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CFL back on track with positive profits
Economics

CFL back on track with positive profits

14.03.2012 From our online archive
Luxembourg's railway is back in the black after recording a net income of 6.9 million euros in 2010.

Luxembourg's railway is back in the black after recording a net income of 6.9 million euros in 2010.

The results, reported this week by CFL, suggest the company is on track to recovering from the 2008 crisis, in particular in the field of freight services.

It is a marked improvement on 2009's results, when the firm recorded a loss of 6.6 million euros. Indeed, last year, CFL's annual turnover was 645.8 million euros, thanks largely to growth in passenger take-up.

The number of passengers grew by 4.31% meanwhile use of the national network remains strong with two thirds of all journeys made on the national network alone.

The TGV, providing a high-speed link between Luxembourg and Paris, continues to serve a growing clientele. A total of 373,000 passengers used the TGV line in 2010, compared with 347,000 in 2009.

The most positive changes were recorded in freight operations, a service which lost 21 million euros in 2009 on a turnover of 71 million euros. In 2010, the turnover was considerably higher at 94.2 million euros, resulting in a total loss of just 4.7 million euros.

This improvement has been largely attributed to increased operations with steel giant ArcelorMittal. CFL saw tonnage in its freight services increase by 17.4% to 7,750,000 tonnes, an improvement on 2009 (6,602,000) but less than in 2008 (8.835 million).

A growth in operations between Bettembourg and Perpignan has led CFL to increase its stake in the company Lorry-rail from 13.88% to 33.34%. In response, CFL hired 300 additional staff in 2010, bringing the total employed (after retirements) up to 3,768 people and making it one of the largest employers in the country.