Transportation Solutions Business Unit

The orders acquired at 30 June 2010 came to EUR 426 million compared with EUR 456 million at 30 June 2009.
The order backlog at 30 June 2010 came to EUR 2,291 million as compared with EUR 2,122 million at 30 June 2009 and EUR 2,048 million at 31 December 2009.

The signifi cant events of the fi rst half of 2010 for the various Areas are outlined below.

ITALY

In Italy the most signifi cant acquisition of the fi rst six months of 2010 was in June and relates to the contract for the extension of Line 6 of the Naples metro (Mostra-Arsenale line) for a value of EUR 161 million. Also in June an order was taken for the construction of the first section of Line B1 of the Rome metro (Bologna - Conca d’Oro) for a value of EUR 7 million.
In the second quarter, orders include some variations on the Alifana Line for an amount of EUR 13 million, on Line C of the Rome metro for EUR 2 million, and on High-Speed Railway Lines for a total of EUR 2 million.
The acquisitions in the fi rst three months of the year for the extension of the Dinegro depot of the Genoa metro for EUR 42 million and variations on the Naples metro for a total amount of EUR 5 million are to be reported.

Regarding Line 5 of the Milan metro, the extension south and west to San Siro is being considered with the Milan Authorities.
The award of the D Line of the Rome Metro has not received the fi nal approval and the award of public budgets yet and therefore will be further delayed; the bid for the main line is expected by the end of 2010. With regard to the extension of the Rome Line B for the Rebibbia - Casalmonastero segment, the bid was postponed to the second half of 2010.
Expectations, even though delayed, are confi rmed regarding the further expansion programmes, in the medium- and long-term, of the transport network for all the main Italian cities, which help keep steady the development estimates of the Transportation Solutions market of Ansaldo STS.

REST OF EUROPE

The bid for the Operations & Maintenance (O&M) of the Copenhagen driverless metro (built and operated by Ansaldo STS) was awarded in January.
The contract, worth EUR 180 million, provides for an additional 5 years of O&M and an option for three more years.

In Europe in the global macroeconomic scenario following the fi nancial 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 fi nance the major expansion projects for transport networks.
Denmark plays a strategic role due to the strong presence of ASTS in the country. The Copenhagen Metro project, where ASTS also is the Operator, remains one the best references for ASTS worldwide. In Copenhagen the bid for the construction, operation and maintenance
of the new Cityringen driverless metro is currently ongoing. A bid was submitted in April 2010 and the Customer is now making its evaluations.
The fi nancial crisis in Greece following a considerable increase in public debt led to a delay in the projects in that country, which still remains of interest thanks to the business developed in the past and to the possible future opportunities related to the extension of the Thessaloniki driverless metro, currently under construction.
Activities were recently initiated for the projects planned in Eastern Europe.
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 a partial counter-trend performance compared with the trends following the fi nancial crisis is the development of the Transportation Solutions market in Northern Africa and in the Middle East, which held fairly good as compared with the market volumes of the last few years. To that regard, it is worth noting the commencement of some initiatives and infrastructural projects in Kuwait, Bahrain, Qatar, the Arab Emirates, Saudi Arabia, Libya, Tunisia and Algeria.

In Tunisia the bid is being called by Société du Réseau Ferroviaire Rapide de Tunis for the construction of the fi rst two lines of the suburban railway network in Tunis, for which the technical bid was submitted and we are awaiting the call for the economic bid.
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, the initiative for the project of the Lusail tramway is to be noted, for which the “tramwave” solution will be applied; the relevant bid is expected for the end of October/start of November 2010.
Saudi Arabia, following the success achieved in Riyadh the prior year, is a very interesting market where numerous initiatives might arise.

ASIA PACIFIC AND SOUTH AFRICA

In Australia the bid for the project for the extension of the Rio Tinto Freight Railway is expected to be called. The fi rst phase should be awarded by the end of 2010.
In India several projects are expected in the coming years in both the mass transit and the freight railway segments. This country might become an interesting business area for ASTS; the objective is to get to know the market and its dynamics in order to fully exploit the future commercial developments.
Following the award of the contract for the construction of the TransAsian Rail Network in consortium with BBR, Malaysia is one of the countries of interest for ASTS. For the future business prospects in the Far East Area, Taiwan is one of ASTS’ strategic markets, and several are the initiatives under consideration, which will become offers to submit between 2010 and 2011. China is a market with high potential for growth where the mass transit and railway segments are being developed, even if diffi culties are growing for foreign operators in acquiring signifi cant markets shares.

NORD AMERICA

In this region ASTS is moving its fi rst steps in the Transportation Solutions segment. During the fi rst half-year the company took part in the bid for the construction of the Honolulu driverless metro, for which the bid was submitted in June 2010 and the Customer is now making its evaluations.
In the United States high-speed railway projects are to be implemented in the short-term. As part of these projects, the DesertXpress highspeed line is to be noted, whose bid is expected for the second half of 2010. In 2011 the bid for the HSL California Corridor is also expected.

SUD AMERICA

As regards South America, a country of interest is certainly Brazil; a bid for the construction of a driverless metro system in Fortaleza, a bid for the construction of line 5 of the Saõ Paulo underground network and a bid for the Saõ Paulo-Rio HSL are expected to be called over the next five months.
Moreover, the Italian consortium headed by Impregilo, for which ASTS is an appointed sub-supplier, is taking part in the call for bids for the construction of the fi rst line of a driverless metro system in Panama; the bid is expected to be submitted at the end of July 2010.