Operating performance in 2014

Key orders

New orders for the year totalled approximately €1,825.0 million, compared to €1,483.6 million in the previous year (up €341.4 million).

Key orders acquired in 2014 are as follows:

CountryProjectCustomerAmount (€m)
Peru Lima metro Lima municipality 513.0
Italy Milan metro Line 4 Milan municipality 215.8
Denmark Aarhus LRT Aarhus municipality 128.5
Australia Rio Tinto (various contracts) Rio Tinto 96.5
Denmark Copenhagen City Ring – variation Metroselskabet 91.8
India Navi – Mumbai Metro CIDCO 78.4
Spain La Robla - Pola de Lena high-speed line ADIF 28.2
South Korea Metropolitan high-speed line LSIS 26.5
Sweden Stockholm metro – amendment 5 S L 23.0
Italy Turin-Padua section - variation RFI 22.4
China 4 Metros: HZL4 – SY10 trains - Xi’an 25 trains - DL Ph 2 Insigma 20.7
USA WMATA Red line ATP Track Module Replacement WMATA 18.9
South Korea High speed on-board devices Rotem 15.6
Italy Villa Literno ACC RFI 15.2
USA LIR ESA GCT Harold Tunnel LIRR 14.6
Italy Turin ACC shunting RFI 12.9
China Wenzhou Urban line Zhuzhou TEC 10.6
Italy Cancello-Aversa-Gricignano ACC - upgrading RFI 10.0
Various Service & Maintenance Various 90.2
Various EU Components Various 82.5
USA Components Various 61.1

New orders for 2014 - 2013 (€m)

The market and commercial situation

New orders acquired during 2014 totalled €1,825 million (restated 2013: €1,484 million).

Specifically, the key events of the year are described below:


New orders acquired during 2014 totalled €436 million. These include the project for line 4 of the Milan metro for an additional amount to that already in portfolio of approximately €216 million. Specifically, at the end of December, Ansaldo STS, part of the Company trust, signed the agreement and funding contract with the customer. Line 4 of the Milan metro will be the first driverless metro in Italy to use the innovative CBTC (Communication Based Train Control) technology. It will link up Milan airport to San Cristoforo railway station, crossing the centre of Milan from east to west, covering 14.5 km and 15 stations. The construction is scheduled to take seven years.

Orders related to conventional and high-speed lines include the full service maintenance contract of on-board equipment for the ERT 500 high-speed trains (roughly €10 million) and the order variation for the Turin-Padua line (€22 million). The ACC segment includes the contracts for Villa Literno (roughly €15 million), Turin shunting (€13 million), changes to the Aversa-Gricignano ACC (roughly €10 million) and the equipment for the ACC of Categorico railway station (€17 million).

Rest of Europe

Orders totalled €384 million, including approximately €227 million in Denmark for the Aarhus LRT project (€129 million) and the important variations related to the Cityring project, including the extension of the Copenhagen to Nordhavn section and other variations in the O&M contract for a total amount of approximately €99 million. In France, orders came to roughly €61 million and mostly related to components and variations of the project for the conventional and highspeed railway lines and maintenance contracts, especially for the Paris metro. Orders in Spain included the high-speed line from La Robla to Pola de Lena for approximately €28 million. Orders in Sweden totalled approximately €31 million, comprising amendment 5 of the Red Line in Stockholm (€23 million) and contracts for components. Orders were signed in the UK for approximately €9 million for sundry components and support activities to the Cambrian Line.

North Africa and the Middle East

Orders amount to approximately €10 million, specifically €8 million for the Ryadh O&M contract. This area includes the commercial activities in Qatar in relation to the Doha metro.


Orders amount to approximately €676 million. The group’s most important commercial success of the year was the turnkey contract worth USD710 million (approximately €513 million) to build a driverless metro in Lima.

As part of this project, Ansaldo STS will be in charge of the design, procurement and installation, testing and roll out and system integration for the whole electromechanical package (signalling, power supply, telecommunications, platform screen doors, depot equipment, CTCs, automated fare collection and SCADA systems).

New orders in the United States total €156 million in the reporting period, including €80 million relating to the sale of components, maintenance and renovation of freight railway lines, roughly €19 million relating to the Red line project of the Washington DC metro (WMATA), approximately €15 million relating to the signalling of the New York Harold Tunnel (LIRR, Long Island Railroad), about €8 million relating to the SRFTA TriRail Office project and roughly €7 million relating to the supply of on-board equipment for the AnsaldoBreda trains for the Miami (Florida) metro.

Asia Pacific

New orders for the reporting period come to approximately €320 million, of which €78 million relates to the Navi Mumbai metro in India. The contract relates to Line 1, Phase 1, which consists of 11.1 km of viaduct, with 11 stations, a depot and a fleet of 8 trains.
Orders in Australia amounted to approximately €129 million related to variations for the Rio Tinto master agreement worth approximately €97 million, the Moreton Bay Rail Link agreement (€9 million), the plant for dumping CD1C Replacement Project materials (€14 million) and the Nammuldi Below Water Signalling & Com. agreement and related variations (€13 million).
In China and South Korea, orders amount to approximately €105 million. Specifically, the supply of 184 on-board devices featuring “C3 Chinese high speed” technology (roughly €17 million) and the Wenzhou urban line contract (€10 million); driverless metro contracts related to the Hangzhou line 4 (€9 million) and Dalian lines 1 and 2 (€5 million) sections. Orders in Korea relate to the on-board devices for the SUSEO & Winter Olympics high speed line (roughly €16 million) and the Sudokwon Metropolitan HSL high-speed line and related components (roughly €26 million).

Business performance

Revenue in 2014 came to €1,303.5 million, compared to restated €1,229.8 million in the previous year.

The key production activities are summarised below.


Production activities on high-speed railway projects mainly involved the Treviglio-Brescia section as part of the Saturno consortium. 2014 activities related to the executive design and materials procurement. Installation activities are expected to begin before the end of 2015.

In the on-board SCMT/ERTM systems segment, production mainly related to development of ERTM systems for new ETR 1000 high-speed trains for the Trenitalia fleet, as well as the supply of other types of rolling stock to AnsaldoBreda.

In the ACC business segment, 2014 production mainly related to the project for the technological upgrade of the Turin-Padua line, specifically the detailed executive design and materials procurement.
In particular, the first stage of the North West Milan junction comprising eight plants controlled by the SCCM system began in November.

With reference to Line 6 of the Naples metro, work on the civil works at the Arco Mirelli station resumed, following the release from seizure of the station shaft. The electro-mechanical installations are scheduled to begin by mid-2015.
Works related to archaeological finds at Municipio station should end within the first half of the year.

With regard to Line C of the Rome metro, the Pantano-Centocelle line became operative in November.

In February 2014, the group operated the Isola and Garibaldi stations of the Milan metro line 5, which completed the Bignami-Garibaldi first section.

In the subsequent part of the year, work was carried out on extending the line from Garibaldi to San Siro and assembly was completed of the devices necessary to partially open the line for EXPO 2015.

Rest of Europe

In France, activities mainly related to on-board systems (South Europe Atlantique and Bretagne Pays de la Loire projects) and equipment (Thalys project) for the country’s high-speed network, as well as the maintenance, assistance and production of individual parts contracts.

In Sweden, production mainly related to the Ester ERTMS and Stockholm Red Line projects.

In the United Kingdom, the remaining activities will be completed on the Cambrian line project (the first line in Britain to be equipped with the standard European level 2 ERTMS) by the end of 2015.

In Germany, activities continued on the software development project related to the supply of on-board devices for Velaro D and Velaro Eurostar high-speed trains. Activities for the Paris-Ostfrankreich-Südwestdeutschland and Rostock-Berlin projects have been down scaled, following the revision of the contract due to a redefinition of the contractual requirements.

In Turkey, the group formalised an agreement with its customer TCDD for the Mersin-Toprakkale project, which enabled it to resume the works to install and roll out the multi-station equipment.

In relation to the Ankara metro, the M2 and M3 lines were rolled out in DTP mode in the first half of 2014 and a preliminary version of the CBTC system was implemented on the M1 line in December.

With respect to the Gebze-Kosekoy project, the line became operational in August.

In Greece, the project for the Thessaloniki metro is significantly behind schedule due to the need to complete works on archaeological finds, problems encountered in expropriation activities and changes in the project of civil works due to hydrogeological conditions.

In January 2014, the joint arrangement, which Ansaldo STS is part of, issued an arbitration request to the customer and the Greek Ministry for Infrastructure and Transport, in order to request the recognition of sundry greater expense and/or extra costs incurred by the joint arrangement in completing the contract.

The arbitration procedure is currently underway.

In Denmark, work in 2014 was focused on design activities for the Copenhagen Cityringen project.
Simultaneously, preliminary work began on constructing the Aarhus tram line.

North Africa and the Middle East

It is presently difficult to say when production for the Libyan railway project will resume.
The arbitration procedure for the dispute with the Russian customer Zarubezhstroytechnology (ZST) continued before the Vienna International Arbitral Centre.
In May 2014, the procedure to form the arbitration panel was completed with the appointment of the chairman, in addition to the arbitrators. The hearing is scheduled for the second half of 2015.

In the United Arab Emirates, section 1 (Habshan-Ruwais) of the Abu Dhabi (Shah-Habshan-Ruwais line) project was completed. The line was formally delivered to the customer in December 2014. In parallel, section 2 is currently being completed and tested.

In Saudi Arabia, the design stage for the Riyadh Metro System project is underway.

In China, the projects related to the CBTC systems for the Chengdu, Shenyang, Xi’an, Zhengzhou, Hangzhou and Dalian metros continued. Furthermore, as part of the project for the Zhuhai cable-free tramway, a successful on-site demonstration was organised for the Air show held in November 2014.


Design activities for the contract related to the construction of the Honolulu metro made progress in 2014. Under the revised work plan, on-site construction is slated to begin in the first quarter of 2015 and the first part of the line will open within the end of 2017.

With reference to the contract with Southeastern Pennsylvania Transportation Authority (SEPTA) for the supply of the Positive Train Control integrated signalling system, the group continued wayside, onboard and communication design and configuration, as well as procurement activities.

The progress made in certain projects in 2014, especially in Canada, was marked by a drop in profit margins due to the fact that more work became necessary in order to reach project objectives.

Production for the sale of components for the existing eight product lines (Electronics, Ground Material, Relays, End of Train, Cab Signals, Highway Crossings, Component Projects and Services) is worth mentioning.

In Peru, preliminary activities began on lines 2 and 4 of the Lima metro.

Asia Pacific

In Australia, production of the period mainly focused on projects covered by the master agreement with Rio Tinto (RAFA), the Roy Hill’s and PTA’s Butler Extension projects.

Specifically, with reference to the RAFA projects, works continued on AutoHaul, where wayside commissioning was completed as was the installation of on-board equipment on locomotives. Commissioning activities are underway for the RCE333 and ECP projects.

With regard to the Roy Hill project, the design of the fibre optic was completed and relevant on-site activities began, though significantly behind the original work plan schedule.

In Taiwan, the group is continuing the design and production for all subsystems of the Taipei Metro Circular Line project.

In India, production mainly focused on the KFW projects, with respect to which works are set to continue after the last extension date following the many variations made, as requested by the customer, and the Calcutta metro project, which currently shows a delay due to the postponement for civil works and the unavailability of project inputs from the customer.