Rail freight operator Lineas has been operating at a loss for years. After the Belgian government saved the company from imminent bankruptcy in July with a loan that can be converted into shares, Lineas has now applied for a closed judicial reorganization procedure.
This should allow the company to reach a restructuring agreement with its creditors under court supervision. This was reported by the business newspapers De Tijd and L’Echo.
Lineas has been struggling with losses for years. At the end of 2023, it had a total debt of around 290 million euros. Its creditors are the banks, the Flemish government, and Wallonia, while the federal government, together with the investment fund Argos Witty, is also a shareholder in the company.
A restructuring plan was put in place, but in the meantime, Lineas is being kept afloat with various (shareholder) loans. For example, the company must repay or refinance 46.25 million euros in short-term loans.
Debts remain a burden on operations
To give itself some breathing room, Lineas, which last year had a net loss of 39 million euros, has now opted for a private judicial reorganization procedure. This is an option introduced in 2023 in the Economic Law Code to negotiate with creditors in complete confidentiality when the continuity of a company is threatened. The aim is to reach an amicable or collective agreement on the repayment of debts.
Despite this precarious financial situation, the company remains optimistic. Lineas says it is currently experiencing strong commercial momentum, with significant new contracts, particularly in intermodal transport and chemicals, even though the latter sector is in crisis. The 2025-2027 business plan aims to break even on EBIT in 2026.
New joint venture with Italy
Lineas is the most significant player in the Belgian freight rail market, which has 13 operators. The company is vital to the ports of Antwerp and Zeebrugge. It is by far the largest user of the 1,000 kilometers of train tracks in the port areas.
More than 1,500 people work for Lineas, which was created from the former NMBS/SNCB subsidiary B-Cargo. In addition to Belgium, the company also operates in the Netherlands, Germany, France, and Luxembourg. It has intermodal connections in Italy and Austria, making it the largest private rail freight operator in Europe.
It recently entered a new joint venture with the Italian company FS Logistix to establish a logistics backbone between the port of Antwerp and Italy. According to Lineas, the initiative would keep 13,000 trucks off the road each year.
