It was an ultimately unconvincing Competition Authority which presented, on Wednesday November 29, its advisory opinion on the competitive functioning of the land transport sector. Chaired by the economist Benoît Cœuré, it is there to ensure that the players do not hinder competition supposed to benefit the consumer. She spoke out on the subject, worrying about the many barriers to the arrival of new players.
How can we move this sector? His first observation is that it is difficult to put more trains on an aging network. It must be modernized and signalized in the European digital era, ERTMS (European Rail Traffic Management System). But this is expensive… However, the SNCF must finance this renovation from its own profits, which supplement an ad hoc competition fund. Its competitors are not taxed.
This financing mechanism therefore needs to be clarified, recommends the competition watchdog. Second observation: it is necessary ” maybe “, says Benoît Cœuré, lower the price of tolls that trains pay to run on the rails and which deters SNCF competitors. But, if we do it, who will finance the renovation of the network? Should the State take charge of it?
Lack of effectiveness of the model
Of course the SNCF, which must generate more income, hardly helps its competitors to take market share from it. As it maintains control of the network – which strives to be neutral – but also of stations or essential services such as SUGE (General Surveillance), the security service on the SNCF network, the rail system remains closed. But it is not responsible for this confusion of genres, organized by law, recognizes the Competition Authority, which deplores that the regions cannot become owners of the stations.
Even in transport which escapes the monopoly of the SNCF or the RATP (such as buses, metros or tramways operated by French metropolises, Macron coaches, etc.), the result of competition leaves something to be desired, recognizes the Authority. FlixBus and Blablacar have ended up in a duopoly on intercity coach services. And, in large cities, we often find the same actors, public or parapublic: mixed economy companies, Keolis (subsidiary of the SNCF), Transdev (subsidiary of the Caisse des Dépôts) and RATP Dev. The Competition Authority is surprised by the number of calls for tenders to which only one candidate responds.
Benoît Cœuré nevertheless refuses to conclude that the competition model is not the most effective for regulating this sector. For him, it is the organizing authorities who lack the skills to properly organize the competition. He also notes that they compensate for this by calling on a few consulting firms, in small numbers, which sometimes also work for transport companies. A funny mix.