Signalling Business Unit

New orders acquired during 2013 totalled €624 million (2012: €893 million).

Key events of the year are described below.

Performance of the Signalling Business Unit

New orders 624,139 893,197 (269,058)
Order backlog 2,234,070 2,616,684 (382,614)
Revenue 729,108 725,588 3,520
Operating profit (EBIT) 36,224 62,530 (26,306)
ROS 5.0% 8.6% -3.6 p.p.
Operating working capital 64,856 103,705 (38,849)
Research and development 31,272 30,566 706
Headcount (no.) 3,066 2,971 95

(The amounts shown in the table include inter-business unit transactions).


New orders totalled €121 million, including €53 million for maintenance and repair of conventional railways networks, including the renewal of the contract for the repair of the SCMT/STB LRUs (€9 million) and the contract to upgrade the Rome junction (€8 million), the maintenance of ACC systems (€15 million), SCC (€5 million), SCMT systems (€3 million), and Rete Ferroviaria Italiana’s outsourcing of its IT network (€6 million).

Activities to upgrade the conventional railway network (€48 million) include the orders won for the Foggia ACC system (€14 million) and the CTCs for Florence Campo di Marte (€7 million) and the South Tyrrhenian railway (€5 million).

In respect of high-speed railway networks, orders totalling €12 million were won for the upgrade of the Milan-Turin, Milan-Bologna and Treviglio-Brescia sections.


Orders in Spain totalled €29 million, including €27 million for the maintenance contract of the railway traffic control, Level 1 and 2 ERTMS (European Rail Traffic Management System) signalling and associated systems for the Madrid-Puigverd de Lleida high-speed line (495 km connecting Madrid and Barcelona with the French border).

In France, new orders came to €62 million, about half of which relates to the high-speed railway lines with orders for bi-standard equipment for Thalys and TVM (€14 million) and upgrading for the HS South-East Atlantique (€13 million) and HS East (€5 million) sections.

For the conventional railway network, there were orders for components and maintenance services (roughly €20 million) and for adjustments to interlocking systems of certain stations for €7 million.

In Germany, orders amounted to approximately €8 million, with the most significant (of some €7 million) related to the development of new software functionalities for the signalling equipment to be installed on the Velaro trains.

In UK, orders amount to €6 million for maintenance and order variations on conventional railway lines.

In Sweden, orders totalled approximately €24 million, including contracts for order variations to the ESTER programme (€14 million) and for the Stockholm metro Red Line (€8 million).

In Turkey, new orders exceeded €17 million and related to line variations for the Ankara metro.


In the USA, new orders approximated €153 million, including €62 million for the sale of components. Orders in the metro sector include those related to Washington D.C. (WMATA) Dulles (€22 million), Los Angeles Crenshaw/Greenline (€20 million), the Speonk/Montauk section of the Long Island Rail Road (LIRR) (€15 million) and various microlock solutions for Los Angeles (€6 million).

Orders totalled €8 million in Canada, including €6 million for the Toronto metro for modifications to signalling systems, while in Brazil, orders amounted to approximately €3 million related to project variations on Lines A and F of the Sao Paolo metro.


A contract was won in June worth approximately €40 million for the design, supply, installation and roll-out of the ERTMS signalling systems for the new 130 km-line connecting Oued Tlelat and Tlemcen in North West Algeria.

At the beginning of April, Morocco’s Office National des Chemins de Fer (ONCF) awarded the project to design and supply the railway signalling, telecommunications and traffic control centre for the 183 km high-speed line that will connect the cities of Tangiers and Kenitra along the Atlantic coast to the consortium comprising Ansaldo STS France and Cofely Ineo. The group will supply the telecommunications equipment, next generation interlocking, track circuits, automatic controls and automatic train protection systems based on Level 1 and 2 ERTMS, as well as the traffic control centre located in Rabat. The total contract is worth €120 million, of which some €58 million pertains to Ansaldo STS.

One of the most significant commercial opportunities in this region is in the United Arab Emirates relating to the construction of new railway lines (stage 2 – 550 km) as an extension to the line already assigned to Ansaldo STS and currently being built (stage 1 – 220 km), with the introduction of Level 2 ERTMS signalling systems, in addition to the telecommunication network and asset power supply and security/protection systems.


In Australia, orders amounted to roughly €15 million. These include orders for the upgrade of the Coal Loop and Spur Line - Caval Ridge freight line (€4 million), the sale of components (€4 million) and new orders for maintenance on conventional railway lines (€4 million). 

New orders won in China totalled €30 million and the most important of these relate to the metro segment, including the implementation of CBTC signalling technologies for Lines 1 and 2 of the Dalian metro (€11 million), the extension of the metro lines in Chengdu (Line 1 South extension) (€4 million) and Shenyang (Line 2 North extension) (€4 million). A further significant result was winning the supply of on-board equipment for the Chinese C3 standard high-speed trains (€5 million).

Finally, in India, orders amounted to €6 million, related to various adjustments, maintenance and spare parts of interlocking equipment for passenger railway traffic regulation. 


Revenue in 2013 came to €729,108 thousand, compared to €725,588 thousand in the previous year.

The key production activities are summarised below.



The high-speed programme for the original sections (Turin-Milan-Bologna-Florence-Rome-Naples) is largely complete. Following the rollout of the extensive upgrade of the Milan–Bologna high-speed line, the company continued to work with RFI on several areas involving the upgrade of existing technological systems on the lines.

2013 production mainly related to design activities for the new Treviglio-Brescia high-speed section. Specifically, the detailed executive design has been completed and construction is underway. Meanwhile, the most complex technology requirements continued to be considered and those materials used to reach the first contractual milestones have been tested successfully.

The high-speed connection at Naples project was successfully completed.


In the on-board systems segment, production mainly related to the development of ERTMS systems for new ETR 1000 high-speed trains for the Trenitalia fleet, as well as the supply of new rolling stock to AnsaldoBreda S.p.A. (highfrequency trains (TAF) and Electric Multiple Unit (EMU) bidirectional trains, regional transport trains (TSR), Stadler (SCMT equipment for Flirt trains), and Siemens and Vossloh. Development and validation activities were completed for the new ERTMS 4.34 build necessary for the contractually-agreed activities to upgrade Trenitalia’s ETR 500 Frecciarossa fleet. The retrofit of Trenitalia fleet’s on-board subsystems continued, as did the supply of such system to other railway companies, such as Umbria Mobilità, Trentino Trasporti, Ferrovia Adriatica Sangritana and Sistemi territoriali. 

Works related to the contract with the Greek railways resumed; specifically, the Athens and Thessaloniki sites were opened and activities to equip rolling stock with Level 1 ERTMS systems continued, along with the initial integration testing stages with the Greek network’s land-based systems.


In the Station equipment line, activities focused on the ACC projects: Rebaudengo (variations to Turin Porta Susa tracks I and II), Palermo Centrale, the Genoa junction and Brescia. 

The reconfiguration of the SST SCMT continued for the Turin (including the NVC and RBC modification for the raising of Stura 5th entrance), Genoa, Florence, Naples and Verona sections, as well as automation activities comprising both modifications and revamping of existing CTC/SCCs (including the Naples SCC, Florence-Rome CTC, and Bari-Lecce and Bari-Taranto CTCs) and activities related to new SCC systems (Palermo), as well as supervision activities for Line 3 of the Milan metro.

The project for the technological upgrade of the Turin-Padua section deserves special mention, where production mainly comprised materials procurement, which is nearly complete, and the issue of spreadsheets related to the detailed executive design. The Milan Greco operational control point has been completed and installation and roll-out activities on the outskirts, as well as checking and validation activities, commenced.


The key activities of the year were: the start of preparation of the first traction units by AnsaldoBreda for the Genoa metro; the start-up of the new Colli Aminei operational control point on Line 1 of the Naples metro and works to open the Dante-Garibaldi section to the public; materials testing and the development of prototypes for on-board racks for the new DIVA equipment for Line 6 of the Naples metro.


(This section includes Turkey and the former Soviet republics).

In France, activities mainly related to systems (LGV SEA, Bretagne Pays de la Loire BPL and Honam) and on-board equipment (Thalys) for the country’s high-speed network, as well as the usual maintenance, assistance and production contracts for individual parts.

In Sweden, production mainly related to the Ester projects where ERTMS 2.5.3 build was rolled out in December. This success is recognised as the result of collaboration between experts of the customer, suppliers, railway operators and the Swedish transport agency. The project was awarded in 2008 and comprises the implementation of ERTMS systems on a 150 km freight line from Boden to Haparanda, linking the Swedish railway network with the Finnish railway network. Haparandabanan now uses the M11 signalling system (build 2.5.3) supplied by Ansaldo group. This is an important step in the complex ERTMS programme in Sweden. The next step is a new build of the system featuring further improvements by the end of 2014.

In regard of the Red Line project, testing of lines continued, various Final Acceptance Tests were signed (DCS of hardware related to the wayside radio antenna, central cabinet and ATS) and the initial equipment installation in the Universitet (FACI) station was completed in December.

In the United Kingdom, the completion of the Cambrian line project (the first line in Britain to be equipped with the European Level 2 ERTMS standard) has been put back to mid-2014 due to additional requests of the customer with respect to a new RBC version for which commissioning has already been completed.

Activities in Germany are halted for the POS (Paris-Ostfrankreich-Südwestdeutschland) project, pending the customer’s review of the project inputs. In relation to initial deliveries and testing activities on the set-up of the Rostock-Berlin line, the customer suspended the works due to a new redefinition of the technical/contractual requirements. 

An extension to the scope of the onboard work has been agreed for the supply of 30 multistandard facilities for 15 Velaro high-speed trains. 

During the year, the system design for the V2 version was reviewed and testing of the line operability was completed; equipment supplies for the last of the ten Eurostar trains are still underway.

In Khosta, Russia, the assistance activities provided as part of the Itarus ATC Trial Site project, assembling RBC and related power supply systems and concordance testing were completed. After the communication protocol testing stage (between the RBC and the Customer’s system) was completed, necessary for the roll-out of the ERTMS standard in Russia (trial site), the customer (NIIAS) resumed field testing.

In Turkey, under the Mersin-Toprakkale project, the Multistation equipment was ready to be activated and installation and commissioning activities continued for the other activities for the Northern section. 

Works were generally impacted by large delays caused partly by the customer and partly to serious incidents of theft and vandalism along the Southern line generating unavoidable extra costs for the project. The group is examining steps it can take to recoup the extra costs incurred.

In relation to the Ankara metro, activities have advanced significantly, picking up strongly despite the customer’s delay in delivery of the sites. Specifically, all basic and detailed design, materials production, installation and commissioning activities for the M3 Line were carried out. 

The M3 Line was declared open in February 2014 in a ceremony held in Ankara attended by the authorities.

This is part of the first of three lots (four lines) of the project, which includes the upgrade of the existing M1 Line and the depot currently used, the building of the M2 Line and the M4 Line. The M3 Line is operational in DTP mode. All CBTC functionalities are expected to be completed in 2014.

Reaching this first important target consolidates the group’s competitive edge and strategic position in the Turkish market, as the customer, Aygm, is behind the major tenders in the Mass Transit segment in Turkey.

In relation to the Gebze-Kosekoy project, all basic and detailed design and materials production activities were carried out, and the installation stage launched.


The project in Tunisia is in the reliability, availability and maintainability (RAM) performance guarantee and checking stage. 

No direct agreement was reached with the customer (SNCFT) in negotiations aimed at avoiding the application of penalties and receiving payment for extra costs incurred. The group filed an arbitration request with the International Chamber of Commerce in Paris together with the lead contractor Alstom.

In Libya, activities for the project to develop the signalling, telecommunications, security and power supply systems for the Ras Ajdir–Sirth and Al Hisha–Sabha sections have not recommenced since the upheaval started.

In relation to the project for the construction of a similar technological system for the Sirth–Benghazi section, which was also halted by the customer Zarubezhstroytechnology (ZST) with the intention to resume works in the future, ZST enforced the advance payment bond at the beginning of August 2013, and notified its intention to terminate the contract. The parent asserted the unlawfulness of such resolution, which was based on a fraudulent statement about the subcontractor Ansaldo STS’s breach of contract, whereas the failure to implement the contract should have been attributed to force majeure. Ansaldo STS then appealed against ZST’s enforcement of the guarantee before the Court of Milan. The resulting urgent procedure was resolved in November, with the Court of Milan authorising Crédit Agricole to release part of the advance (some €41 million) confirming that ZST had only the right to partial repayment of the advance, net of the value of the activities already carried out and the costs incurred. On this basis, Ansaldo STS S.p.A. made a partial repayment of the advance and apart from this repayment, this matter has not had any other impact on the parent Ansaldo STS S.p.A.’s financial position and results of operations.

Following this provisional measure, the dispute will proceed as normal unless the parties reach an out-ofcourt settlement.

In the United Arab Emirates, section 1 (Ruwais-Habshan) of Stage 1 of the Abu Dhabi (Shah-Habshan-Ruwais Line) project is nearing completion. All engineering and procurement activities have been completed and the installation and commissioning of all technologies are currently underway. Dynamic testing is slated to take place next year.

Initial engineering activities related to basic design and specific system and subsystem requirements have commenced in Algeria for the new high-speed railway contract between the Oued Tlelat and Tlemcen stations in the country’s North-West.

The high-speed railway contract between the Tangiers and Kenitra stations has commenced in Morocco and the initial basic design engineering activities and RAMS documentation are currently underway.


Production activities concerned both long-term projects and the sale of components.

With respect to the former, there was intense activity for the customer, Union Pacific, for the OTP/CADX project, in addition to ordinary maintenance activities. 

Specifically, three variations were approved subsequent to the original contract and the last of these, in December 2013, significantly amended the delivery terms, conditions and timing, reflecting a changed approach in the management of the CADX and OTP software development, reducing Ansaldo STS’s scope of work. 

They also included activities for the customer, Southeastern Pennsylvania Transportation Authority (SEPTA), for the procurement, design, production, construction and installation of a Positive Train Control (PTC) system on 13 lines. Wayside, cab and communication design and configuration, as well as activities with subsuppliers, continued in the year.


Production in Australia focused on the alliance with local mining companies. With respect to Newcastle, all commissioning activities have been successfully completed, as well as alliance mobilisation; a settlement deed was also approved and signed to settle the pending commercial aspects (including the productivity payment and KPIs).

Engineering and design activities for mobile radio services and the fibre optic cable were submitted to the customer for approval with respect to the new Roy Hill project. Subject to the receipt of additional documentation, the customer is ready to issue the practical completion certification for Mine Hilltop Tower and the Communication Equipment Room.

Production in India mainly focused on the following projects. 


A medium yard, two stations and three block sections were commissioned.

Following the approval of the project’s extension to December 2013 and a variation to the third line, an official request was made during the year for a further extension to June 2015, partly due to the technical issues arising during implementation which meant the whole project had to be remodelled.


The installation reworking on the Kosi Yard and BAD - FAR sections was completed and the Safety case has been sent to the customer for approval. A contractually-agreed training session for the customer’s personnel was organised and completed and a further time extension was approved.


Installation and building site works were completed for both the onboard and wayside portions. The as-built, safety case and ISA report documentation has been sent to the customer for approval.


The project is still in its initial stages.

The customer has officially notified a one-year delay for certain civil works; investigations are underway to better establish timing and cost implications. Engineering activities have commenced and purchase orders were finalised with certain technology providers. The general requirements and preliminary design milestones were reached.

Deliveries of equipment continue as scheduled in Korea.

In China, the ZhengXi Line project is almost complete. Minor on-board systems technical issues have been resolved and laboratory and onsite tests carried out together with Hollysys. The first train featuring onboard systems modifications began operating.


Operating profit (EBIT) of the Signalling business unit for 2013 came to €36,224 thousand (5.0% as a percentage of revenue), compared to €62,530 thousand (8.6% as a percentage of revenue) in the previous year, mainly due to the lower profitability of certain projects and the different mix of contracts in the two years.

Operating working capital at 31 December 2013 was €64,856 thousand, down €38,849 thousand on the €103,705 thousand at 31 December 2012, due to lower inventories and trade receivables, partially offset by the increase in work in progress net of payments on account and the lower trade payables.

Research and Development expense for the year equalled €31,272 thousand, compared to €30,566 thousand in the previous year. 

The headcount at 31 December 2013 numbered 3,066 (2,971 employees at 31 December 2012). 

The increase, which is mainly related to fixed-term contracts, refers in particular to the Spanish area and reflects the acquisition of the contract for the maintenance of the railway traffic control and signalling and associated systems for the Madrid-Puigverd de Lleida highspeed line.