France launches new rail freight operations with Hexafret and Technis, replacing Fret SNCF. This transition aims to modernize services and address competition challenges raised by EU regulators. This was reported by the railway transport news portal Railway Supply.

new rail freight operations
Image: Flickr. © Anthony Querleau

France Launches New Rail Freight to Overcome Regulatory Challenges

The transition to Hexafret and Technis followed investigations into potential violations of EU competition laws. The European Commission reported that Fret SNCF benefited from over €5 billion in debt cancellations between 2007 and 2019.

Don’t miss…Robel Group Expands Services with New Sales and Support Hub in Switzerland

To comply with EU regulations, France restructured its rail freight system by reducing services and cutting approximately 500 jobs. These changes shifted operations to private companies, including DB Cargo France, while other routes were discontinued.

France Launches New Rail Freight Entities Despite Controversy

Labor unions responded with protests and strikes against job losses and route cancellations. While some strikes subsided, critics argued that structural changes might fail to eliminate illegal state aid concerns entirely.

Observers expressed doubts about focusing on single-wagonload services, which require high costs and complex logistics. Private operators face difficulties filling service gaps left by Fret SNCF’s closure, raising further concerns.

Technis Faces Legal Challenges Over Naming Rights

Technis, one of the new entities, encountered legal disputes over its name with an existing French company. This controversy has raised questions about branding conflicts and operational delays during the transition process.

The legal challenge could impact maintenance services, leading to setbacks in implementing the restructuring plan. Industry experts highlight potential risks to service reliability and investor confidence amid ongoing disputes.

Economic and Operational Implications of France’s Rail Freight Transition

France’s shift toward modernized rail freight operations brings challenges for businesses relying on discontinued routes. Observers warn of possible delays in restoring services, especially for industries transporting perishable goods.

Higher costs linked to single-wagonload services might reduce competitiveness in EU markets. Analysts emphasize the need for streamlined operations and regulatory compliance to sustain long-term growth.

Future Prospects for France’s New Rail Freight Network

Despite controversies, proponents argue the reforms create opportunities to improve efficiency and reliability. Hexafret and Technis aim to modernize infrastructure and streamline freight operations for greater productivity.

However, legal disputes, job losses, and unresolved service gaps pose ongoing challenges. Stakeholders call for collaboration between the public and private sectors to ensure stability and profitability.

The coming months will reveal whether France’s rail freight restructuring can deliver sustainable growth and regulatory compliance. Industry leaders stress the importance of addressing legal issues and securing market confidence.

Source: www.railfreight.com

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:

Don’t miss…China’s High-Speed Railway Network to Expand to 60,000 Kilometers by 2030

Find the latest news of the railway industry in Eastern Europe, the former Soviet Union and the rest of the world on our page on Facebook, Twitter, LinkedIn, read Railway Supply magazine online.

Place your ads on webportal and in Railway Supply magazine. Detailed information is in Railway Supply media kit