The Transportation Solutions Business Unit

In 2010 Ansaldo STS maintained the strong position it had acquired in the transportation solutions market, consolidating its technological and competitive leadership in the driverless metro segment.

In 2010 new orders amounted to EUR 1,142,756 thousand, an increase of 80% over the 2009 figure of EUR 632,467 thousand.

Principal Orders
Country Project Principal Value (EUR million)
Denmark Copenhagen Supply Ring Metroselskabet 344.4
Denmark Copenhagen O&M Ring Metroselskabet 232.4
Denmark Copenhagen Existing Line O&M Metroselskabet 220.8
Italy Napoli Linea 6 - Mostra Arsenale Naples Municipality 160.5
Italy Metro Genova deposit Genoa Municipality 42.4
Italy Metro Genova veichles Genoa Municipality 31.6
Australia Various Rio Tinto projets Rio Tinto 16.0
Italy Napoli Alifana Consortile - variation Alifana 10.6
Italy Roma Metro Linea B1 Salini 7.4
Denmark Copenhagen Existing Line O&M - variation Metroselskabet 6.7
Italy HSL variations IRICAV / SATURNO 5.6
Italy Napoli Linea 6 - variation Naples Municipality 4.9
Italy Napoli Alifana Segnalamento - variation Alifana 4.8

At 31 December 2010 the backlog was EUR 2,721,540 thousand, over 32% more than the EUR 2,048,073 thousand of 31 December 2009.

The most important order was the contract for the new Cityringen driverless metro in Copenhagen. This contract is worth EUR 576.8 million (not including the rolling stock to be supplied by Ansaldo Breda), is the largest in the history of ASTS and proves not only the company’s technological excellence, which enables it to compete successfully in the international market, but also its ability to establish long-term relationships of trust with clients, as is shown by our many years of activity in Denmark, and the high regard in which the works already completed there are held.

Our leadership in the transportation solutions market received a significant boost in Italy, from which we received orders for conventional metro systems: the extension of line 6 of the Naples Metro (EUR 160.5 million); the extension of a section of the Genoa metro to the depot (EUR 42.4 million), the supply of seven new trains to the Genoa metro (EUR 31.6 million) and for the B1 Line of the Rome metro (EUR 7.1 million).

In the Asia-Pacific area Ansaldo STS signed a framework agreement in Australia for Rio Tinto goods transportation, which will guarantee a constant flow of income for the next five years totalling some EUR 340 million.

In 2010 we also continued developing and testing new technologies to increase our competitive advantage in the urban transport market.

In cooperation with Ansaldo Breda, we succeeded in bringing into service a new ground-level supply technology, without catenaries, known as TramWave; this technology is currently at the offer stage for application to the LRT system in Losail, Qatar.

The “Driven by Business” strategy has also given enormous impetus to our Business Unit, which it has enabled to evolve from the status of a highly successful European firm to that of a global supplier of competitive and sustainable transportation systems throughout the world.

In Italy plans to expand urban transport have been confirmed, even though in several cases their completion has been significantly postponed due to the slowdowns caused by the economic crisis.

In addition the extensions of contracts for existing concessions are expected shortly.
We are currently awaiting the outcome of a tender for Milan’s driverless Line 4, for which we made an offer in December 2010.

In the European region, after the more recent success with Cityringen, Denmark has become a highly strategic market, not least bearing in mind the longstanding presence of the group in the country: the driverless metro in Copenhagen - where STS is also the operator - is one of the best business cards of our Transportation Solutions Business Unit.

In the rest of Europe the macroeconomic situation caused a slowdown in various projects (mainly in the Eastern European regions, where the European Community’s development programme do not cover all local needs).

Middle Eastern countries are investing moderately in new public infrastructure.
In Qatar, as noted above, there are currently offers for the Losail LRT project, where we will propose the technology without catenaries, TramWave.
In Saudi Arabia the company is giving great importance to the driverless metro at Riyadh’s Women’s University, which was awarded to Ansaldo STS in 2009, with the expectation of being able to further increase our market share.
Many other mass transit projects are foreseen in the Middle East in the next 5-10 years, depending on the delays caused by the financial crisis.

In North Africa, due to the current situation of crisis and instability, we presume that most of the projects will be cancelled or delayed.

In Tunisia, two new lines of Tunisi’s suburban railway are at the tender stage, but in light of the current situation in the country, the tender procedure should be prolonged.

All the other expectations of expansion in the Asia-Pacific region have by contrast been fully met.
In India and Thailand, there are various short- and medium-term projects, both for urban transportation and for railways.

India, in particular, seems to be one of the areas with the greatest potential, thanks to the expectations for mass-transit projects and goods transportation.

In 2011 in Taipei offers will be opened for the extension of the Circular Line and a new metro line.

In Malaysia, our Business Unit is currently in the tender stage for the extension of the Ampang LRT system in Kuala Lumpur.

In North America, a significant step was taken with the offer for a driverless metro in Honolulu, currently being assessed.

There are concrete short- and long-term prospects for a number of tenders relating to the HSL segment, i.e. the new Desert Express line, which will link Los Angeles and Las Vegas.

In terms of opportunities in South America, the most interesting companies are Brazil, Colombia and Chile, where there are a number driverless metro projects.