Grandi Stazioni PPP in Railway Stations Prague 17 March 2004

Grandi Stazioni
PPP in Railway Stations
Prague 17 March 2004
Grandi Stazioni
BACKGROUND
European Scenario
Key Drivers
o Pan-European trend on introducing new organization
and management model in Public Companies
operating railway transportation
o Focus on reducing State budget burden
o Achieve/increase rentability of operation and
management effectiveness
o Preparing for opening domestic market to competitors
Ferrovie dello Stato
Milestone
Core and “not Core”
assets and activities
identification - End ’90s
dismissions and PPP
creation
Assignment of assets
to operative
Companies- Mid ’90s
FS Group
Assignment of assets’
ownership from the
State to FS-1990:
FS SpA
1985 FS: Public Body
Ferrovie dello Stato
Stations Management
Grandi Stazioni
Who is Grandi Stazioni
Grandi Stazioni is the company
established by Ferrovie dello Stato to
refurbish and manage the 13 major
Italian railway stations
Grandi Stazioni
GRANDI STAZIONI
AND
THE PPP MODEL
Grandi Stazioni and the PPP Model
The PPP Model
PPP is a mean to increase the potential
of being successful in implementing a
“public-funded” project where investing
in a public assets could match profitable
operation
Refurbishment of stations: “public funded “project
Stations: public assets
Commercial exploitation of stations:
profitable operation
Grandi Stazioni and the PPP Model
The Assets
Grandi Stazioni and the PPP Model
Key Elements of the PPP
– A clear base and long-term
strategy set by the public partner
– A clear identification of roles
between the two (Public and
Private) partners
A tailor-made contract between the
parties
Grandi Stazioni and the PPP Model
Long Term Strategy and Identification of Roles
Scope: Integrated management of 13 major Italian railway station
o
o
o
o
o
planning and design
project and construction management
management of the spaces
management of the advertisement assets
management of the technical services
Duration: 40 years
Investment financing:
o Public Partner: extraordinary maintenance and restructuring works
required by technical regulations in force
o Private Partner: upgrading and functional works aimed at
improving usability and commercial value of the complexes
Revenues:
o FS: Minimum guaranteed + variable amount linked to GS actual
revenues
Grandi Stazioni and the PPP Model
Critical Factors for Success
In order to be successful a PPP-Model
should rely on a Private partner capable
of bringing in added value in terms of
know-how, business expertise, and
standing
The right partnership
Grandi Stazioni and the PPP Model
The Partners
40 %
60 %
31.67 %
31.67 %
Pirelli & C.
Pirelli Group
Edizione Holding S.p.A.
Benetton Group
31.67 %
Vianini Lavori S.p.A.
Caltagirone Group
5.00 %
S.N.C.F. Partecipations S.A.
Grandi Stazioni and the PPP Model
Opportunity for the Public Partner
Diverting human resources
and financial flows to core
business activities
Maximize value of the
contributed assets
Being supported by a private
partner with a strong expertise
in developing and operating
such business
Private
Expertise
Shareholders Construction Works
Caltagirone Group
Pirelli
Group
Benetton Group
Media/Real Estate
Asset/Facility/Property
Asset
Management
Management
Retail
Grandi Stazioni and the PPP Model
Level 1
Primary services
Splitting of Responsibilities
Ticket counters
Travel information
Maintenance of tracks
and rolling stock
Level 2
Secondary services
Cleaning
Safety
Maintenance of building
Trolley services
Toilettes
Waiting lounge
Retail
Advertising
Travel services
Office rent, hotels
Tobacco / press point
Food & Beverages
Car rental services
Other
Grandi Stazioni and the PPP Model
Results for Ferrovie dello Stato
Improved services to
the customer base and the
non travelers
Improved public
opinion image
Increased value in
real estate assets
Profits from
operations
Grandi Stazioni and the PPP Model
Results for Grandi Stazioni
2001
2002
2003
( Figures in M€ )
( Figures in M€ )
(Figures in M€)
Turnover
127
138
138
Operating Costs
106
115
107
EBITDA
24
28
31
EBIT
25
27
23