A Future for France's Crumbling Transport Infrastructure: Rethinking Funding Models
Motorway development costs could potentially extend to train infrastructure, implying that motorists may indirectly contribute to train development through toll-free motorways.
France's road networks are on the verge of a significant change. With the end of long-term highway concessions looming, the debate about the future funding of our transportation systems is heating up. Should we bid farewell to tolls and enjoy free highways? Or should we invest the revenue in other transportation options, like rail? As the Prime Minister, François Bayrou, suggests, the approaching expiration of these concessions presents a unique chance to rethink our financing strategies.
© Adobe Stock/Multiple By Justine Pérou Head of the automotive section Published on
Highways: No Longer Manufactured Gold for Private Companies
Since 2000, private companies like VINCI Concessions have been managing our French highways through long-term concession agreements [3][5]. Under these arrangements, concessionaires invest upfront, collect tolls, cover maintenance costs, and are responsible for operation and construction [5]. However, the end of concessions is approaching, and one might imagine that it's finally time for these roads to become toll-free. After all, the initial investments will have long been recouped, and there will be no more private shareholders to satisfy. But Sen. Hervé Maurey, a centrist from Eure, urges caution against adopting a gratis highway model.
Toll Woes: No Free Ride!
A toll-free motorway network would mean added burden on the taxpayer, according to Maurey. "Direct management of the highway network by the state and therefore free use for the consumer is a bad idea because if he doesn't pay at the time of use, it's the taxpayer who will pay, not only for French drivers, but also for foreign motorists, trucks, who would use our roads at the expense of those who pay taxes. And it would also deprive the state of revenue." [5]
Elevated Roads, Lowered Tolls: A Dream Unrealized?
Maurey is not enthusiastic about a significant reduction in toll prices. Despite the concessionaires having fewer future investments, toll fees are anticipated to remain stable. The senator envisions a system where a fixed toll amount would be established, with any surplus revenue earmarked for projects outside the motorway sector, such as railway upgrades, infrastructure maintenance on non-conceded roads, or green initiatives. He argues that a free motorway system would prove counterproductive, as increased highway usage could devalue public transport.
The Evolution of Highway Congestion and Concession Models
As the horizon of these aging concessions fades, the state and concessionaires engage in discussions about the modernization of aging rail and highway infrastructures and the creation of new ones. The ongoing reassessment and, in some cases, renewal or re-tendering of these contracts often incorporate green finance principles, prioritizing sustainability targets and the use of green bonds for infrastructure upgrades. However, no formalized program or legislative initiative specifically redirecting highway toll revenues to rail projects has been identified as of current information.
Key Takeaways* Infrastructure Financing: French highways are primarily financed through long-term concessions and toll revenues, with principal concessionaires managing ownership, operation, and maintenance.* Concession Lifecycle: With the lifecycle of these aging concessions drawing to a close, reassessment and, sometimes, renewal or re-tendering are occurring.* Rail Funding: While discussions about funding cross-sectoral infrastructure to promote modal shift and sustainable mobility are underway, no widespread practice of redirecting highway toll revenues to rail transport in France has been identified.
- The expiration of long-term highway concessions in France offers an opportunity for a reevaluation of financing strategies, with Prime Minister François Bayrou advocating for change.
- Sen. Hervé Maurey, a centrist from Eure, cautions against the adoption of a toll-free highway model, believing it would place an added financial burden on taxpayers.
- Maurey suggests that, instead of free highways, a fixed toll amount could be established, with excess revenue earmarked for projects outside the motorway sector, including railway upgrades, infrastructure maintenance, and green initiatives.
- Discussions about funding cross-sectoral infrastructure are underway, with green finance principles being incorporated into the modernization of aging rail and highway infrastructures.
- As of current information, no formalized program or legislative initiative specific to redirecting highway toll revenues to rail projects has been identified in France.
