Belgian government to lend 61 million euros to save rail freight giant Lineas

The Belgian federal government is stepping in with a 61 million euro emergency loan to save Lineas, the country’s largest rail freight company, from collapse.

The funding will come via the Federal Holding and Investment Company (SFPIM) and aims to prevent the bankruptcy of this strategic logistics operator, which handles up to half of Belgium’s rail freight (particularly around the port of Antwerp). Lineas particularly plays a vital role in chemical, steel, and future military transport sectors.

A former SNCB subsidiary, Lineas is now 54 per cent owned by French investment fund Argos Wityu. The Belgian state holds the remaining 46 per cent. Despite being a key player in European freight transport, the company has faced persistent financial difficulties in recent years. Its operational loss was reduced from 82 million euros in 2022 to 40 million euros in 2023, and a further reduction to 15 million euros is expected in 2024.

In 2024, shareholders, with help from Flanders and Wallonia, had already injected over 100 million euros into the company. But Argos Wityu has now said it can no longer contribute further.

Lineas had launched a recovery plan aiming for profitability by 2025, but cashflow issues remain critical. Without urgent support, the company could go bankrupt as early as August. 

The loan still needs approval from the federal cabinet. It is unlikely that the approval will not be granted: the government considers Lineas too important to fail. However, more money and a new private investor may still be needed to secure the company’s future.

^{Picture shows the first train running on cooking oil in port of Ghent, as part of an experiment by railway operator Lineas © BELGA PHOTOS JONAS D’HOLLANDER}