State Aid Approved for France - Italy Piggyback Service

Why It Matters

Restoring the service could re‑establish a vital low‑carbon freight corridor linking France and Italy, enhancing European rail competitiveness and easing road congestion. The EC’s approval signals continued willingness to support strategic intermodal links despite past competition concerns.

Key Takeaways

• EC cleared €‑state aid for France‑Italy piggyback service
• Service halted after 2023 rockfall closed Chambéry‑Modane line
• SNCF barred from bidding due to prior state‑aid case
• Mothballed Modalohr wagons and terminals need reactivation
• Locomotive fleet withdrawn; five units now for sale

Pulse Analysis

The Modalohr piggyback service was born out of necessity after the 1999 Mont Blanc tunnel fire, which forced hazardous lorry traffic onto rail. Using swing‑tray wagons, the 175‑kilometre corridor linked French and Italian freight markets, offering a faster, greener alternative to road haulage. Over two decades, it demonstrated the commercial viability of intermodal rail, prompting other European corridors to explore similar concepts.

In recent years, the line faced a cascade of setbacks. Routine maintenance in France cut frequencies, and a massive rockfall in August 2023 forced a complete shutdown, leaving the route idle for more than a year and a half. The European Commission’s decision to approve direct government grants removes a major financial barrier, but competition rules still prevent SNCF from re‑entering the market, reflecting lingering antitrust concerns. The search for a new operator now hinges on securing capital to reactivate mothballed terminals and refurbish the specialized Modalohr wagons.

Looking ahead, reviving the Aiton‑Orbassano link could reinforce the trans‑Alpine freight corridor, a key component of the EU’s Green Deal transport strategy. Re‑establishing regular piggyback services would shift thousands of tonnes of cargo from congested highways to electrified rail, cutting emissions and improving supply‑chain resilience. However, challenges remain: the BB 36300 locomotive fleet has been retired, with only a handful of units available for purchase, and the specialized infrastructure requires significant investment. Successful relaunch will depend on coordinated funding, a capable operator, and alignment with broader European rail integration goals.