BELGIAN freight operator Lineas urgently needs an injection of €50m if it is to continue trading, as both accumulating losses and debt cause difficulties with cash flow.
Lineas has been in search of a capital injection since 2022 when it made a loss of €100m on turnover of €493m. According to the company, these losses were due to the Covid-19 pandemic, higher energy prices and severe flooding in the Liège and Pepinster areas of eastern Belgium.
The freight operator is owned by Paris-based investment fund Argos Wytiu (65%) and the Belgian sovereign wealth fund SFPIM (35%). Last spring they arranged €20m of support for Lineas, but the company now requires at least €50m to remain in business and at least €80m before March 2024.
Lineas is reported to be negotiating with a dozen potential investors to ensure its survival, a matter of great concern to the Belgian government.
Federal transport minister, Mr Georges Gilkinet, says the bankruptcy of Europe’s largest private freight operator would have catastrophic consequences for transport and logistics, and in particular for the Belgian ports of Antwerp and Zeebrugge.
The proportion of freight moving to and from Antwerp by rail when compared with other modes is currently the highest in Europe.
As well as Belgium, Lineas is licensed to operate in Luxemburg, France, Germany and the Netherlands. In April 2021 it strengthened its position in the Netherlands by acquiring Dutch freight operator Independent Rail Partners.
Although keeping Lineas trading appears to be the only feasible short-term solution, the Belgian government is hesitant to provide financial support as this would have to comply with European Union (EU) regulations on state aid.
One way of supporting the company is the €15m project to modernise the hump marshalling yard at Antwerp North that was approved in March.
Although the yard is owned by national infrastructure manager Infrabel and therefore open to all operators, Lineas is the sole user as one of the few companies still offering single wagonload service.
Lineas was formed in 2015 through the privatisation of Belgian National Railways’ (SNCB) freight subsidiary B-Logistics. Earlier efforts to improve its finances included a sale and leaseback deal for its locomotive and wagon fleet that was concluded with Beacon Rail and Ermewa (now Streem).
Major changes were made to senior management in 2022 when former Brussels Airlines CEO, Mr Bernard Gustin, was appointed as executive chairman, and Mr Frank Berweger as chief commercial officer (CCO).
