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URBAN TRANSPORT DIVISION
Rafael González Hernández
General Manager, Urban Transport Division
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Madrid, 6th April 2011
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o Agenda
o Overview of Spanish Urban Transport Market
o ALSA Urban Transport Division
o Growth opportunities
o Conclusions
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Urban: Investment summary
o Highly defensive core public service provider.
o Diverse portfolio of city bus operations with very long
concessions.
o Partially subsidised service with strong local support.
o Effective consortia structures in place.
o Consistent revenue growth despite recession.
o Exciting off-shore bid wins and opportunities.
o Significant domestic outsourcing and acquisition opportunities.
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Alsa Urban Division
o Represents approx. 30% of National Express Spain revenues.
o Critical mass gained from the Continental Auto acquisition in 2007:
Madrid commuter, Almeria.
o 19 urban contracts; focused mainly on Spain’s medium size cities
and towns, plus exposure to high growth Moroccan market in
Marrakech and Agadir.
o Partly subsidised revenue model
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Urban Transport Market
o 50% of Spain’s population lives in metropolitan areas (only 5%
of the country's area).
o 1,800 million passengers/year (excl. Metro). Increasing trend of urban mobility.
o Trend to create multi-operator urban Consortia: increases use of public transport.
o Largest cities still in-source: cities with +100.000 inhab.� 77%
population is still served by municipal providers.
o Market with structural public subsidies (43% of the cost).
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0 €
50,000,000 €
100,000,000 €
150,000,000 €
200,000,000 €
250,000,000 €
300,000,000 €
350,000,000 €
400,000,000 €
450,000,000 €
500,000,000 €
Madrid
Barcelona
Valencia
Tenerife
Sevilla
Palma Mallorca
Malaga
Las Palmas
San Sebastian
Valladolid
Cordoba
Vitoria
Santander
GijónTarragona
Huelva
Burgos
Fuenlabrada
Reus
0
500
1000
1500
2000
Estimated Revenues No. of buses
Urban Transport Market
o Significant opportunity in the privatisation of public transport companies in Spain’s major cities (Madrid, Barcelona, Valencia)
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Urban division 2010
Cartagena
Oviedo
León
Almeria
Aviles
Madrid
Palencia
Marrakech
Agadir
Velez
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Fast and profitable growth
o High growth business over the last 8 years.
o Step change due to Continental Auto acquisition.
o Scale advantage to large urban operations.
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Contract models
o Contracts without public subsidy
o Contracts with public subsidy and/or guarantee of economic balance
o Contracts with payments per amount/quality of production
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o Range of opportunities for organic growth:
o Extend network where contract is payment per Km operated.
o Rearrangement of Networks.
o New routes and service adjustments.
o Extend area of operations.
o Growth of Tourist Bus/Sightseeing.
o Tramway growth.
o Capacity and positioning in international projects.
o Application of Group synergies.
Future growth Opportunities
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Urban trams
o Trams/Light rail currently popular as infrastructure investment projects.
o Low investment capacity by City Councils:o Consortium or public/private
approach.
o Current preference for public operation :o (Jaén, Palma de Mallorca).
o Alsa is one of only a few private operators of city tram operations: o Velez;o Madrid Light Rail.
Tramways both operating and under development in Spain
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Alsa-operated trams
o Line 1: Las Tablas -> Pinar de Chamartín
o Route length: 5.4 km
o Stations: 5 underground, 4 surface
o Trains: 8 units
o Length of travel:15 minutes
o Demand: 4.5 million passengers/yr
o Km operated: 480,000/yr
o Route length: 4.8 km
o Stations: 9, all above the surface
o Trains:3 units
o Length of travel: 20 minutes
o Demand: 550,000 passengers/yr
o Km operated:112,398
Velez – Malaga Tramway
Madrid Light Rail
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Morocco
o Excellent opportunity for growth
o Gradual privatisation of urban transport;
o Fast set up, low cost;
o Wide range of services still to bid for: tourist bus, inter-urban.
o Easily managed from Spain.
o Access to market through reputation in Spain.
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Conclusion
o A dynamic and growing business.
o Market in constant growth with embedded social/political protection.
o Long-term contracted model.
o Existing exposure to higher growth and operational flexibility in Morocco.
o New Opportunities.
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Q&A
