building a sustainable economical model

The performance contract signed in November 2008 between the State and Réseau Ferré de France heralded a new economic model for the network. This model directs investments more towards a level of quality that meets customer demands, and aims for a more balanced relation between resources and investments.

The durability of the rail network as a support for sustainable mobility therefore relies first on the solidity of its economic model, but also on its ability to become more autonomous in its financing.

For more information on cost control
 
 

Our new economical model relies on an increased investment policy, destined to improve the performance of the network:
 
Network modernisation investments increase its performance and its value. They make it possible to have a better quality of service and to set prices in a fair and transparent manner
 
Replacing the existing network enables the entire cost to be minimised in the long-term, by generating savings in maintenance
 
The improvement in performance and a better understanding of customer needs enable sales revenue to be increased and a better balance between sales revenue and public contributions to be reached
 
Investment choices are made in consultation with stakeholders in order to ensure optimal use

Results for 2009 confirm the ability of this model to have a more sustainable management, even if the economic crisis makes its implementation more difficult.
Investments in the existing network, i.e. excluding the creation of new infrastructures, have reached 2.30 billion Euro in 2009.
This ratio has regularly progressed these last few years, making the replacement of the existing network the first area of investment for Réseau Ferré de France.

 

The high speed network participates in the attractiveness of France on the international stage, this also holds true at a local level: towns well connected to the network have often directed their development around stations, as highlighted for instance by Le Mans, Lille and Valence.

In the future, the improvement of rail transport at a regional level will also contribute to the economical development of towns.
Réseau Ferré de France is one of the leading investors in France. The operation of the network leads to a yearly expenditure of 6 billion Euro, which participates in the economic vitality of the country.

Réseau Ferré de France is also careful that its operations benefit local economic partners. For instance, the project to dismantle an old communication system, the ground-train radio, leads to the management of a large amount of industrial waste whose storage and recycling may benefit local economy. In the Ile-de-France and Champagne regions, local service providers were called upon, which also enabled the road traffic linked to transporting waste to be reduced.

 

An improved understanding of customer needs constitutes a key factor for developing traffic. The mobilisation of Réseau Ferré de France for the quality of the commercial proposal is first visible through the creation of a sales division, which has established a closer relationship with customers.

In 2009, we also prepared the administrative environment of future local rail operators, before the actual start of traffic in 2010. The company is now directly involved with large carriers such as Danone, Kronenbourg, Total and Soufflet, to improve rail services to their sites through an analysis of issues encountered and the development of action plans. The signature of a protocol with Lafarge for the transportation of building materials, and a protocol with the National Association of Combined Transport, signify the beginning of an orientation towards the specific needs of various business segments.

Despite the economic crisis, which has deeply affected the French rail traffic for merchandise, Réseau Ferré de France has nevertheless continued to bring the quality of the offer of rail paths for freight up to standard.