‘French state agencies at odds over future of rail freight subsidies’

Two French State agencies, the IGF (finance) and the IGEDD (environmental protection and sustainable development), are reported to be in disagreement over subsidies to be granted to rail freight, according to a source close to the matter.
The IGEDD has reportedly refused to co-sign the document with the IGF which would rubber-stamp the aid supporting single wagon loads (SWL), combined rail-road transport and tolls paid to France’s rail infrastructure manager SNCF Réseau, the source, who did not wish to be identified, told RailFreight.com.

“From what I understand, the IGF wants to scrap a number of subsidies or reduce the amounts while the IGEDD wants to keep them going. To take one example, if the subsidies to support SWL were withdrawn, HexaFret, the company borne of the discontinuity of Fret SNCF and whose core business is in this traffic segment, would be threatened with closure”, the source said.

France’s Ministry of Transport was approached for comment.

Ongoing subsidies

The SWL segment received French state subsidies of approximately 70 million euros per year between 2021–2024, rising to 100 million euros in 2025 and 2026. As for state support for rail-road intermodal operations, subsidies have stabilised at 47 million euros annually in recent years.

Finally, public aid under a rail toll reimbursement scheme has totalled around 59 million euros annually. “The figures for 2027 will not be known until September,” the source added.

At the end of last year, France’s transport minister Philippe Tabarot reassured rail freight players that the state’s financial commitment to the development of the sector remained intact, despite an ongoing political crisis and the constraints on public spending.

France is also co-funding a four billion euro investment programme (Ulysse Fret) with the EU. It aims to support the sector over the next decade and which spans eight ‘macro areas’ from capillary lines upgrades to digitalisation.

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