Brussels is having a closer look at the state aid to Fret SNCF, which was integrated into the debt of the holding company of the SNCF group in 2020. If the Commission declares this aid illegal, the company would have to return the sum – leading to its bankruptcy. After many years in deficit, Fret SNCF was profitable over the past two years. Now, the question of the state aid changes the game.
To divert the bankruptcy threat, the French government proposed a scenario that could ease the imminent threat. Clément Beaune, the French Minister for Transport, presented a plan to liquidate Fret SNCF. At the same time, a new, more streamlined company, free of debt, would be created. This company would have approximately 10% fewer employees (from the current workforce of 5,300). At the same, 20% of its activities, namely the unit trains, would be transferred to competition.
The new company would retain wagonloads/groups of wagon shipments (a product called FerWay Solo at Fret SNCF), which now make 80% of the company turnover, 70% of its traffic and employs 90% of the workforce. As everywhere in Europe, this segment is only profitable thanks to state aid. In France, the government is currently committed to keeping state aid until 2030. France is still aiming to double the modal share of rail by 2030 and intends to spend EUR 4 billion between 2023 and 2032 on railway infrastructure.
Fret SNCF is a subsidiary of SNCF and a part of Rail Logistics Europe. Other members of Rail Logistics Europe are companies within Captrain Group, including Captrain France, the rail motorway VIIA, combined transport operator Naviland Cargo, freight forwarder Forwardis, and local rail freight operator Normandie Rail Services.
