Railcoop, a cooperative aiming to relaunch the train line between Lyon and Bordeaux, is facing numerous obstacles that could prove fatal to the project. The cooperative, launched in 2019, has set ambitious goals to serve several municipalities along the route, including Roanne, Saint-Germain-des-Fossés, Gannat, Montluçon, Guéret, Saint-Sulpice-Laurière, Limoges, Périgueux, and Libourne. However, the lack of profitability has deterred even the SNCF from pursuing the project, as they shifted their focus to high-speed lines in 2014.
Railcoop’s plan is to capture travelers in rural areas by offering affordable tickets, priced at around 40 euros for a one-way trip to Bordeaux. The cooperative has managed to gather support from approximately 7,500 members, including local authorities such as the Métropole de Lyon and the City of Lyon. They have also obtained a railway license with the help of 1.5 million euros collected. However, the project has faced delays due to the health crisis, slow processes, and discussions with SNCF Réseau.
One of the major challenges for Railcoop is the lack of financial support from banks, as the railway activity requires significant capital. The cooperative is currently trying to raise 4.5 million euros to ensure the project’s feasibility by 2024. They are relying on their members and local authorities for financial support. Despite the obstacles, Railcoop has received approval from the Transport Regulatory Authority to operate passenger links between other cities, including Lille and Nantes, Clermont and Strasbourg, and Annecy and Marseille.
However, the cooperative is currently facing a financial crisis, with a deficit of 4.2 million euros recorded in 2022. In a letter to its members, Railcoop urgently requested funds to pay salaries and suppliers. They need 100,000 euros by June 30, 300,000 euros by July 31, and 500,000 euros by September 30. Railcoop estimates that they will need 2.8 million euros by the summer of 2024 to hire and train staff. They are exploring various options, including cash loans with new financial partners and bank loans guaranteed by local authorities. Additionally, they plan to sell 100,000 vouchers of 30 euros between July 4 and September 30 to raise funds.
The Lyon-Bordeaux project is facing an accumulation of obstacles, including financial difficulties, delays, and the need for continuous fundraising. The future of Railcoop’s ambitious citizen project remains uncertain, but the cooperative is determined to overcome these challenges and relaunch the train line between Lyon and Bordeaux.
What strategies is Railcoop implementing to differentiate itself from low-cost airlines and affordable bus services to attract passengers to their rail service
O secure support from local authorities and has received a grant from the French government to cover some start-up costs. However, the cooperative still faces significant challenges.
One of the main obstacles is the need for significant investment in infrastructure. The train line between Lyon and Bordeaux has not been used for passenger transportation for several years and requires substantial renovation and modernization. This presents a financial hurdle for Railcoop, as they will need to secure funding for these necessary improvements.
Additionally, Railcoop must navigate complex regulations and bureaucratic processes. Obtaining the necessary permits and licenses from various authorities can be a time-consuming and arduous task. This adds an additional layer of complexity to the project and increases the likelihood of delays.
Another challenge for Railcoop is convincing passengers to choose their service over other modes of transportation. With the growth of low-cost airlines and the availability of affordable bus services, train travel is not always the most attractive option for travelers. Railcoop must find a way to differentiate itself and demonstrate its value proposition to potential customers.
Despite these obstacles, Railcoop remains committed to its mission of reviving the train line between Lyon and Bordeaux. The cooperative believes that by offering affordable tickets, they can attract passengers who are looking for a more sustainable and comfortable mode of transportation. They are actively working on addressing the challenges they face and are exploring alternative funding options, such as crowdfunding, to support their project.
It remains to be seen whether Railcoop will be able to overcome these obstacles and successfully relaunch the train line between Lyon and Bordeaux. However, their determination and innovative approach to rail travel give hope that their cooperative endeavor may become a reality in the future.
