France’s ongoing political crisis means the country’s rail freight sector remains in the dark as to the level of state support it can expect next year, a senior industry figure has underlined. The 2026 state budget still has to be signed off and weeks of debate lie ahead as the National Assembly seeks to find ways to reduce public spending to a backdrop of ballooning public debt.
The task is made more difficult as the government is well-short of an overall majority and a lack of consensus on where to swing the axe prevails. “It is clear that the political situation in France is not helping the sector. We need a long-term vision but Parliament is unable to plan beyond a few weeks,” observed Alexandre Gallo, President and CEO of DB Cargo France.
In all probability, after passing on a disjointed budget bill to the Senate, it is highly likely that the government will have to proceed by decree to avoid a deadlock, he noted. “In this context, we know that the Ministry of Finance will propose cuts, including those on rail freight operating subsidies. However, I will very be watchful to ensure fair treatment is respected.” His comments on the outlook for subsidies are a good deal less optimistic than those of Alexandre Hanache, deputy director of Rail Services at France’s Directorate-General for Infrastructure, Transport and Mobility (DGITM).
Addressing attendees at an assembly of combined rail-road freight transport body, the GNTC, last month, he acknowledged that the current (political) context had created a certain amount of uncertainty. However, the MoT was strongly advocating for the continuation of the efforts being made as part of the national strategy for the development of rail freight and whose goal was to increase its modal share in relation to road, he explained.
SWL traffic in decline
According to Gallo, there will be “a strong temptation” to preserve subsidies for single wagon loads (SWL), which mainly benefit HexaFret (SNCF’s new rail freight subsidiary) and reduce aid with regard to track access charges and combined transport In 2025, annual state subsidies to the sector totalled between 200 million euros and 215 million euros with SWL activity accounting for around half of the total.
“‘Traditional’ rail freight transport – block train and single wagonload – is stable and combined transport is growing. However, we know that the SWL segment is in decline,” he said, an allusion to where financial support to the sector should be focused in future.
Paris-Daventry in Q1 2026
Turning to DB Cargo France, Gallo highlighted the company’s continued expansion. Following the success of its route between Metz, in eastern France and Paris for Ikea (the Swedish furniture and home furnishings retail giant), in partnership with Swiss Post/Portmann, it is now eyeing a launch date for its combi service between Paris and Daventry, in Northamptonshire, England, in the first quarter of 2026, in partnership with UK logistics company John G. Russell. “We are currently working on the final details. Since announcing the launch of this service, we have received a lot of enquiries.”
‘Mistrust’ of shippers
In 2025, DB Cargo France had maintained its volumes in a rather sluggish French market, even though activity in the combi segment had increased, Gallo revealed. “We are regularly approached by shippers to develop new products but there is still too much mistrust on their part, particularly due to the chronic instability of labour relations and repeated strikes within the SNCF group, and in particular at SNCF Réseau,” he added.