New Deal Between Regions and Operators
An article by Guy Leturcq and Pierre Liger, TNP Consultants, published in the white paper “The Mobility Revolution”.
Opening Transport to Competition: Stakes and Outlook
The end of historical monopolies—most notably SNCF’s control over regional trains (TER)—marks a pivotal milestone in the reorganization of France’s rail sector. Liberalization opens the door to new private operators, diversifying the offering and driving improvements in frequency, punctuality, comfort, and pricing. Regional governments, now in charge of organizing rail services and much of intermodal mobility, are tailoring networks to meet local needs. This shift supports stronger integration between trains, buses, and other forms of transport.
Several structural changes in mobility are already underway. First, there’s a surge in demand-driven innovation. Second, performance-based contracts are gaining traction, imposing clear service quality obligations on operators. Third, digital platforms are emerging that bring together trains, buses, bikes, carpooling, and on-demand services, simplifying travel through unified subscriptions. Finally, new regional mobility passes—drawing inspiration from German and Swiss models—are redefining the promise of accessible, seamless travel.
Rebalancing Rail and Road Transport
The rail market’s opening to new operators may breathe new life into underserved local lines, restoring a denser territorial network and responding to rising demand for sustainable alternatives to personal car use. Reviving these local connections could both combat rural isolation and make rail more competitive against road transport.
However, this momentum comes with difficult trade-offs. Some lines deemed financially unviable may be replaced by coach services—more flexible and cost-efficient in the short term, but raising environmental concerns. While intercity buses are a pragmatic solution for poorly served zones, systematically replacing trains risks undermining France’s CO2 reduction goals and the ambition to build a strong, structured rail network.
The real challenge lies not just in reopening rail lines, but in crafting a balanced strategy between competing modes—one that factors in performance, sustainability, and long term impact.
Accelerating The Ecological Transition
Spurred by public demand and political will, the mobility sector is rapidly greening. Hydrogen and electric trains are gaining traction, while bus fleets increasingly run on electric, hybrid, or bioGNV engines. Local authorities are also investing heavily in soft mobility infrastructure: EV charging stations, secure bike parking, and expanded cycling lanes.
The overarching goal is to promote seamless, attractive in termodality that reduces reliance on individual car travel. But the ecological transition in transport must go beyond technology—it requires a complete rethink of mobility policies at every level.
Emerging Economic Challenges
Opening up to competition is reshaping fare structures, driving prices downward while also raising the risk of creating a two-tiered system: low-cost versus premium services. This evolution raises tough questions about service quality and accessibility—particularly in rural or low-density areas.
Innovative alternatives such as autonomous shuttles, subsidized carpooling, and on-demand buses offer promising solutions, but they require sustained financial support from regional authorities. Implementation remains uneven across the country, with each region progressing at its own pace and according to its unique priorities and constraints.
Leading Regions Set The Pace
Several regions are already ahead of the curve. Provence Alpes-Côte d’Azur (PACA) leads the way, having awarded rail contracts to new operators. Hauts-de-France, Grand Est, and Pays de la Loire are following suit, with active calls for TER tenders.
In the Paris region, IDFM (Île-de-France Mobilités) is overhauling the suburban bus network through a wave of public tenders, starting with outer-ring services and moving toward inner-ring areas by 2026. The Grand Paris Express and Transilien commuter trains are also slated for a phased opening to competition between 2023 and 2032, with RER lines and the Paris Métro to follow by 2040.
Rethinking Ticketing And Fare Distribution
Market liberalization doesn’t stop at new entrants. It also redefines how tickets are sold—a critical element in ensuring smooth access to rail services. The challenge lies in the coexistence of two distinct models.
On one side, convention-based services allow regions to delegate line operations while retaining control over ticketing, ensuring consistency across the network and simplifying intermodal transfers. On the other side, open-access (SLO) services allow each operator to manage ticket sales independently. While this approach fosters price competition and diversity, it can also fragment access and make journey planning more complex.
Unlike Germany, which operates a unified system, or the UK, which relies on a single national platform, France has chosen a regionalized model. This could confuse travelers—especially for inter-operator transfers—and complicate fare visibility.
The key challenge will be to ensure a smooth transition by developing tools that simplify purchasing and reservations while preserving consistency and accessibility across the system.
France’s public transport landscape is undergoing a fundamental transformation. Regions and operators alike must now rethink their models, prioritizing service quality, digital innovation, cost efficiency, and environmental performance. Creating a truly interoperable ticketing system and universal pass will be essential to ensuring that mobility remains accessible, user-friendly, and cohesive.
Only those regions and companies that rise to meet these new challenges will benefit from this profound reshaping of public transport in France.
