Transportation Solutions Business Unit

New orders acquired during 2013 totalled €900 million (2012: €643 million).

The key events of the year are summarised below.

Performance of the Transportation Solutions Business Unit

New orders 900,117 642,712 257,405
Order backlog 3,622,766 3,388,258 234,508
Revenue 584,058 564,853 19,205
Operating profit (EBIT) 86,731 69,130 17,601
ROS 14.8% 12.2% +2.6 p.p.
Operating working capital (41,518) (129,106) 87,588
Research and development 764 1,695 (931)
Headcount (no.) 673 631 42

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


New orders totalled €112 million and included the variation to the T3 section (Colosseo/S.Giovanni) of Line C of the Rome metro (some €53 million) and the preparation of the Genoa metro depot (€8 million). 

With respect to Line 4 of the Milan metro (S. Cristoforo - Linate), the actual amount of the ancillary agreement approximated €47 million.

This agreement, which was signed by the parties in June, marks the launch of activities, pending the completion of the process which will lead to the signing of the concession agreement.

Although they have nearly all suffered delays and been impacted by the financial and economic situation and lack of funding, the outlook in relation to the further long-term expansion programmes to the transportation networks of the main Italian cities is confirmed.


The key results in Europe were achieved in Denmark for the Copenhagen metro line with a total of €161 million related to the threeyear extension of the operation and maintenance (€135 million) and a variation related to the installation of the platform screen gates (€26 million).


In Saudi Arabia a turnkey contract was won for the Riyadh Red Line, for which Ansaldo STS will construct the technological component for some €511 million, which is expected to be rolled out in five years.

Ansaldo STS group forms part of a consortium made up of Salini-Impregilo, Larsen & Toubro and Nesma, for the civil works, and Bombardier, for rolling stock. The total investment approximates roughly USD6 billion, including the construction of two large landmark stations, Qasr Al Hokom and Western Station, the design of which is currently being finalised thus further boosting the overall value of the contract for Ansaldo STS. 

Ansaldo STS’s work on the contract entails the full technological integration of the signalling systems, ATC (Automatic Train Control) with the CBTC (Communication Based Train Control) system, the power supply system including the third track, the Operational Control Centre, the telecommunications systems and depot outfitting.

This is the most important contract Ansaldo STS has won in the Middle Eastern market. This area boasts the greatest future growth rates and highlights the technological excellence achieved by the group over the years. This new contract confirms the group’s presence in Saudi Arabia, where it has already built the country’s first metro serving the world’s largest university campus.

Sales activity in this region commenced in 2013 and continued in 2014, with the offer submitted for the Lusail tramway in Qatar featuring the catenary-free TramWave® solution, and the offer submitted for the Doha metro, also in Qatar, comprising three lines. The winner of the latter tender is expected to be announced in the first half of next year.


In the USA, new orders totalled €19 million in relation to variations on the automated Honolulu metro (Hawaii).


Commercial activities are underway in relation to underground projects in the major South American cities, such as Lima (Peru) and Quito (Ecuador), as well as in Brazil.


New orders acquired in Australia totalled €68 million, including €59 million relating to the master agreement with the Rio Tinto mining company and a further €9 million related to various activities on land-based and on-board equipment for other mining lines in the region.

The group signed an important contract in China for stage 1 of the Zhuhai tramway (€26 million), involving the installation of power supply systems that use the innovative TramWave® technology. 

There is also an outstanding bid in relation to the Navi Mumbai metro, a rapid transportation system under construction in the Indian city of Navi Mumbai in the state of Maharashtra. Ansaldo STS heads up a consortium that includes TATA Projects and CSR Zhuzhou.


Revenue generated by the Transportation Solutions business unit in 2013 amounted to €584,058 thousand, compared to €564,853 thousand in the previous year.

Production mainly related to Rio Tinto, the Copenhagen metro, Line C of the Rome metro, the Milan metro, the Genoa metro, Alifana, Line 6 and Line 1 of the Naples metro, the Brescia metro, Taipei, Riyadh and Honolulu.

The key production activities are summarised below.



Roll-out works and works performed under warranty in the high-speed line continued.

With respect to the Rome-Naples section, the Iricav Uno consortium signed a deed with RFI whereby the parties settled all outstanding litigation and challenges and/or disputes arising up until 20 December 2013. 

In relation to the Verona-Padua section project, the arbitration between RFI/TAV and the Iricav Due consortium was concluded in March 2012; under the award, RFI/TAV shall partially compensate Iricav Due and the 1992 Agreement is still valid and in effect.

To date, the customer has not yet forwarded Iricav Due the definitive project for the section in order to commence the executive plan. 

In relation to the Saturno consortium, the executive design and procurement continue for the Treviglio-Brescia functional section.


As it was not possible to commence activities related to the Piscinola-Aversa section, a suspension of works was agreed so as not to incur extra costs.

With reference to the Piscinola-Capodichino section, as the customer failed to fulfil its commitments, a review of the claims was commenced.

There is already a court order imposing the customer to pay outstanding receivables.


On 4 March, part of a building collapsed in Riviera di Chiaia, near the Arco Mirelli building site. Following the event, the public prosecutor appointed experts identified specifically to investigate the causes of the collapse. On 7 March 2013, the public prosecutor’s office served the former CEO and two employees a notice of investigation through the Naples Court in respect of the offences covered by articles 434 and 449 of the Code of criminal procedure.

The technical experts appointed by the public prosecutor are still carrying out their investigations into the cause of the incident. Any related considerations are presently subject to investigation secrecy and will only be disclosed after the court-appointed experts’ appraisals have been deposited.

From the start, the operator Ansaldo STS S.p.A., took immediate steps to obtain authorisation to implement safety measures on the building site; these were implemented after successful testing.

Ansaldo STS S.p.A. was authorised at the end of 2013 to carry out waterproofing works on the station bulkheads to improve soil safety conditions following the March 4th incident; authorisation was also received in the second half of February to resume excavation works for the station shaft in stages and under the supervision of the courtappointed experts.

The customer (Naples Municipality) and the operator (Ansaldo STS) also agreed a December 2015 deadline for the works on an initial functional section to S.Pasquale station.

Consequently, as well as the continuation of the civil works as per the executive plan, 2013 also saw the completion of executive planning and a good lot of the supplies of technological systems to be installed to achieve the above objective. 


The general contractor’s system demonstration on the Pantano-Contocelle section was successfully completed in September 2013 and the pre-operational stage commenced in December for the operator (ATAC) following ministerial technical clearance. Installations were substantially completed in October and the static tests in December for the subsequent section. The initial dynamic tests are presently being rolled out and will be followed by the general contractor’s systems integration and pre-operational tests (system demonstration) on the entire section being rolled out (Pantano to Lodi).


The Bignami-Zara line commenced operations in February. 

The pre-operational stage has commenced for the Zara-Garibaldi section which is slated to be rolled out in the fi rst quarter of 2014.

With reference to the line’s extension from Garibaldi (excluded) to the San Siro station, the executive design is substantially complete and orders for all main supplies have been issued. Testing of the signalling, SCADA and telecommunications materials is nearing completion. Due to delays in delivery from the customer, there is presently a difference between the fi nal date for the work compared to the contractually-agreed programme. An agreement has been reached with the Milan municipality for a situation that, although on a smaller scale, will allow the partial opening of the Garibaldi to San Siro line by April in time for EXPO 2015 and the completion of all works and the opening of the complete line by October 2015.


The fi rst stage of project acquisition was carried out in 2013, with the agreement of the addendum to the ancillary agreement. In June, the Milan municipality assigned the works related to an initial 3.5km section between Linate and Forlanini FS stations. The second stage will see the fi nalisation of the acquisition and is slated to take place next year with the signing of a concession agreement to build the entire section to Lorenteggio (a total length of 14.5km).

Ansaldo STS carried out executive design activities during the year and commenced the supply cycle for materials/equipment with the issue of the major purchase orders.


There are some delays on the civil works for the Dinegro depot, while partial testing continues on the new vehicles produced by AnsaldoBreda. 


All activities related to the line, the Garibaldi station and the Colli Aminei operational control point (1st stage) were completed by year end, as per the timeline.

After the pre-operational stage and the Ministry for Infrastructure and Transport’s technical clearance, the Dante-Garibaldi section became operational (excluding the Municipio and Duomo stations).


The metro became operational in early March, after receiving all necessary safety certifications from the relevant ministerial bodies. 

Monitoring and support activities and the completion of minor activities necessary to reach the performance levels established (which will be assessed during the technical/administrative acceptance stage) are underway. 



The technical variation related to the CBTC signalling system are being agreed with the customer, while the Detailed Final Design has been unveiled with respect to other technologies.

In May 2013, the Greek government passed a law regulating the projects financed by the European Community in order to definitively settle most of the litigation arising between 2006 and mid-2012. 

Consequently, all the claims related to the AIASA JV in respect of the design and construction of the Thessaloniki metro, will be covered by the relevant arbitration procedure.


The Detailed Design milestones were reached for the transmission and control centre subsystems. 

Preliminary Engineering and Detailed Engineering activities are underway.

The final stages of the civil works in the buildings and the electricalmechanical installations of nonsystem plant are almost complete. 

With reference to system plant, equipment and cableway in the electrical substation and cableway in the various buildings is being installed, and the track is being laid in the yard. Assembly of the first vehicle has commenced at AnsaldoBreda’s Naples production facilities.

The factory testing of the CMC equipment is substantially completed and delivery to the site has begun. Testing has also commenced of the line and station equipment.



The system has been running since September 2012, along with the Operation and maintenance activities under the supervision of a board of technical managers from Ansaldo STS group.

In addition to the activities necessary to consolidate system performance, the installation and roll-out of the track lubrication system and certain system integration tests are yet to be completed, and the engineering documentation for the completed activities demonstrating compliance with contractual parameters is yet to be forwarded.



The customer approved the variation for the platform screen gates in October and in December issued the new site access dates for installation, and made a change to the configuration to the fleet from 40 two-car trains to 20 four-car trains. Design activities continued and the first two stages (definitive and interim) were almost fully completed, while the third (final) stage continued.



The new contractual programme based on an extension of time of 19.5 months was approved in April 2013. Detailed design activities continue with a view to obtaining final approval within the first few months of 2014. Manufacturing activities commenced for the critical components.


Production of the year related to projects under the master agreement with Rio Tinto (RAFA). Specifically, design and installation activities continued for the AutoHaulTM project and the installation and roll out of certain key traditional signalling projects such as Hope Down 4 and Rail Capacity Enhancement 283 are almost complete. 


Operating profit (EBIT) of the Transportation Solutions business unit for 2013 came to €86,731 thousand (14.8% as a percentage of revenue), compared to €69,130 thousand (12.2% as a percentage of revenue) in the previous year, mainly due to the greater volumes on the RAFA programme and higher profitability of certain projects nearing completion.

Operating working capital at 31 December 2013 was negative by €41,518 thousand (31 December 2012: negative by €129,106 thousand). The change is due to the increase in net inventories and the decrease in trade payables outweighing trade receivables, especially as relates to inter-business unit items. 

Research and Development expense taken to profit or loss equalled €764 thousand, compared to €1,695 thousand in the previous year. 

The headcount at 31 December 2013 numbered 673, up 42 employees on the 631 employees at 31 December 2012. This rise is mainly linked to the increase in activities on projects in Australia.



“Ansaldo STS puts customer satisfaction at the center of its strategy: the ability to understand the client’s needs and expectations and to meet them is the central value on which the corporate culture is based.”

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