SNCF breaks the agreement it had with Renfe to operate cross-border lines

SNCF Y Renfe they will no longer be partners in cross-border lines from next December. The French company, which has been operating in Spain for a few months under the brand Ouigohas unilaterally decided not to renew the agreement it had with the Spanish public operator for cross-border connections, as confirmed to elEconomista by both companies.

This agreement, which was reached in 2008 and with which operations began in 2013, has been renewed twice. Instead, this time it has been the French who, coinciding with the opening of the market in both countries, have decided to break with the company that it leads Isaiah Taboas. The decision would be motivated by the low profitability of the operation.

“This offer has been deficient since its launch at the end of 2013 due to a very intense competitive environment,” SNCF points out, adding to this problem “the insufficiency of potential customers traveling between France and Spain to justify and make profitable so many rail links “. In this sense, they admit that most of the losses come from the Lyon-Barcelona, ​​Marseille-Madrid and Toulouse-Barcelona connections and point out that only the Paris-Barcelona trains have a bearable economic balance. In this sense, SNCF would be willing to resume the connection between Paris and Barcelona on its own, taking advantage of the opening of the national market and its recent implementation in our country.

After learning of this decision, Renfe has also set to work to maintain cross-border rail connections with France alone and, as sources from the public operator confirm to elEconomista, it has already conveyed the will to continue with the services to the French authorities. , to which they will request the pertinent authorizations.

The agreement that was reached more than a decade ago established that each operator kept its national income and shared the international ones, as well as the fees and operating costs. Since 2013, this agreement has allowed more than 5.5 million passengers to be transported, although in the last two years, due to the pandemic, these figures had plummeted. “Traffic on the France-Spain service has plummeted 72% in 2020 compared to 2019. In 2021 this decrease was still 59% and it is not expected to return to the pre-COVID level of activity before 2023 or 2024” , point out from SNCF.

Renfe points out to this medium that, despite the drop in passenger traffic as a result of Covid, the company had expectations of reaching financial balance in the coming years.

SNCF operates Alstom’s TGVs on the line between Paris and Barcelona and Renfe did the same with its AVE on the connections between Marseille and Madrid and Lyon and Barcelona. Both companies added a total of up to 14 daily trains, depending on the season.

One more chapter in the battle with France

The end of this alliance creates another chapter in the rail battle between France and Spain. The Spanish company has been fighting for years to be able to enter the Gallic market thanks to rail liberalization, although they have repeatedly denounced the obstacles they are encountering, making it difficult to start operations.

“The two companies now have incompatible strategic visions and growth ambitions in Europe, which means that they must regain their freedom,” they point out from SNCF.