Gianfranco Battisti, the CEO FS Italiane, announced that until 2023, the company will invest EUR 58 billion, of which the infrastructure segment will have the biggest share, of EUR 42 billion, with EUR 28 billion dedicated to railway infrastructure, and EUR 14 billion for roads.
The 2019-2023 Business Plan also envisages EUR 12 billion for the procurement of new trains and buses, EUR 2 billion for metros, EUR 2 billion for IT services and real estate sector. In total, across all sectors, more than EUR 6 billion will be allotted for technology and digitisation.
The group will cover 24% of the total investment which is expected to create 120,000 jobs a year and an annual contribution to the increase in GDP of between 0.7% and 0.9%. Revenues will reach EUR 16.9 billion in 2023, EBITDA EUR 3.3 billion and the net income will reach EUR 800 million.
It is expected that the investment will meet an estimated growth of 90 million more passengers per year, resulting in less than 600 million kilograms of CO2 and 400 thousand cars on the roads.
The actual result of this massive injection of investment will be the acceleration of 1,600 RFI and Anas worksites throughout Italy. Similar attention is paid to maintenance processes for both the Group’s infrastructure and transport companies. For the first time in Europe, investments in developing freight transport will benefit from the issue of green bonds.
FS Italiane says that the works are fundamental for especially for railway projects such as the Terzo Valico, Brenner, Brescia – Verona – Padua, Naples – Bari and Palermo – Catania – Messina. EUR 16 billion will be allotted to transport infrastructure in South with a focus on road projects.
Under the strategy, the company intends to procure 2,000 of new vehicles, as it plans to have the Europe’s youngest fleet (composed by railway and road vehicles). 600 new regional trains will be procured, with the first 239 trains to be delivered until 2023. The company also will order 14 new Frecciarossa 1000 trains, 714 wagons and 100 new-generation locomotives for freight transport.
On urban rail transport, the company will introduce five new types of service, featuring specific intervals that will reach 8 minutes for urban services at peak hours, 30 minutes for suburban and inter-regional services, 60 minutes for regional services and 15 minutes for airport connection services.
In addition, a coordinated and integrated network will facilitate connections between the country’s stations, harbours and airports.
The 2019-2023 Industrial Plan also envisages a new role for FS Italiane in urban requalification, strengthening railway hubs, regenerating areas and improving urban mobility. For this, the Group will invest EUR 5.3 billion with an asset value of EUR 1.9 billion.
EUR 5.5 billion will be directed to the projects which support a 5% increase in regional transport punctuality rates, and a 10% increase in market transport. Under the project, the ERTMS will be deployed on the conventional network.