Reducing TGV tolls could benefit travelers and railway companies

A reduction in tolls on high-speed lines (LGV) would “create a virtuous circle” beneficial for both travelers and railway companies, according to a study carried out for the French Railway Association (AFRA), which brings together competitors. of the SNCF, published on Wednesday.

The French high-speed rail system is financed mainly by tolls, traffic rights paid to SNCF Réseau and which are the highest in Europe after Belgium, says the company SIA Partners, which carried out the study. Most other European rail networks are funded directly by public authorities.

“To establish a new economic balance in the railway system, reducing the level of fares in France is a tool to be taken into account”, its authors believe: it would create a “supply shock” that would be “virtuous”, since it would “reduce the average ticket price, increase passenger traffic, develop the carriers’ margin, while preserving the total fees of the infrastructure manager.

“A necessary but not sufficient condition” for supply growth

The hypothesis of a 20% reduction in tolls was tested on the Paris-Lyon and Paris-Strasbourg lines. According to SIA Partners, it “would help increase total fees by up to 10% for the infrastructure manager.” As a real example, in Italy, the arrival of competition and the reduction of fares in the 2010s did not weigh on public finances and were “beneficial for the railway system and its passengers”, with a growth in supply and a Increased turnover of the infrastructure manager.

Furthermore, the study specifies that a reduction in tolls, if it requires an initial financial investment by public authorities, will also be beneficial for “the community” thanks to the savings in greenhouse gas emissions.

This reduction is, however, “a necessary but not sufficient condition” to allow the growth of railway supply. Railway tracks should not be saturated and companies should have sufficient rolling stock, the study estimates. Furthermore, the reduction in tolls must be announced “sufficiently in advance” so that railway companies can prepare, its authors believe.