Italy's state railway, US fund in French joint venture

Italian state rail operator Ferrovie dello Stato (FS) said it will accelerate operations in its Trenitalia France unit via a billion-dollar joint venture with US private equity fund Certares.

The agreement seeks to "accelerate the growth" of Trenitalia France and "consolidate its presence in France, the United Kingdom, and cross-border markets," the partners said in a statement.

Trenitalia France plans to expand its fleet to at least 19 trains, as well as open a maintenance facility outside Paris, and also offer increased service capacity on existing routes, including Paris to the eastern city of Lyon, from a current nine to 14 daily.

Trenitalia France also intends to compete with Eurostar on the latter's Paris-London route by 2029.

FS looks to push its ambitions at a time when high-speed rail services are expanding amid intensified cross-border competition.

The Italian operator is also considering moving in on the Paris-Brussels route, the group indicated during the presentation of its strategic plan earlier in December.

Monday's agreement with Certares, whose activities focus notably on travel and tourism, hospitality, business and consumer services, comprises establishing a joint venture and includes a 300-million-euros investment in Trenitalia France.

Trenitalia France is meanwhile planning to invest one billion euros in its routes in France and the United Kingdom.

The Italian operator has been in direct competition withthe  French state network SNCF for four years, offering services from Paris to Lyon, Marseille, and Milan, without as yet being profitable.

Trenitalia France also intends to improve its service distribution through agreements with companies within Certares' portfolio, including travel agencies CWT, Ovation, Egencia (business travel), Havas Voyages, and Selectour (leisure travel).

In the coming year, Trenitalia France plans to focus on consolidating and retaining customers in France, hoping to boost occupancy rates on its red TGV trains, its management indicated earlier in December.