France’s leading freight transport and logistics industry body, Union TLF, has expressed “serious reservations” about a section in a parliamentary draft bill on the decarbonisation and electrification of the sector. This makes provision to penalise firms financially who do not meet the targets set for a modal shift to rail.
The bill is scheduled to be debated in France’s National Assembly this autumn. If passed in its current form, the bill would make it obligatory for at least 30% of freight transport to be carried by rail by 2035. On a national scale this represents more than triple the current level. In the event of the failure to meet the target or non-compliance with reporting requirements, sanctions would be imposed that could amount to up to 0.5% of a firm’s turnover generated in France.
The TLF Union is calling for the removal of the penalty mechanism and also a complete overhaul of Article 18 of the bill – aimed at imposing a roadmap for the electrification of freight transport – in order to bring it into line with the EU’s decarbonisation timeframe.
Conversely, it is urging policymakers to take up the numerous proposals initiated by the Union TLF to promote intermodality and the electrification of fleets, “based on feedback from those who are actually driving the environmental transition in freight transport on the ground in France, rather than merely paying lip service to the cause.”
‘Piling on taxes and uniquely French regulations’
It went on to claim that the Assembly’s standing committee on sustainable development was seeking to impose ‘a one-size-fits-all approach’ that was out of step with the EU timeframe for decarbonising transport and would lead to distortions of competition with the rest of Europe as well as excessive red tape and legal uncertainty.
“Our companies work day in, day out to meet the needs of industry, our hospitals and our fellow citizens. As a result, we account for 9% of GDP and 3.2 million jobs,” commented Union TLF president, Jean-Thomas Schmitt.
“Rather than helping us to compete with international rivals and invest in our transition, what are too many of our politicians doing? They are piling on taxes and uniquely French regulations. French transport operators already have the lowest profit margins in Europe. We call on the government and Parliament to take decisive action.”
‘Coercion not the way to drive modal shift to rail’
DB Cargo France president and CEO, Alexandre Gallo said the threat of sanctions or penalties in the bill was counterproductive and was something that personally he did not support. “Coercion is not the way to drive the modal shift towards rail. We must emphasise the complementary nature of rail and road transport, and increase our cooperation with road hauliers, logistics providers and shippers, rather than threatening them. We are working on this with France’s leading road hauliers’ association, the FNTR (which is affiliated to Union TLF). The measures must be incentivizing not constraining.”
Gallo underlined that what concerns him is not so much the feasibility of the percentage target of modal shift (to rail) but the passage of the draft bill through Parliament. “The 2027 state budget will take up everyone’s attention and the presidential elections are approaching too so I am pessimistic about the priority given to the bill. It’s a shame because France’s minister of Transport, Philippe Tabarot, has done a tremendous job of rallying support and building consensus amongst all parties.”