Transport Systems

In terms of the outlook, it is believed that the market for transport systems at a global level will continue to grow, although such growth is the result of performance of different national markets, each with its own cyclical trend. At a product level, the importance of the driverless metro segment has become increasingly evident, and not only in Europe. The segment serves as a significant factor in competition on the urban transport market overall, with an important advantage, including in terms of image, accruing to those companies in possession of the related technological expertise and systems skills.

Significant opportunities are offered by Russia’s transport development programme, which embraces projects for the electrification of the national rail network and development of metro and suburban transport systems in the Moscow area. Among these is the Sochi Project, planned by the community that will host the 2014 Winter Olympic Games. This is a dual track 2x25 kV rail line of 58 km, with transport features similar to a metro (30,000 pphpd, headway 2 min). Ansaldo STS could be a subcontractor of the Russian National Railways (RZD) for signalling technologies, telecommunications and security. The companies Selex Communication, Selex Sistemi Integrati and Elsag Datamat will work as sub-suppliers of Ansaldo STS which will act as the integrating company. The signalling systems will be based on ITARUS-ATC technology, the subject of an agreement between companies belonging to the Finmeccanica Group and RZD. In Australia, the Gold Coast Light Rail and the North West Rail Link (Sydney) have outlined the start of plans to build transport systems in the Australian market. The systems integration and risk management for these projects, which had been directly managed by the contractor in the past, will be part of the Transport Systems Business Unit’s core business.

In Malaysia and Thailand, the prospects are mainly linked to the improvement of light-rail services in Kuala Lumpur and two monorail systems (Penang and Putra Jaya) for which the Transport Systems Business Unit is well positioned. In Malaysia, the acquisition of the order for the Malaysian North Double Tracking (worth EUR 139.28 million) constitutes the first important project secured by the Transport Systems Business Unit in the Asia Pacific region. Working in a joint venture with Balfour Beatty, ASTS Malaysia will handle the planning, supply, installation, and the testing and commissioning of signalling, telecommunications and electrification of 330 km of a dual track line between Ipoh and Padang Besar. In addition, there are other opportunities in this country for creating relationships/alliances at a local level with leading contractors such as SCOMI which participate in tenders for transport systems in neighbouring countries (such as the previously mentioned monorail in Mumbai, India). In India, the driverless metro projects are generally awarded to conglomerates in the country that are ready to accept significant risks and non-standard trade terms. Ansaldo STS is preparing to strike accords with the leading players (e.g. Reliance, Larsen & Toubrou, etc.) placing the focus on the selection of the projects to be followed. The main initiatives of 2008 entailed a strong commitment to bids in both the domestic and foreign markets.

In terms of activity on the domestic market, the following is noted:

  • Follow-up bidding on Rome Line D and preparatory activity for a future bid to the Promoter (Condotte/Pizzarotti) in anticipation of the continuation of the proceeding for the project-financing tender.
  • Activity for the preparation of bids in relation to WI-FI technology systems and security systems that will support the subsequent implementation of CBTC technology for signalling. More specifically, a bid was presented to Salini with reference to the extension of Line B1 of the Rome Metro; the bid provides for the design and construction of the WI-FI infrastructure for security (already made available for the CBTC) together with others telecommunications and signalling systems. The bid also provides an option for the implementation of the CBTC. Another possible initiative evaluated in 2008 is the extension of the Milan Metro Line 3 (yellow); in this case, the Transport Systems Business Unit will propose the planning and construction of the WI-FI infrastructure together with the signalling systems.
  • Continuation of activity to support existing businesses for formalising new orders or changes to contracts or concessions already in effect.

The bids submitted abroad include:

  • Thenia-BBA Line: bid submitted to the general contractor, the Chinese company, CCECC, the concessionaire of the works for the construction of a roughly 175 km line in Algeria for the planning, supply and installation of electrical sub-stations. The bid was submitted via a group of companies which includes BBR (catenary), Cegelec (assembly) and Ansaldo STS France (signalling and telecommunications) with the role of leader. The outcome of the tendering procedure is still pending.
  • Makkah Metro: bid submitted for technological works in relation to the new heavy rail system for Mecca. The scope of the work embraces: signalling, telecommunications, supervisory control and data acquisition (SCADA), and platform doors. The outcome of the tendering procedure is still pending.
  • Taipei Metro: bid submitted together with AnsaldoBreda for the planning and execution of the first phase of the new “Circular Line” line of the Taipei Metro. The project embraces: system engineering, signalling, power supply, telecommunications, SCADA, platform doors, ticketing, third rail, super structure, and deposit equipment. The outcome of the tendering procedure is still pending.
  • Dublin Metro North: bid submitted to a group of firms (with OHL as leader) presenting a bid for the Dublin Metro North (tender in which Ansaldo STS is not directly participating) for the following work: signalling, vehicle localisation, telecommunications, SCADA (with an option for power supply and catenary). The outcome of the tendering procedure is still pending.

Among the other numerous initiatives abroad, the following projects are worth noting; the bidding on these projects began in 2008, and will be formalised at the start of 2009:

  • Riyhad Metro: light driverless metro line at the women’s university in the Saudi city. A bid is to be submitted to a local company for the planning and execution of the electromechanical works.
  • Saint Petersburg: light metro line. The company is bidding as part of a group (it is a project-financing initiative) within which it is committed as the supplier of the electromechanical works.

In addition, the commercial activity continued with regard to the company’s involvement in a consortium for the planning, construction, installation and management for a concession period of a high-speed rail link between the holy cities of Mecca and Medina along a roughly 450 km rail line. In 2008, however, the customer subdivided the project objectives, separating the supply of technological works and vehicles from the supply of civil works. Accordingly, the company is awaiting the publication of the dates for the presentation of the bids for the technological works.

The orders acquired at 31 December 2008 came to EUR 342,467 thousand, decreasing substantially compared with the prior-year figure of EUR 802,728 thousand, though the latter amount was exceptionally high. It is noted that the year of 2007 marked the end of negotiations with the City of Naples for the Supplemental Act in relation to the Concession for Line 6 of the Naples Metro (Mostra-Municipio tract for EUR 426.3 million) as well as the acquisition, on the part of a group of businesses which includes the company, of an order for the Rome Metro Line C for the portion of the works financed (total of EUR 321.8 million). In any event, the backlog of the Transport Systems Business Unit went from EUR 1,809,872 thousand at the end of 2007 to EUR 1,843,542 thousand at 31 December 2008.