France Invests €5.7B in Rail: Modernization & SNCF Monopoly Ends

Auvergne-Rhône-Alpes invests €5.7 billion in its rail network through 2035, including €3 billion for new trains, boosting ridership and ending SNCF’s monopoly.

January 28, 2026 10:39 am

🛑 Key Takeaways:

France’s Auvergne-Rhône-Alpes region is investing €5.7 billion through 2035 to expand and modernize its regional rail services.
The plan allocates €3 billion to acquire 130 new multiple units and refurbish 169 existing trains, targeting a 36% rise in daily passengers to 300,000.
This strategy will liberalize the market by splitting the network into five operational lots for competitive tender, ending SNCF’s regional monopoly by 2034.

LYON, FRANCE – The Auvergne-Rhône-Alpes region has launched its “Mobilité 2035” strategy, a €5.7 billion investment plan to overhaul its Transport Express Régional (TER) network. The funding allocates €3 billion for rolling stock and €2.7 billion for infrastructure, aiming to increase daily ridership from 220,000 to 300,000 and introduce competitive tendering for rail operations.

Category	Specification / Detail
Project Name	Mobilité 2035 Strategy
Total Budget	€5.7 billion (through 2035)
Rolling Stock Allocation	€3 billion (130 new MUs, 169 modernizations)
Infrastructure Allocation	€2.7 billion (incl. €2.2B for rail access charges)
Key Stakeholders	Auvergne-Rhône-Alpes Region, SNCF Voyageurs, Alstom, EIB
Ridership Target	Increase from 220,000 to 300,000 passengers/day (+36%)

Operational & Technical Details

The investment aims to increase transport capacity by 60,000 seats, augmenting the existing 161,000. Under the plan, €1.6 billion is specifically earmarked for rolling stock acquisition by 2035. An initial €125 million contract has been signed with Alstom for 10 Omneo Regio2N trains, with delivery expected by October 2027. These will join an existing fleet of 59 identical units.

The European Investment Bank (EIB) is assessing a potential €500 million loan for a sub-project with an eligible cost over €1 billion. This includes 10 electric trains, 3 Regiolis Hydrogène (hydrogen) dual-mode units, and the modernization of 169 existing trains. Maintenance infrastructure will receive €250 million, including a new €52.3 million workshop in Clermont-Ferrand. A further €1.3 billion is allocated for maintaining the entire fleet.

Market Impact Analysis

The “Mobilité 2035” strategy marks a significant shift in the operational model for one of France’s largest regional rail networks. By dividing the network into five distinct operational “lots” for competitive tender between 2029 and 2034, the region is dismantling the long-standing monopoly held by the national operator, SNCF Voyageurs. This liberalization forces SNCF to compete directly with new entrants on efficiency and service quality.

The creation of a separate “functional lot” to manage passenger information and sales across all operators is a key measure to ensure a uniform customer experience and prevent service fragmentation. Furthermore, the development of six RER-style Metropolitan Regional Express Services (SERM), particularly around Lyon, signals a strategic pivot towards high-frequency, metro-like services to address growing urban and suburban mobility demands.

FAQ: Quick Facts

What is the main value of this contract?

The total investment value is €5.7 billion through 2035. This is broken down into €3 billion for rolling stock (new purchases and modernization) and €2.7 billion for infrastructure development and access charges.

When is the expected completion date?

The overall “Mobilité 2035” strategy extends to the year 2035. Specific procurement milestones exist within this timeframe, such as the delivery of 10 new Alstom trains by October 2027.