- Renovation works set to last three and a half years, with 14 round trips a day from 2028 and a 55% increase in passenger traffic.
- Reopening of 75 km railway line will improve access to rural areas in the western Vosges and in southern Meurthe-et-Moselle, and contribute to the development of sustainable, low-carbon mobility in the Grand Est region.
- Project marks a first in France since rail transport was opened up to competition.
The European Investment Bank (EIB) has announced the signing of a €90 million loan contract with Nova 14 for the renovation, operation and maintenance of the regional railway line between Nancy and Contrexéville, which has been closed since 2016. This operation is part of a 22-year concession between Nova 14 and the Grand Est region.
The European Investment Bank is the lead financier, providing nearly 50% of the almost €200 million in total financing. The remainder will be provided in equal amounts by Crédit Industriel et Commercial (CIC), La Banque Postale, La Caisse d’Epargne Grand Est and Nord LB.
The Nova 14 concession company is a consortium made up of the construction group NGE Concessions (50%), the transport operator Transdev (20%) and Banque des Territoires, part of the Caisse des Dépôts et Consignations Group (30%). It will carry out works amounting to €150 million and begin operating the renovated line from January 2028.
Lasting three and a half years, the works will involve nine specialist local NGE Group companies, and will be led by TSO, the group’s railway subsidiary. Operation and maintenance will be carried out by an operating company that is owned by Transdev Rail (75%) and by NGE Exploitation (25%). It will be responsible for train scheduling and maintenance and for line safety for the 22-year concession period.
The partnership between the European Investment Bank and the commercial banks backing the region’s development demonstrates the significance of Line 14 in improving access to the western Vosges and to southern Meurthe-et-Moselle, and to making the areas more appealing, all through the development of sustainable, low-carbon mobility. While there were previously only four round trips a day on this route between Nancy and Contrexéville, there will be 14 from 2028.
Serving 12 municipalities with a journey time of one hour and ten minutes between Nancy and Contrexéville, the renovation and upgrade of the 75 km line will also include the creation of a rail maintenance hub in the municipality of Mirecourt. With trains running at an average of one round trip per hour, the Nancy-Contrexéville service will meet the everyday needs of a rural community while also helping to revive the Vittel thermal spa resort. 550 000 passengers are expected to use the line when it reopens.
EIB Vice-President Ambroise Fayolle said: “The European Investment Bank’s involvement in financing the renovation of the railway line between Nancy and Contrexéville is fully in line with its long-term investment policy as the EU public bank to promote low-carbon and easily accessible regional public transport. Our commitment alongside other public and private stakeholders will help to reinstate a vital local railway line for this part of the Grand Est region. We are thrilled that the European Union, through the EIB, is getting involved in a project that will have a very tangible and beneficial impact on the day-to-day lives of people living in this rural area.”
President of the concession company and of NGE Concessions Thierry Bodard said: “The Grand Est region has a clear goal to revive the Nancy-Contrexéville line, and we are proud to have been chosen to support it in developing sustainable, low-carbon mobility in the area. Nova 14 and its partners, Transdev, Banque des Territoires and NGE Concessions, led by expert rail construction company TSO, are proud of this project as it marks a first on two fronts: it is the first rail contract that the Grand Est region has granted to a private operator since rail transport was opened up to competition, and the first contract in France under a new model that enables a single service provider to operate rail services and also manage the infrastructure.”
Chief Executive Officer of Transdev France Edouard Hénaut said: “This is the first rail contract that the Grand Est region has granted to a private operator, Nova 14, since rail transport was opened up to competition, and the first contract in France under a new model that enables a single service provider to operate rail services and also manage the infrastructure. This financing is key to reinstating the Nancy-Contrexéville railway line, and demonstrates the faith that the consortium of banks has in us to reopen the line in 2027. I would like to thank all those who have contributed to the success of this project, which marks a new era for communities in the Grand Est region and their mobility needs.”
Executive Vice-President of Caisse des Dépôts and Director of Banque des Territoires Olivier Sichel said: “We are proud to be participating in the first integrated regional rail concession project in France alongside NGE and Transdev, a subsidiary of the Caisse des Dépôts Group. Banque des Territoires’ involvement in this project demonstrates the value we see in reviving regional rail transport, in particular in the Grand Est region, where we are already financing railway rolling stock.”
Head of Project Finance at CIC Philippe Schatzlé said: “Crédit Industriel et Commercial is pleased to be supporting Nova 14 and its shareholders NGE, Transdev and Caisse des Dépôts et Consignations in an operation that is fully in line with the Crédit Mutuel Alliance Fédérale Group’s strategy of financing innovative regional planning projects and reducing the carbon footprint of public transport, thus helping to bring life back to this important area of the Grand Est region.”
Deputy Managing Director of Corporate and Investment Banking at La Banque Postale Pascale Moreau said: “La Banque Postale is delighted to be supporting Nova 14 and its shareholders in this project that will bring new momentum to our regions, and in particular the Grand Est region. Fostering sustainable mobility and social links are important aspects of this concession. Our involvement in arranging and financing this railway concession reflects our role as a mission-driven company and strengthens collaboration among public banks alongside Caisse des Dépôts et Consignations.”
Senior Director of Infrastructure Origination at NORD/LB Jan-Patrick Daniel said: “NORD/LB is pleased to once again be supporting the Grand Est region’s plans to improve and revive public transport services in order to meet mobility needs, reduce the carbon footprint and support economic growth in the region. We are proud to have arranged the financing for Nova 14 and its shareholders NGE, Transdev and Caisse des Dépôts et Consignations together with our financial partners and advisory teams.”
Background information
About the EIB
The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its 27 Member States. It provides loans to the public and private sectors for sound investment contributing to EU policy goals. In 2023, France received more EIB financing for the energy and green transition than any other country, with an overall investment of €6.9 billion for renewable energy, clean mobility and energy efficiency. A partner of regional authorities, last year the EIB directed €2.5 billion in funding to rail and urban public transport and soft mobility, making it the number one sector in terms of EIB investment in France over the year.