Polish Market No.8 (275)/2018

PU B LISHED SIncE 199 6 No. 8 (275) /2018 :: www.polishmarket.com.pl

special edition

........................

POLISH PRESIDENT ANDRZEJ DUDA VISITS AUSTRALIA AND NEW ZEALAND ........................

FOREIGN TRADE OFFICE OPENS IN SYDNEY ........................

Andrzej dudA president of poland

special edition

The Polish language and politics seem to need a firm point of reference as an example for Poland to follow. Thus, at various stages, the goal was to become “another Japan” or „another Ireland.” These dreams did not quite work out. As a result, Poland is now probably less keen to become “another Australia” or New Zealand. Which is a bit of a shame, really.

Just twenty years ago Australia was regarded as an “old economy.” It had a huge mining sector, agriculture, and few new technologies, whether in IT or telecommunications. For non-economists it was a romantic “lucky country.” This lucky country benefitted a lot from the rapid growth of Japan, China, India and other Asian tigers which developed a huge appetite for Australia’s mineral riches. It turned out that, contrary to established wisdom, the prices of raw materials and food do not necessarily need to drop compared with the prices of industrial goods and services. In this way, within less than two decades Australia moved up to the Top 10 of the world’s leading economies and most affluent societies. Thanks to its wealth of natural resources and eager buyers with wads of cash, Australia channelled the profits into new sectors of specialised machinery, means of transport and, above all, R&D. The tourism sector and education also received a significant boost.

New Zealand’s success is another case worth following. There, it also took about twenty years to make a leap from an agriculture- and natural resources-driven economy toward a balanced economy, even before it became a model for the rest of the world. This island country is not so much focused on rapid growth rates. Its enviable position within the world’s per capita GDP Top 20 Is proof enough that a golden medium has been found. New Zealand watches the rest of the world closely and chooses wisely what to venture into. It has become a byword for innovation.

Of course, Poland is not among Australia’s and New Zealand’s top partners. But there is a lot to build on. Take history. A Pole, Edmund Strzelecki, the famous explorer and geologist, put quite a few places on Australia’s map. Australia and New Zealand also proved very welcoming for Polish children released from Stalin’s Gulag during the second world war, 50,000 Polish war veterans and 25,000 Poles who left the country in the aftermath of the Solidarity revolution of 1980-1981 quashed by the communist regime.

When it comes to two-way trade, just a short while ago it was conducted on a micro-scale. But in the past five years the figures have doubled and they promise to grow even further. Economists say that the perception of Poland’s geographical position has changed Down Under.

Australians and New Zealanders are very happy to do business with the UK, France and Germany, and they seem to have discovered that EU member country Poland lies just as close. Year-on-ear, 2017 two-way trade figures went up by 30%. Australian FDIs in Poland are rising.

It seems it is more than just a fad. Poles are looking with interest at Australian coal technologies, and Australian business is eyeing the Polish Aviation Valley.

Can Poland manage to boost its economic contacts with New Zealand, too? For the time being, Polish electrical engineering, chemical products and, interestingly, food and agriculture, seem to be of particular interest to New Zealand business. This is because New Zealand is no longer just an exporter of food. It is also keen to share its know-how and the fruit of advanced R&D with the rest of the world. This dovetails with the needs of the younger generation of Polish farmers who make their own forecasts of future economic trends by following market news from all over the world. There is plenty of room for co-operation in agriculture. Another possible area that comes to mind is yachting. Boat building is one of the showcase industries in both Poland and New Zealand which are not direct competitors. Maybe there is a way for them to co-operate?

Globalisation, long-haul flights and the internet have changed the world so much that distances don’t really matter. So what if your market destination lies half across the world?

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

polish market

1

CONTENTS

4. Polish President ANDRZEJ DUDA - WE THINK

16. MACIEJ PROLIŃSKI, POLISH TRACES IN

6. TADEUSZ KOŚCIŃSKI, Undersecretary of State, Ministry of Entrepreneurship and Technology TOWARD FREE TRADE WITH DOWN UNDER

18. LUCYNA JAREMCZUK – POLISH WWII

8. GRZEGORZ TOBISZOWSKI, Secretary of State,

report – TRADE WITH AUSTRALIA AND NEW ZEALAND: FACTS AND FIGURES

ABOUT OUR COMPATRIOTS IN A SPECIAL WAY

Ministry of Energy – GOOD PROSPECTS FOR POLISH ENERGY INDUSTRY

AUSTRALIA

ORPHANS GIVEN SHELTER IN NEW ZEALAND

19. Ministry of Entrepreneurship and Technology

9. MICHAŁ KOŁODZIEJSKI, Polish Ambassador to

Australia - LOTS OF UNTAPPED POTENTIAL

21. PIOTR WOŹNIAK, President of the Management Board, PGNiG – PGNiG, LEADER OF THE POLISH NATURAL GAS MARKET

10. PAUL WOJCIECHOWSKI, Australia’s Ambassador

22. JSW SA – FROM COAL TO STEEL

to Poland – AUSTRALIA AND POLAND GETTING CLOSER TOGETHER

24. PAWEŁ JAKUBOWSKI, President,

11. MARY THURSTON, New Zealand Ambassador to Poland - UPWARD TREND

Polskie LNG SA – POLSKIE LNG DEVELOPS NEW SERVICES AND HOPES FOR COOPERATION WITH AUSTRALIAN PARTNERS

12. TOMASZ PISULA, President, Polish Foreign

26. ROBERT ANDRZEJCZYK, President, Polish

Trade and Investment Agency - BIG WAVE BUSINESS SURFING

Tourism Organisation – DESTINATION POLAND

14. MAŁGORZATA KWIATKOWSKA, President,

Polish Community Council of Australia – POLAND HAS ‘SOFT POWER’ POTENTIAL.

Cover: ANDRZEJ DUDA, President of Poland Photo source: www.shutterstock.com unless otherwise stated.

PARTNER OF THE EDITION:

SPECIAL EDITION

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

(RYNEK POLSKI Publishers Co. Ltd.) President: Krystyna Woźniak-Trzosek Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła 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 Editor-in-Chief: Krystyna Woźniak-Trzosek Deputy Editor-in-Chief: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl

2 polish marketspecial edition 2018

Managing Editor: Rafał Kiepuszewski Writers/Editors: Maciej Proliński, Jan Sosna, Janusz Korzeń, Jerzy Bojanowicz, Janusz Turakiewicz, Translation: Sylwia Wesołowska-Betkier, Rafał Kiepuszewski, Agit Contributors: Agnieszka Turakiewicz Graphic design: Godai Studio Agnieszka Andrzejczak, Joanna Wiktoria Grabowska Sales: Phone (+48 22) 620 38 34, 654 95 77 Marketing Manager: Magdalena Koprowicz m.koprowicz@polishmarket.com.pl

DTP: Godai Studio www.godai.pl Printing: Zakłady Graficzne TAURUS – Roszkowscy Sp. z o. o., www.drukarniataurus.pl

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 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.

WE THINK ABOUT OUR COMPATRIOTS IN A SPECIAL WAY 4 polish marketspecial edition 2018

special edition

Honoured Guests, Dear Friends, Thank you very much for this unusual meeting on a very special day, 2 May 2018, which is not only the Polish National Flag Day but also the Day of Polish Diaspora. The year itself is also very special as it marks the 100th anniversary of Poland regaining its independence. Therefore, we can say that it is a particularly solemn occasion. We celebrate it in a special atmosphere, here in the courtyard of the Presidential Palace, the courtyard where all foreign delegations are greeted, where the presidents of Poland greet their counterparts and crowned heads from across the world.

Today, we are greeting here our compatriots – from Poland and abroad. I am glad we can do so in this setting. I want to congratulate all those (…) who – for years, decades, sometimes almost 100 years - have conducted cultural, social and educational activity for their fellow countrymen. Thank you for pursuing this activity, thank you for doing so in such a wonderful way.

I hope that these white and red flags that you will take with you and show to your charges, subordinates and friends will give you motivation for even better work for Poland and efforts to boost Poland’s reputation at home and abroad.

Dear Ladies and Gentlemen, Today marks an anniversary of the moment when patriots met in this building to talk about the Constitution in the evening of May 2 (…). They believed that the Constitution would be adopted. And it was adopted – on May 3, 1791. It is a building of great significance in our history, associated with its glorious moments, but also difficult ones, because it later saw the signing of the Warsaw Pact, the Round Table Talks and today it sees the most important ceremonies, like the awarding of the title of professor, nominations for judges and finally the presentation of the highest state decorations.

This is our history, due to which Polish people are now scattered across the world and live in all continents. But today, when we think about our compatriots outside Poland in a special way and they think about us, I would like to thank all Poles living far from Poland for the activity they conduct for Poland and Polishness. I would like to thank all the teachers who teach children our history, the Polish language and everything that makes our community last and gives successive generations a sense that they belong to the Polish nation and that Poland is their homeland.

Because it is the homeland of their grandparents, great grandparents and parents and they are part of it. I would like to thank you sincerely for building this Polishness in the younger generation and for retaining all things Polish in places which are often very far away from our country. (…) I think it is a great opportunity to talk about Poland, things Polish and about what else can be done for Poland. And believe me, a lot can be done.

Thank you for today’s meeting under the white and red colours. I would like to once again encourage all my compatriots to display a white and red flag on houses, blocks of flats and wherever it is possible. The prime minister has signed a decision under which white and red flags will be flying throughout the rest of this year from public office buildings. Thank you for that. Until the end of the year which marks the 100th anniversary of independence I would like everybody to see that Poland is white and red. I hope we will manage to achieve many successes under this white and red flag this year and beyond. (…) Long live a free and independent Republic of Poland! Long live the white and red flag!

I WOULD LIKE TO THANK YOU SINCERELY FOR BUILDING POLISHNESS IN THE YOUNGER GENERATION AND FOR RETAINING ALL THINGS POLISH IN PLACES WHICH ARE OFTEN VERY FAR AWAY FROM OUR COUNTRY.

An address to the Polish diaspora delivered by Polish President Andrzej Duda at the Presidential Palace in Warsaw on Flag Day, May 2, 2018.

Source: president.pl

polish market

5

TADEUSZ KOŚCIŃSKI, Undersecretary of State at the Ministry of Entrepreneurship and Technology talks to Polish Market’s Marcin Haber about opportunities businessmen in Poland and Down Under can look forward to in view of a trade deal the with Australia and New Zealand being negotiated by the EU.

TOWARD FREE TRADE WITH DOWN UNDER 6 polish marketspecial edition 2018

special edition

The European Union is in talks with Australia and New Zealand on a free trade agreement similar to the deals signed with Canada and Japan. Is Poland in favour of such an agreement? What are its benefits and are there any potential threats?

It is virtually impossible for an economy to develop without securing fresh markets for its products and services. Free trade agreements provide opportunities for easier entry into new markets, profits stemming from production scale, increased investment and the possibilities of foreign expansion by individual companies.

Boosting exports by Polish firms is one of the pillars of the Strategy for Responsible Development. Free trade agreements can thus be treated as an instrument which facilitates the promotion of Polish exports to non-EU markets. One should bear it in mind that free trade agreements do not guarantee profits but they create favourable conditions for this to happen. It is up to individual firms to seize this opportunity.

PM

According to World Bank rankings Australia is a perfect trade partner. What is the state of two-way trade?

Australia is among the world’s best developed open economies, which translates into what Poland’s trade relations with it are like. Taking into account the size of the Australian market and its geographical location, one could say that Polish-Australian trade is doing fine, though naturally we are counting on more. Our export-oriented programme addressed to Polish entrepreneurs is set to boost their interest also in markets that lie further afield.

For several years now Poland has recorded a surplus in twoway trade with Australia in spite of the fact that it is situated at the other end of the globe and has a population of 23.5 million. In 2017 the value of two-way trade exceeded USD 1.3 billion. Polish exports amounted to 714 million, over 11% up on 2016. Imports from Australia are also on the way up but Poland’s surplus has been between USD 120 and 230 million in respective years.

Polish exports to Australia include yachts, pharmaceuticals and medical products, furniture, white goods and household equipment, aerospace industry parts, cosmetics, clothing and footwear. Australia is an important source of raw materials for Poland, including coal and its derivatives, zinc and copper ores (6%), lead, gold and magnesite.

In terms of bilateral co-operation, services are conspicuously absent from ordinary two-way trade statistics regarding commodities. Polish firms, especially coming from the IT/ICT sector do very well offering services to Australian clients or working in partnership with Australian partners in third markets.

PM

What does Poland have to offer Australia and New Zealand?

Which sectors of the Polish economy can find business partners there?

Taking into account the characteristic features of the Australian market, fresh opportunities exist in supplies of equipment and services for the coal mining sector. Poland has already scored some achievements in this field. Another area where more could be done is boat building. Then there are FinTech ITsolutions, ICT services (software development,) Business Process Outsourcing, analytics, BigData and green technologies (sewage treatment plants and solar energy.) We are also exploring possibilities of strengthening co-operation in the defence and security sectors.

Considering the government programme geared toward boosting PM

innovation in the economy, the digital sector also stands a chance of succeeding in New Zealand.

These two markets appear more challenging due to the distance from Poland and susceptibility to China’s economic moves. What solutions are you proposing to offset these challenges which Polish businessmen should take into consideration while building their strategies?

For geographical reasons, Australia’s and New Zealand’s economic policies focus on Asia and the Pacific, with a particular emphasis on China. The two countries, which already have a bilateral free trade deal, have concluded such agreements with Korea, China and the ASEAN countries. That is why they concentrate on their closest neighbours and relations with their principal economic partners. It is not easy to get over this hurdle.

As we plan our expansion both to the Australian and New Zealand markets, we should remember that the latter country is a market with well-developed regulations which make doing business easy. The market is transparent, what you see is what you get. For a long time Transparency International has ranked New Zealand among countries with the world’s lowest corruption levels.

In the Doing Business 2018 ranking, New Zealand has retained the top spot for the ease of doing business.

Australia is also an open country but it has its tariff and nontariff restrictions on the imports of many agricultural products.

Apart from federal regulations, each state has its own regulations. It is a market of 23.5 million people, with the population concentrated along several stretches of the coast. This determines the terms of doing business – the long distances and the various sets of regulations. One thing going for Polish exports to Australia is the growing recognisability of Poland and Polish products in that country.

Efforts to enter a market should start from the basics by showcasing the range of one’s products and services at specialist fairs which bring together professionals and consumers. This is the first step to find out about opportunities and market conditions in the target country. May I also recommend that more detailed queries should be addressed to the Foreign Trade Office operated by the Polish Investment and Trade Agency.

PM

In the case of Australia and New Zealand, reservations are voiced similar to the ones heard prior to the signing of the free trade agreement with Canada. These countries are known for large-volume food exports. What effects can the signing of the agreement with Australia and New Zealand have on Polish agriculture?

We are aware of the potential of the New Zealand and Australian agri-food markets. That is why during work on the stance to be represented by the European Commission, Poland called for the inclusion of a clause regarding the vulnerability of the EU agri-food sector and the need for a special treatment for this issue during negotiations. The clauses, which were accepted by the European Council, were included in the guidelines.

In principle, free trade agreements guarantee lower costs stemming from the abolition of tariffs, cutting administrative costs, mutual recognition of certificates, tests and the application of international standards. Improved access to those distant markets should translate into successes scored there by Polish entrepreneurs.

• PM

polish market

7

GOOD PROSPECTS FOR POLISH ENERGY INDUSTRY A conference devoted to Polish and Australian technologies and innovation in the energy sector is scheduled in Sydney on August 21 as one of the highlights of the economic part of the Polish President’s visit. Apart from President Andrzej Duda, who will address the conference, one of the keynote speakers will be GRZEGORZ TOBISZOWSKI, Secretary of State at the Ministry of Energy.

D

uring the conference, the two countries’ energy sectors will be presented in detail with a focus on coal mining and the natural gas industry. Investment terms in Poland and Australia will be examined. Key Polish companies involved in the energy industry will be presenting their profile, future directions of expansion and prospects for international co-operation. Opportunities for exporters in the field of mechanical engineering and mining machinery and equipment will be explored, and the potential of Polish know-how and R&D centres will be outlined. The organisers intend to initiate Polish-Australian co-operation schemes in the Coal Seam Gas sector. The participants will go on a study tour of the Port of Newcastle, the world’s largest coal export port.

Apart from Polish President Andrzej Duda, the speakers will include the presidents of some of Poland leading companies including PGNiG, Gaz System, Polskie LNG and JSW SA. The potential of the relevant sectors will be presented by Grzegorz Tobiszowski, Secretary of State at the Ministry of Energy, who is the government plenipotentiary for the coal mining reform. At the European Economic Congress in the Polish city of Katowice earlier this year, minister Tobiszowski spoke about the role of coal for the Polish energy industry.

“As a result of reforms introduced in the past two years, nobody asks today whether we need Polish coal and mines. The emphasis has shifted to our vision for the coal sector and the prospects that Polish coal mining will become stable, efficient, safe and effective” Tobiszowski said. He explained that the government is about to adopt a new programme for the brown coal sector. A similar strategic document for black coal was adopted at the beginning of this year. “By supporting Polish coal mining, we increase the competitive edge of the national economy.

We have prepared these plans to ensure the energy security of Poland.

The Polish energy sector saves a lot of money thanks to cheaper domestic coal. This pays off in terms of business,” Tobiszowski said, adding that Polish coal makes electricity in the country’s homes cheaper, because the energy sector sustains lower costs. Coal, he argued, is not to blame for the current rise in energy prices.

Grzegorz Tobiszowski emphasised that in accordance with the government programme, the volume of coal slated for the Polish energy sector in the long term should remain at more or less the same level as today,

8 polish marketspecial edition 2018

BY SUPPORTING POLISH COAL MINING, WE INCREASE THE COMPETITIVE EDGE OF THE NATIONAL ECONOMY AND TO ENSURE THE ENERGY SECURITY OF POLAND.

i.e. 65 million tonnes. Managers of coal companies, however, must be able to rise to the challenge. They will find it much easier to set goals if they know what the long-term demand for coal is likely to be. The black coal sector, Tobiszowski said, wants to be treated as a business industry, as evidenced by the high taxes that it pays today. Financial reserves are also being made as a safety net for the thin years of downturn in the coal sector.

Minister Tobiszowski made it clear that brown coal will continue to play an important role in the current and the future energy mix. “The government is about to adopt a multi-year programme for the brown coal sector.

The plan will bring the sector back to life; before, nobody thought it had any prospects,” he observed.

Tobiszowski also underscored the role of innovation and efficient management that would make mining companies more resilient in the event of a future downturn. A good example, he said, is JSW SA with its PLN 1.5 • billion stabilisation fund.

Sources: European Economic Congress press release, Polish Investment and Foreign Trade Agency

special edition

LOTS OF UNTAPPED POTENTIAL For an insight into Polish-Australian relations, “Polish Market” has turned to HE Polish Ambassador to Australia MICHAŁ KOŁODZIEJSKI.

T

here is a growing number of commonalities between the interests of Poland and Australia, notwithstanding the vast geographical distance and differences in the size of the land, populations and economies of both countries. Sharing common democratic values and strategic objectives, which constitute the cornerstone of our contemporary stable political, economic and security cooperation, we are like-minded partners which advance rulesbased global order, advocate the primacy of international law and promote free trade. An important asset in our bilateral ties is the 184 thousand strong vibrant and resourceful Polish community who for many years has been promoting Poland in Australia and enhancing people-to-people ties.

Speaking of factors which foster the development of bilateral relations, we cannot forget about regional and global challenges facing our countries. The encroachments on the rules-based order by some powers, economic protectionism, irregular migration, international terrorism, foreign influence, hybrid and cyber threats, the potential disruption of energy supplies and climate change are only a few of the contemporary threats which challenge our ways of life and which require our closer cooperation.

In my view, there is still largely untapped potential in our relationship. I have no doubt that the forthcoming first ever state visit of the Polish President to Australia will open up exciting vistas for bilateral cooperation. Bearing in mind our common interests and needs, I can pinpoint two promising areas of mutual concern – defence and energy.

While the first contact between our armed forced can be traced back to the siege of Tobruk of 1941, it is the NATO`s ISAF and the Resolute Support missions in Afghanistan which have afforded opportunities for our

soldiers to collaborate closer. I am confident that upcoming visit of President Duda will pave the way for developing closer cooperation on capability building, as well as on military technology and defence industry. The prosperity and development of our countries depend on global stability so it is incumbent upon us to contribute to peace and security both in the Euro-Atlantic and Indo-Pacific regions.

When it comes to energy, the collaboration between Poland and Australia is vital and particularly important. In fact, in both countries energy security depends on mining sectors and that is why we need to build comparative advantages and develop sophisticated production techniques in mineral endowments together. With the visit of the President of Poland to Australia accompanied by a group of the largest Polish energy companies, we want to send a strong signal to our Australian partners that the innovation and know-how exchange should play a key role in creating a sustainable future for Poland and Australia’s resources sectors. I believe that effective collaboration across the entire innovation ecosystems between Poland and Australia can allow our companies to build an innovation legacy, create competencies and foster a new level of growth into the future. Supported by continued innovation and strong collaboration, Polish and Australian companies are well placed to address existing opportunities and challenges not only to meet bilateral needs but also support global technological knowledge and expertise.

To conclude, I am convinced that the historic visit of the Polish Head of State to Australia will be a landmark development in our bilateral relations.

With a strong political will on both sides we can set an ambitious agen• da and generate mutually beneficial deliverables. polish market

9

special edition

AUSTRALIA AND POLAND GETTING CLOSER TOGETHER Photo: Anna Górajka

PAUL WOJCIECHOWSKI, Australian

Ambassador to Poland, Czech Republic and Lithuania

T

he historic visit to Australia by President Andrzej Duda, accompanied by a delegation of ministers and senior business figures, is an opportune moment to reflect on Polish-Australian economic relations, and the prospects for further strengthening our trade and investment links.

Although we are geographically far apart, Poland should look to Australia as an attractive partner for doing business. The President’s visit will be a catalyst for producers and investors from both countries to consider where we can work together more closely.

Australia is the 13th largest economy in the world, open to international trade and foreign investment. Australia’s economy has outperformed its peers for more than two decades and we have just entered our 27th consecutive year of growth – a world record for a developed economy. This accomplishment reflects our stable institutions, smart multicultural workforce, abundant natural resources, and a very large and sophisticated services sector.

It also reflects Australia’s ability to adapt to changes in the global economy.

We have grown our trade to become a globally significant player in a number of industries. These industries include mining and fuels (3rd largest in the world), education exports (3rd largest), investment funds (6th largest), agriculture (12th largest) and tourism (10th largest).

Strong growth in these industries, as well as in construction – fuelled by strong population growth supported by a large migration program – has kept our economy in the top league of OECD countries. We have developed a wide network of free trade agreements, including the newly signed Trans-Pacific Partnership agreement, as well as bilateral agreements with China, Japan, USA and Republic of Korea.

Australia and Poland continue to explore opportunities to expand our trade and investment relationship. Trade is growing at double-digit rates

10 polish marketspecial edition 2018

and there’s much more we can do. There are over 50 Australian companies represented in Poland. Australian superannuation (pension) funds continue to look at Poland as an attractive investment destination, which combines a highly educated workforce, strong legal protection with high economic growth. The Deepwater Container Terminal in Gdańsk (DCT Gdańsk SA) is Australia’s largest single investment in Poland and a great example of “patient capital” which reinvests its earnings, with a positive multiplier effect on Poland’s logistics industry.

Australian companies are active in many sectors in Poland, from mining and gas to transport security solutions. The defence sector is of particular interest to us, given both Poland and Australia are investing heavily in their defence forces. We are increasing defence industry cooperation, which will have positive effects across other industries.

For consumers however, Australian wine remains the single most visible Australian product, with the range and quality of available wine increasing rapidly.

The European Union is Australia’s only major trading partner not yet covered by our network of free trade agreements. We welcome the launch of FTA negotiations and are grateful for the support we have received from Poland. We look forward to reducing barriers to our twoway trade and promoting a more seamless regulatory business environment. With its strong export focussed automotive sector, Poland could potentially benefit significantly from an EU FTA with Australia.

As a bloc, the EU remains important to Australia’s economy, particularly as investment partners, as a sophisticated export market and a gateway to global value chains. As the largest non-Eurozone economy after Brexit, Poland has the potential to become one of the most important voices for open trade and investment arrangements in the EU. •

special edition

UPWARD TREND The following is a statement for “Polish Market”

by HE MARY THURSTON, New Zealand Ambassador to the Republic of Poland.

N

ew Zealand’s links with Poland have been forged by several key events which have brought our people together, despite starting half a world away from each other. Polish settlers arrived to farm in New Zealand in 1872, our armed forces shared battle during World War II, and 733 Polish refugee children (“Dzieci Pahiatua”) found sanctuary and a home in Wellington in November 1944.

There is now a vibrant Polonia community in New Zealand which has been built from these historical foundations. The visit to New Zealand of President Andrzej Duda and his delegation will celebrate these connections. It will also provide a platform to develop further opportunities between us in the future, including what we trade with each other and how we do it.

In the past five years there has been a significant upward trend in trade flows between New Zealand and Poland. Food and beverage products are already popular, as Poles discover New Zealand wine, fish and lamb, and New Zealanders enjoy Polish pork products and confectionery. Both countries have a common commitment to high standards of food production and quality. Our complementary growing seasons provide consumers with year-round supply and help to maintain global demand for producers. For Polish exporters, there is also great potential in New Zealand for goods from other sectors, such as construction materials and agricultural machinery.

New Zealand’s reputation for technology and innovation makes it an obvious choice for collaboration and partnership with Poland in areas as diverse as film production, life sciences, and marine design and construction – and everything in between. New Zealand has a proven track record of creating solutions to all kinds of challenges, whether it be the first refrigerated shipping of perishable food in the 1880s, or a rocket using carbon fibre and 3D components to launch small payloads into space in the past couple of years.

It’s easy to do business with New Zealand too. In 2018 the country ranked first out of 190 economies in the World Bank’s Doing Business index, and in 2017 it was ranked the least corrupt country in the Corruption Perceptions Index. Factors like these provide certainty, stability and confidence, making New Zealand a reliable partner for trade and investment.

Creating predictable frameworks to underpin the way New Zealand and Poland trade with each other will be crucial to encourage further development and success in our respective markets. In July 2018, Free Trade Agreement (FTA) negotiations between New Zealand and the European Union began. We already have common approaches and standards in many areas of policy, and we share a vision of economic progress that is sustainable and fair for all.

New Zealand believes the FTA will build prosperity, encourage sustainable development, help companies of all sizes to grow, and bring highquality products to consumers. As a significant market within the EU, with strong economic growth, Poland is an important partner in the FTA process. Eventually, the FTA has the potential to take the New ZealandPoland trading relationship to the next level.

Among the anticipated benefits, the FTA will establish a platform which can facilitate access for our companies to global production and supply chains. There is also scope for Poland and New Zealand to work together to expand access to third markets, including through New Zealand’s existing network of FTAs in the dynamic Asia-Pacific region. With more than 95% of businesses in each country being Small and Medium Enterprises, we also want to ensure that these companies can participate in the economic opportunities that the FTA will bring.

The significant boost in trading activity between New Zealand and Poland in the last few years demonstrates a world of possibilities. As our companies and people continue to develop their knowledge and understanding of each other, we should look forward to even more trade and • economic success to celebrate in the future. polish market

11

BIG WAVE BUSINESS

SURFING

Tomasz Pisula, President of the Polish Investment and Trade Agency, explains in his remarks written for “Polish Market” why he believes Polish businessmen should pay more attention to Australia, and why they need to do some lateral thinking in the process.

As they say, big wave surfing is not for the undecided. Poland has more and more companies ready for new business challenges. It is for them that we blaze trails in some of the world’s most distant, but also most attractive markets. In August, with the participation of Polish President Andrzej Duda, we are opening the fiftieth Foreign Trade Office of the Polish Investment and Trade Agency. It will be based in Sydney, Australia. In that country, which I feel especially close to, people live well. It is also a place you can do business in a good environment. All it takes is to find out more about its specifics and be ready to view geographical distances from a different perspective.

12 polish marketspecial edition 2018

special edition

KEEP CALM AND DO BUSINESS

Australia is close to my heart. I have spent several years of my life there. It is a place where you adopt a special attitude. Australians show you how to be optimistic, laidback, calm and at the same time bold in grasping opportunities. They are open and helpful. It is in their DNA as descendants of immigrants from all over. Within two hundred years, through joint effort they have built a strong and prosperous economy. This winning combination makes Australians one of the world’s most popular nations, and their country one of the most attractive to live and to do business in.

Naturally, the Australian way of life is reflected in for investors and exporters. Australia is regarded as a safe and friendly place for businesses, also foreign firms, which largely drive the local economy. It is a place of low economic risk. It takes the protection of intellectual property very seriously and scores top marks in economic freedom and Doing Business world rankings. Australia also has one of the highest GDP growth rates among the developed countries, while rating agencies give it the AAA rating. All this is proof enough of why the Australian market is so promising.

The market’s potential is truly imposing. This huge country Down Under is the world’s thirteenth largest economy and twentieth largest importer of foreign goods and commodities. Polish exporters might be interested to know that – next to Switzerland – Australia is the world’s second most affluent society when it comes to the adult population. The key to Australia’s popularity are its links.

It is an excellent trade and investment base for companies doing business with Asia. It has trade agreements facilitating the flow of goods, services and investment with Singapore, Japan, Korea, Thailand, the ASEAN community, Pacific island countries and New Zealand. Quite rightly, businessmen will also find Australia a convenient gateway to China. Just like Poland, it is a member of the Asia Infrastructure Investment Bank. Companies from both countries are thus able to pool their resources in making bids and implementing large-scale infrastructural projects in China and along the New Silk Road.

There is more good news coming from the EU-Australian trade relations front. Bilateral trade is very lively.

In fact, the EU is Australia’s second largest partner. You can expect that the two partners will soon be linked even closer as a free trade agreement between them is currently being negotiated.

WHO IS AUSTRALIA FOR?

Australia is an ocean of business opportunities but you need to know how to surf it. It may only take twenty minutes to register your business, but do make sure that the person in charge is a local tax resident. Another thing to consider is the high cost of labour. We recommend doing business through joint ventures with local companies. Then there are the intricacies of the local market.

AUSTRALIA IS REGARDED AS A SAFE AND FRIENDLY PLACE FOR BUSINESSES, ALSO FOREIGN FIRMS, WHICH LARGELY DRIVE THE LOCAL ECONOMY. IT IS A PLACE OF LOW ECONOMIC RISK.

Australia’s territories feature different business regulations, so before taking a plunge you need to find out more about these.

In their first steps on the Australian market, Polish firms will now have a strong ally: a group of experts at the Foreign Trade Office in Sydney run by the Polish Investment and Trade Agency. The Agency’s Australian branch will be officially opened during a visit to Australia and New Zealand in August by Polish President Andrzej Duda. During the opening of the Office, the President will be accompanied by a group of Polish entrepreneurs representing the energy and natural resources sector. This includes mining, the gas industry and renewable energy sources. We have identified these sectors as the most promising for the development of trade and investment.

Firms coming from these sectors are among those which approach us the most frequently, asking for business advice and assistance in finding Australian partners. In Australia, we also see a great potential for innovators, notably IT firms. Manufacturers of medical equipment, aerospace companies, producers of sports equipment, textiles and foodstuffs are also keen to surf the big waves Down Un• der with our help.

For more details please contact: Foreign Trade Office of the Polish Investment and Trade Agency in Sydney Head: Mike Walpole - Skwarczyński mike.walpole@paih.gov.pl polish market

13

POLAND HAS “SOFT POWER” POTENTIAL Malgorzata Kwiatkowska, President of the Polish Community Council of Australia, talks to “Polish Market” about the role of immigrant Poles in Australian society.

What contribution have successive generations of Polish immigrants made in Australia?

Across the broad range of cultural activities in Australia, Polish migrants who arrived in 1949-50 set an example by establishing local Polish Associations which in turn supported the founding of independent schools and other initiatives. Since the beginning they had an Australia-wide focus. Interestingly, organisations that were national in their orientation such as the Polish Community Council of Australia; Polish Education Commission; Polish Ex-Servicemen’s Associations and Polish Scouts remain very active today. Further, such organisations operate around the world and they all maintain links, independent of each other, with like organisations in Poland. Each of these organisations has a role to play in Australian ethnic affairs where for instance the Polish Education Commission is involved with the Polish programme at schools funded by the Australian Government. Polish Ex-Servicemen’s Associations participate in Anzac Day public commemorations together with Australian veterans.

Poles remain a relatively small ethnic group, however they have played a role in Australia’s development. Starting with Edmund Strzelecki, followed by countless academics, teachers, translators, engineers, medical practitioners, artists and sports men and women, they have all left a mark on Australia. Many have received the Order of Australia (OAM) due to their contribution to Australia.

Poles in Australia are an active group spanning many generations. They actively promote Poland and deeply care about its image. They strive to build an understanding and awareness of Poland among Australians.

PM

14 polish marketspecial edition 2018

Poland’s 100th independence anniversary concert at Sydney Town Hall. Pictured from left: pianists Alan Kogosowski and Krzysztof Małek, and conductor Carlos Alvarado.

What is the perception of Poland and Polish brands in Australia? Is enough being done to promote the recognition of Polish products on the Australian market?

Polish brands have low levels of visibility among Australian consumers. On one hand, there is potential to work together in the energy industry, the defence sector and to develop commercial contacts. But on the other hand, current low levels of awareness of Poland’s business capabilities make it harder to establish strong business relationships.

It appears the main purpose of President Andrzej Duda’s visit in Australia is to promote the image of Poland as an innovative, economically strong and tolerant country. The building of such PM

an image of Poland must be implemented in the context of its national interest and character, and as a partner and member of the European Union. Valuable resources are available in Poland.

The Polish brand is characterised by excellent export growth with a wide range of partners, contractors and consumers (medical equipment, food, construction, shipbuilding, carpentry). In this context, it enjoys the active transactions of the foreign trade office of the Polish Trade and Investment Agency in Sydney. It is hoped that these activities are continued by the Polish Trade and Investment Agency and will help to create a better image of modern Poland and contribute to a greater interest of Polish businesses and their presence in Australia.

special edition

How do you see the role of the Polish people in Australia in building economic cooperation between the two countries?

Poles in Australia are not directly affected by economic relations, nor do they offer any economic lobby to support Polish-Australian initiatives. Traditionally, the Polish community is very protective about the preservation of tradition and Polish culture. Poland can help by cooperating and actively backing new initiatives.

Young people of Polish background are becoming more and more involved with the Australian environment and less involved in the culture of their forefathers and their ethnic community. An investment needs to be made to change the trend to make these young people more interested in Poland, its interests, future and its splendour.

The Polish community invests a lot of energy to promote these aspects. Therefore, Poland as the strategic partner is expected to reciprocate the efforts.

I would like to pay special attention to the opportunities associated with the young Poles, whose positions in the Australian society are strong. They are well educated, have wide contacts and occupy high positions in Australian companies.

PM

What role does your organisation play in the scheme of things?

The Polish Community Council of Australia has existed since 1950 with a mission to integrate the Polish community in Australia to foster cooperation and friendship between member organisations for the promotion of the positive image of Poland and Poles living in Australia. The PM

Council strives to preserve truthful Polish history and promotes its cultural heritage in Australia.

It strongly supports Polish language learning among young Polish Australians and supports its member organisations in their activities.

Economic relations between Poland and Australia are not in the focus of the Council’s constitution. I would like to emphasize the importance of the so-called soft power of the country, the value of which is perhaps not quantifiable, but without a doubt very important.

Countries that have a good reputation and known brands, can afford more success in the sphere of economy and international policy.

Poland, contrary to popular opinion, has quite a considerable potential for “soft power”. It lies in the idea of Polishness, inextricably linked to the idea of freedom which is tied to our fascinating history. Due to these factors, we have created a public interest in Poland and an interest in Polish nature, science, literature, music, art, food, and finally Polish tourist attractions and the Polish lifestyle. An example of “soft power” could be the Polish scientists dividing their working time between Poland and Australia.

POLES IN AUSTRALIA ARE AN ACTIVE GROUP SPANNING MANY GENERATIONS. THEY ACTIVELY PROMOTE POLAND AND DEEPLY CARE ABOUT ITS IMAGE.

How do we better promote Polish culture in Australia?

The Council together with its member organisations promote Polish culture through festivals, which are held regularly in many cities of Australia. The most spectacular of these is the PolArt, the largest Polish cultural event outside of the Polish borders. It is organised every three years in one of the state capitals of Australia. The Festival includes performances by folk dance and

song ensembles, classical and popular music, theatrical and literary performances, painting exhibitions, historical and feature films, etc.

The next PolArt festival will be held at the turn of 2018/19 in Brisbane in Queensland (www. polart2018.com.au).

In Melbourne a Polish festival takes place every year at Federation Square in the centre of the city. This festival attracts about 60 thousand people of different ethnic backgrounds.

There is a similar festival held at Darling Harbour in Sydney.

Local Polish groups organise promotional campaigns in cooperation with local ethnic organizations for example there is a multicultural festival called the “Riverlights” which is organised in Maitland-Newcastle in New South Wales.

The Polish part is called “The Polish Spring in Brisbane, Queensland” which draws many people to the stands.

Initiatives to promote Polish culture from the non-Polish communities do not exist. We rely on the Poles here for all the promotion of Polish culture. It is based only on its achievements and traditions which is an obvious mistake.

Generous support and cooperation from Poland is needed to market Polish culture in Australia.

The film industry is an effective way to advertise our cultural heritage. This form of communication has long been a success in Poland.

Screenings of Polish films in Australia would be a strong promotional asset. Another way is to promote direct flights to Poland.

•

PM

Krzysztof Szczerski, Secretary of State at the Polish President’s Office meeting with schoolchildren at the end of the 2017 school year.

www.polishcouncil.org.au polish market

15

2018 marks the centenary of Poland’s rebirth as an independent state in the wake of WWI. To mark this anniversary, “Polish Market” carries a series of features devoted to the history of Polish statehood, culture and events to be held as part of celebrations within the long-term government programme dubbed “Niepodległa” (Independent Poland).

In this special edition devoted to PolishAustralian relations, Maciej Proliński looks back at some of the Poles who made a mark in Australian history.

POLISH TRACES IN AUSTRALIA

Edmund Strzelecki

P

AWEŁ EDMUND STRZELECKI (1797-1873) was a Polish traveller, geologist and geographer who devoted much of his life to exploring Australia. Next to the composer Fryderyk Chopin and Nobel Prize winning chemist Maria Curie-Skłodowska, he is among the most famous Poles who lived in the 19th century. Having done a lot of exploring on other continents, Strzelecki arrived Down Under to discover Australia’s highest mountain range, the Snowy Mountains, and named its highest peak after the Polish

16 polish marketspecial edition 2018

general Tadeusz Kościuszko, a Polish hero of the American War of Independence. Strzelecki also ventured into Latrobe Valley, where some of the world’s richest brown coal deposits are found, and where oil is also extracted. He compiled a geological map of New South Wales and Tasmania.

A mountain range, two peaks, a lake and a river were named after him. A monument to Strzelecki by Jerzy Sobiciński was unveiled at Jindabyne at the foot of Mount Kosciuszko in 1988 as a symbol of Polish national pride and longing for the motherland.

Tadeusz Kościuszko

TADEUSZ KOŚCIUSZKO (1746-1817,) a brilliant military leader, engineer and strategist whose role was crucial both in Poland’s independence struggles and during the American War of Independence, owes his acclaim in Australia to Strzelecki. Perhaps lesser known is the fact that he was a fervent campaigner for human rights and tolerance. He fought against slavery and serfdom, he was opposed to the killing of native Americans.

Kościuszko was also a painter, piano performer and singer.

special edition Bronisław Malinowski

BRONISŁAW MALINOWSKI (1884-1942) was Poland’s most famous anthropologist, ethnologist, sociologist and religious studies expert.

Born in Krakow, where he later studied and received a Ph.D. in philosophy at the Jagiellonian University, he spent most of his professional life in the UK and US. He studied at the London School of Economics and Yale University. In the former, he studied exchange patterns in Aboriginal Australia through ethnographic documents.

Then, with the use of funds provided by the Australian government, he travelled to Melanesia to conduct field studies. He is known as a pioneer of modern field studies based on participant observation through profound and long-lasting contact with individual tribes. On the basis of his experiences he formulated the rules of anthropological field studies. He postulated that a researcher should distance himself from his own culture and background to reject prejudice and assumptions.

To him, watching the world through the eyes of tribe members and grasping their concepts and beliefs offers a chance to understand what the norms, customs and rules of a society are. His best-known book “The Sexual Lives of Savages in North-Western Melanesia,” published in 1929, contained the results of thorough studies of the inhabitants of the Triobriand Islands (now Papua New Guinea.) His works have made the people of the islands one of the best described tribal cultures of the Pacific.

HELENA RUBINSTEIN (1872-1965) – a Polish businesswoman, founder of Helena Rubinstein Inc. – was born to Jewish parents in the Kraków district of Kazimierz. She was the oldest of eight children. In 1900 she left to stay with her family in Vienna. In 1902 she boarded the Prinz Regent Luitpold in Genova to sail for Australia, where she settled. She started her career in the cosmetics industry by selling a face cream made according to her mother’s recipe brought from home. The

Helena Rubinstein

Valaze cream started selling like hot cakes and was described as a breakthrough in facial care.

Helena Rubinstein was bombarded with orders and in 1902 she opened her first beauty salon in Melbourne and established her own brand. Other beauty parlours were opened in London (1908), Paris (1912), New York (1915), Milan (1932) and Vienna (1934). Toward the end of her life her estate was worth USD 100 million. Her brand had become a household name wherever her cosmetics were exported to.

The world-famous Polish violinist WANDA WIŁKOMIRSKA (1929-2018) spent much of her life in Australia where she conducted a violin class at the Sydney Conservatory Of Music. She came to be known as a consummate artist whose love for music was unrivalled and who managed to inspire others with her passion. She performed all over the world. For a number of years she was a soloist of the National Philharmonic in Warsaw, with which she toured extensively. She also performed together with leading orchestras under such maestros as Otto Klemperer, Leonard Bernstein and Zubin Mehta.

Among Polish Australians, the memory is cherished of writer, poet and journalist ANDRZEJ CHCIUK (1920-1978.) He arrived Down Under in 1953 and lived there for 25 years. He had many jobs. Among others he worked as a chef, French teacher, producer of Polish cabaret shows. Between 1961 and 1962 he travelled extensively across Australia to collect stories told by Polish immigrants.

His book “Emigre tale” was published in London.

He was also a columnist of Polish newspapers in Australia, including the 1955-1974 “A Pinch of Salt” column in Sydney’s Wiadomości Polskie and Melbourne’s Tygodnik Polski.

MARK KRAWCZYŃSKI (b. 1948) promotes Polish culture and the arts in Poland and abroad.

He is the son of Zbigniew Krawczyński, an architect who took part in the reconstruction of

Wanda Wiłkomirska

Warsaw’s Old Town following wartime ravages.

Mark has implemented over sixty public and private projects, including the expansion of the National Museum of Australia and the Sydney Opera House. In recent years he has lectured on architecture, culture and national identity at universities and educational centres in Poland and Australia. Together with Jola Wolska, a journalist of Polish Australian newspapers and translator, he put together the exhibition “Eagles in the Land of Kangaroos,” whose name referred to Poland’s national emblem, the white eagle.

One of the first arrivals featured in the show was half-Pole half-Scot JAN REYNOLD FORSTER (1729-1798,) who took part in James Cook’s 1772-1775 expedition. He was accompanied by his son Jerzy who described and illustrated the expedition in his “Voyage around the World.”

In 1791 Polish explorer KSAWERY KARNICKI (1750-1801) led a whaling expedition from Chile to Australia. According to the exhibition catalogue, he was the first Pole who set foot on Australian soil.

In more recent times, a host of Polish immigrants contributed to Australia’s arts, to mention but filmmaker JERZY DOMARADZKI, actor JACEK KOMAN, star of numerous Australian TV shows, and the late singer and songwriter JACEK KACZMARSKI, the bard of Poland’s 1980 Solidarity revolution. Interestingly, even the South African Nobel Prize Winner J.M. Coetzee, who moved to Australia in 2002, is partly of Polish descent. His mother was Polish-German.

• Photo: www.poles.org/strzelecki.html www.wilanow-palac.art.pl Library of the London School of Economics and Political Science George Grantham Bain Collection (Library of Congress) Picture Helena Rubinstein (c) Archive / Archives Helena Rubinstein, Paris scanned from Dzieje Muzyki Polskiej, Interpress, Warsaw, Poland, 1977

polish market

17

special edition

POLISH WWII ORPHANS GIVEN SHELTER IN NEW ZEALAND During the second world war, New Zealand was one of the countries which welcomed groups of Polish orphaned children who had survived the ordeal of Stalin’s labour camps in the USSR. Lucyna Jaremczuk tells their story.

A

18 polish marketspecial edition 2018

New Zealand Prime Minister Peter Fraser greeting Polish children on arrival.

Photos: Polish Childrens Reunion Committee

ccording to New Zealand statistics, the number of Poles and people of Polish origin currently living in New Zealand is around 6,000.

The most numerous group of Polish settlers there were children and their guardians who arrived there during the second world war. They were refugees released from Soviet labour camps who looked after the Polish armed forces formed in the USSR which were evacuated from Russia to Iran. The Polish children had lost their immediate family. The Polish Government in exile in London appealed to the League of Nations for help in finding a temporary shelter for the Polish refugees.

Some 5,000 of them were accepted by New Zealand government at its own expense. Thanks to the help of the Polish consul in New Zealand Kazimierz Wodzicki and especially his wife, who was friends with the wife of the then Prime Minister Peter Fraser, at the end of 1943 the Polish children and their guardians were invited to stay until the end of the war. The group arrived in Wellington from India on board the British merchant ship the Sontay as well as the a US warship. On October 30, 1944, 733 Polish children and 105 adult caretakers came to Pahiatua, where a camp was established for them. The children stayed there until April 15, 1949, Pastoral care over children was provided by Fr. Michał Wilniewczyc together with nuns, Sisters Maria Aleksandrowicz and Anna Tobolska, and then Fr. Leon Broel-Plater, who later organised the Polish Catholic Mission in New Zealand. Most of the children and their guardians remained in New Zealand, creating a local integrated Polish community.

The 70th anniversary of the group’s arrival was celebrated in Wellington on November 1-2 2014]. New Zealand was the only country in the war world that accepted minors unconditionally, providing them not only with ongoing care for the duration of the camp, but also enabling them to acquire education and achieve complete assimilation in their new homeland. Apart from the then New Zealand Prime Minister Fraser and Polish Consul Wodzicki, surviving Polish arrivals cherish their memories of New Zealand foster families, which did not just invite them thanks to which, for each subsequent Christmas - throughout the camp’s operation - children found foster families, and after the camp’s activity they found - also thanks to their efforts - their place in life. .

•

Consul K. Wodzicki among the children

TRADE WITH AUSTRALIA AND NEW ZEALAND: FACTS and FIGURES The following report about Poland’s economic relations with Australia and New Zealand was compiled for “Polish Market” by the Ministry of Entrepreneurship and Technology.

AUSTRALIA Australia is a major trade partner for Poland in the Asia and Pacific region.

For several years now Poland has recorded a surplus in its two-way trade with Australia. The surplus has been growing at a double-digit rate.

In 2017, the value of Poland’s exports to Australia reached USD714 million, which represented a rise of over 11% compared to 2016. Polish imports from Australia are also on the rise, but Poland has maintained a surplus ranging from USD120 million to USD230 million.

Last year, Poland exported to Australia mainly products for the transport sector, in particular motor vehicles and parts (mainly Opel vehicles) worth nearly USD250 million and with a 35% share in overall exports. Electromechanical equipment was in second place, with USD147 million worth of exports and a 21% share, followed by ready-to-eat food (USD69 million; 10%), chemical products (over USD59 million; 8.3%), various products (USD56 million; 8%), base metals (USD39 million; 5.4%) and measurement equipment (USD18 million; 3%).

Poland-Australia Trade 2015

2016

2017

GROWTH 2017/2016

JAN.-MAY 2018

GROWTH JAN.-MAY 2018/ JAN.-MAY 2017

TURNOVER

895.74

914.5

1301.9

112%

442.8

78.8%

EXPORTS

566.43

559.1

714.4

111%

276.4

89.0%

IMPORTS

329.31

355.3

587.4

113%

166.3

66.1%

BALANCE

237.12

203.8

127

*

110.1

*

Polish exports to Australia in 2017

Poland delivers to Australia yachts, pharmaceuticals and medical products, furniture, household appliances, with an over 55% increase in sales in 2017, parts for the aviation industry, cosmetics, clothing, footwear and many other products.

Australia is an important market for Polish imports. Poland imports coal, zinc and copper ores, lead, gold, magnesite, leather, wool, advanced medical preparations, selected seeds and electronic parts.

There are around 130 Australian businesses present on the Polish market, mainly investors, distributors and importers operating in the logistics and other sectors. There is also some Polish investment in Australia, but its level is moderate (USD4.4 million, according to the National Bank of Poland).

The most important Australian investors in Poland: Ansell Limited (rubber products), Balamara Resources (mining sector), Brambles Limited (equipment rental), Bravura Solutions Limited (computer software, consulting), Coffey International Development (construction), Goodman Group (real estate), Hutton Energy Plc. (oil and gas sector), Lend Lease Project polish market

19

Polish imports from Australia in 2017

NEW ZEALAND

Management & Construction Pty Limited (architectural and technical services), Linc Energy Ltd (mining sector), Macquarie European Infrastructure Fund 5 (MEIF5) (consulting, accounting, auditing, taxes), Prairie Mining Limited (mining sector), Squiz (consulting and computer software).

In January 2018, the Office of Competition and Consumer Protection (UOKIK) granted permission for the acquisition of the Inea telecom network operating in the region of Wielkopolska by Macquarie European Infrastructure Fund 5 (MEIF5), an investment fund company managed by Macquarie Infrastructure and Real Assets (MIRA). The size of the stake acquired was not disclosed nor was the value of the deal. Macquarie Infrastructure and Real Assets has declared its intention to support Inea in its further development, including the expansion of its fibre-optic infrastructure under the EU Operational Programme Digital Poland 2014-2020, and Inea’s venture outside Wielkopolska.

The acquisition of Inea is the second direct investment by Macquarie Infrastructure and Real Assets in Poland after Deepwater Container Terminal (DCT) Gdańsk, which was built in 2005 and is regularly expanded, with the ultimate investment value set at EUR290 million. The T2 terminal was launched in 2016 and T3 is in the planning phase. The acquisition of Inea is MEIF5’s sixth investment, following EP Infrastructure, Race Bank, Offshore Wind Co, CLH and Empark Investments.

In 2017, trade between Poland and New Zealand was worth USD212 million. The value of Polish exports has been on the rise. In 2017, it stood at around USD150 million, which represented a nearly 8% increase year on year. For several years Poland has recorded a surplus in its trade with New Zealand.

This situation is due to the geographical distance between the countries, New Zealand’s small population, and its dominating agri-food sector, which is competitive to Poland.

Polish exports to New Zealand are dominated by products of the electrical and mechanical engineering industry. Their value in 2017 was USD105.2 million and was higher by USD61.5 million than a year earlier. These products had an almost 71% share in Poland’s overall exports to New Zealand.

Agri-food products and chemical products were in second and third place and their value was respectively USD14.5 million and USD11.4 million.

The most important among the electrical and mechanical engineering exports were turbojet and turboprop parts worth USD52.3 million, and vehicles, aircraft and watercraft worth USD25.2 million, including motor vehicles (Opel – USD9.7 million). Among agri-food exports was pork (USD6.3 million), processed food (USD2.1 million), and oil seeds and oily fruits (USD1.6 million). The most important among chemical products were pharmaceuticals (USD4.2 million) and washing and cleaning agents (USD3.2 million).

In terms of exports value, New Zealand is the 65th largest trade partner for Poland. It has a 0.07% share in Poland’s overall exports. In terms of imports value, New Zealand is in 74th place among Poland’s trade partners, with a 0.05% share.

In January-May 2018, the value of two-way trade between the two countries almost tripled compared to a year earlier to reach USD201.4 million.

Polish exports almost doubled to USD114.4 million. Products of the electrical and mechanical engineering industry, including sea vessels and motor vehicles, accounted for almost 67% of the overall exports. At the same time, there was a sharp increase in the imports of ships from New Zealand.

They were probably brought to Poland to be repaired in Polish shipyards. •

Poland-New Zealand Trade 2015

2016

2017

GROWTH 2017/2016

JAN.-MAY 2018

GROWTH JAN.-MAY 2018/ JAN.-MAY 2017

TURNOVER

895.74

914.5

1301.9

112%

442.8

78.8%

EXPORTS

566.43

559.1

714.4

111%

276.4

89.0%

IMPORTS

329.31

355.3

587.4

113%

166.3

66.1%

BALANCE

237.12

203.8

127

*

110.1

*

20 polish marketspecial edition 2018

special edition

PGNiG LEADER OF THE

POLISH NATURAL GAS MARKET In these remarks written for “Polish Market,” Piotr Woźniak, President of the PGNiG Management Board, writes about the company’s activities on the global gas market and the Polish project of coal bed methane extraction.

T

he Polish gas market has risen by almost 2 bcm in the last two years. According to the BP Statistical Review of World Energy natural gas consumption in Poland has increased over 19.1 bcm in 2017 from 17.1 bcm in 2015. Rising demand for natural gas of the Poland’s economy makes LNG imports grow. Currently the only Polish LNG terminal has 60% utilization rate which is the highest among all large import facilities in Europe. Poland is also one of the few European countries with significant domestic production of natural gas with 4 billion cubic metres a year which is close to outputs of Italy and Denmark.

Polskie Górnictwo Naftowe i Gazownictwo SA (PGNiG SA) is the major player in the Polish natural gas industry and the fifth largest company on the Warsaw Stock Exchange in terms of market capitalisation. Our business comprises exploration and production of natural gas and crude oil, import and distribution of natural gas, as well as generation of heat and electricity. Through our holdings in other companies, we also provide geophysical, drilling and well services round the globe, from Columbia to India.

We are consistently strengthening our position on the global LNG market. We have been diversifying sources of supply to Poland and developing our competences in LNG global trading. PGNiG Supply & Trading GmbH,

a Munich-headquartered member of the Group, is involved in trading gas and power in the Western European wholesale energy market and sells electricity and gas to households and small enterprises. It also manages a branch in London from where it operates the LNG trading activities on a short to midterm basis for the PGNiG Group.

In addition to existing import contracts, PGNiG has started cooperation with new partners from the US. The PGNiG Group also includes PGNiG Upstream Norway, which has more than a decadelong track record of upstream projects on the Norwegian Continental Shelf. In Pakistan we have been engaged in upstream operations for more than 20 years.

Within the R&D area we have been successfully developing innovative projects and solutions in collaboration with scientific institutions and startups. We are implementing a project of coal bed methane extraction. The research is being carried out in Gilowice, a heavily mined area of southern Poland, jointly with the Polish Geological Institute − National Research Institute. We also cooperate with the International Centre of Excellence on Coal Mine Methane (ICE-CMM – Poland), an expert institution we ourselves helped establish, operating under the auspices of the United Nations Economic Commission for Europe.

It is a very important project for PGNiG for a number of reasons. Our objective is to be able

to extract coal bed methane from coal seams close to the surface on an industrial scale. In this way, we could scale up domestic gas production in Poland. According to estimates by the Polish Geological Institute, the recoverable resources of methane in coal deposits of the Upper Silesia Coal Basin (Poland’s main mining region) amount to 170 billion cubic metres.

But our project has also other, equally important objectives. Given that the methane explosion risk in Polish mines is still high, premining extraction of the gas could significantly improve the safety of mining work. Our solution would also improve the profitability of mines by speeding up the mining process, as the existing methane safety measures significantly drive up mining production costs.

As an added benefit, the surface extraction method would help reduce methane emissions into the atmosphere. Being a gas with a strong greenhouse effect, its extraction could contribute to the achievement of global climate policy objectives.

On the global market, coal bed methane is now among alternative energy sources. For example, Australian operators have extensive experience in the field. We hope that our participation in the economic mission to Australia and meetings with local companies will be an opportunity for us to exchange knowledge and experience in that vital area.

• polish market

21

FROM

COAL

TO STEEL

J

astrzębska Spółka Węglowa SA (JSW SA) is the largest coking coal producer in the European Union and a major producer of coke, a material indispensable in the production of steel. And without steel one can hardly imagine the development of an innovative economy or modern infrastructure. At present, there are no alternative and economically justified iron ore smelting technologies which do not use coking coal.

Coking coal plays an important role in the global economy. The European Commission has included it in the list of 27 Critical Raw Materials, which are difficult to replace and are of utmost importance for the Community.

Despite technological progress, it is necessary to maintain steel production at a high level. Coking coal is indispensable for this purpose. Without coking coal there is no steel industry. In turn, the steel industry has a huge impact on key economic sectors such as the automotive, railway, shipbuilding, construction, fuel and household appliance industries. Steel is necessary for the development of a modern low-carbon economy. As a result, the coking coal produced in JSW SA collieries is a key raw materials for the European Union economy. The company already meets 30% of the EU’s demand for the product.

The business of JSW SA is coal mining and processing. The company produces around 15 million tonnes of coal annually, including almost 11 million tonnes of coking coal. Last year, the coking plants belonging to the JSW SA corporate group produced 3.5 million tonnes of coke. The collieries hold a total of 6 billion tonnes of coal classified as resources supposed economic, including less than 1 billion tonnes of recoverable reserves.

22 polish marketspecial edition 2018

Supplying a raw material indispensable for the steel industry, JSW SA consistently introduces innovative technologies and takes care of the natural environment, with the highest respect for the Earth’s resources it acquires. At present, the company is a leader in utilising methane and coal gas. This means that 60% of the gas captured is converted into energy. Methane capture from the mine ventilation systems not only improves energy efficiency and reduces greenhouse gas emissions, but also mitigates the risk of methane incidents in the collieries.

And this is not all, because JSW SA has taken a number of measures to apply in practice a process for separating hydrogen from coal gas.

The purified hydrogen may be used in fuel cells for zero-emission electricity, heat and cold production, environment-friendly public transport, powering electrical devices and back-up power supply stations. Europe’s transition towards a low-carbon industry in coming years will bring about a growing demand for environment-friendly products, like electric cars and wind turbines. Consequently, demand for steel will also be on the rise.

JSW SA exploits scientific achievements through its cooperation with the best universities and research institutes in order to use its reserves as efficiently as possible and to make as low an impact on the natural environment as possible. The introduction of modern technologies and innovations is the company’s most important activity, apart from investments, contributing to strengthening its position as the biggest coking coal and a leading coke producer on the European market. The use of state-of-the-art technologies is the right trend.

It will enable the company to develop in an optimal way and will set directions for the development of the whole mining industry. •

Proven solutions global reach

FAMUR

The FAMUR Group is a global manufacturer of modern machinery and a supplier of innovative solutions for underground mining, opencast mining, transport, transshipment and power energy industries.

The extensive industrial structure enables offering a comprehensive product from exploitation of raw materials through logistics to IT operations. FAMUR provides its customers with complete mining systems, power plant carburizing systems, it equips ports with transshipment facilities, as well as provides IT operational management systems. FAMUR has been investing in new technologies and systematically improving the offer, while always adapting it to individual markets.

Over the past 15 years, FAMUR has incorporated 16 brands into its structures. The consolidation process ended with the acquisition of the biggest domestic competitor – the Kopex Group.

The combined competences, know-how and experience allow to leverage the complex potential in the implementation of mining and energy projects.

The basis for the FAMUR Group development strategy is the foreign expansion program. Machines and technologies produced in the FAMUR Group plants are present in over 40 countries on five continents, and the share of exports in revenues is 40% approximately. The company has been acquiring contracts in Russia, Kazakhstan, Turkey, Mexico or Argentina. Through the cooperation with financial institutions and a range of partners, the company has been increasing attractiveness of its products and services among the customers worldwide. In the near future, the FAMUR Group intends to expand its sales in such markets as Australia, China, India, the USA and Canada.

By collaborating with numerous partners, FAMUR has been consistently developing its portfolio of solutions. Together with the Polish Development Fund (PFR), JSW SA, Przedsiębiorstwo Budowy Kopalń PeBeKa SA and the Indo Polish Chamber of Commerce and Industry, it has been working on creating a comprehensive offer for the Indian mining and energy market. In addition, together with JSW it has been carrying out activities to develop innovative solutions intended to increase the exploitation efficiency and work safety in hard coal mines, aimed to creating the Intelligent Mine consistent with the assumptions of the Industry 4.0 concept. Moreover, its cooperation with ABB is to enable creating modern solutions for the Polish and international mining industries based on highly advanced industrial automation.

International activity and cooperation with numerous entities allows the FAMUR Group to compete with the largest global players, thus making it one of the leading producers and suppliers of solutions for the mining and power energy industries worldwide.

w w w. f a m u r. c o m

POLSKIE LNG DEVELOPS

NEW SERVICES AND HOPES FOR COOPERATION WITH AUSTRALIAN PARTNERS Paweł Jakubowski, CEO of Polskie LNG SA, the owner and operator of the LNG Terminal in Świnoujście, talks to “Polish Market”.

What benefits can you see from your relations with Australian partners?

The Australian LNG market gives a lot of inspiration to Polskie LNG and me personally. We established contacts with Australian companies and academic centres many months ago. Since that time we have tightened our relations with the Australian partners and entered the next construction phase – we plan a major expansion of our LNG terminal in the coming four to five years.

PM

What Australian organisations are the prospective partners you would like to attract?

In November last year, GAZ-SYSTEM Group, of which we are a member, organised in Warsaw the conference “Focus on Gas: Linking Australia and Central & Eastern Europe” in conjunction with the Australian Trade and Investment Commission (Austrade). The conference was attended by Polish and Australian firms operating in the gas sector, which means our message was targeted at quite a broad audience – the whole industry. In March 2018, we were present at the Australasian Oil & Gas Exhibition & Conference in Perth. At that time, we held many bilateral meetings. The goal of the mutual visits was to attract the interest of Australian firms in cooperation with us in LNG technology and to share knowledge about state-of-the-art and innovative technological solutions. We are also looking with interest at opportunities for cooperation in the area of R&D and education with Australian scientific research centres.

PM

24 polish marketspecial edition 2018

What kind of cooperation does Polskie LNG offer to Australian firms?

The programme for the expansion of the LNG Terminal in Świnoujście has been launched. By the end of the year we plan to start all of the key tender processes. The first construction works are to begin as early as 2019. The project, carried out

by Polskie LNG, is composed of four elements: increasing the regasification capacity of submerged combustion vaporisers (SCV), and building a second jetty, a third storage tank and facilities for the transfer of LNG to rail transport. Work on the expansion of the system of submerged combustion vaporisers is the most advanced. As a result of the expansion, the regasification capacity of our terminal will be raised to 7.5 billion cubic metres a year. We have already received the building permit and have announced three tenders for the delivery of key equipment.

PM

What does the expansion of the LNG terminal involve apart from the regasification facilities?

The expansion project includes the construction of a second jetty, which will enable the terminal to provide additional services: unloading and loading small and medium-sized tankers, LNG transhipment from a ship at the unloading jetty to a ship at the re-export jetty, LNG bunkering, and filling bunkering vessels with LNG. We are very happy with this part of the expansion project because it offers a huge potential when it comes to our participation in the inland and maritime shipping market. In PM

the first full year of our operations involving the transfer of LNG to trucks, we came ahead of any other LNG import terminal in Europe, including Fluxys LNG Terminal in Zeebrugge, Belgium. In 2017, we served the biggest number of lorries in the Old Continent: 1,523. However, other terminals in the region also recorded a strong growth in this respect. This shows that demand for LNG transport by small vehicles is already quite substantial and the upward trend continues. We expect a similar situation in the vessels case. We also expect a rise in demand for LNG transport by rail, a service we are going to launch in coming years. A railway siding with LNG reloading infrastructure is to be constructed to enable the company to provide what is called a “virtual pipeline” service: loading and intermodal transport of a considerable amount of LNG with the use of cryogenic LNG ISO containers and tank wagons. The fourth element of the expansion project is the construction of the third tank. It will make the operation of the terminal more flexible and increase the reloading capacity for the purpose of regasification. This will also enable the terminal to offer new services. The additional tank, with a capacity of 180,000 cubic metres - the existing two have a capacity of 160,000 cubic metres each - will make the operation of the terminal less dependent on the frequency of deliveries and will create conditions for trade in LNG surpluses. There are ambitious plans and years of intensive work ahead of us, but also big prospects. We would be happy for our Australian partners to take part in this process.

•

DESTINATION POLAND

26 polish marketspecial edition 2018

F

or the Polish Tourism Organisation, the most important thing is that more and more Australians and New Zealanders choose to spend their holiday in Poland. 2017 saw a notable 12% increase in the number of incoming tourists from Down Under. As many as 54,000 Australians came to visit.

The number of those who stayed in Poland for at least one night was up by about 10%. In 2017 there were more than 47,000 of them. Naturally, we are doing our best to maintain those upward trends and improve on that.

Poland is a very attractive destination for foreign visitors. This country has a rich offer in terms of accommodation. The added bonus are relatively low prices compared to the quality of services. Poland is an open and safe country and its people are very friendly and hospitable.

This country has many attractions which are quite exceptional in terms of European and world cultural heritage and the natural environment. On a first visit, may I recommend the Białowieża Forest, which is a unique primaeval lowland forest entered on the UNESCO list. We suggest that Australians who choose Poland as their destination visit captivating cities like Warsaw and Krakow. Both have changed a lot over the years and have a fascinating history. Melbourne and Sydney dwellers keen to get away from it all might want to head for the unspoilt Bieszczady mountain range. It is a place which is well worth a visit at any time of the year.

It is my sincere hope that Australia and New Zealand’s sizeable ethnic Polish community continues its efforts to promote this country.

Members of the community are courageous, dynamic and well-educated. They are well integrated with local societies in professional and social terms while maintaining cultural, emotional and family links with Poland. Hopefully, with their personal recommendation, Poland’s best kept secrets will inspire the locals to spend an unforgettable holiday in this country. The year in which Poland celebrates the one hundredth

special edition

What are Poland’s top tourist attractions? Find out in the following remarks written for “Polish Market” by Robert Andrzejczyk, President of the Polish Tourism Organisation.

anniversary of regaining its independence, seems a perfect opportunity for Poles living Down Under to visit the land of their ancestors and take their Australian friends along with them.

This year the Polish Tourism Organisation will launch an intensive promotional campaign in Australia on behalf of all the countries of the Visegrad Group, which also includes Hungary, Czechia and Slovakia.

Taking into account that Poland is now within easy reach thanks to LOT Polish Airlines flights to Singapore and recently signed agreements with regional carriers, we look ahead with optimism to the future of incom• ing tourist traffic from Down Under.

polish market

27