Europe’s biggest rail freight companies are facing major challenges in 2024, despite efforts by politicians to encourage more freight movement by rail and less by road. In some countries, new ownership or new companies are challenging established operators and providing business opportunities for smaller companies.
In most of Europe, the biggest rail freight company is an arm of the state railway, or, where privatization has occurred, the former state railway. However, this is changing, partly due to European regulators intervening and partly as new investors enter the market.
Regulatory action leads to changes in France
A long-running investigation by the European Union looked into unfair state support for Fret SNCF, the freight business of French Railways (SNCF). As a result, SNCF agreed during 2023 to break up the business and hand some traffic to competitors to avoid further sanctions and investigations. The decision, while portrayed as being by SNCF, was made by the French government, which wanted to avoid more dramatic possible outcomes. The likely alternative would have likely been enforced repayment of money that had been inappropriately provided; this would have resulted in the bankruptcy and closure of Fret SNCF.