This is a report that could make waves. Submitted at the end of the year to the DGITM (General Directorate for Infrastructure, Transport, and the Sea) and the DGE (General Directorate for Enterprises), the document seeks to identify responsibilities in the delays plaguing train deliveries in France.

Revealed by our colleagues at VRT (www.ville-rail-transports.com), this "scathing" report, according to the site, points the finger at both Alstom and SNCF.

"This report assigns major responsibility to Alstom, highlighting serious weaknesses in the management of its supply chain, its organization, and its overall management, despite the continuous acquisition of new contracts," notes Louis Billon, who covers the case for AlphaValue. SNCF, meanwhile, is also criticized for its siloed operations and the excessive complexity of its technical specifications.

Specifically, "the report emphasizes the role of the State, transport authorities, and political decision-makers in creating unrealistic timelines and increasingly complex requirements. As a result, the delivery time for a new train has reached between 8 and 12 years, while costs have risen significantly," adds AlphaValue.

Nevertheless, the broker offers an encouraging conclusion, estimating that even though Alstom is identified as the main party at fault, the report represents "a positive development."
According to AlphaValue, Alstom should continue to win orders due to the very limited competition in the domestic market and the complexity of requirements and years of lobbying.

"More importantly, this report could help drive changes in French regulations and certification procedures, which should allow Alstom to deliver trains more quickly. The expected regulatory and organizational improvements could materialize within the next three years," it concludes.

Contacted by Zonebourse, Alstom had not responded at the time of writing. At mid-session, the stock was down 0.5% in Paris.