Group

RAILWAY INDUSTRY

 
 

Railway reforms

EUROPEAN DIRECTIVE

08/10/24

Back in 1997, railway reforms led to the establishment of Réseau Ferré de France to manage track infrastructure, and appointed France's Regions to plan rail transport services. A wholesale change...

The 1997 reforms of the French rail network came about in response to a European Directive from 1991, which required Member States to clarify the responsibilities between rail operator and network manager. They led to the establishment of Réseau Ferré de France, which owns the national rail network, and which took over a share of the SNCF's debts (€20.5 billion out of a total €30.3 billion debt at the end of 1996). RFF is responsible for developing and promoting the French rail network (track, telecommunications facilities, operating and maintenance buildings and premises). For reasons of safety and continuity of public service, RFF has commissioned the SNCF to provide traffic management services on the national railway network, as well as to operate and maintain the associated technical and safety equipment.

Relations between the SNCF & RFF. The ground rules were set in the 1997 reform programme. The SNCF pays fees to RFF for the use of infrastructure. In 2007, these fees came to €2.7 billion. RFF pays the SNCF for network operation and maintenance services. In 2007, these payments came to €3.8 billion. RFF services the debt by repaying interest and capital to SNCF. At the end of 2007, the residual debt was €3.7 billion.

Regional affairs. The 1997 reforms also transferred authority for passenger transport by rail to France's Regional Councils. 7 regions piloted this management system between 1997 and 2001. After a successful pilot phase, the powers were transferred in January 2002, with the Solidarity and Urban Renewal Act. The Regional Councils became the Transport Commissioning Authorities. Each region negotiates an agreement with the SNCF, laying down the operating and funding terms for regional railway services. 5 years down the line, the initial agreements have reached their term and have been renegotiated with the regions, featuring new innovative services and a multi-modal transport offer. 10 next-generation agreements were launched in 2007 (Franche-Comté, Bourgogne, Rhône-Alpes, Languedoc-Roussillon, PACA, Poitou-Charentes, Bretagne, Picardie, Lorraine, Centre). In 2008, the agreement covering Transilien services was signed with STIF and 5 TER contracts were renegotiated (Haute-Normandie, Basse-Normandie, Midi-Pyrénées, Pays de la Loire and Nord-Pas de Calais).

For more information

Directive dated 29 July 1991: development of the Community's railways
Acted dated 13 February 1997: establishment of the RFF
Decree date 5 May 1997: transfer of railway infrastructure
Decree dated 5 May and 30 December 1997: payment of royalties
Solidarity and Urban Renewal Act dated 13 December 2000: regionalisation