Swiss navigation giants CGN and LNM seek renewal amid financial and governance woes

Summer marks the peak season for Switzerland's iconic navigation companies, the CGN on Lake Geneva and the LNM operating on Lakes Neuchâtel, Morat, and Biel. These historic firms, with origins dating back to 1873 and 1872 respectively, are postcard-perfect emblems of Swiss heritage. However, behind their picturesque facade, both companies are grappling with significant financial and governance issues that have drawn considerable media attention in recent years.

The LNM, specifically the Navigation Company on Lakes Neuchâtel and Morat, recently parted ways with its director in May. Alain Ribaux, who took over as president in February, has publicly stated his intention to "get the company back on its feet." He has also voiced concerns that the governance structures of these semi-public entities "are reaching their limits." Ribaux is seeking a review of the subsidies provided by the cantons of Neuchâtel, Vaud, and Fribourg. The company reported a loss of 770,000 Swiss francs in 2024, which was reduced to 470,000 francs last year, indicating ongoing financial strain.

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get the company back on its feet

While the article focuses on the challenges, it acknowledges the enduring importance of these companies. Lakes have historically played a vital role in Switzerland's development, concentrating population and economic activities. Although their centrality may have diminished, the lake-based economy remains vibrant. Both CGN and LNM, despite their current struggles, represent a significant part of this economic landscape and are now focused on finding paths toward renewal.

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the governance of the parapublic companies is reaching its limits