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Jean-Pierre Farandou: A Legacy of Profit and Progress at SNCF
Jean-Pierre Farandou's five-year tenure as CEO of SNCF, France's national railway company, concluded on a remarkably high note. His leadership oversaw four consecutive years of profitability, culminating in a stunning 19% surge in net profit to €1.6 billion in 2024. This success story is a testament to Farandou's strategic vision and the SNCF's impressive turnaround.
SNCF's Financial Triumph
The SNCF's overall sales climbed 3.8% to €43.4 billion in 2024, demonstrating sustained growth. This positive trend was particularly driven by the strong performance of two key subsidiaries: SNCF Voyageurs, which experienced a 5.8% like-for-like increase, and Keolis, the public transport operator, boasting a remarkable 9.6% growth. Laurent Trevisani, the group’s financial director, highlighted the significance of these increases, especially when considering the 2.4% inflation rate.
- High-speed rail (TGV) success: The Inoui and Ouigo TGVs carried a record-breaking almost 130 million passengers in 2024, a 4% increase over 2023 and a substantial 11% rise compared to pre-pandemic levels in 2019. This underscores the success of the significant investments (€10.8 billion) made in the high-speed network.
- Geodis's performance: In contrast to the overall success, the logistics provider Geodis experienced stagnant sales in 2024, impacted by a weakening global economic climate.
- Debt management: The SNCF effectively managed its debt, keeping it around €25 billion. Furthermore, SNCF Réseau achieved a positive cash position, fulfilling legal requirements and signifying a continued financial recovery.
- Record hiring: The company hired 18,500 people on permanent contracts in 2024, solidifying its position as France's leading recruiter.
The Ticket Price Debate
While the SNCF's financial results are impressive, the issue of ticket pricing remains a sensitive topic. Despite a 1.5% fare increase in January, Farandou defended the company's pricing strategy, stating that the average TGV ticket price has remained stable between €45 and €47 for years. He emphasized that the cost increases haven't been fully passed on to consumers, which, paradoxically, resulted in a decrease in the TGV business's margin.
This decision to keep prices relatively low, however, did not apply to all services. The SNCF and the Grand Est region raised the price of TER seasonal tickets by 3% at the start of the year, affecting cross-border commuters.
Future Investments and Innovation
The SNCF plans to further expand its high-speed services with the arrival of new-generation TGV trains in early 2026, increasing seating capacity. Beyond operational improvements, Farandou's legacy also extends to strategic partnerships focused on innovation. The establishment of a new "Chair in education and research on artificial intelligence and optimisation for mobility" with École Polytechnique highlights SNCF's commitment to leveraging technological advancements to improve services and sustainability.
This collaboration aims to develop AI-based technologies for optimizing transport networks, predictive maintenance, and enhancing passenger communication. The initiative underscores Farandou's proactive approach to technological innovation within the rail sector.
Responding to a Major Security Incident
In July 2024, SNCF faced a significant challenge when a coordinated sabotage attack targeted the rail network, causing widespread disruptions. Jean-Pierre Farandou, even during this crisis, demonstrated strong leadership by putting the company on full alert, reinforcing security measures, and working tirelessly to restore services, ultimately achieving a full recovery within days. This demonstrated his commitment to both the financial and operational success of the SNCF.
Conclusion
Jean-Pierre Farandou leaves behind a legacy of significant financial success and strategic innovation at SNCF. His leadership steered the company towards sustained profitability, modernized its infrastructure, and fostered crucial partnerships for technological advancement. While challenges remain, his tenure marks a pivotal moment in the SNCF's journey towards a more efficient, technologically advanced, and financially stable future.
