Competition Develops Slowly Against SNCF

Currently, only one operator competes with SNCF on national railway lines. How can this lack of competition be explained?

More than a year ago, Trenitalia launched its first high-speed connection between Paris, Lyon, and Milan. It was the first time that a train operator, competing with SNCF, challenged the national company on its own turf thanks to the opening to other players desired by Europe.

SNCF Competition Struggles to Emerge

Specifically, the Italian carrier is on average cheaper than the French public company, with 40 euros for a Paris-Lyon trip compared to 57 euros on the TGV. Meanwhile, on routes without competition, “prices have increased when comparing the last quarter of 2022 to the same period in 2021“, notes Trainline. Here are some examples of price increases: Paris-Bordeaux (+6%), Paris-Montpellier (+8%), Paris-Lille (+14%), reports Trainline.

Today, efforts are still underway to develop this competition, which is quite active in Spain and Italy but still limited in France on high-speed lines. The reasons for the delay in France? The first concerns the French rail tolls, which are the highest in Europe: nearly 9 euros per train per km. In Germany, the price is set at 5.20€, and in Italy, at just 3.20€. Another factor to consider is the lack of equipment. TGV trains are rare and expensive, even second-hand, and their refurbishment now takes longer and costs more than expected.

The ambitions of local actors are indeed hampered by the harsh realities of the market. “For some new entrants into the market, entry costs, including the acquisition of rolling stock, sometimes remain a barrier to launching new services. I hope we can identify solutions to increase the total number of trains in operation for everyone’s benefit“, announced last October Clément Beaune, Transport Minister.

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