TRANSPORTATION (TRP)

189

Number of Employees

€29.9M

Turnover

€3.0M

EBITDA

VISION

To be acknowledged as a reference partner in the implementation of innovative, safe and efficient systems, dedicated to the Transportation sector

MISSION

To conceive, to design, to sell, to supply and to recommission the infrastructures and solutions for the business segments we operate in, under turnkey contracts

STRATEGY

To increase our presence in the Northern European markets, based on our reputation and accomplishments
To promote the development of new products, guaranteeing the distinctiveness of our solutions

WHICH GEOGRAPHIES?

The Business Unit shows a variety of offers, of which we’d point out the operating support systems for light rail (Timekeeper e Tramkeeper), signaling systems for light rail and low-traffic railway lines, including automated safety solutions for railroad crossings (AEGIS and XSafe), integrated control platform, control and operation (EFARAIL), traction systems and energy distribution infrastructures, public information systems and smart video surveillance (INOSS), transmission and communication systems.

STRATEGIC PILLAR

Technological Innovation

Providing for Energy solutions for Transportation and Signaling & Telematics
Placing ourselves as a prime contractor in new light rail projects

Operational excellence

Integrated management of the execution resources for projects in the systemic areas
Developing skills/procedures for risk management and project management

Proactive comercial approach

Using the existing commercial structures in Efacec’s core geographies
Boosting our global integrated offer for light rail
Improving commercial performance, by promoting new market’s prospection and partners acquisition

Focus on the client

Reinforcing and diversifying our supplementary partnerships as far as products and a global offer in transportation are concerned

Talent Development

Building a dual career model, one that instigates the professional development of technical tasks, as well as management tasks
Revising our performance assessment model, transversely incorporating into EFACE the functional families specificities versus functional groups
Revising our compensation and benefits model, promoting guidance to our strategic goals (e.g.: commercial proactivity) and tactical goals (e.g.: lowering our accident rate) of all the Business and Group Units
Defining a talent management model that allows us to identify any employees with higher potential, guiding them into faster paced professional development tracks
Putting together a behavioural, functional and management training plan that enables us to prepare our employees to fulfill the 2020 EFACEC vision

The outlined strategy is materialised 8 initiatives, which foreseeably will have a positive impact on the EBITDA around mid-2017.

GLOBAL VISION OF THE MARKETS

There’s been a global trend towards population settlement in the urban areas, which has led to an upsurge in population growth while the major cities continue to grow also. As a consequence, the need for quick and efficient urban transportation (such as the light rail) has also been growing to relevant numbers. Yet, we must point out that the need for quick urban transportation is strongly dependent on the economic impact of the last few years’ crisis, as well as an economic dependency on oil.

OPERATIONAL PERFORMANCE

In 2016, Ireland, the United Kingdom, Denmark and Spain were the most relevant markets for the TRP BU. Efacec’s investment in these markets, together with the low-grade activity as far as the light rail industry is concerned in Portugal, has originated a relevant export market, which amounted to 75% of the turnover.

LIGHT RAIL
Efacec’s offer in the light rail market is the full package, covering energy solutions, communications, signaling and control centers..

The main facts that we’d like to point out for 2016, in this market, were the following:

NORWAY (BERGAN)
In August, we inaugurated the commercial service line for Light Rail which was part of Stage 3. Efacec was responsible for the full supply of the telecommunication and safety services, as well as the Operations Support Systems.

In November, we obtained the provisional acceptance of almost all the systems we’ve supplied, thus initiating a maintenance contract that will ensure customer assistance services for a period of 4 years.

IRELAND (DUBLIN’S LIGHT RAIL)
Efacec has continued on its trail of successful accomplishments that began in 2007, when we built the new Cross-City line, that will cross the Irish capital’s historical and commercial centre.

In July, we successfully completed the in-factory testing (FAT) of the railway signaling system AEGIS, designed and developed by EFACEC alone, which will be, for the first time, installed for an international client

The highlight was the in-factory testing, in December, of the operation support demonstration system, supplied by the largest railroad vehicle manufacturer (CRRC) to be installed in China, as well as the in-factory testing of operation support system and the public announcement of Constantine’s light rail expansion (Algeria).

CONVENTIONAL RAILWAY
In 2016, we’ve put into service 30 level crossings in Tunisia, we installed the first automated level crossing in Poland and we supplied Algeria with their first level crossings. Other projects that should be noted are:

DENMARK
Delivering the Holte substation for Banedanmark under a turnkey contract. It was the first EFACEC project in Denmark, and our performance in its execution was what brought us to its completion ensuring a high level of customer satisfaction..

SPAIN (CADIS)
We obtained important contractual capital gains by delivering the Energy contract (Traction and Catenary Substations), pertaining to new functionalities and up-scopes to the base-contract.

ALGERIA
Completion of two Traction Substations (SET), both for the end-client ANESRIF – Agence nationale d’études et de suivi de la réalisation des investissements ferroviaires.

Contract execution for SET of Tassala, in the BirtoutaZeralda line, for Yapi Merkezi (Turkey) and in the Thénia line – Tizi Ouzou, for Teixeira Duarte/Somafel.

Through these contracts, we also obtained up-scopes to the base-contract, namely connected to the SCADA energy system.

PORTUGAL
Acquiring a contract to build the SET of Vila Fria for IP – Infraestruturas de Portugal, in the Minho railway line, in a consortium with ABB – Alexandre Barbosa Borges, a construction company.

Because the TRP Unit is acknowledged, in Efacec, as a skilled center for telecommunication and communication infrastructures, other contracts were initiated or implemented during 2016, of which we point out:

The begging of work for a communication network that supports the tele command for Águas do Ave (Portugal).
Completed the optimisation services for telecommunication sites (GSM, UMTS, LTE) and building new sites for the telecommunication service provider NOS (Portugal).
Supplying communication equipment for the Kongolote substation (Mozambique).
Finishing the project for optic fiber installation in SONATRACH (Algeria).

We should also highlight the growing, positive contribution of the maintenance contracts that were in place in 2016, of which we point out the contracts with IP (Portugal), Dublin Light Rail (Ireland), CPCarga (Portugal), EDM (Mozambique), STCP, Carris and Metropolitano de Lisboa (Portugal) and the Tenerife Tramway (Spain), as well as the Bergen Light Rail in Bergen (Norway) that we’ve mentioned before.

2016 was also a year of R&D investment. We also witnessed the full implementation of the SMARTTRANSIT project, financed under the European program Portugal 2020, which aims to improve the TimeKeeper solution, implementing advanced regulation functions eco-driving, new diagnosis and performance tools, and also to develop and test new support solutions for the TETRA and LTE communications. We expect the completion of this project in 2017, with the effective demonstration of the new acquired functionalities.

Still in 2016, we applied for the following financed projects, which we expect will be approved, and should be implemented in 2017:

Mobi2link: Expected completion in August 2018, P2020 project of the co-promotion kind, having as partners the FEUP – Faculdade de Engenharia da Universidade do Porto and also OPT, which aims to develop an innovative concept of mobility management multimodal platform.
DIGIXSAFE: expected completion in 2019, IDT type P2020 project, aiming at developing an innovative solution for automated level crossing control systems, based on modular architectures of safety hardware and software, implementing a digital interface (to replace the current cable systems) with the train detection systems.
5G: expected completion in April of 2010, mobilising-type P2020 project, in partnership with the Technological and Scientific System (SCT) companies and entities, aiming at developing and testing a communication system as well as critical infrastructures distributed via public 5G networks.
RailCapacity: expected completion in April 2020, Mobilising-type project, in partnership with SCT companies and entities, aiming at developing specification and also the autonomous units for the train links, with control-sensor interfaces, that monitor the wagons’ condition (bogies) and also the goods (freezer-wagons, car transportation, containers, among others) as well as on-board computers with a communication module and eco-driving software, using safety communication protocols and information cloud servers.

FINANCIAL PERFORMANCE

ECONOMIC INDICATORS

(MILLIONS OF EUROS)

In 2016, the TRP BU received orders in the amount of € 25 million, representing an 82% increase when compared to the previous year. The reason for this increase is the noted performance we’ve seen in markets where it has recently stood out stood out, essentially in the light rail area. We point out Ireland, with projects for the TII Transport Infrastructure, and Portugal with projects for the Oporto Subway Systems and Infrastructures of Portugal. SET of Vila Fria, and Algeria, with the light rail project of Constantine for Alstom Transport.

The value from registered orders allowed us to reduce the backlog erosion showed in the previous years. At the end of the fiscal year, this value represented about 1.5 years of revenue covering.

When compared to 2015, the revenue Relativee to 2016 show a positive performance, in terms of volume (+17%), as well as margin of percentage achieved (+2.33pp), as a result of executing the projects for the Northern European and Portuguese markets, in 2016.

EXPECTATIONS FOR 2017

As to 2017, the investment plans for the metro-railway infrastructures in several European countries and in Africa show growing dynamic, opening new optimistic perspectives for growth. The TRP Unit will keep its focus and also its commercial effort in Northern Europe and also in the Maghreb, attempting to leverage new projects, based on its competitiveness and reputation.

Operation-wise, we foresee finishing the Cross-City project in a Ireland, with a scheduled handover in October. In Cadiz, we foresee the completion of a repowering project with yet another rectifier group and also building another High Voltage Power Substation that feeds the Traction systems. At a later date, Efacec will be competing for the maintenance contract of the Tranvía energy infrastructure.

In Algeria, we foresee building the second substation for ANESRIF (where Efacec’s direct client is Teixeira Duarte/Somafel), in the Thénia line – Tizi Ouzou.

In Portugal, we’ll start building the Vila Fria Substation, for IP, in the Minho line. Also in Portugal, we expect to begin new investment projects, both in the Infraestruturas de Portugal as well the Oporto Subway, where the Unit has always had a strong presence.

A GLANCE AT THE BUSINESS

VITORINO
ROCHA

TRANSPORTATION BUSINESS UNIT

Considering the TRP unit’s performance during 2016, as well as all the significant facts that occurred, what would you say is the greatest challenge?

The greatest challenge for the TRP Unit, at an operational level, is essentially connected to the delays we’ve experienced in different projects, such as the Traction Substation of Vila Fria and the communication network for the Águas do Ave company. As for the R&D, we faced a major challenge connected to the completion of DMS (Depot Management System), the testing stage of which started in October.

The Northern European market has been coming across as one of the most successful in the unit’s portfolio. Why do you think this happens?

The current market performance in Northern Europe has, in its origin, two main factors that, combined with one another, contribute to the achievements we’ve conquered: i) the technical and innovative qualities of the engineering provided by Efacec and ii) our contract managers’ active approach, focusing mainly on customer satisfaction.

Of all the expectations presented for 2017, which one would you say is the main goal for the business unit in 2017?

The TRP Unit’s main goal has to do with acquiring a new market with a light rail project of the green field type, one where we can improve the acquisition and retention of new clients. The reason why we are going with this strategy is because of the success that we’ve experienced before, in other geographies. Despite the fact that investing in new markets involves intense selling efforts, lasting for several years, it also enables us to retain new clients through longer lasting contracts, as well as remaining in their territories for a longer period of time through new projects and also by hiring additional services.

José Sousa - Unidade de Negócio de Ambiente e Indústria

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Pedro Silva - Unidade de Negócio de Mobilidade Elétrica