The SNCF’s France-Europe Passenger branch has been adapting to new international challenges

Who, since the beginning of the year, can have failed to notice the SNCF’s major campaign to attract new passengers? Posters, special events and the press: SNCF, the French national railway company, is everywhere, with advertising that ranges from promotional offers to campaigns to highlight the professionalism of its employees. The national railway company has entered a new era – and has every reason to be satisfied. Last March, it announced a net consolidated result of 1.3 billion euros (as against 401 million the previous year). « This is the result of selling off some of our assets (shares in the Société Hydroéléctrique du Midi and Cegetel – Ed), and is not likely to happen again soon on this scale », explains Louis Gallois, SNCF Chairman.

He added that these performances were also due to « greater responsiveness », beginning with Voyageurs France-Europe (VFE), which has been successfully innovating for several years now. With a 30,000-strong staff, the VFE branch manages long-distance trains and the high-speed French and international TGV trains (Thalys, Eurostar and Lyria). It is also in charge of sales, for its own branch and for the public transport (TER and Trancilien) branch, and manages 165 of the biggest stations in France, as well as the inspectors and passenger information systems. It is VFE who were behind the Voyages-sncf.com Internet site, whose business increased by 52% in 2005. To consolidate this success, 11 million Prem’s tickets will be available in 2006 (2 million more than in 2005), and the system will be expanded to include short distances. Moreover, the accent will be placed on customer relations, namely with the creation of a Service University « a place where training programs relating to customer relations are designed and implemented ».

Adapting to European regulations
On 27th February last, VFE launched the 25th anniversary year of the TGV (see boxed text). « When we look at high-speed Europe today, the lines are mainly in France with the TGV. And the network is still in its adolescence. By 2020, the French network will have grown considerably, with three times as many high-speed lines. The Government, together with RFF (French Rail Network), is backing many SNCF projects in France, and interconnections will be developed with our foreign counterparts », explains Mireille Faugère, manager of VFE. European transport policy is to develop interoperability and remove technological and psychological barriers, creating increased fluidity between the EU states for passengers. According to Mireille Faugère this objective is far from being attained.

« Thalys, for example, uses seven signalling systems and four electric supply systems. This constitutes a barrier to interoperability ». Hence the development of ERTMS (European Rail Traffic Management System), a European level control-command system for trains. The European Community is also trying to standardise commercial policy within rail transport companies. The SNCF is working ahead of the program, in particular with regard to the compensation of customers. In 1996, it set up its « guaranteed arrival time » system, whereby customers are reimbursed in travel vouchers if the train arrives more than half an hour late « through the fault of the SNCF ». Another development operated by Brussels is the opening up of the railways to competition. The famous « third railway package» adopted in March 2004, cleared the way for international passenger traffic by 2010. As regards freight, competition is already present in France, since the transport of goods has been open since April 1st.

But as Madame Faugère reminds us, competition for the SNCF comes mainly from other forms of transport. « France has pressed ahead with investments in road infrastructure. Cars therefore possess 75% of the market for distances of more than 100 km. Moreover, low-cost companies accustom clients to very low prices. This is why we launched the Prem’s ticket in 2003, then iDTGV, a low-cost train rich in services ». This gave the SNCF an extra three points’ worth of the market share for Marseille and Toulon. At the same time, it has maintained an excellent position for long distances with a journey time of between one and two hours (Paris-Lyon, Paris Brussels), as well as for journeys made by one or two people travelling together. Rising property prices in the Ile-de-France have contributed to this, to the extent that more and more people are choosing to live in the provinces (Tours, Vendôme and Dijon for example) whilst working in and around the capital. The tariff system takes account of this, with season tickets for daily trips and “frequent traveller” tickets for trips taken several times a week.

2007: the year of cross-border rail travel
Companies even have the chance to negotiate fares depending on the volume of traffic generated by their employees. The professional market accounts for 30% of VFE's turnover, and corporate travellers are soon to have their own ticket window on Voyages-sncf.com. Meanwhile, major cross-border projects are in the pipeline for 2007 when international traffic is expected to double. To begin with, the East European TGV, which has been under study for many years now, will come into service, with destinations in Germany, Luxembourg and Switzerland (see map on next page). The project brings together 22 financial partners including the constructor, RFF, the SNCF and all the regional councils and towns concerned by the line.

The first section will open in June 2007 between Paris and Louvigny (between Metz and Nancy) and run at a commercial speed of 320 km/hour. « In terms of regional planning, the TGV is a powerful tool. Being able to get from Paris to Strasbourg in 2h20 and to Nancy in 1h30 will transform the face of Alsace and Lorraine ». Passengers will travel by TGV between Paris and Munich and by ICE (German railways high-speed train) between Paris and Frankfurt. What is more, the 51 TGV lines have been entirely renovated, with interior design by Christian Lacroix. VFE is also working with its British partners to finish the high-speed line between London and the channel tunnel, and this is set to open in September 2007. London will then be 2h20 from Paris instead of the current 2h40, and less than 2h from Brussels by Eurostar. As a result, the railway’s market share is expected to rise from 71% to 80% for transport between the three capitals.

In December 2007, the opening of the line between Brussels and Amsterdam, « will reduce the journey time between Paris and Rotterdam by Thalys to 2h45, and between Paris and Amsterdam to 3h15 – that is 30 and 55 minutes less, respectively ». The line between Brussels and Cologne will bring Paris closer to Cologne closer (3h), again via Thalys. Lastly, the Rhine-Rhône TGV will link Germany and the south of France creating rapid links between several cities, such as Lyon and Dijon. « The Germans are just as enthusiastic as the French about this. And it’s totally new because it doesn’t go through Paris and therefore saves time for passengers » says Mireille Faugère. Within France, many projects are underway, to destinations in Brittany, the Southwest, and the Côte d’Azur.