🚆 Pausefika news: Is 🇫🇷 Lagging in Rail Infrastructure Investment?
Every year, the German association "Alliance for the Rail" publishes its ranking of investments in rail infrastructure. The latest edition reveals a sobering reality: France - my home country - is at the bottom with just 51 euros per inhabitant in 2023, see: https://lnkd.in/ddkHZb5i
📉 Comparative Analysis
France’s investment is notably lower than that of Spain (70 euros per inhabitant), Germany (115 euros), and the Netherlands (174 euros). Leading the pack are Austria (336 euros), Switzerland (477 euros), and Luxembourg (512 euros), which have consistently invested heavily in their rail networks.
🔍 Funding Complexities
Despite an increase of 5 euros per inhabitant from 2022, the investment appears insufficient given the challenges. France’s aging rail network, averaging 30 years old, suffers from reduced train speeds and line closures, especially in regional trains (TER). The 51 euros figure, however, doesn’t capture the full picture. French rail funding comes from commercial revenue (tolls), state contributions, public subsidies, and loans. The Alliance for the Rail study only considers public spending, excluding tolls, loans, and company-funded investments.
🇫🇷 The French Funding Model
France’s performance contract between the state and SNCF Réseau (infrastructure and maintenance) will reach 4.5 billion euros by 2027. For 2024, an additional 300 million euros will come from Groupe SNCF dividends paid to the state.
In contrast, Germany plans to invest 86 billion euros in its network over ten years, with three-quarters funded by the federal government and one-quarter by the regions (Länder).
🚄 Future Outlook
Despite increased revenue from competitors like Renfe and Trenitalia , who pay high tolls (40% of a TGV ticket), the funds are still insufficient for necessary upgrades. The French government promised 100 billion euros for rail by 2040, but the sector is still waiting for these funds to materialize.
Fanny Arav, deputy general secretary of the UNSA-Ferroviaire union, warns of a potential decline reminiscent of the public hospital system, with degrading financial assets impacting SNCF Réseau’s debt capacity.
For more insights and updates on the rail sector, join the conversation on Pausefika. Ivan Rascle, Pierre-Yves Leseigneur, what say you?
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