Almost 45% of total rail freight

“Once again, as has been observed on several occasions over the last 30 years, combined rail-road transport appears to ‘over-react’ compared to conventional freight, declining more sharply during periods of crisis and recovering more quickly during periods of growth,” the GNTC observed. Combined rail-road transport accounts for almost 45% of total rail freight in France, a proportion that is growing slowly year on year and continues to attract businesses seeking sustainable solutions.

River-road transport declines

Growth in the rail-road segment contrasts with a decline in river-road transport of -8.6% in terms of teus transported. This is mainly attributed to an unfavourable economic and geopolitical climate, increased competition from road transport, and structural constraints specific to river transport.

2026 outlook

Industry players are cautiously optimistic about 2026. The GNTC business climate index reveals that 77% are planning investments but only 50% are intend to recruit staff Whilst demand remains strong, several challenges persist: the quality of rail services, the availability of infrastructure, competitiveness against road transport, and economic and geopolitical uncertainties. 2026 is set to see the launch of new combi services, the opening of new terminals, including the one in Dunkirk and work aimed at improving the performance of existing ones.

“The revision of the 1992 Directive will bring progress on the harmonisation of definitions and support mechanisms but also risks of a reverse modal shift while the new draft rules on the weights and dimensions, in particular the raising of the legal ceiling for cross-border transport to 44 tonnes and the authorisation of modular road systems known as ‘megatrucks’, are two problematic initiatives for European combined transport,” the GNTC noted.

Infrastructure development

Turning to infrastructure development, the industry body is awaiting the operational launch of ‘Ulysse Fret’ – a 4 billion-euro investment programme targeting the modernisation and expansion of France’s rail freight network covering the period to 2032 – to which it has actively contributed over the past two years. The final report was submitted to the government last month and encompasses service and sorting facilities, capillary lines, digital technology, gauges, capacity and intermodal terminals.

However, the State’s funding commitment to the programme (2 billion euros, a sum that the EU will match) has yet to be confirmed given the political upheaval affecting France currently. A new government is in the process of being formed, the previous administration having lasted a little over three months and being unable to finalise the 2025 budget.

Whatever the outcome, 2025 will see the continuation of efforts to improve the national rail network to the benefit of combined transport, such as the upgrading of track and signalling between Laroche and Dijon, on the Paris-Lyon route and the raising of tunnel gauges between Poitiers and Angoulême, on the Paris-Bordeaux route, the GNTC underlined.

Some of this work, supervised by rail infrastructure manager SNCF Réseau, will be organised in such a way as to limit the impact on freight in order to preserve night-time ‘combined’ train paths.

Terminal development

As for the development of intermodal terminals, in October, the government published a master plan which makes provision for the creation of 22 new combi hubs and the extension and modernisation of existing ones at an estimated cost of 1.1 billion euros. This with a view to tripling traffic volumes. Its implementation is due to begin next year with the timeframe for the conception-to-operation of a new terminal put at between five and seven years.

In the meantime, improvements at a number of existing terminals – Vénissieux, near Lyon, Miramas, near Marseille and Toulouse-Fenouillet – are scheduled for completion in 2025. As for the Paris-Valenton terminal, it will see the deployment of remote-controlled gantries following those installed at the TOP terminal in Miramas.

New services

In parallel with these developments, road-rail operators continue to develop new services. The Cherbourg-Bayonne-Mouguerre rolling highway is earmarked for launch next spring providing an intermodal transport solution between the UK and Spain via the Normandy port. Other international routes in the pipeline for 2025 include a new ‘combi’ service between Valenton and Daventry, connecting Paris to the logistics heartland of England, on the London-Birmingham route. New links are also planned between Dourges, in northern France and Germany and Poland.

The French road-rail segment will also get a boost from the re-opening of a major line between France and Italy, which has been closed to trains since end-August 2023 following a major landslide which seriously damaged rail infrastructure. Traffic is expected to resume next spring. “Combined transport has been severely handicapped for the past year and a half and traffic flows having to be diverted via Ventimiglia, on the French-Italian border or Switzerland, if they have not been switched to road altogether,” the GNTC noted.

“It takes years to get road hauliers and shippers on to trains and when there are recurrent strikes over several months you lose them and it’s very difficult to get them back.” Compared to 2022, traffic decreased by 8 per cent, but part of the decline was down to the closure, since August 2023, of the main line between France and Italy via Modane, following a major landslide, Crochet explained.

Quality capacity

As for the pre-requisites that will allow road-rail freight traffic to grow, he began with the availability of ‘quality’ capacity, underlining that in order to make up a train, you need paths which correspond closely to the timetables that customers want.

“This is an absolute basic. If we can’t obtain such paths then our customers won’t come, at least not in the numbers hoped for.” He said that for 2025, train paths for new traffic in France were more or less allocated but unfortunately they were a long way from meeting requirements in terms of timetabling.

“We realise that maintenance work on the network has to be carried out and accept that this will cause us some problems. We are also aware that passenger services have to be catered for too. But frankly, we have concerns about the feasibility of SNCF Réseau being able to allocate train paths which meet the timetabling requests of our customers over the next five to 10 years.”

Reliable services

As for offering a reliable and high level of service, “which is what our customers see”, Crochet said that the sector was confronted with issues nightly. “This is not necessarily the fault of rail network manager SNCF Réseau but could be a result of bad weather, ageing infrastructure, or a common occurence: animals on the track – wild boar being one example. The fact is we continue to to fall short of what some shippers are expecting.”

Efficient terminals

Finally, Crochet turned his attention to the necessity of efficient handling terminals if ‘combi’ transport is to thrive.

“It really is all about terminals. One might have a mediocre train path and a mediocre standard of service but if you don’t have terminals you can’t make up trains and we absolutely have to move forward in expanding such provision. Without adequate terminals, we won’t achieve a modal freight traffic share for rail of 18% (compared to 9-10% currently in France), not even 15% or 13%. It’s just not possible. And today, a large number of terminals are at saturation point.”

He applauded the recent publication of a “national master plan” for combined transport which identifies the need for 20 new terminals and the upgrading and extension of existing ones. “Above all, this plan focuses on requirements over the next five, 10 or 15 years. It must be implemented, at least in part, if we are to develop rail freight and combined transport, in particular, in France.”

Among the surveyed companies, 49 per cent believe that they will see their turnover increase in the coming months, 66 per cent intend to make new investments while 61 per cent are planning to recruit staff. “These percentages have risen significantly since our last survey at the end of 2023”, the GNTC noted.

Uncertainties remain ahead

Aurelien Barbé, the GNTC’s general secretary, said that although the growth in traffic and the more upbeat mood among ‘combi’ operators was “encouraging ”, political upheaval in France was weighing on the industry’s outlook. “As we enter the autumn period, we have plenty of unknowns to contend with. France has been without a government for over two months, a historic and unprecedented situation that is fuelling questions and uncertainties in our industry”, Barbé said.

He continued: “What fate awaits the 2025 State budget and the aid that is vital to the operations and competitiveness of our members’ companies ? What about the €4 billion investment programme (Ulysses Fret) announced for rail freight and combined transport and running until 2032, France’s strategy for decarbonising transport, especially in the road haulage sector and also the country’s position with regard to the revision of number of directives at EU level?”

“Therefore, this will be our focus, but not be the only one. France can no longer remain on the sidelines of Europe when it comes to the P400 gauge, so we will be lobbying to ensure that the work allowing four meter-high road trailers to travel on all the major routes on the network is completed as quickly as possible,” he underlined in an interview with French media.

The stakes are high

Crochet is president and CEO of Froid Combi, a company based in southern France specialising in controlled temperature logistics services for fruit and vegetables between production centres and wholesale markets. His 30-year career in the ‘combi’ sector also includes spells with several other operators, including CNC, Naviland Cargo, Rail Link Europe and Greenmodal.

Having commended the work of his predecessor Ivan Stempezynski and that of current director Aurélien Barbé, Crochet underlined that much remains to be done to improve combined transport and attract new customers to the sector.

“The stakes are high because the objective remains the same: to triple the sector’s activity by 2030. This ambition can only be achieved if we succeed in significantly increasing the number of our members. But we are not alone. We are committed to working in close collaboration with the rail freight industry body, Alliance 4F,” he emphasised.

Finally, Crochet said he would work to ensure that the Ulysse and Remove projects—the first a multi-year, multi-billion investment programme to drive rail freight growth and the second aimed at accelerating the use of mass transit modes (river, rail, short-sea cabotage) instead of road—provide combined transport with the resources it needs to develop.

The 4 billion euro programme will be made up of 2 billion euros invested directly by the French state and 2 billion euros in co-financing from French regions and the EU, as well as from private sector sources.

The collaborative venture brings together France’s rail network manager, SNCF Réseau, the state directorate for Infrastructures, Transport and Mobility (DGITM), and the members of the 4F rail freight alliance. It builds on a national strategy for the sector unveiled in 2020, which recommended some 73 measures.

Also read: France’s rail freight sector voices strong opposition to ‘mega’ trucks

Multimodal platforms top priority

France’s combined transport association, the Groupement National des Transports Combinés (GNTC), a member of the 4F alliance, is directly involved in Ulysse Fret, participating in the discussion and decision-making process.

“The GNTC’s priorities for the programme are the creation, modernisation and expansion of multimodal platforms to increase the capacity of the existing fleet. It should be remembered that combined transport is the market segment with the highest growth potential – scope to triple its size over a 10-year period,” explained its director, Aurélien Barbé.

“We are involved in the programme’s combined transport and semi-trailer transport master plans piloted by the DGITM. We provide market insights and highlight the needs of operators and combi platforms.”

Also read: French first and last-mile operators need state aid to survive Frejus closure

Infrastructure for P400s

Another priority for GNTC in Ulysse Fret is the modernisation of gauges, in particular the P400 gauge for transporting four meter-high semi-trailers on standard wagons on the network, added Barbé.

“This means adapting the current network (bridges, tunnels, etc.), as well as the length of trains so that we can have convoys of 750 or even 850 meters, which will increase productivity in the sector. Lastly, there is the major issue of adapting the rail network and freeing up freight path capacity.”

Problematic implementation timeframe

For his part, Alexandre Gallo, President and CEO of DB Cargo France and President of the Association Française du Rail (AFRA), described the programme as an important step as rail freight in France has never before received such support for its network.” DB Cargo is also a member of the 4F alliance.

He said the aim is to jointly decide on the investments needed to ensure the sector undergoes a dynamic development. Several aspects are being addressed, including combined transport (mainly terminals), capacity issues (train paths and gauges), capillary lines, and IT management tools’ digitalisation.

“However, the programme’s timeframe is rather worrying, as the work on gauges, for example, is not scheduled to take place before 2032, and this is an extremely important measure for the modal shift from road to rail,” stressed Gallo. “In addition, the report on the programme is not expected to be completed before the last quarter of 2024, as SNCF Réseau is behind schedule with the costing,” he underlined.

GNTC’s Barbé revealed that the current focus is agreeing on the list of projects to appear in the programme’s final report, which is scheduled to be made public in September 2024.

“This is a significant sum of investment that could have a real impact on the development of rail freight and combined transport in France, but we still need to get these projects off the ground quickly. For example, they can be included within the framework of the regular multi-year investment plans (CPERs) signed between the French state and regional government authorities, and private sector funding can be found. That’s the next stage, and we’re working on it right now.”

Also read: SNCF chief to step down amid retirement deal controversy

“It would have a catastrophic effect and would mean 30 per cent less activity in the sector, 30 per cent fewer workers and a reduction of 30 per cent in equipment. Moreover, a significant level of investment would not be undertaken, and the French rail network would no longer be able to be funded through a toll system,” he stressed.

Also read: EU Parliament’s plenary says yes to ‘monstertrucks’ after all

‘No sense whatsoever’

Last week, the European Parliament approved the increase in the weight of HGVs from 40 to 44 tonnes while also allowing cross-border operations for trucks weighing up to 60 tonnes. The text will be the subject of negotiations with the European Council and Commission.

Such HGVs are currently in service in Scandinavia, the Netherlands, and Germany. Mega truck backers argue that their introduction would lower road transport’s carbon footprint—for example, one longer HGV would emit less CO2 than two separate smaller ones.

However, Karima Delli, Euro MP representing France’s Green Party (EELV), said that mega trucks made no sense whatsoever from an environmental perspective. “Their introduction would mean an extra 10 million HGVs on the roads in the years to come, generating more than six million tonnes of CO2 annually,” she claimed.

Delli also underlined that the infrastructure serving France’s road network—barriers, roundabouts, bridges, and tunnels—was not adapted to mega trucks.

Also read: MEPs approve Weights and Dimensions Directive to rail’s dismay

Shippers support measures

Alliance 4F (Fret Ferroviaire Français du Futur), representing all players in the French rail freight sector, called on the French government to protect its citizens and reject using mega trucks in cross-border traffic. It said their introduction would be “in complete opposition to the commitments made in the Paris COP Agreements and the European Green Deal.”

In the same vein, Ivan Stempezynski, President of France’s combined transport association (GNTC), observed: “There is a clear lack of coherence and rigour in managing priorities by our institutions. What use are all the measures that have been taken to promote the development of rail freight if they are undermined by a text from Brussels?”

By contrast, the French shippers association (AUTF) said it supported the changes proposed by the European Commission, which would “make it possible to maximise the payload of heavy goods vehicles within a framework of gradual and realistic decarbonisation, without undermining the development potential of bulk freight”.

‘Bounce back’ in traffic?

The main reason to explain the significant downturn in activity was repeated strikes at SNCF in protest to state pension reform, which deprived the sector of drivers, handlers and signalling staff essential to the night-time operation of the rail motorways.

Speaking to the business newspaper Les Echos, GNTC chairman Ivan Stempezynski said: “One more and one too many” (spates of strike action), who is now hopeful of a “bounce back” in traffic.

But in addition to cancelled trains and goods being transferred to trucks because of industrial action, other factors have weighed heavily on operations in the sector, notably soaring electricity costs, which have led to rate hikes and also the economic slowdown in Europe.

Alpine route disruption

More bad news for the sector, hampering the prospect of a recovery in the second half of the year, came at the end of August when a major landslide in Maurienne Valley brought rail freight traffic between France and Italy via Modane to an abrupt halt.

One service directly impacted was the Autoroute Ferroviaire Alpine (AFA) between Aiton, near Chambéry in France, and Orbassano, near Turin in Italy, operated by SNCF rail freight subsidiary Viia using Fret SNCF trains.

Before the rockfall, there were three roundtrips a day for accompanied and unaccompanied semi-trailers and tankers, and the AFA also offered connections to Calais, with possible on-forwarding to the UK.

No resumption before summer 2024

More than two months on, trains have yet to resume on this important Alpine crossing. “Rail operators have been informed that it will take longer than anticipated to restore the track – in fact, around one year,” a spokesperson for Rail Logistics Europe, which groups all of SNCF’s rail freight subsidiaries, told Railfreight.com. “We therefore expect traffic to resume in the area in the summer of 2024.”

French logistics firm Geodis normally uses the AFA and, following the rockfall, set up a road transport solution for its customers. Geodis continues to operate its combined road-rail service between Paris/Noisy-le-Sec and Novara, in north-west Italy, – routed via Switzerland, with several round trips a week. Another alternative rail route between France and Italy is via Nice.

Further market upheaval

France’s combined transport sector is also facing major upheaval as a result of Fret SNCF being poised to relinquish some of the best-performing elements of its core business from the start of 2024 as part of an agreement reached earlier this year between France and the European Commission on the rail freight operator’s debts.

Fret SNCF will give up 23 dedicated block train routes to its competitors, which account for 20 per cent of its turnover. Fret SNCF shipper customers have received a letter from the company informing them that they will have to find an alternative provider from January 1, 2024.

“2023? A year to forget as quickly as possible”, bemoaned Jean-Claude Brunier, CEO of French road-rail specialist Open Modal, also interviewed by Les Echos. His disgruntlement was echoed by his counterpart at Novatrans, Vincent Bellangé: “In terms of quality, we haven’t performed well for the past year or so.”