They exceed 100 billion. Euros investments of FS (Ferrovie), which controls Hellenic Train, for the next 5 years, according to today’s (12.12.2024) announcement of the company’s strategic plan aimed at transforming the company and confirming Europe as the domestic market her.
Specifically, today the five-year strategic plan 2025 – 2029 of the Italian State Railways Group (Ferrovie) with the new investments was presented in Rome by the CEO and General Manager Stefano Antonio Donnarumma. The presentation was attended by the president of Ferrovie dello Stato Italiane, Tommaso Tanzilli, and the Deputy Prime Minister and Minister of Infrastructure and Transport, Matteo Salvini.
Through an industrial approach and a high-level action plan with around 250 key indicators, to be achieved over the next five years, FS Group aims to strengthen the resilience of the rail and road network, improve the quality of services, support the integration of infrastructure and promote increasingly sustainable mobility.
Significant growth is expected between now and 2029, driven by an improvement in all key financial indicators, with revenue increasing to over €20 billion, EBITDA to over €3.5 billion. euros and net profits to over 500 million euros.
“Our strategic plan for the next five years will have a decisive impact on the structure of FS Group, positioning it to overcome current and upcoming challenges,” stressed Chairman Tanzili. “Challenges that we will be able to overcome only with a targeted investment program in infrastructure and technology and with the necessary contribution of the people of the Group, who are committed every day to the guaranteed provision of services that meet expectations. The Strategic Plan will also have a decisive impact on the Country System, offering added value that can make a difference.”
“The FS Group is about to embark on an ambitious transformation program, which aims not only to innovate business processes, but also to significantly improve the services offered,” said Stefano Antonio Donnarumma.
“I am honored to lead a stable company that is firmly rooted in the socio-economic fabric of the country and is in dire need of revitalization through a detailed plan, supported by appropriate investments. This plan, which marks a new beginning, will meet the needs of a future-oriented company, recognizing integrated mobility as a cornerstone for growth. The aim is to deal more effectively with financial challenges and to further improve the infrastructure and the quality of services. The new organization also aims to strengthen the Group’s international role and position it as a leader in the field of mobility”, he concluded.
The challenges of the next five years
The relaunch plan of the Italian FS group was developed with the aim of effectively responding to the growing challenges of the market while strengthening the company’s position in the transport sector.
There are eight strategic guidelines that will accompany this path of renewal, starting with the Group’s commitment to upgrading the country’s infrastructure.
The aim is to introduce new high-speed rail lines to connect areas currently not served, thereby achieving a 30% increase in the number of people served by the high-speed system in Italy. This will be achieved by pushing the FS Group to new frontiers of excellence, achieving best-ever performance through accuracy recovery for more than 50,000 trains per year.
Added to this is a travel experience tailored to each individual, aiming at increased passenger satisfaction. No less critical is the international operation, which is estimated to increase by 40% in passenger volume. The significant investment in operational discipline aims to achieve a 5% reduction in operational costs.
In terms of sustainability, more than one Gigawatt of PV will be installed by 2029, while in terms of innovation and safety, the target has been set to reach 100% of the Core Extended covered by ERTMS by 2040. Completing the strategies directives a sharp acceleration of operations is needed, with the acquisition of new skills and financial resources needed to ensure continued investment.
Transformative programs
To support FS Group’s growth, five transformational programs have been identified that affect all areas of the business:
- Safety for passengers and workers, wherever they are, with a goal of “zero injuries”. 125,000 training days will be made available through the FS Security Academy.
- A skills-centred workforce aimed at increasing identity, inclusion and collaboration.
- Technology is key, with digital investments of over two billion. euros over ten years.
- Sustainability through an even greater focus on sustainable mobility and improving people’s well-being to increase employee satisfaction.
- Financial resources to fully utilize the Group’s businesses to maximize growth opportunities.
Details by business area
Railway infrastructure
Currently, the FS Group manages 17,000 kilometers of railway lines and approximately 9,000 trains run daily. More than 50 billion euros will be invested in the next ten years to improve the quality of network services. A level of investment that, between now and 2034, will lead to the implementation of new technological standards and the evolution of maintenance models. There are also plans to streamline the operating model with corresponding volumes and enhance the accessibility of stations and special services. A real transformation of the network will be realized in this time frame, thanks to investments of 60 billion euros.
Road Infrastructures
The FS Group also manages 32,000 kilometers of road network, with 8 million vehicles in circulation every day. Investments of more than 40 billion euros are foreseen over ten years, of which 25 billion are earmarked for new road projects in the national perimeter and 15 billion for improving the quality of services.
Passenger transport in Italy
Every year, around 570 million people use FS Group connections in Italy. The objectives of the Strategic Plan 2025-2029 also include the expansion of the commercial offer in order to develop the range of passengers carried. In five years, the number of people wishing to travel ecologically on Trenitalia trains will increase by more than 100 million, while the increase in passengers on Busitalia buses will exceed 95 million. A modern, innovative and sustainable service requires a transformation of the train and bus fleet. This will start with the commissioning of 46 new Frecciarossa 1000 high-speed trains, 145 regional trains and more than 1,260 low CO2 buses over the next ten years.
International passenger transport
Beyond Italy’s borders, 230 million people traveled on FS Group trains in one year. During the plan period, greater attention will be paid to passenger transport abroad, with the aim of accelerating FS Group’s international growth. The number of high-speed rail passengers in Europe will exceed 14 million, urban mobility passengers 140 million. and the 150 million of European business travelers.
Freight transport
Freight transport will also undergo a business transformation, moving towards a European forwarder model, serving a large and diversified market. Currently, 37 million tons of goods are transported every year. Key actions to revitalize the sector will include creating a single interface with customers, developing an integrated offering and creating partnerships to support multimodal transport.
Urban Network
It is also important for FS Group to create value from all those assets that are no longer operational for rail services in terms of sustainable urban development. This can be addressed through 1.1 billion euros of non-performing real estate assets, which are allocated to real estate development projects to support urban regeneration. Further investment will be made to develop an innovative parking offer, thereby promoting intermodality and facilitating access to the rail network.
Strategic initiatives: RAB, international, vertical integration and connectivity
In order for the FS Group to strengthen its stability and actively contribute to the creation of value for the Country System, the plan could be further strengthened by a series of strategic initiatives that are not included in its numbers:
- adoption of a new financing model based on RAB to secure investments through self-financing with possible exposure to third-party funds and the consequent reduction of the need for public financing
- upgrading FS International through the establishment of a new company to control and manage international passenger activities
- vertical integration and development of partnerships with industrial and financial institutions to accelerate business development
- better connectivity services on trains by improving infrastructure.