The process of liberalizing passenger rail transport in France has reached a decisive stage, as French authorities seek to transform one of Europe’s largest and busiest rail markets.

After decades in which the incumbent operator SNCF dominated nearly all transport services, French regions and the French state are accelerating the opening of the market to competition, both for regional TER services and for the high-speed train segment.

French regions, which fund TER (Transport Express Régional – regional rail services), have been given the ability to hold tenders and select operators to run specific lines or groups of services. At the same time, open-access operators can introduce commercial trains at their own risk, particularly in the high-speed segment.

Between 2022 and 2023, all 11 regions in France signed new regional service contracts with the operator SNCF Voyageurs, with terms of up to 10 years (valid through 2033), but this framework paved the way for the transition toward the actual liberalization of the rail market. At the same time, starting in 2025, other operators such as Transdev have already won their first regional contracts through direct competition, marking the beginning of effective competition in regional rail services in France.

The region furthest along in the process of liberalizing passenger rail transport in France remains Provence-Alpes-Côte d’Azur, where regional authorities have decided to gradually open the TER market to competition.

The most significant contract awarded to date was won by the French group Transdev to operate regional services between Marseille, Toulon, and Nice. The contract, estimated at 870 million euros over a 10-year period, became the first major regional agreement lost by the incumbent operator SNCF in the French regional passenger transport market. The new operator has taken on significant obligations regarding increased frequencies, service modernization, and the introduction of high standards of punctuality. The contract also includes the use of Alstom’s new Omneo Premium train fleet, as well as the expansion of daily service offerings on one of the busiest regional routes in southern France.

At the same time, the Provence-Alpes-Côte d’Azur region continued the complete reorganization of the TER network by awarding other regional contracts to SNCF Voyageurs. The national operator has managed to retain the operation of several services around Marseille, including to Aix-en-Provence, Briançon, and Avignon, under contracts that are much stricter than in the past.

These agreements include clear performance indicators regarding train punctuality, cleanliness, and the quality of passenger information, as regional authorities seek to use competition as a lever to improve performance.

The Hauts-de-France region has also become one of the most active areas in terms of the liberalization of TER services. Regional authorities have launched competitive bidding processes for several regional and interregional rail routes, including key connections to Lille, Amiens, and the northern French coast. The contracts being prepared for the 2025–2026 period are estimated to be worth several hundred million euros and aim to reduce operating costs while increasing the number of regional trains. The region has placed particular emphasis on the digitization of services and the introduction of strict clauses regarding punctuality and passenger information.

The Grand Est region has also accelerated the opening of the market to competition, particularly for regional and cross-border services to Germany, Luxembourg, and Switzerland. Regional authorities have prepared contracts covering both the operation of traditional TER services and international connections operated in cooperation with European operators. Some of these contracts involve service packages valued at over one billion euros over the contract period, given the size of the network and the importance of cross-border mobility for the region’s economy.

In the Île-de-France region, the liberalization process is even more complex, as it involves the largest suburban and regional network in Europe. The Île-de-France Mobilités authority has launched competitive tenders in recent years for several Transilien and RER lines (suburban rail services in Paris), with contracts valued at billions of euros. Liberalization has a major strategic dimension here, as the network transports millions of passengers daily in the Paris metropolitan area. The contracts include strict obligations regarding rolling stock availability, reducing delays, and modernizing passenger services. French authorities believe that the success of liberalization in the Paris region will influence the entire European rail model.

In the west of the country, Pays de la Loire has continued preparations to open certain regional TER services to competition. The region is reviewing contracts covering connections between Nantes, Angers, and Le Mans, in an effort to increase the appeal of regional rail transport and reduce dependence on road transport.

At the same time, Nouvelle-Aquitaine and Auvergne-Rhône-Alpes have advanced studies and consultations for future regional tenders, with authorities pursuing models similar to those already implemented in southern France.

Overall, the liberalization of passenger rail transport in France has entered a phase where competition is no longer merely a theoretical project imposed by the European Union, but a reality that is beginning to reshape the structure of the French rail market. Regions are using tenders to secure better terms and higher-quality services, while operators are striving to consolidate their positions in one of Europe’s most important rail markets.

The liberalization of passenger rail transport in France is also evident in the high-speed train segment, where competition is beginning to shift the balance of a market long dominated by SNCF’s TGVs. In recent years, operators such as Trenitalia and Renfe have entered the French market with open-access services, introducing direct competition on some of Europe’s most profitable routes.

The Italian operator Trenitalia has managed to attract millions of passengers on the Paris–Lyon–Milan route, and the expansion of services to other French cities is still under consideration. At the same time, the Spanish company Renfe has strengthened its presence on the routes between France and Spain, capitalizing on the growing demand for international high-speed travel.

Competition has already had a visible impact on fares and commercial offerings. SNCF has been forced to adjust its pricing strategy and accelerate investments in modernizing the TGV fleet, while new operators are trying to gain market share through lower prices and differentiated services. According to estimates published by French authorities and the operators involved, annual passenger traffic on France’s high-speed lines exceeds 110 million, and competition is expected to increase in the coming years.

French authorities and European institutions believe that the liberalization of passenger rail transport in France could serve as a model for other European countries, particularly due to the size of the market and the economic impact of the rail sector. At the same time, the success of the reform will depend on the ability of operators and authorities to maintain a balance between competition, investment, and the quality of public services.