Freight Rail Transport in France - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

Freight Rail Transport in France industry analysis

France's freight rail transport industry makes a notable contribution to the logistics sector, helping to reduce CO2 emissions and ease congestion on the roads. In recent years, the industry has experienced a mixed performance, influenced by changes in freight volumes and structural challenges. A key issue has been the prioritisation of passenger trains, which affects freight efficiency and makes road transport a more viable option. Despite these challenges, there remains considerable potential for growth and development. In the five years through 2025, the industry is expected to grow at a compound annual rate of 7.6%, recovering in part from the low revenue baseline in 2020 caused by supply chain disruptions due to the coronavirus pandemic. Industry revenue is forecast to fall by 0.1% to €134 million in 2025.
Currently, the French freight rail transport industry is grappling with operational inefficiencies. Yet, there is clear momentum towards sustainability, which is becoming an integral part of its strategy. For example, Regiorail France SAS has teamed up with Danone and Carrefour to expand rail services as part of a shift toward greener logistics. This initiative includes transporting bottled water directly from Danone's production site to Carrefour's distribution centre, significantly reducing road transport and cutting CO2 emissions by eliminating hundreds of truck trips annually. Furthermore, Europorte's deployment of IoT-based logistics solutions is enhancing operational reliability and sustainability, illustrating the industry's adaptability and resilience. These efforts underscore the potential for continuous advancements in rail logistics efficiency and environmental responsibility.
The French rail freight industry is at a critical turning point with opportunities for transformation. Government strategies and EU directives aim to increase the share of rail in freight transport, mainly focusing on infrastructure improvement and multimodal solutions. Industry revenue is expected to grow at a compound annual rate of 2.3% over the five years through 2030, reaching €150 million. This forecast suggests a gradual yet steady path of development, highlighting an opportunity for the industry to strengthen its integration within national and regional transport networks.

Trends and Insights

• The European rail freight industry suffers from intense external competition. The share of EU freight transport performed by rail, based on tonne-km, decreased between 2011 and 2020 to 16.8% in 2020, while the percentage completed by road increased.
• Obstacles hinder international freight transport growth. Delivering freight across Europe requires a new train driver with no uniform EU track width – barriers that do not concern road freight transport.
• Competition in individual regions is low. Once train operating companies win a contract, they have a natural monopoly on their area, limiting internal competition.