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Freight : why trains haven’t (yet) replaced lorries

Aurélien Bigo
Aurélien Bigo
Research Associate of the Energy and Prosperity Chair at Institut Louis Bachelier
Key takeaways
  • In France, since the mid-2000s, road transport has accounted for 88% of freight flows, compared with 10% for rail and 2% for waterways.
  • Rail transport is the main opportunity to reduce CO2 emissions from domestic freight in France.
  • However, France is struggling to catch up, while the modal share of rail is almost twice as high (18%) across the EU or in Germany.
  • Public policies remain insufficient, as shown by the 2021 plan to revive rail freight, which will not achieve its objectives.
  • This plan forgets three elements: considering the future demand for freight transport; the decrease in road traffic; the evolution of our economy and logistics.

Eve­ryone agrees on the prin­ciple. Trans­por­ting our goods by train rather than in lor­ries is a lever to be used for the envi­ron­men­tal tran­si­tion. In addi­tion to redu­cing CO2 emis­sions, it reduces road traf­fic, conges­tion and space consump­tion, road acci­dents and damage to road infrastructure.

And yet, for decades now, there has been a suc­ces­sion of plans to revive rail freight, and their tar­gets have been mis­sed with a stable share of rail freight, but this has not pre­ven­ted the announ­ce­ment of objec­tives that are increa­sin­gly ambi­tious. The latest tar­get set in 2021 is to double the modal share of rail freight by 2030. Seve­ral ques­tions arise. Where do past fai­lures come from ? Is it like­ly to work this time ? What should be inte­gra­ted into public thin­king and policies ?

For a century, a massive modal shift towards road transport

In France, rail freight trans­port star­ted about two cen­tu­ries ago. The first line in France was ope­ned in 1827 and was ini­tial­ly desi­gned to trans­port coal bet­ween Saint-Étienne and André­zieux, with wagons pul­led by horses or des­cen­ding the slope by gra­vi­ty. At that time, road trans­port domi­na­ted, ahead of river trans­port. Then rail trans­port grew enor­mous­ly, accoun­ting for almost 80% of traf­fic in France at the begin­ning of the 20th Cen­tu­ry, rele­ga­ting road traf­fic to only 10% of the modal share1

Since the mid-2000s, road trans­port has accoun­ted for 88% of freight flows in France, while rail has stag­na­ted at 10% of traf­fic, lea­ving a small 2% for river freight2.

Many attempts have been made to revive the rail­ways. For example, in 2000, the SNCF aimed to double rail traf­fic by 20103. The result ? Bet­ween 2000 and 2010, rail freight traf­fic was… divi­ded by 2. There are many rea­sons to explain the decline of rail and the fai­lures of past modal shift poli­cies : the lack of invest­ment in infra­struc­ture, insuf­fi­cient qua­li­ty of ser­vice4, the gra­dual aban­don­ment of cer­tain acti­vi­ties (such as single wagon­loads), the de-indus­tria­li­sa­tion of France, and the lack of dyna­mism of French ports (and their poor rail connec­tions)5.

Freight traf­fic in France since 1960 (source CGDD-SDES).

But the rea­sons are also to be found in the incre­dible growth of road trans­port. The entire orga­ni­sa­tion of logis­tics and the eco­no­my has been built around hea­vy goods vehicles. Thus, if the modal share of rail has fal­len from around 60% to 10% since 1960, it is cer­tain­ly because rail traf­fic has fal­len by 37%, but also and above all because total demand has increa­sed 3.6 times over the per­iod, dri­ven by an approxi­ma­te­ly ten­fold increase in road traffic.

This has rele­ga­ted rail freight to its main area of rele­vance : mass trans­port, gene­ral­ly over long dis­tances and for large volumes, for which road trans­port is beco­ming less effi­cient and more expen­sive. This is reflec­ted in the dyna­mism of com­bi­ned road-rail trans­port in recent years, with the ope­ning of seve­ral rail high­ways, allo­wing semi-trai­lers to cross France on adap­ted trains6.

France is also a poor per­for­mer com­pa­red to its Euro­pean neigh­bours, sho­wing the room for manoeuvre that exists in France. The modal share of rail is almost twice as high on ave­rage in the EU or in neigh­bou­ring Ger­ma­ny (both at 18%). And the decline in rail traf­fic in France over the last few decades contrasts with more dyna­mic deve­lop­ments in other Euro­pean coun­tries7.

Doubling the share of rail by 2030, under what conditions ?

In a plan to revive rail freight, the most obvious aim is to improve the sup­ply of rail freight. The 2021 plan is thus based on 72 mea­sures, grou­ped into three areas : making rail freight an attrac­tive, reliable, and com­pe­ti­tive mode of trans­port ; acting on all the growth poten­tial of rail freight ; and sup­por­ting the moder­ni­sa­tion and deve­lop­ment of the net­work8.

While essen­tial (and without even going into the details and pos­sible short­co­mings here9), this sup­port for rail is and will be insuf­fi­cient to achieve the objec­tives, given that too lit­tle account is taken of the fol­lo­wing three elements.

What (de)growth in demand will there be in the future ?

The first ele­ment is to know what the evo­lu­tion of total demand for freight trans­port will be by 2030, and thus what increase in rail traf­fic will be neces­sa­ry to achieve a dou­bling of the modal share.

This pro­jec­tion is not clear­ly defi­ned in the reco­ve­ry plan, but the figures men­tio­ned seem to fore­see an increase close to +10% in total demand by 2030. In such a context, rail traf­fic would have to increase by 120% to double its modal share. Rail would thus absorb the increase in freight traf­fic, without real­ly redu­cing road traffic.

On the contra­ry, in a sce­na­rio of strong sobrie­ty on an eco­no­my-wide scale, trans­port demand could be redu­ced by 20% by 203010. In this case, it would be “suf­fi­cient” to increase rail traf­fic by 60% (an increase half that of the pre­vious case!) to double the modal share of rail. And in this case, road trans­port traf­fic would fall by 30%, under the dual effect of the fall in total demand and the increase in the rail share.

Rail freight traf­fic 1960–2021 and tar­get 2030 (sources CGDD-SDES and Ministry).

The evo­lu­tion of total demand [the sub­ject of a for­th­co­ming article, the last in the series] is the­re­fore fun­da­men­tal in the sizing of rail traf­fic to achieve the objec­tive. Past expe­rience shows that the share of rail has evol­ved more as a result of this evo­lu­tion in total demand than in rail traf­fic. This evo­lu­tion is also fun­da­men­tal to reduce road traf­fic and thus have a down­ward effect on emis­sions, which is in line with the fol­lo­wing point.

Reducing the share of road transport, an unassumed objective

Ano­ther short­co­ming of this objec­tive of dou­bling the modal share of rail is an impli­cit assump­tion that is not clear­ly made. If the share of rail increases by 9% to 18%, this will be at the expense of road trans­port, whose share will have to fall by 9%11. To go even fur­ther, to reduce emis­sions, the objec­tive is not to increase rail freight, but to reduce road traffic.

Howe­ver, the objec­tive is never pre­sen­ted in this form, and poli­cies are not orien­ted in this direc­tion. For example, nei­ther this plan nor other poli­cies on freight trans­port have pro­vi­ded for major changes in road infra­struc­ture char­ging (fol­lo­wing the aban­don­ment of the eco­tax in 2013–2014), the end of the par­tial reim­bur­se­ment of ener­gy taxes for road trans­port, the reduc­tion in the speed of hea­vy goods vehicles or even modal shift obli­ga­tions12.

Today, the pre­do­mi­nance of road trans­port can never­the­less be explai­ned by unde­niable advan­tages com­pa­red to rail : “Roads offer flexi­bi­li­ty, speed, relia­bi­li­ty, low prices, and avai­la­bi­li­ty of capa­ci­ty”, as the pre­sident of the Freight Trans­port Users’ Asso­cia­tion13 sum­ma­rises. In such a context, it is quite illu­so­ry to be able to reduce the share of road trans­port by 9% only by inves­ting in rail, and without dis­cou­ra­ging the use of road transport.

What changes in the territory, the economy and logistics ?

In view of its ambi­tion, dou­bling the share of rail trans­port must final­ly be part of a wider evo­lu­tion of the eco­no­my and logis­tics. First of all, it is a ques­tion of making land-use plan­ning poli­cies consistent, while motor­way pro­jects are still under­way and logis­tics ware­houses conti­nue to be built on the outs­kirts of towns without being connec­ted to the rail­ways. This main­tains and even streng­thens the cur­rent depen­dence on road trans­port. The pos­si­bi­li­ties of shif­ting to rail will also depend on changes in the types of goods trans­por­ted and over what dis­tances. This raises ques­tions about indus­trial poli­cy, the tran­si­tion of the agri-food or construc­tion sec­tors, which account for a large pro­por­tion of freight traf­fic in France14.

Final­ly, in view of the constraints inherent in rail, the logis­tics orga­ni­sa­tion must also change to make more use of the train. In par­ti­cu­lar, it is a ques­tion of loo­se­ning time constraints, avoi­ding just-in-time and tight logis­tics chains, and ins­tead mana­ging stocks in order to mas­si­fy trans­port flows. This is, for example, contra­ry to the cur­rent trend towards the growth of e‑commerce and rapid deli­ve­ry, which are struc­tu­ral­ly unfa­vou­rable to rail and for which there is a lack of regu­la­tion15.

Other modal shift opportunities

Rail trans­port is the main oppor­tu­ni­ty for modal shift to reduce CO2 emis­sions from domes­tic freight in France. But other pos­si­bi­li­ties exist in the glo­bal, natio­nal and local logis­tics segments.

On an inter­con­ti­nen­tal scale, mari­time trans­port should be prio­ri­ti­sed as much as pos­sible over air freight, which emits around 100 times more CO2 per tonne trans­por­ted16. Given its much higher cost, air trans­port is used more for high value-added pro­ducts or when time is of the essence, such as for per­ishable food­stuffs. Increa­sin­gly, e‑commerce players are also inves­ting in air freight for fast deli­ve­ries, a trend that should be limited.

For natio­nal trans­port and in addi­tion to rail freight, modal shift is also pos­sible via river trans­port. Its deve­lop­ment is essen­tial­ly limi­ted by geo­gra­phi­cal constraints and by the avai­lable water­ways, which explain its cur­rent modal share of 2%. There is, howe­ver, poten­tial for deve­lop­ment and trans­fer from road trans­port on major routes, inter-basin links or for deli­ve­ry in the centre of conur­ba­tions connec­ted to a navi­gable river17. Final­ly, for last-mile deli­ve­ry, car­go bikes can replace a large pro­por­tion of light com­mer­cial vehicles. Per unit trans­por­ted, the cli­ma­tic bene­fit of this trans­fer is very high, espe­cial­ly if the deli­ve­ries were pre­vious­ly rapid and not very opti­mi­sed and made by com­bus­tion engines. Howe­ver, ove­rall, the gain in freight trans­port emis­sions is limi­ted, as the demand that can be addres­sed remains limi­ted (dis­tances and volumes being rela­ti­ve­ly small for car­go bikes). More signi­fi­cant bene­fits will be felt in terms of redu­cing air pol­lu­tion, space consump­tion, resources, noise and dan­ger to other users.

Conclusion

The modal shift objec­tives have cer­tain­ly been too ambi­tious in rela­tion to the trans­for­ma­tion efforts requi­red to achieve them and the iner­tia that exists in freight trans­port. Howe­ver, break­throughs are neces­sa­ry to achieve the decar­bo­ni­sa­tion objec­tives, jus­ti­fying ambi­tious modal shift objec­tives. Public poli­cies have been and still are far from com­mit­ting to strong shifts, both because of insuf­fi­cient sup­port for rail trans­port, in terms of invest­ment or sup­port for acti­vi­ty. But also, and above all, because the sup­ply (or sup­port) poli­cy for rail is insuf­fi­cient to serious­ly chal­lenge the cur­rent hege­mo­ny of road trans­port18. Yet it is almost exclu­si­ve­ly with this bias that modal shift poli­cy is still consi­de­red in France, des­pite the fai­lures of past policies.

1See his­to­ri­cal figures in Neiertz, 1999.
2For graphs and other traf­fic figures in the article, see CGDD-SDES.
3See Les Echos, 2000. Traf­fic has fal­len from 57.7 bil­lion tonne-km (G t.km) in 2000 to 30 G t.km in 2010, i.e. a divi­sion by 1.92 in 10 years ; CGDD-SDES figures.
4On this sub­ject, see the baro­me­ter of ship­pers’ per­cep­tions of rail trans­port, Euro­Group Consul­ting.
5We could also men­tion the effects of ope­ning up to com­pe­ti­tion since 2005, which remain sub­ject to debate. For its pro­po­nents, com­pe­ti­tion has made it pos­sible to lower prices and sta­bi­lise the modal share, com­pa­red to the decline in pre­vious years. For its detrac­tors, it has wea­ke­ned Fret SNCF, faced with major dif­fi­cul­ties pre­ven­ting the his­to­ric ope­ra­tor from having a strong ambi­tion in freight and bene­fi­ting from the stron­ger scale and net­work effects of a single ope­ra­tor.
6See in par­ti­cu­lar the page on the MTECT-MTE web­site on the sub­ject of rail motor­ways.
7See Euro­stat data, about 18% modal share in 2019 for the EU-27 and Ger­ma­ny, for trans­port within the coun­tries, exclu­ding pipe­lines ; see also evo­lu­tion graphs in LVSL (2021) for traf­fic since 2003, or in Ins­ti­tut Mon­taigne (2022) for traf­fic since 1970.
8The edi­to­rial of the Minis­try’s 2021 reco­ve­ry plan men­tions that “The State has cho­sen to take on board the ambi­tion of the sec­tor’s players to double the modal share of rail freight over the decade, from 9% in 2019 to 18% in 2030, i.e. around 65 bil­lion t.km. In the lon­ger term, the State has set itself the objec­tive of achie­ving a modal share for rail freight of 25% by 2050. There have been recent breaks in the freight trans­port sta­tis­tics, and not all the refe­rence and pro­jec­tion figures to 2030 are detai­led in the stra­te­gy, which some­times makes it dif­fi­cult to relate them to past deve­lop­ment sta­tis­tics. The figures should the­re­fore be taken as orders of magni­tude.”
9The finan­cing needs for rail infra­struc­ture are signi­fi­cant, and recent announ­ce­ments do not yet spe­ci­fy the share that will bene­fit freight (see the article by the Banque des ter­ri­toires). Also, the players in the sec­tor (exclu­ding SNCF, repre­sen­ted by AFRA) do not seem to be very confi­dent that the objec­tive will be achie­ved, par­ti­cu­lar­ly because of the short­co­mings of the net­work (Connais­sance des Ener­gies).
10See for example the ADE­ME’s Transition(s) 2050 sce­na­rios. Mode­ra­tion of trans­port demand will be the sub­ject of the 4th and last article in this series on decar­bo­ni­sa­tion of freight trans­port.
11If the share of water­ways remains at 2%, which in any case should change lit­tle by 2030.
12For the par­tial reim­bur­se­ment of the TICPE, see the page on the Entreprendre.Service-Public web­site ; for mea­sures to reduce speeds or impose modal shift obli­ga­tions, see the Shift Pro­ject’s PTEF freight report.
13Sta­te­ment by Denis Chou­mert of AUTF, an asso­cia­tion repre­sen­ting ship­pers, in Le Monde in May 2022. Moreo­ver, the rail freight reco­ve­ry plan also men­tions on page 11 that road trans­port has « become the refe­rence mode in terms of com­pe­ti­ti­ve­ness, flexi­bi­li­ty and qua­li­ty of ser­vice (punc­tua­li­ty) ».
14See the IDDRI sce­na­rios publi­shed in 2019 (or those of ADEME and the Shift Pro­ject, cited above) brea­king down the evo­lu­tion of demand for 6 cate­go­ries of goods.
15See in this res­pect the recom­men­da­tions of the France Stra­té­gie report in 2021 (Pour un déve­lop­pe­ment durable du com­merce en ligne), which have not been fol­lo­wed much to date.
16See in par­ti­cu­lar the figures from EEA, 2022 ; CE Delft, 2021.
17See in par­ti­cu­lar the ADEME stu­dy in 2022 on inter-basin links. Or VNF in 2021, which men­tions a pos­sible increase in trans­por­ted volumes by half by 2030.
18See the articles by Fran­çois Combes and Patrick Nié­rat on the sub­ject, par­ti­cu­lar­ly their article in TI&M in 2020.

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