The SNCF Group has recorded a fourth consecutive year in the black, due mainly to a strong performance once again from its high-speed (TGV) passenger services and effective cost controls. Rail freight also made a contribution with an increase in EBITDA.
Group net profit totalled 1.6 billion euros compared to 1.3 billion euros a year earlier, while turnover was up 4.8 per cent at 43.4 billion euros. “We’ve followed the same strategy since 2019, demonstrating resilience in crises and showing just how robust our operations are in France and abroad with Geodis (logistics) and Keolis (public transport),” commented CEO Jean-Pierre Farandou.
“That continuity and the market positions achieved through our diversification strategy have paid off, securing solid positions in our markets and generating profitable growth while stabilizing our debt.”
Positive results from the rail freight cluster
Rail Logistics Europe (RLE), which groups all of the French state railways freight subsidiaries, posted an EBITDA of 211 million euros, an increase of 11.4 per cent on the previous 12 months. Turnover rose 7.9 per cent to just over 1.8 billion euros driven by dynamic activity in certain market segments. Year-over-year growth was also due in part to the fact that 2023 results had been negatively affected by prolonged industrial action.
Last year was characterised by major upheaval for RLE with the discontinuity of Fret SNCF, ordered by the European Commission following suspicions of receiving illegal state aid. The rail freight unit was forced to relinquish 23 traffic routes. “Yet, in addition to the favourable basis of comparison resulting from the strikes in 2023 which disrupted access to the rail network, the withdrawal of these routes was offset by an aggressive push to expand business overall, despite competition from road transport. Volumes were thus higher than projected, particularly for chemicals and petroleum products,” SNCF noted.
Captrain’s pan-European business was resilient in a tough macroeconomic environment. In France, Captrain teamed up with Eiffage Rail to win a contract for renovating high-speed and conventional lines using special works trains. This contract will run from 2025 to 2030. Naviland Cargo, which specialises in the transport of maritime containers by rail, posted a solid year, boosted by its acquisition of Lardon at the end of 2023. Forwarding arm Forwardis posted a record year in terms of traffic volumes in the gas, petrol and chemicals segments.
As for RLE’s rolling highway operator, VIIA, 2024 was a buoyant year with an increase in frequencies and load factors. The Bettembourg-Le Boulou Lorry Rail service, stretching from Luxembourg to the French-Spanish border, achieved record load factors. As for the Alpine Rail Motorway (AFA), linking France and Italy, it has been suspended since a major landslide in the Maurienne Valley with its resumption expected in the second quarter of 2025.
Towards decarbonisation
Moves to streamline RLE’s business portfolio continued last year, SNCF added. Turning to the development of modal shift and the decarbonisation of goods transport in France, RLE transported more than 30 billion tonne/kilometres of freight in 2024, with 80 per cent of the traction powered by electricity. It was thus able to reduce CO2 emissions by 1.7 million tonnes.