THE INSTITUTIONAL REFORM OF RAIL TRANSPORT IN FRANCE

The French Government formulated the principles of the comprehensive reform of French railways in Parliament Act 97-135 on 13 February 1997. This legislation created a public authority RFF, responsible for infrastructure on behalf of the State; while French Rail (SNCF) continues to manage the railway track, RFF owns it, and has taken over FRF 134 billion of SNCF debt connected with track funding. A trial exercise will devolve responsibility for regional passenger services to regional authorities in six volunteer regions, with relevant funding by the State. This ambitious reform will: (1) preserve the unity of the French rail network; (2) clarify both state and SNCF responsibilities; (3) relieve SNCF of much of its debt; and (3) prevent any more debt. State responsibilities include: principal characteristics of French railways, grants to RFF and scales of user fees, definition of safety regulations, authorisation of investments, and decisions on line closures and new projects. RFF's roles include: track improvement and development, network investment choices and financing, and setting and collection of track use tariffs. SNCF's functions include: operating rail services, paying RFF the required fees, and rail operations. At present, the new arrangements seem to provide a viable answer to long-standing problems.