French government has set out new ambitions for infrastructure maintenance and renewals to meet growing demand for passenger and freight services.

 

IN response to the strong expected growth in rail traffic in the coming years, the French government has drawn up an ambitious performance contract for infrastructure manager SNCF Network for the period 2024-2033 to support the development of passenger and freight services.


The draft contract confirms an unprecedented investment effort to regenerate and modernise the rail network, with the aim of improving reliability, capacity, and resilience to climate change. The objective is to enable the provision of more trains, better service to passengers and businesses, and to continue making rail a cornerstone of the ecological transition in transport.


Four main priorities


The draft contract opened for consultation with stakeholders on June 2 with a view to signing in autumn, and has four main priorities:


• meeting growing demand from the French public for rail transport by increasing the number of trains operating on the network by 25% by 2033. This is aimed at accommodating growth in SNCF traffic as well as the arrival of new entrants operating high-speed services. It also foresees growth in rail freight traffic by 20%, although a much-reduced ambition compared with the doubling of traffic previously expected between 2021 and 2030. Growth is also anticipated in regional passenger services, particularly through the creation of Regional Metropolitan Express Service (Serm) networks serving major urban areas.


• increasing investment in network regeneration and modernisation by 50% compared with the previous contract. From 2028, €4.5bn per year will be spent on network renewal, increasing annual track renewals from 750km to 1000km a year and catenary renewals by 25% to 330km a year. Deployment of ETCS will be prioritised on the LGV Nord and Atlantique high-speed lines


• adapting rail infrastructure to climate change through modifications to maintenance and monitoring of the network, especially in “vulnerable” areas, changes in operating practices and increasing work on 1500V dc catenary which is not only the oldest in France but also in the country’s warmest regions, and


• continuing to strengthen the operational and financial performance requirements of SNCF Network by reducing debt by 25% by the end of the contract and increasing free cash flow by €550m by 2030. The contract includes the “golden rule” of debt not exceeding six times Ebitda.


Investment package


The government outlined a major investment package for rail in February, with its proposed Transport Package earmarking an additional €1.5bn annually for SNCF Network to provide a total of €4.5bn annually to support infrastructure renewals and upgrades. The government will also conduct annual reviews to monitor SNCF Network’s performance and achievement of its objectives under the new plan.


“There is a huge appetite for trains in our country: passenger traffic has increased by 18% on high-speed lines and by 40% on regional express trains (TER) since 2019 and this momentum will continue,” says French minister of transport, Philippe Tabarot.


“With this draft contract, the state is setting clear, ambitious, and transparent objectives for SNCF Network regarding network availability and performance, ensuring that passenger and freight traffic can operate with the highest possible level of service quality.


“The framework law for transport development, currently under review in Parliament, extends this ambition by defining a new financing model for our infrastructure from 2032 onwards, which will secure and sustain these investments over the long term.”