Chicago, October 26, 2009 (word count: 538)
Rail manufacturing in France currently generates a turnover of almost €3 billion (rolling stock, tracks, control systems), with 44% of output being exported. Europe accounts for 50% of the market for rail materials. The sector’s buoyancy can be explained by the gradual opening up of rail transport to competition since 2005, in accordance with European Union legislation. Eco-friendly rail transport has a key role to play in reducing greenhouse gas emissions, and the “transport” component of France’s “Green New Deal” has set a target to increase the share of non-road freight from 14% to 25% by 2020.

Passenger and freight rail operators have transferred some of their activities to industrial subcontractors, such as the maintenance of rolling stock (locomotives, carriages and freight cars) and fixed installations (signals, points and crossings, electricity supply), track laying and constructing railway stations. This subcontracting industry employs around 100,000 people in France, or two-thirds of all those directly employed by the rail sector.

The rail sector is also extremely open to foreign investment. Multinational manufacturers of rolling stock (Siemens, Bombardier France, Alstom Transport, CAF, ADD-Trans) and installations (Faiveley, Thales, Bonatrans, Valdunes, Voith, ABB Secheron, SKF, Knorr-Bremse) offer innovative solutions in compliance with international standards (IUR) and the European Rail Traffic Management System (ERMTS), thereby enabling equipment interoperability and cross-border transport. The standardization of manufactured products reduces production, purchasing, running and maintenance costs and boosts export capability.

Maintenance activities are largely contracted out. Fixed installation maintenance work – laying new track and track/ballast renewal – is carried out by large international track maintenance and renewal companies. One example is Corus Rail (of the Indian group Tata Steel), which produces metal tracks for permanent or temporary modular platforms, as well as rail dampers that fix to the track base which are sold under the brand name Silent Track™. Corus Rail also supplies rail infrastructure services (engineering, development, design and management of the rail system, modular systems and technologies). The responsibility for rolling stock maintenance is shared by operators (SNCF, Deutsche Bahn, etc.) and manufacturers, who offer “equipment plus maintenance” packages during the equipment warranty period. Other services are also contracted out, such as ticketing, catering, cleaning, ancillary services and IT.

The i-Trans innovation cluster in Nord-Pas-de-Calais and Picardie is responsible for driving research in Intelligent Transportation Systems (ITS) and fostering innovation for economic development and interoperability in the passenger and freight rail transport sector. Since 2005, i-Trans has approved 78 innovation and research projects worth around €185 million in all. Worthy of mention are projects being developed by Bombardier (passenger safety) and Compin Interiors (full interior furnishing of passenger carriages and rail vehicle platforms).

According to David Appia, CEO of the Invest in France agency, “Opening up the rail network to competition has injected new life into the rail sub-contracting market in France, whether it be in construction, maintenance or rail services. This is a decisive factor in attracting foreign investors, who view France as a key springboard for growth in this sector.”

The Invest in France Agency (IFA) promotes and facilitates international investment in France. The IFA network operates worldwide. The IFA works in partnership with regional development agencies to offer international investors business opportunities and customized services all over France.

For more information, please contact:

INVEST IN FRANCE NORTH AMERICA
Amanda Hilson
810 Seventh Ave.
New York, NY 10019
Tel: (212) 757-9340
Fax: (212) 757-1568
E-mail: amanda.hilson@investinfrance.orgWeb: www.investinfrance.org/northamerica

or:

FRENCH TECHNOLOGY PRESS OFFICE
205 North Michigan Avenue, Suite 3740
Chicago, IL 60601
Fax: (312) 327-5261
E-mail: contact.ftpo@ubifrance.fr

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