France: The mixed fortunes of the SNCF logistics activity in 2016
02.03.2017 France: The mixed fortunes of the SNCF logistics activity in 2016Les Echos, 02 Mar 2017, online:-
The logistics activity of French rail operator SNCF has had mixed fortunes in 2016. Growth was admittedly fuelled by Geodis, but Fret SNCF, the goods transportation activity, reported a 13% fall in its turnover. As a result, it posted a EUR 129mn (USD 136.23mn) operating loss, compared to a EUR 86mn loss in 2015, thus ending the reduction of its losses which had been on-going since 2011. Without the strikes, operating losses would have been at EUR 90mn in 2016. Nevertheless, SNCF Logistics aims to cover its investment costs with its operating margin in the medium-term, which implies that the latter needs to reach some EUR 40mn. To achieve this goal, rail and road combined transport must be developed, innovation has to be enhanced and the company needs to set itself up on the trans-national goods exchanges sector. This is why the group has acquired a 45% shareholding in Swiss operator BLS Cargo. Fret SNCF still needs to deal with its EUR 4bn debt, but it must first focus on balancing its books. In 2016, the European subsidiaries represented a EUR 400mn turnover, compared to EUR 900mn for Fret SNCF.
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