The Diplomat in Spain

The Diplomat

Renfe’s board of directors has approved a request to the Ministry of Finance to create a branch of the operator in Paris to develop business opportunities in France, the company informed.

With the liberalisation of passenger rail transport in Europe, the Spanish operator is carrying out actions in France aimed at both the launching of high-speed commercial services (Paris-Lyon-Marseille) and the provision of public services (in the regions of Grand-Est and Hautes de France).

The creation of a branch of Renfe in Paris, which must be authorised by the Ministry of Finance, is aimed at developing transport services in France, as well as providing other complementary services or activities linked to transport, carrying out representative functions for the Spanish parent company.

The French public rail operator SNCF, through its low-cost brand Ouigo, took the lead in the liberalisation process and since May has been offering a high-speed service between Madrid and Barcelona, with prices starting at 9 euros and with stops in Zaragoza and Tarragona.

In this way, liberalisation has meant the entry of competition in Spain with the aim of making greater use of the railway infrastructure, in which 65,000 million euros have been invested in the last 30 years, being the most extensive in Europe and the second in the world but, at the same time, one of the least used.

Renfe’s Strategic Plan 2019-2023-2028 includes as one of the pillars of the company’s strategy to promote the process of internationalisation.

The company continues to analyse opportunities for international growth, both in Europe and in the United States and Latin America, with the aim that 10% of the company’s total revenue will come from foreign operations, both in high-speed and public service, within 10 years.

At present, Renfe is part of the consortium of companies that has built and operates the high-speed line between Mecca and Medina in Saudi Arabia, called Haramain Highspeed Railway.

Renfe also participates in the contract to operate the high-speed line between Dallas and Houston, in what so far has been the largest contract ever won by a Spanish public company abroad, and in the development of the Mayan Train in Mexico.

Moreover, Renfe will be able to operate in the future in European countries such as the Czech Republic, Slovakia and Poland, and will have the resources and licences to access the German market, through the acquisition of 50% of the capital of the Czech railway company Leo Express, which operates services in Central European countries.