Transportation Solutions Business Unit

The orders acquired at 30 June 2011 came to EUR 222.6 million compared with EUR 425.7 million at 30 June 2010.
The order backlog came to EUR 2,705.8 million as compared with EUR 2,291.4 million at 30 June 2010 and EUR 2,721.5 million at 31 December 2010.
The significant events of the first half of 2011 for the various geographical areas are outlined below.

ITALY

In Italy the most significant acquisition was in February and relates to the extension of Milan Line 5 (South-Western extension from Garibaldi to San Siro) for an amount of EUR 105.2 million.

In Italy, the total value of orders acquired at 30 June 2011 came to EUR 107.5 million compared with EUR 232.0 million at 30 June 2010.

With regard to the main opportunities, in May it was announced that the grouping composed of Impregilo (leading company), Astaldi, Ansaldo STS, AnsaldoBreda, Sirti and ATM temporarily won the bid for Line 4 of the Milan Metro (S. Cristoforo-Linate), and the contract is expected to be signed during the second half of the year. The amount of Ansaldo STS was EUR 245 million.

With regard to the extension of Rome Line B for the Rebibbia – Casalmonastero segment, it was announced that the grouping composed of Salini (leading company) and Ansaldo STS temporarily won the bid that was called last year. The contract is expected to be signed by the end of 2011.

Expectations, even though almost all were delayed and partially weakened by the lack of funds, are confirmed regarding the further expansion programmes, in the medium- and long-term, of the transport network for all the main Italian cities.

REST OF EUROPE

In general, in the global macroeconomic scenario following the financial crisis some projects were delayed, in particular in the Eastern European area, where the development programmes driven by the European Community do not seem adequate to fully finance the major expansion projects for transport networks.

Regarding the technological solutions adopted, the demand in driverless metros is still growing (driverless CBTC), in particular in Italy and in Central and Northern Europe.

NORTH AFRICA AND THE MIDDLE EAST

In the Middle East, Qatar is one of the Gulf Countries with the most ambitious infrastructural plan which envisages in the next few years several projects for the construction of the metro and LRT. At the moment, ASTS has submitted the tender offer for the Tramway in Lusail, with trains without catenaries (“tramwave”), and the customer is evaluating it.

Saudi Arabia, following the success achieved in Riyadh, is a very interesting market where some initiatives might arise, such as the new metros of Riyadh and Jedda.

ASIA PACIFIC AND SOUTH AFRICA

In Australia, in March and June, the first and the second application contracts of the framework agreement for the extension of the Rio Tinto Freight Railway were awarded for a total amount of EUR 102 million. Further application contracts relating to the same framework agreement are expected over several years until 2015.

In India several projects are expected from this year in both the mass transit and the freight railway segments. This country is undoubtedly an interesting business area for the company. In May the pre-qualification application was submitted, in a grouping with the Indian Coastal and Srei and the Italian Seli, in connection with the tender for the Jaipur metro. The objective is to gain insight on the market and its dynamics in order to fully exploit the future commercial developments.

For the future business prospects in the Asia Pacific area, Taiwan is one of the strategic markets for the company. In Taipei the tender for the extension of the Circular Line is expected to be called. The project is currently being developed by Ansaldo STS.

NORTH AMERICA

Ansaldo STS was selected as Core Systems Contractor, as a joint venturer with Ansaldo Breda, for the construction of the Honolulu Driverless Metro; some competitors challenged the award of the tender which was rejected by the customer at the first stage. The same competitors subsequently filed a further administrative appeal whose ruling is pending yet.

The contract provides for the construction of the technological systems for the entire system and the operation and maintenance until 2024; the customer will also have the power to exercise an option for an additional 5 years of O&M until 2029.

SOUTH AMERICA

With regard to South America, an interesting country is certainly Brazil; tenders in the Mass Transit segment are expected to be called in the coming months.