SNCF vs Ceetrus: Court Orders Heavy Fine in Gare du Nord Modernization Dispute

2023-09-22 18:14:22

fine

Updated 09/22/23 at 9:33 p.m.

The SNCF terminated the contract to modernize the Gare du Nord two years ago. Ceetrus, the Auchan property company, announced that it would appeal following this conviction handed down by the Paris commercial court

Justice ruled in favor of the SNCF and the fine will be heavy for Ceetrus. The Paris commercial court this Friday ordered the Auchan land company to pay more than 47 million euros to the SNCF as part of one of the disputes between the two companies since the transport group had terminated the contract two years ago modernization of the Gare du Nord.

Two years ago, the railway company abandoned its ambitious but controversial expansion project for this station, which is the busiest in Europe with 700,000 travelers per day. “Strong in this first favorable decisionSNCF Gares et Connexions intends to continue the current procedures at the administrative court aimed at obtaining compensation of 300 million euros from Ceetrus,” this company of the SNCF group indicated this Friday.

The land company accused of “serious failure” by the SNCF

In September 2021, it denounced the renovation contract linking it to Ceetrus, citing a lack of control of the project, soaring costs and very significant delays. Accusing the Auchan property company of “serious failure”, the SNCF had accused it of “unbearable deviations from commitments”, with a tripling of the cost of the work (to 1.5 billion euros) and delays. Ceetrus, for his part, had accused his ex-partner of lacking “loyalty”.

This work was to significantly expand the station in anticipation of the 2024 Olympic and Paralympic Games in Paris. The renovated station was to house new businesses. Since the final abandonment of the project, the SNCF has launched much more modest developments at the Gare du Nord, amounting to 50 million euros. This work must be completed in April 2024.

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