A guide to rail market liberalization in France
Three segments of the rail market are affected by liberalization:
- high-speed, long-distance lines
- Trains d’Équilibre du Territoire (TET), short- and medium-distance lines supporting economic development in France’s regions, operated by SNCF with the French State acting as organizing authority
- Transport Express Régional (TER) short-distance regional trains, governed by contracts awarded by the regions as Mobility Organizing Authorities (MOAs)
The French rail market is opening to competition on a clearly defined calendar.
- Since December 2019, the organizing authorities (the French State and regions) have had the option of putting contracts out to bid.
- Effective December 2020, high-speed lines will go on an open-access footing unless they are governed by a regional contract.
- Effective December 2023, the organizing authorities (the French State and regions) will be required to put their contracts out to bid.
Liberalization will affect two different types of contract:
- high-speed service, which may be provided by multiple operators
- public contracts, under which the organizing authorities select one operator for all or part of their network
The image shows a colour-coded timeline running from left to right, illustrating the liberalization timeline for each of three markets.
The dates for each year, from 2018 to 2027, appear in orange blocks running left to right at the top of the image.
A column on the left indicates the separate timelines for the three affected markets: high-speed (TGV) service; TET short- and medium-distance service supporting economic development in France’s regions; and TER regional express trains.
For high-speed TGVs, SNCF’s monopoly (dark grey box) ended in 2020, when open-access competition (blue box) was authorized.
For TET economic development trains, the monopoly (dark grey box) ended in 2019. Until 2023, the State has the option of putting contracts out to bid or awarding lines to SNCF (light grey box). Starting in 2024, organizing authorities will be required to put their contracts out to bid within 10 years (blue box).
For TER regional trains, the monopoly (dark grey box) ended in 2019. Until 2023, organizing authorities may put contracts out to bid or award lines to SNCF (light grey box). Starting in 2024, organizing authorities will be required to put their contracts out to bid within 10 years (blue box).
Countdown to competition in 10 key dates
15 March 2003
International freight rail is liberalized
Trans-European rail freight opens up to every company in the European Union.
13 June 2005
Market opens to private freight operators
The first private freight train runs on the French network.
31 March 2006
Rail freight opens to competition within the EU
Domestic rail freight markets open completely to competition throughout the European Union.
8 December 2009
Structure and regulation
A new law defines and regulates the structure of rail transport, and the French State creates Araf (Autorité de régulation des activités ferroviaires), a new regulator tasked with independently monitoring the rail industry to ensure free competition.
13 December 2009
Passenger transport is liberalized
International passenger transport opens up to competition.
New contract opportunities by segment
Any operator may be authorized to offer high-speed service anywhere in France, but especially on the most profitable corridors, such as Paris–Lyon, Paris–Lille, Lyon–Marseille, et Paris–Bordeaux.
Trains d’Équilibre du Territoire (TET)
TET lines—short- and medium-distance service supporting economic development in France’s regions—are currently operated by Intercités under a contract with the French State, which acts as organizing authority. In December 2020, the State announced that it had dropped the tender process for intercity service on the Nantes-Lyon and Nantes-Bordeaux lines, for which SNCF was the sole candidate. The eight other lines must be upgraded before any call for tenders can be issued.
Regional express trains (TER)
These lines are currently operated by TER under contract with French regional governments, which act as the mobility organizing authorities.
Five regions have already issued calls for tenders:
- Provence-Alpes-Côte d’Azur (South Eastern France)
- Hauts-de-France (Northern France)
- Grand Est (Eastern Central France)
- Pays-de-la-Loire (Loire Valley)
- Paris Region
Tender processes by region
The infographic is a map of France’s 12 regions. 2020-2030 is the duration of the contract between the organizing authority and SNCF
In the regions shown in red, tender processes are underway:
- Hauts-de-France (2018-2024)
- Grand-Est (2017-2024)
- Provence-Alpes-Côte d'Azur (2019-2023)
- Pays de la Loire (2018-2023)
In the yellow region, the tender process has been announced:
- Paris region (2020-2023)
In the green regions, tender processes are allowed during the life of the contract:
- Auvergne-Rhône-Alpes (2017-2022)
- Nouvelle-Aquitaine (2017-2024)
- Normandy (2020-2029)
In the grey regions, no tender process is planned during the life of the contract:
- Brittany (2019-2028)
- Centre-Val-de-Loire (2014-2021)
- Burgundy-Franche-Comté (2018-2025)
- Occitanie (2018-2025)
What’s new for you
Now that passenger rail transport is open to competition, new rail companies already offer trains on lines previously reserved for national operators. This already applies to Frecciarossa by the Italian operator Trenitalia which operates on the Paris-Lyon line since the Fall 2021. The also applies to other countries. For example, trains operated by our Keolis subsidiary now stop in German and English railway stations.
SNCF in Europe
SNCF’s rail experience is unmatched anywhere in Europe. We operate Eurostar and Thalys in the UK, Belgium and The Netherlands, Lyria in Switzerland, Alleo in Germany, and Elipsos in Spain and since 2021, Ouigo España. And we’ve only just begun.
1 In 2015, Araf’s authority expanded to include interurban coaches and motorways operated under concession contracts. and it became a multimodal transport regulator under the name Arafer (Autorité de régulation des activités ferroviaires et routières, or Regulatory Authority for Railway and Road Activities). In October 2019, Arafer’s regulatory power expanded to include airport fees, and it was renamed as the Transport Regulatory Authority (Autorité de régulation des transports, or ART).