After a difficult 2023, French rail freight is unlikely to fare much better this year, the head of a leading player in the sector has warned in an interview with RailFreight.com.
“I think the market will be stagnant for three reasons. Firstly, there appears to be little sign that economic activity is picking up again, and the outlook for 2024 is, at best, for stable demand. Secondly, as with the freight transport sector, road haulage is going through a difficult spell and will continue to offer low rates. Thirdly, the discontinuation of Fret SNCF, imposed by the European Commission, means that the other players will have to mobilise their resources to resume services rather than develop them,” explained Alexandre Gallo, President and CEO of DB Cargo France and President of the Association Française du Rail (AFRA).
Attempt to take over more Fret SNCF routes
He confirmed that DB France Cargo has taken over seven of the initial 13 traffic routes relinquished by Fret SNCF – some effective since the current month and all by 1 April. “They are mainly long-distance and/or international lines: Germany-France, Germany-Spain and south-west France to Calais,” Gallo revealed.
DB Cargo France is projecting a 16 per cent increase in tonne/kilometres transported this year. Gallo added that the company is also interested in pitching for the remaining ten routes to be handed over by Fret SNCF.
Same old story in France
As for the main challenges facing the sector, he said they are “the same ones that have been there for decades: an ageing infrastructure that has not adapted to new needs, whether from the point of view of freight or passenger transport; a regulatory ‘straitjacket’ that remains in many areas, such as rolling stock; and in some countries, such as France, fierce competition from road transport, which does not pay its true running costs.”
The devil is in the details
Commenting on recent claims by SNCF Réseau of a marked improvement in its service to rail freight customers regarding the volume and quality of freight train slots, Gallo noted that “the devil is in the detail when it comes to statistics.”
He continued saying that SNCF Réseau has made a lot of effort in recent years but does not have the necessary means to fill the accumulated backlog. Responding to 89 per cent of requests for train slots does not mean they are granting what customers have asked for.
“Let me provide two examples: a railway company requests a train path departing from point A at 19:00 and arriving at point B at 06:00 the next day, with a tolerance of one hour more or less. SNCF Réseau responds with a departure from point A at 17:30 and an arrival at point B at 08:00. This counts as a response to the customer, and yet it does not correspond to the customer’s expectations.”
“The same train path is requested 250 days a year in the combined transport segment, for example, but SNCF Réseau only grants 200 days of traffic because maintenance works are scheduled. Once again, the customer receives a response, but it is not really what they are looking for,” concluded Gallo.