Fact or fiction? “SNCF receives massive subsidies.”
Learn more about how some SNCF transport operations are partially funded by local government—compensation for the public service they provide.
Carrier service costs
High-speed rail
On TGV INOUI and OUIGO high-speed trains, passengers pay for the service they consume. Fares cover 100% of all costs (purchase and maintenance of rolling stock, track access fees that finance network maintenance, energy, personnel, and station access charges).
TER and Transilien regional rail—funded through operating agreements with the French State and regional authorities
Under a contractual arrangement linking public authorities—the French State and regional government—and SNCF Voyageurs, SNCF is paid for providing transport services that benefit the general public:
- Transilien rail service in the Paris Region, which receives support from Île-de-France Mobilités (IDFM)
- TER rail in other geographical areas, supported by regional authorities
- Intercités for specific lines, including Paris-Clermont-Ferrand and Paris-Limoges, which receives support from the French State.
It is the regional authorities, IDFM and French State that decide which percentage of total costs are factored into the tickets and travel cards passengers buy for these rail services. The figure depends on the value authorities assign to rail transport operated as a public service and a key resource in promoting regional development. As an example, passengers on TER and Transilien trains pay around 25% of the total cost of their journey.
Additional public financing for infrastructure management
Infrastructure management covers the rail network proper and railway stations. In both cases it can qualify for public funding to top up investments made by SNCF Réseau, the SNCF company in charge of network management, operation and maintenance, and SNCF Gares & Connexions, which handles station design, management and development.
Our profits finance French rail policy
Most profit reported by SNCF Group (including contributions from its Keolis and GEODIS business units) are placed in a special fonds de concours that is part of the national budget, and earmarked for regeneration of the French rail network. In other words, SNCF Group profits help finance network upgrades and thus contribute to France’s rail policy.
Check out our infographic: “How France’s rail system benefits”
Share the article