“FS's 2022-2031 Business Plan intends to accelerate investments and, with a long-term vision, give greater certainty to the execution of the works on schedule. With increasingly modern, interconnected and resilient infrastructures and mobility services tailored to the different needs of our customers". He said it Luigi Ferraris, CEO of the FS Group, during the presentation at Termini Station of the Business plan 2022-2031 of FS Italiane in the presence of the president Nicoletta Giadrossi.
A long-term strategic and industrial vision supported by an investment plan of over 190 billion and 40 new hires over the next ten years. "The bulk of the investments - but also of the hirings - explained Ferraris - will take place between 2024-2026, when investments will exceed 20 billion a year".
The Business Plan presented by Ferraris also provides for a profound redefinition of governance and a new organizational structure and "sees its main enabling factor in people", underlined the number one of FS, but also in technological innovation, digitization and connectivity. In fact, among the medium-term objectives, the CEO cited the strengthening of on-board connectivity, aiming to adapt all high-speed lines by extending the 4G standard within 18 months.
Despite the not exactly encouraging geopolitical context, the plan foresees 2031 growing revenues to around 22,5 billion euro and EBITDA to 3,9 billion, with average annual growth (CAGR) over the plan period of 6,9% and 8,2% respectively.
Fs, Industrial plan: the salient points
The ten-year plan aims to give certainty of execution of the infrastructural works on schedule; favor multimodal collective transport over private transport; increase, up to doubling compared to 2019, the transport of goods by rail; make rail and road infrastructure more sustainable, accessible, integrated; reduce the gap between the north and south of the country; increase the degree of energy independence through renewable sources.
"Great challenges await us, a new demand for mobility, a gradual return to normality, the demand for an excellent service", continued the CEO, adding that this means "focusing on the passenger's needs and committing ourselves to be credible". To exploit the potential of all the Group companies, the need arose to redefine governance and review the organizational structure.
The new governance divided into four poles
There are four poles envisaged by the FS 2022-2031 business plan to redesign the governance of the group and achieve the objectives set in the document: infrastructure, logistics, passengers and urban.
Il infrastructure pole will report to Rfi, with the contribution of Anas and Italferr. And he aims to guarantee the execution of the investments; maximize industrial synergies; define and specialize the roles of the different infrastructures. RFI 110 billion euro is expected to achieve a 20% increase in railway capacity and a sharp reduction in journey times (such as Naples-Bari in two hours). Investments of 50 billion euro are planned for Anas in ordinary and extraordinary maintenance and grid development.
Il passenger pole aims to develop a strategy increasingly focused on the different needs of customers; the promotion of collective transport rather than individual transport. It will be under the leadership of Trenitalia and will aim for multimodal, integrated, economic and sustainable transport. The millions earmarked for this pole are instead 309.
Il logistics hub aims to encourage multimodal transport, the integrated offer (rail and road) with investments in multimodal terminals, which the group is planning in Italy and Europe. Today in Italy the share of freight by rail is 11% which the aim is to bring to at least 30%, in line with EU indications, also doubling the share of the FS Group to around 10% over the plan period.
Finally the urban pole aims to enhance the potential for urban regeneration of the Group's real estate assets; ensure unitary control and play a leading role in the "Urban Sustainable Mobility Plans" through partnerships for increasingly efficient asset management.
The four new business poles will be homogeneous in terms of mission and objectives. “They will play a crucial role in developing an increasingly integrated and sustainable infrastructure and mobility system for the benefit of the country. In order to proceed along this path, the revision of the regulatory-normative structure is crucial, in line with the Group's objectives”, underlined the manager.
Energy and ecological transition in the Industrial Plan of FS
Great attention will be paid to the ecological transition, with an efficiency and consumption reduction plan and a series of activities aimed at self-production from renewable energy sources. In fact, the Group's activities require a high annual energy consumption equal to approximately 2% of national demand.
To this end, FS aims to enhance or convert part of its assets by installing plants for the production of electricity from renewable sources, to guarantee coverage of at least the 40% of the requirement energetic of the group.
The goal is to contribute to the national pursuit of the ecological transition objectives, with a plan that will make it possible to reduce CO2 emissions by approximately 7,5 million tonnes per year thanks to business initiatives and the modal shift towards iron: in transport passengers will allow a reduction of about 2,8 million tons per year while in the freight one the decrease will be about 2,9 million tons per year.
International presence of FS Italiane
The 2022-2031 Business Plan also aims to generate further value in countries where the Group is already present, such as France, Germany, Greece, Holland, UK and particularly in Spain, where the Frecciarossa 1000 will travel between the main cities of the country by the end of 2022. The development of an international strategy for all the Group companies foresees an increase in revenues from 1,8 billion euros (in 2019) to around 5 billion euros in 2031.
