Belgian freight transport by train slightly up again

Freight transport by train in Belgium rose slightly again last year. Over 55.2 million tons of freight were transported by rail, 3.2% more than in 2023 but still less than the peak years of 2008 (73 million tons) and 2021 (63 million tons), according to data on the open data website of rail network operator Infrabel.

Even for the Belgian rail freight company Lineas, the most significant European player in the rail freight market, the horizon is not yet bright. The company still seeks fresh capital of plus or minus 70 million euros and a new CEO.

Long way to go before doubling rail’s share

The rail freight sector in Belgium expressed the ambition several years ago to increase rail’s share in total freight transport to 20% by 2040. In recent years, however, the share has fallen from 12.4% in 2021 to 11% in 2023—no percentage is yet available for 2024.

Still, much work remains to achieve that 20% objective. In 2021, rail freight transport in Belgium reached its highest level in over a decade, at just under 63 million tons.

However, this was followed by two consecutive declines. In 2023, 53.5 million tons were still handled, 15% less than in 2021 and the lowest level in seven years. A slight recovery followed last year: +3.2% to 55.2 million tons, as the Belga news agency found out.

The increase follows a more general trend. For example, freight transport via ports and waterways in Flanders also recovered last year after a decline in 2023.

Search for fresh capital again

A dozen companies operate in Belgium’s rail freight market. The most significant player is Lineas, which used to be part of rail operator NMBS/SNCB and had a monopoly before rail freight was liberalized in 2007. However, Lineas’ market share fell below 50% in 2023 to 49.1%.

Lineas is also struggling financially. The ailing company, which is owned by the federal private equity company SFPIM and the French investment fund Argos Wityu, received a new bailout of 46 million euros last year from the Flemish and Walloon governments and the banks KBC and Belfius.

Earlier, the federal government also financially supported Lineas twice by increasing its capital by 50 million euros and converting 34 million euros of shareholder loans into capital.

According to De Standaard newspaper, the company – last year it suffered a loss of 13.6 million euros compared to 40.2 million in 2023 and 82.3 million in 2022 – is currently looking for an investor to cough up at least 60 to 70 million.

‘Distortion of competition’

But attracting a new investor is not easy, apparently, also because competition from road freight is far too intense. For example, Lineas chairman Bernard Gustin argues in the newspaper Le Soir that Belgian trucking companies can apply for reimbursement of excise taxes for professional diesel. Last year, this involved aid of 700 million euros.

Gustin points out that rail freight transport is not only better for the climate and economy for distances higher than 400 km, but he also talks about the distortion of competition. However, the new federal government seems to want to reform the legislation.

The De Wever I government agreement states that “excise tax rebates on commercial road diesel will be gradually reduced to a level so that we remain competitive with our neighboring countries ” and that “consultations with the sector will assess the impact of this reform, as well as other tax measures in favor of the greening and competitiveness of the sector.”

New CEO

Gustin’s successor will most likely conduct those negotiations. Since mid-January, Gustin has been working as CEO at high-voltage specialist Elia. He is currently also chairman of Lineas, a position he will continue to hold. Previously, he was the rail operator’s executive chairman. According to the business newspaper L’Echo, the new CEO will be introduced within the next few weeks.