BELGIUM: Geert Pauwels has announced his resignation as Chief Executive Officer of independent rail freight operator Lineas ‘with immediate effect’ from February 3.
Pauwels had led the former SNCB Logistics business since it was established in 2008, steering the company through the sale of a majority stake to private equity group Argos Soditic in 2015, its rebranding as Lineas in April 2017, and its final divestment from the Belgian national railway in January 2021.
He was presented with the European Railway Award in February 2020 for his role in leading the transformation of the state railway’s loss-making division into a dynamic independent freight business and focusing on driving modal shift from road to rail. Lineas has been developing its Green Xpress Network, and last year acquired Zwijndrecht-based Independent Rail Partner, as part of plans to build a ‘true European rail freight backbone’.
According to local media, Pauwels’ departure comes in the wake of losses in both 2020 and 2021, with the ConneXion restructuring plan failing to achieve the desired results. In November Lineas negotiated sale and leaseback agreements to strengthen its balance sheet, selling 109 Class 77 diesel locomotives to Beacon Rail and 4 000 wagons to Ermewa. This released funds to pay off outstanding bank debts and accelerate the transformation strategy.
Pauwels has been replaced by Bernard Gustin, Chairman of the supervisory board at the Belgian high-voltage transmission system operator Elia and former CEO of Brussels Airlines. He previously worked for both Procter & Gamble Benelux and management consultant Arthur D Little. Argos Soditic co-founder Gilles Mougenot becomes Deputy CEO of Lineas and will head up the company’s newly formed nomination committee.
