(AOF) – Ferrocarrils de la Generalitat de Catalunya (FGC) has awarded Alstom a 177 million euro contract for the construction and maintenance of the ten shuttle trains that will connect the center of Barcelona to terminals 1 and 2 of the Josep Tarradellas Barcelona-El Prat airport.
The contract includes the design and manufacture of the trains, which will be carried out in Alstom’s industrial center in Santa Perpètua de Mogoda (Barcelona), as well as preventive and corrective maintenance for 15 years, for which the company will build a specific workshop of 3000 square meters.
Ferrocarrils, which was awarded the provision of the service by the Generalitat de Catalunya in 2019, formalized the purchase of these trains last July, as well as the signing of the financing of the investment with several financial institutions and the European Bank investment (EIB).
Each of the ten new trains will consist of five single-level cars, with a capacity of 600 passengers and a maximum speed of 120 kilometers per hour. They have been designed with plenty of luggage space and wider aisles, depending on the specific needs of the trip.
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Key points
– World leader in rail transport, from trams and metros to TGV;
– Activities of €8.8 billion at the end of the 2020-2021 financial year carried out 61% in Europe, 15% in America, 12% in Asia-Pacific and 12% in the rest of the world;
– Offer covering all railway construction trades: rolling stock for 51% of sales, signaling for 18%, systems for 11% and services (maintenance, remote control of vehicles, networks, passengers, etc.) for 20%;
– Business model based on:
– the complementarity of geographical areas between Alstom -France, Italy, Spain, India, South-East Asia, North Africa and Brazil- and Bombardier Transport -United Kingdom, Germany, Scandinavia, China and North America,
– the creation of value ranging from the design and construction of a railway system to maintenance;
– Open capital, 17.48% owned by the Caisse de dépôt et placement du Québec, Henri Poupart-Lafarge, Chief Executive Officer, chairing the 13-member Board of Directors;
– Solid balance sheet with €9 billion in equity and €5 billion in cash against $5.1 billion in debt.
Challenges
– Alstom in Motion 2024/25 growth strategy:
– annual increase of +5% in revenues, operating margin of 8 to 10% and industrial investments at 2% of revenues,
– distribution to shareholders between 25 and 35% from 2021/22;
– Innovation strategy supported by 3.6% R&D and 9,500 patents with 3 axes:
– full range of green traction, ownership of fuel cell technology and, soon, fully connected transport fleets,
– innovation ecosystems: industrial partnerships with start-ups via the Aster fund, with suppliers via the Alliance program, participation in 30 European programs, including Shift2Rail, and, internally, entrepreneurship with I move you,
– roll-out of the digital suite to 100% of the group;
– Environmental strategy for the decarbonization of the activity:
– integrated into the innovation strategy and aimed at strengthening natural capital – use of renewable electricity, recovery of waste, recycling,
– aiming for a 10% reduction in energy intensity and a 25% reduction in CO2 emissions by 2025 (vs 2019);
– ecocircularity: waste recovered at 98%,
– launch of the 1st green guarantee facility;
– Good visibility, with an order book of €81 billion, supported worldwide by investment plans in rail and green mobility -59 hydrogen trains in 2021.
Challenges
– Execution of synergies from the merger with Bombardier -€400m over 5 years- with free cash flow still negative in 2021-22 but a positive impact on 2023 profit;
– Inflation and shortages of electronic components risking penalizing deliveries;
– Objective of an increase in sales and a gradual increase in the operating margin;
– Dividend of €0.25 for 2020-2021, payable in cash or shares.
Great prospects with green hydrogen for the electricity sector
The French hydrogen plan of 7 billion euros, which has been increased to 9 billion, aims to develop an industrial sector for the production of low-carbon hydrogen. Gimélec, the group of companies in the digital electronics sector in France, has identified strong benefits for manufacturers of electrical equipment. For its members, the economic benefits are estimated at 10 billion euros by 2030, then an additional 20 billion for the period 2030 to 2040, mainly for the sector of manufacturers of digital electronic equipment (from transformers to control systems ). This will lead to massive recruitment, in particular in the areas where hydrogen development efforts will be concentrated, in the Mediterranean and in the Seine Valley.