote exceptional artists of the Polish theatre, musical, and visual arts. Later, together with Franciszek Wybrańczyk, he set up the renowned Sinfonia Varsovia Orchestra. In 1998 he was appointed General Manager of Teatr Wielki – Polish National Opera in Warsaw. Between 2002 and 2005 he was Minister of Culture, his major achievements including the enacting of the new Cinematography Act, which gave rise to the Polish Film Institute. In 2008 he was appointed President of the Chopin Year 2010 Celebrations Committee by Bogdan Zdrojewski, Minister of Culture at that time. In addition, he has founded a number of institutions vital for Polish culture, including the National Fryderyk Chopin Institute. In October 2018 he was reappointed Managing Director of Polish National Opera – an institution which fosters Poland’s ties with Europe and its artistic circles through day-to-day cooperation, as well as special events.

During his term of office, the biggest opera house in Poland has constantly built its ambitious repertoire, reaching out for world-class music stars.

The willingness to cooperate with the international opera community is undoubtedly a great asset of Polish National Opera. Most of the performances it organises are prepared in co-operation with operas from various European cities. This season, these include Prague, Oslo, Stockholm, Turin, Dijon, and Berlin, as well as the Aix-en-Provence Festival.

Our opera theatre has also embraced the Internet community via the vod.teatrwielki.pl platform.

The International Opera Award is an immensely prestigious distinction for Waldemar Dąbrowski himself, proving that his efforts to popularise high culture have been appreciated in the international arena, and also for Polish National Opera–an institution which has found its place among the best theatres worldwide.

It is worth recalling that in 2013 Waldemar Dąbrowski was honoured with "Polish Market's" Special Pearl award. Indeed, he is the person who has brought together the idea of all our Honorary Pearl awards – across culture and economy, knowledge and sensitivity, patriotism, and the forward-thinking approach whose value cannot be overestimated...

I once asked him about the extent to which the Polish opera theatre really existed in foreign audiences’ awareness, and what could distinguish Teatr Wielki–Polish National Opera in Warsaw within the emerging European cultural space. This is what he told me.

“Is Warsaw now part of European art? It certainly is! We are definitely willing to cooperate with the most remarkable artists. I think that's the only way. Nowadays, with the emergence of the global technological community, everything has changed, and so have theatres and theatre budgets. What we can afford now is no longer as dramatically limited as it was until recently. I believe it now all boils down to ambition, and the ability to establish bonds with Europe and its artistic circles. And that's what we've been successfully doing in recent years. Another important thing is not to let down the part of our audience that is traditionally attached to the beauty of the 19th century. (...) We also need to make our best endeavours to ensure that the essence of operatic art really comes from the orchestra pit. Operatic art, which is neither theatre with music nor music within theatre, should reflect creative fulfilment, be a fusion of talents of all its authors and creators, and convey real meaning to the audience. This is where a dialogue must be established, and agreement reached, between the composer, librettist, conductor, director, choreographer, stage and lighting designers, orchestra, solo singers, choir, and ballet dancers, along with dozens other professionals that together ultimately shape the form of operatic theatre.”

In congratulating Mr Dąbrowski on this prestigious award, we would like to encourage you to read a new interview with him, which will appear in "Polish Market" in July 2019!

• 5/2019 polish market

69

CULTURE

STAY IN

STYLE The hotel market has been consolidating for years now. In what way does it affect the final offer and comfort for hotel guests?

The number of hotels opened in Poland by foreign brands is constantly growing. When you travel around Poland, you can see the names of hotels which repeat themselves.

However, you should bear it in mind that hotels are managed by the brand owner or operate under a license, i.e. the owner is an external entity. In this sense, hotels operate somewhat more independently, but they are expected to meet network standards and offer the level of services which a guest who stays at a given brand of hotels around the world, is accustomed to. Brands which care about their image control quality, which certainly affects the comfort of private and business guests.

The Syrena Hotels Group boasts three facilities located in the heart of Warsaw.

Guests who choose to stay at one of them can save a lot of time because the hotels are situated close to the historical part of the city, as well as modern entertainment and shopping areas. But that is not all. We operate within a single independent group, so many standards and procedures are unified, yet each hotel PM

70 polish market

has a separate identity, character and thus – an individual offer. We are distinguished by the location, high quality of services in each of the hotels, regardless of category, as well as a family atmosphere. A number of employees have been with us for years, which is noticed and appreciated by guests. To us, market consolidation within our group means that we actively take part in competitions and industry meetings and educational events, where our employees act as panellists. We are also a member of the Chamber of Commerce of the Polish Hotel Industry, we are happy to share our knowledge and experience with other hoteliers to jointly keep up the quality of services offered in Warsaw. Favourable opinions about the Warsaw tourist market work in its favour and are conducive to its development.

To what extent does a hotel’s originality determine its popularity among guests?

Who gives top marks for the unique character of the building, its style, and who doesn’t care so much about it?

A demanding guest doesn’t just look for a place to stay, but also for style, quality, PM

Photo: Paweł Gajewski

“A demanding hotel guest looks not just for a place to stay, but also for style, quality, personal approach and often interesting history,” says the president of the Syrena Hotels Group KRZYSZTOF SZADURSKI. In an interview with Jerzy Mosoń, he talks about market consolidation, the impact of the Internet on the industry and the significance of Warsaw’s promotion for the development of hotels in the Polish capital.

“

NOT A WEEK PASSES WITHOUT A REPRESENTATIVE OF FOREIGN DIPLOMACY, A WELLKNOWN ACTOR, MUSICIAN OR SPORTSMAN, STAYING AT ONE OF OUR HOTELS."

individual approach and often, an interesting story, which the Syrena Hotels Group guarantees. Our hotels have been present on the tourist and business map of Warsaw for many years, hosting outstanding personalities from the world of the arts, sports, politics and delegations from many countries. Not a week passes without a representative of foreign diplomacy, a well-known actor, musician or

CULTURE sportsman, staying at one of our hotels. This fact, of course, additionally encourages those guests who enjoy having a tasty breakfast in the company of well-known personalities.

The historic Polonia Palace building, the newly revitalised MDM hotel facade, which has been entered on a list of Warsaw landmarks, the freshly renovated, modern Metropol hotel interiors, stylish rooms and unique views from hotel windows, are also of great importance to our guests. Pictures taken inside and in front of the buildings are published on the Internet and are given top marks by those who visit the site. There is no better publicity for a hotel - many guests come to stay just by recommendation - directly, or having watched videos or pictures of their friends' stay.

Once a hotel guest looked for accommodation using a phone book, then the Internet era came. Do popular hotel search sites give you a chance to develop or do they help reduce prices, and are thus more useful to visitors?

The Internet era is here and nothing can stop the changes that have taken place along with it. Search engines enable faster access to desired content, hence the great popularity of this tool among tourists, but also event organisers. That is why we are very active on the Internet. For us it is an effective form of communication with regular and potential guests. Our hotels have extensive, modern websites which are entirely based on video clips and feature modern booking systems. We operate social media profiles. On Facebook, our hotels are followed by over 100,000 people. We present our extensive offer on booking, conference and wedding portals.

The Internet certainly helps guests a lot and influences pricing policies, but we analyse consumer trends and behaviour on a daily basis to turn it into successful sales.

PM

“ 72 polish market

How do hoteliers compete for foreign and Polish guests these days? What kind of offer do visitors to Poland tend to pick?

For sure, every hotelier is happy when, at the end of the day, they can say "sorry, no vacancies." It often happens in our case, which means that we are good at sales and marketing, we work in line with market trends and we are not surprised by competition. In our view, slashing prices at higher category hotels is not a good idea, even if PM

WE TRY TO SHOW OUR GUESTS NOT ONLY OUR HOTEL OFFER, BUT ALSO THE ATTRACTIONS THAT THE CITY OFFERS. THE PROMOTION OF WARSAW IS VERY IMPORTANT TO US AND IT IS ONE OF THE DIRECTIONS OF OUR MARKETING ACTIVITIES."

Warsaw is perhaps not a favourite among tourists - it loses out in competition with some other Polish cities. In what way can you encourage tourists to take advantage of your hotel offer for city breaks?

Warsaw is a beautiful city, and the Polonia Palace, MDM and Metropol hotels are part of its fascinating history.

A weekend in the Polish capital with a sightseeing map in hand, holds the promise of many unforgettable experiences you can start your walk at one of our hotels. The underground, an extensive public transport network, modern access roads, an airport, numerous attractions in the city and high quality of hotel services are an additional incentive to visit the capital.

That is why we try to show guests from Poland and abroad not only our hotel offer, but also the attractions that the city offers. As I’ve mentioned - the promotion of Warsaw is very important to us and it is one of the directions of our marketing activities.

PM

What is the profile of guests who book a room at the Polonia Palace, MDM and Metropol hotels? What are their expectations? What are their special requests?

We primarily host foreign tourists and representatives of Polish and global business. During the week, our hotels are usually full of individual guests, as well as business groups that organise events in our facilities. Weekends are popular for family breaks, private tours by small and large groups from Europe, but we also host tourists from distant corners of the world who visit Poland for longer, and Warsaw is one of the points on their itinerary. Guests expect a high standard of service. Regular guests want to be recognised, they expect us to remember what their preferences are, which room they would like to stay in, which table they would like to have breakfast at. We don’t disappoint them.

The staff are informed in advance about the visit of regular guests to make their visit as comfortable as possible. Our employees go the extra mile - it is nice to see the smiling faces of satisfied guests who personally compliment the services, but also leave positive written comments in the rooms or write positive reviews on the web. That is why, among others, we work with specialists with over forty years of experience.

PM

it works in the short term, it may do harm in the long run.

Our guests praise the stability of prices and the standard we offer. They welcome the famous Polish hospitality, hearty breakfasts and mouth-watering Polish cuisine with international influences-this is what we provide our guests in each of our facilities. Hoteliers who care about all this don’t need to worry about their business.

But no success is possible without people-they make our guests feel special. That is why we care so much about staff training, team work and good atmosphere at work.

Soon our employees will again take part in the Poland Business Run charity relay. Syrena Hotels Group will be represented by six five-person teams. It’s good fun, but also a noble goal-it is enough for us to be part of such an event. I would like to encourage other hoteliers to join the run, and to further work on the development of Warsaw’s • tourist offer.

ART AUCTIONS

UNDER THE HAMMER In the last look before the summer at art auctions in our regular series, Maciej Proliński invites you to the 7th Design Auction, the Modern Art Auction, and the Early Art Auction - 19th Century, Modernism, Inter-war Period (1918-1939,) all of them to be held in Warsaw.

7TH DESIGN AUCTION, PRAGALERIA, 3 STALOWA STREET, 7.30 P.M, MAY 29 The Pragaleria has been operating since March 2015 and is located in Warsaw's Praga district, near the Wileński underground and suburban rail station. The gallery focuses on broadly conceived contemporary art, with particular emphasis on graphics, both in a digital and traditional form. At the Pragaleria, exhibitions of paintings are also mounted - from street art, to figurative painting to abstract paintings. Another edition of the Design Auction will take place on May 29. Catalogue highlights include: “A Vase” designed by Henryk Baran in 1957 (coated porcelain, seal of the Bogucice Porcelain Factory in Katowice, 1960s,) the “Ina” coffee service, coated porcelain, 1962, designed by Polish art design icon Lubomir Tomaszewski (1923-2018,) the painted porcelain “Mazovia” figurine, a 1957 design by Mieczysław Naruszewicz (1923-2006,) Ćmielów Porcelain Factory, 1960s.)

MODERN ART AUCTION, MAMAISON HOTEL LE REGINA, 12 KOŚCIELNA STREET, 7.00 P.M, JUNE 6, ORGANISED BY ANTIQUA ET MODERNA, AUCTION HOUSE AND GALLERY, 19 FRETA STREET. The Antiqua et Moderna auction house and gallery has been present on the Polish antiquarian market since 1991. It is housed at 19 Freta Street in Warsaw’s New Town, a short walk away from the Old Town. This antiquarian shop specialises in artistic and decorative graphics, maps, old books published before 1945, other selected works of art, Polish paintings, foreign art and handicraft. On June 6, works by a number of prominent 20th and 21st century Polish artists will be up for auction. The catalogue features a multitude of themes and a multiplicity of forms. There

are works by legendary icons of Polish painting, such as “Landscapes” by Tadeusz Dominik (1928-2014,) “The Portrait of Bronisława Włodarska” by Stanisław Ignacy Witkiewicz (1885-1939,) the intriguing 1971 work “Assemblage” by Władysław Hasior (1928-1999,) and an early picture “Without a title” by Zbigniew Makowski (born 1930.)

OLD ART. 19TH CENTURY, MODERNISM, INTER-WAR PERIOD – DESA UNICUM AUCTION HOUSE – 1A PIĘKNA STREET, WARSAW, 7.00 P.M., JUNE 6.

The DESA Unicum Auction House is run by the largest and one of the oldest companies operating on the Polish art market. Every year, DESA Unicum prepares dozens of auctions, where it offers old, modern and new art pieces, including handicraft, photography and even comics. There are quite a few exciting events to look out for in June. Among them is an auction entitled “Old Art, 19th Modernism, Inter-War Period.” The piece which promises to attract the most interest is a museum-class, large-format painting "Opium den” (Pic. top of the page - "Hasheesh,” 1887) by Franciszek Żmurko (1859-1910). The artist was born in the city of Lwów (now Lviv in Ukraine.) He was the son of the outstanding mathematician, rector of Lwów University, Professor Wawrzyniec Żmurko. He studied drawing and painting under Franciszek Tepa in Lwów, then under Jan Matejko at the Krakow Fine Arts School in 1874-81. He also went on to study in Vienna, Munich and Rome. The artist's works were highly acclaimed by critics and gallery-goers. He took part in numerous exhibitions in Warsaw, Krakow, Lwów, Wilno (now Vilnius in Lithuania,) Żytomierz (now Zhytomyr in Ukraine,) as well as in France, Germany, the Netherlands, Britain, and Chicago and San Francisco in the US. He painted works inspired by the ancient classics which were allegorical and symbolic, and sometimes historical and religious. His other works include portraits, mainly of women. In fact, one critic described him as an unrivalled painter of women, whether they were shown innocent as white lilies, whether they were in full bloom, or whether they were courtesans, or vampires. Franciszek Żmurko died at the height of his talent, in 1910, at the age of 51. The best of his paintings can be found in private collections. Polish museums, however, also own several dozen of his prized works.

• 5/2019 polish market

73

ORGANIC FOOD

AN APPETITE FOR THE SLOWEST OF SNACKS FRANCE LOVES OUR SNAILS, ESPECIALLY THOSE FROM ECO-FARMS # THE “SNAIL KING” HAS SOME USEFUL ADVICE FOR INNOVATIVE FARMERS # 120 ORIGINAL RECIPES # A FASTING DISH # APHRODITE’S PEARLS

The traditional Old-Polish dish is making a bold comeback to our tables, for instance in the form of snails roasted with garlic – that’s just one of the ways in which Polish cuisine is manifesting its rebirth. The strong growth of exports has proven beneficial for the domestic market, and especially for its catering sector. Snail farming has started to gain momentum, as there was no guarantee of regular supplies of handpicked Roman snails, and also the scope of the protection of this wild-living species has been broadened.

A

s a reminder, nearly 30 years ago, individual snail farms already existed, and even snail festivals were organised. But Poland can boast a much longer snail farming history dating back to the 17th century and monastery farms, as monks were known to cherish these gastropods and regarded them as a “fasting” meal. In his “Compendium Ferculorum” (Kraków, 1682), Stanisław Czernicki included six recipes for these tasty invertebrates, while mentioning pork in only two sentences.

The recent book “Ślimaka kulinarna podróż – o tym, co zapomniane, a przypomnienia warte” (The Snail’s Culinary Journey– on what’s forgotten, yet worth bringing back”, Studio Editorial, Krakow, 2016) features 120 original recipes crafted by 64 masters of culinary art. A movie and educational videos devoted to the slimy creature have been made as well. Competitions for escargot gourmets are held, and we can enjoy the rich programme of the World Snail Day (24 May 2019). The man behind many of these events is “Snail King” Grzegorz Skalmowski, co-owner of the Eko Snails Garden farm, which is part of the Polska Ekologia Association.

74 polish market

We asked this pioneer and visionary of the snail business how all this success came to be: “My wife Mariola and I created quite a unique, multidisciplinary business which not only deals with production, education and tourism, but also provides consultancy. By making a 30-minute video and participating in the publication of a book passing on expertise on the topic, we have encouraged farmers to try out some innovations.

After all, it only takes 500 sq. metres to set up a snail farm, and that’s all we had when starting out more than a decade ago. Today, our snail ranch is the source of products such as ready-made dishes, white caviar (that’s right!), and natural slime cosmetics. We also run a “snail bistro”, a shop, a cosmetics laboratory, and training workshops, sometimes in combination with corporate events at Dworek Sople where you will find fish, crayfish, and snails. It would also be reasonable for me to mention that we have received an award from the World Food Travel Association”.

The Snails Garden farm in Krasin near Pasłęk, situated just beside national road No. 7 between Ostróda and Elbląg, has become a major tourist attraction in the western part of the Warmińsko-Mazurskie Province.

ORGANIC FOOD

When it comes to cuisine, the farm will not only provide you with over ten snail recipes, but will also feature mixed flavours, e.g. with mushroom in hunter’s dumplings, as well as desserts such as sweet-served tartlets and ginger bread with white caviar. And then there is an amazing mix containing 30% snail meat, used in the production of regular and kabanos sausage. A luxurious delicacy.

What’s particularly interesting is that the farm has launched the production of snail-slime-based cosmetics.

“Snails Garden on guard of your beauty” is a motto being successfully brought into life by Ms Mariola PiłatSkalmowska, the winner of many diplomas and awards, including the title of “Woman of Character” from the Warmian-Masurian Women’s Forum Association. As this go-getting businesswoman told us: “Our mission is to create the best cosmetics using snail bio-slime. Snail creams, for example, are excellent for treating various skin problems or wrinkles. In our laboratory, we are developing our own formulas perfectly suited to women who care about the look of their skin. Snail slime is rich in natural ingredients: allantoin, collagen, elastin, glycolic acid, vitamins A, C, and E, and antibiotics.

Let me also add that ancient Greece knew about and enjoyed the benefits of snail farming, both in the kitchen and for beauty treatments. Aphrodite used them, so now we can present to you ‘Aphrodite’s Pearls’”.

It’s worth exploring the snail route, as it runs from the ancient Greeks, mediaeval monasteries and Old-Polish cuisine, up to the innovative farm in Krasin, where you can learn more about this historical background, e.g. by combining a visit to the Eco Snails Garden with a trip taken partly on grass, and partly on the Elbląg Canal.

•

“

OUR MISSION IS TO CREATE THE BEST COSMETICS USING SNAIL BIO-SLIME. SNAIL CREAMS, FOR EXAMPLE, ARE EXCELLENT FOR TREATING VARIOUS SKIN PROBLEMS OR WRINKLES. IN OUR LABORATORY, WE ARE DEVELOPING OUR OWN FORMULAS PERFECTLY SUITED TO WOMEN WHO CARE ABOUT THE LOOK OF THEIR SKIN."

5/2019 polish market

75

JUST RUN

INNOVATION

MICHAŁ MROWIEC, Deputy President of Kompania Piwowarska, in conversation with Błażej Grabowski

Where did the idea of running come from?

Running is the most accessible sport. When you begin, you don’t need training or specialised equipment, you don’t need to book classes – just go for a run whenever you like. Also, after years of sitting at a desk I needed the exercise. Running turned out to be what my body needed, and that’s how it all started.

PM

Was there any specific reason to start?

I took up running late, just before turning 40. Once I had a chance to listen to a blind motivational speaker. What he was doing was amazing: he practised diving and sailing, he ran a marathon, he flew a hang glider. I thought I was lucky to be healthy and still fairly young.

So I’d given myself a year to run a marathon.

PM

Running a marathon requires the right approach, training and experience. Did you manage to reconcile it with your work?

It does take discipline and planning to run.

I remember this one time when I managed to cover some distance and then came back home very tired thinking it must have been quite a feat, maybe even 10 km.

PM

And it turned out that…

I measured the distance with my car. It turned out it was less than 5 km. Then I decided to treat it as a challenge which needed proper organisation and time. I started reading books on running and set up a schedule of training sessions.

PM

So, you used a business approach?

That’s right. After a month I began to find pleasure in running. The marathon was still a distant goal, but for me it was a way to relax, release stress, break away from work, and a fun way to spend time in the open air.

PM

Did you manage to complete the marathon once the year had elapsed, as you 76 polish market had planned?

PM

Yes, I did. My first marathon took me 4 hours 8 minutes. It was tremendously satisfying. First of all, I was happy that I had managed to finish the run at all. However, later a question came to my mind – whether it couldn’t have been done quicker. A year later I tried again. Unfortunately, I started out too ambitiously, so at the 30th kilometre I was burned out. I was furious – not because of the burnout, but because I finished the run in 4 hours and 1 minute. As two weeks later I ran another marathon, I broke my four-hour record.

This is when you got completely absorbed with running.

They say that when someone prepares for a marathon, they can either do it once and say “OK, I've reached my goal, this is over”, or start running for real.

PM

So you chose the second option. What was next?

That was ten years ago, followed by more marathons and better results. Once a new manager from Ukraine, Vitaliy, started working at my company. We started talking about running and long distances. We came to the conclusion that we should do it together, so a few months later we managed to sign up and we went on the Butcher's Race (Bieg Rzeźnika).

It is an ultramarathon in the Bieszczady Mountains, which is approximately 80 km long, with an altitude difference of around 4500 metres.

The magic of the Butcher's Race (Bieg Rzeźnika) is that you must run with a partner and may be finished only in pairs, so the participants depend on each other, and this creates a certain bond between them. Although Vitaliy left the country and is working abroad, since then he has come to Poland every year to participate in the Butcher's Race (Bieg Rzeźnika).

PM

PM

More and more people have managed to run a marathon, but some of them proceed to the ultramarathon. Why?

I approached the ultramarathon, especially the legendary Butcher's Race (Bieg Rzeźnika), as just one more challenge. 80 km is a new distance for which you need to prepare in a completely different way. During the Butcher's Race (Bieg Rzeźnika) you depend on yourself and on your partner. There are many crises, and the cool thing about it is that they happen to you and your partner at different times, which means that you need to support each other. I‘m not a professional sportsperson, but it's been a great pleasure to finish an ultramarathon; it is also a way to overcome your limitations. When I did the Butcher's Race (Bieg Rzeźnika), the idea came to my mind to cover a distance of 100 km. This was my next challenge.

PM

What is your challenge today?

Now I’m thinking about 100 miles…

Would you be able to explain to a person who doesn't run why it is worth doing?

Why people push themselves to the limits of their endurance and how they manage to be happy about getting to the finishing line?

I guess it’s not that simple. You just need to experience it yourself. Everyone has their own hobby which suits them. For me it's running. I train five times a week; I like running in the morning, before work. When you organise your day properly, you can have an enjoyable run and catch some fresh air before work.

PM

Let us mention that Kompania Piwowarska, where you are Deputy President, supports organisers of running events.

Nothing happens without a reason. On the one hand there must be a group of passionate freaks (laughs) who enjoy this sport and like such initiatives. On the other, it must be in the company’s DNA. We have brands which go well together with this, e.g. Lech Free, which is very strongly associated with active life style.

It is a successful combination of business with pleasure.

• PM

OPEN YOUR

DOOR

TO HI-TECH Nemezia LTD 40-44 Uxbridge Road W5 2BS London Great Britain www.nemezia.uk

Nemezia LTD. Sp. K. Polish Department: Rakowicka 1 Street 31-511 Cracow Poland www.nemezia.pl