French high-speed rail start-up Velvet wins initial licence

French rail start-up Velvet said Tuesday it had won an initial licence to operate on high-speed lines currently dominated by state-owned SNCF.

Velvet, launched by former SNCF executive Rachel Picard, aims to run next-generation TGV trains on four routes in western France serving Paris, Bordeaux, Nantes and Angers from 2028.

The company has received a first approval from the French transport ministry and still needs safety certification from the network regulator.

“This licence is an important step: It allows us to advance the preparation of our trains, our teams and our processes,” Picard said in a statement.

Picard raised €1 billion, about $1.16 billion, for a French investment fund, mainly to buy 12 Avelia Horizons trains from Alstom. SNCF also plans to roll out the same trains over the coming months.

France opened its passenger rail market to competition in 2020 under EU market liberalisation efforts, but SNCF remains the main operator. Other companies seeking to compete in France include Le Train, Spain’s state-controlled Renfe and Italy’s Trenitalia.