SNCF: what trains really cost the French (and what they bring back in return)

Written by Sophie Renassia

Published yesterday

Where does our money go when we take the train? If, like 78% of French people, you regularly take the train to go to work, visit family or go away for the weekend, you’ve inevitably found yourself grumbling about a delay, an overpriced ticket or an overcrowded carriage. And behind all these annoyances, one question keeps coming up: “but where does my money actually go?”

We often hear that SNCF “costs billions to taxpayers” or that it is “a burden on the community”. But what are we really talking about? Who pays for what? And above all: what do we collectively gain from rail? Let’s break it down with facts, figures and no fantasies, based on public data.

And if you’d rather experience this investigation immersively, you can watch our video breakdown or listen to it as a podcast:

The SNCF group today: what are we actually talking about?

Before talking about money, we need to set the scene. Because understanding how SNCF is funded first requires understanding what SNCF actually is today.

A public company, deeply transformed

Created in 1938, SNCF was born from the merger of failing private companies to build a national public rail service. For decades, its mission was clear: serve the entire territory, including remote areas, with affordable fares and a focus on territorial cohesion.

In the 1990s, the model evolved under the influence of European rules and national reforms. In 1997, the State created Réseau Ferré de France (RFF) to separate rail infrastructure management from train operations. Then came the opening of freight to competition in the 2000s.

The major turning point was the 2018 railway reform, implemented in 2020: SNCF became a public limited company with 100% state ownership, structured like a conventional company, but still entirely owned by the State.

Today, we therefore speak of the SNCF Group, made up of several entities:

• SNCF Réseau, which manages, operates and maintains the national rail network (with its subsidiary Gares & Connexions),
• SNCF Voyageurs, which runs the trains (TER, Transilien, Intercités, TGV Inoui, Ouigo…),
• Keolis (urban and regional transport),
• Rail Logistics Europe (rail freight),
• Geodis (international logistics),
• and SNCF Connect & Tech for distribution.

In short, two essential points to remember:

• Infrastructure management and train operations are clearly separated.
• The SNCF Group is not limited to rail alone.

A tightly regulated opening to competition

Since 2020, any operator can theoretically run trains on the French high-speed network, provided they comply with safety rules and pay track access charges to SNCF Réseau.

And no, SNCF Réseau cannot favour SNCF Voyageurs: there is a strict “Chinese Wall” between the two entities to prevent conflicts of interest. Same time slots, same rules, for everyone.

On high-speed lines, services are considered “open access”: they are not subsidised and must be profitable solely through ticket sales. This applies both to new entrants and to SNCF Voyageurs’ own TGV services.

Alongside this, there is the public service sector:

• TER (regions),
• Transilien (Île-de-France Mobilités),
• Intercités (the State, including night trains).

Here, public authorities choose the operator and pay them for the service provided. And they then decide not to pass the full cost on to passengers through ticket prices.

One important point to keep in mind: none of this constitutes privatisation. The SNCF Group remains a public company, whose sole shareholder is the State.

So, how much public money really goes to SNCF?

Now we get to the heart of the matter: does SNCF “cost” taxpayers money? Yes. But what exactly is being funded, and to what extent?

Public service payments

In the SNCF Group’s 2024 financial and sustainability report, we learn that €10.8 billion comes from public sector clients.

This corresponds to:

• payments to SNCF Voyageurs by public authorities to run TER, Transilien and Intercités services,
• and the track access charges paid to SNCF Réseau for these same trains.

These are simply public service contracts, comparable to waste collection or water management: a public authority pays for a service delivered. That’s it.

Investments in the network

In 2024, €11 billion were invested in the rail system, financed 50% by the SNCF Group and the rest by the State and local authorities.

Another key element: in recent years, the vast majority of the Group’s profits have been reinvested into rail through a dedicated fund. In 2024, this amounted to €1.7 billion.

The State could choose to allocate these dividends elsewhere. It has made the political choice to reinject them into rail.

And yes, the State also took over €35 billion of SNCF Réseau’s debt between 2018 and 2020, linked to investments in high-speed lines.

What if we compared this with roads?

Because rail is often judged in isolation. But mobility needs to be looked at as a whole.

Roads are (very) expensive too

The French road network spans over one million kilometres. And maintaining it costs colossal sums.

• €13.3 billion spent in 2023 by local authorities with more than 3,500 inhabitants,
• at least €4 billion more for smaller municipalities,
• €1 billion for the non-concessioned national network.

And that’s just the infrastructure. The vehicle, fuel, maintenance? That’s on us.

In 2023, French households spent €192 billion on transport, 80% of which went to the car.

Trains are deliberately underpriced

Public authorities choose not to pass the full cost on to passengers. For example, fare revenues account for only 33% of Île-de-France Mobilités’ resources.

In other words: yes, trains are supported by public money. Like roads. Like healthcare. Like education.

What trains give back (and what we often forget to count)

This is where we get to the core of the issue. Because the debate can’t just be “how much does it cost” — we also need to look at what it avoids and what it generates.

Billions saved on climate impacts

In 2023, rail accounted for 107 billion passenger-kilometres.

If these journeys had been made by petrol cars, they would have generated nearly 11.7 million tonnes of CO₂ equivalent, almost 12 times more than rail.

With a social cost of carbon of €172 per tonne, that represents over €1.8 billion saved in 2023 thanks to rail. And this cost is only rising.

Massive health benefits

Fine particle pollution costs €12.9 billion per year. Nitrogen dioxide, €3.8 billion.

And 49% of nitrogen oxide emissions come from road traffic. Rail, by comparison, is far less polluting.

A huge economic engine

In 2024, rail activities generated over €16 billion in works, equipment and services, with 20,000 suppliers, including 12,000 very small and small-to-medium enterprises.

97% of these companies are based in France. The result:

• 270,000 jobs supported,
• €20 billion contributed to GDP, or 0.75% of national wealth.

Trains are not “just” a transport service: they are a strategic industry, an industrial fabric and an ecosystem in their own right.

SNCF: a burden or an asset?

So, does the SNCF Group cost taxpayers money? Yes. Does it bring money back? Massively.

In the face of bashing and figures often presented out of context, it seems essential to keep a critical eye. Because when we put these numbers into perspective with the benefits for the climate, public health, the economy and the mobility of millions of people, the picture changes.

We hope this breakdown helps you better understand what our rail system costs — and above all, what it delivers. And if you want to go further, don’t hesitate to listen to our podcast episodes dedicated to the price of train travel.

Written by Sophie Renassia

Issue du monde de la communication et des médias, Sophie est Responsable éditoriale chez HOURRAIL ! depuis août 2024. Elle est notamment derrière le contenu éditorial du site ainsi que La Locomissive (de l'inspiration voyage bas carbone et des bons plans, un jeudi sur deux, gratuitement dans ta boîte mail !).

Convaincue que les changements d’habitude passent par la transformation de nos imaginaires, elle s’attache à montrer qu’il est possible de voyager autrement, de manière plus consciente, plus lente et plus joyeuse. Son objectif : rendre le slow travel accessible à toutes et tous, à travers des astuces, des décryptages et surtout, de nouveaux récits.

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