Business Overview 2008

Transcription

1 Business Overview 2008

2 6.059 billion in revenue for operating countries 83,654 employees 2.63 billion trips made 40,675 vehicles Serving 5,000 public authorities throughout the world 4.1 million metric tons equivalent CO 2 avoided 1 Our Vision 2 Our major challenges 6 Interview with Cyrille du Peloux 10 Veolia Transport in commitments for innovative, sustainable and safe mobility 1. Integrate all transportation systems harmoniously into their regional context Provide a seamless mobility chain Guarantee high quality service for all passengers Place our employees at the heart of our projects Take concrete and measurable actions to preserve the environment Seize new growth opportunities 44

3 1 Set the standard for managing safe and sustainable mobility solutions As the leading private operator of public transportation in Europe, and number two worldwide, we are helping to build the mobility of the future. Our objective is to define new standards for public transportation. Our international expertise makes us more than a mere operator. We help transit authorities design, organize and manage mobility services in their complex urban environments. To offer innovative solutions that respond to the specific expectations of each stakeholder, we make the passenger the focus of our activity. Our multimodal transportation solutions are designed to improve travel comfort and reliability. In addition, we continuously measure the economic and environmental impacts of our activities, while making the safety of our passengers, employees and the broader community our priority. Interview with the Chief Executive Officer 6 Veolia Transport s 6 commitments 12

4 2 VEOLIA TRANSPORT Our major challenges > Promote public transportation as a remedy for climate change In the current context of growing environmental awareness and tensions in energy markets, we are promoting public transportation: it uses less urban space, emits less CO 2 and costs families less.

5 3 > Make public transportation a friendly space Our employees are our most important asset. By routinely delivering high quality service, they also build a unique social bond with passengers in the areas we serve.

6 4 VEOLIA TRANSPORT Our major challenges > Offer the public optimum flexibility and personalized mobility We make traveling easier for each of our passengers by using seamless, personalized information to integrate all the options in the mobility chain.

7 5 > Help public authorities cope with increasing ridership and growing transportation needs We support public authorities by offering them the advantages of a company that is open to new contract models and new activities (airport management, mobility centers, real time passenger information).

8 6 VEOLIA TRANSPORT Interview The ongoing dedication of our people to serving passengers is our best guarantee of success. Interview with Cyrille du Peloux, Chief Executive Officer of Veolia Transport. What were the highlights of 2008 for Veolia Transport? Cyrille du Peloux : Despite the difficult economic climate, 2008 was a very positive year for us. We gained a position in several major markets and our revenue climbed 8.3%, to 6,059 million. We continued to gain ground in Asia: in addition to our operating contract for Line 9 of the Seoul metro, which will go into service in June 2009, we signed another one for Line 1 of the Mumbai metro in India, as well as an operating agreement for the transit systems of six cities near Nanjing, China. We also strengthened our presence in the German rail market, and will be the first private operator to manage all of a wholly electric regional express system there: the S-Bahn that will connect the Bremen and Lower Saxony states. We also won operating contracts for the Bilbao, Spain, city bus system and the system serving The Hague area. Again in the Netherlands, our system in Limburg Province is becoming a model for multimodal integration of trains, buses, Transportation on Demand (ToD) and taxis. In the United States, our contract to manage the Las Vegas transit system was renewed, and we launched a ToD service in New Orleans. In France, we won about 20 new contracts, in the Indre-et-Loire region, Royan and Épernay, to name but a few. Besides these contracts, we continued broadening our range of mobility services, in particular through self-service bicycle rental, the acquisition of a car-share company in Paris and the development of passenger information systems. Lastly, we continued to diversify in the airport management market, adding the Beauvais and Lille airports.

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10 8 VEOLIA TRANSPORT Interview What is the outlook for 2009? C. d. P. : We are pursuing our strategy of targeted expansion, with tight control over our investments and a focus on operational optimization. The seven countries that generate 75% of our revenue will remain our priority: the United States, Germany, Sweden, Norway, the Netherlands, Australia and France. We want to be number one or two in those markets, by operating in the entire mobility chain and expanding intermodality. We are also looking at the booming Asian market, with many local public authorities making public transit infrastructure a priority. That prompted us to approach RATP, the Paris transit operator; our companies complement each other, and that will give us the means to respond rapidly and convincingly to calls for tenders. This will be particularly true for heavy modes like commuter rail or metro systems, fields in which the RATP has a very good image and recognized technical expertise. What is Veolia Transport doing to prepare for the growth expected in the European rail market? C. d. P.: Regional and commuter rail systems are going to benefit from the modal shift being caused by road congestion and will, no doubt, become the most efficient way to reach city centers. From this perspective, the European Union directive liberalizing the passenger rail market will make such systems more competitive in comparison to car use and will increase the role they play in the development of large regions. We are going to step up expansion of our rail activities in Europe, particularly Germany, where we are the leading private operator of regional trains. This experience will stand us in good stead, especially in France, where it will equip us to respond to transit authorities requirements in regional transportation when the European passenger rail market opens to competition, at the end of Lastly, the competitiveness and sustainability of air transportation for short and medium distances will be increasingly questioned; high-speed train will emerge as a valid alternative, especially for three to four hour trips. That is why we have joined forces with Air France to study opportunities for joint management of high-speed international rail links. At the end of 2008, Veolia Transport set out its Corporate Vision. What are its objectives? C. d. P.: We are constantly analyzing our strengths, weaknesses and differentiating factors. Today, we are moving forward with our shared objective of being the standard for managing safe and sustainable mobility Our contract models are also changing to keep pace with the transformations in our business: as mobility specialists, we commit to improvements in ridership, quality of service and safety. solutions. Recognized for our expertise, innovation and our people s competence, we are going beyond the role of simple transportation operator and are helping public authorities design, organize and manage their mobility services. The customer/passenger is the focal point of this activity: it is his or her expectations that we are responding to when we offer multimodal and intermodal transportation solutions. Improving the comfort, reliability and price of travel is an objective that our real-time information tools and mobility centers allow us to reach. Our measurement of the environmental impacts of our activities and our ongoing efforts to preserve resources are effects of that objective. Lastly, our quality policy based on risk analysis, prevention, personnel training and passenger safety enables us to improve our performance on a continuous basis. The human dimension is important in the public transportation business. What is your added value in this area? C. d. P.: Our most valuable asset is our human resources. We attach particular importance to professionalizing our people; training in safety is our absolute priority. In fact, this approach is embraced throughout Veolia Environnement. We also emphasize human contact between our staff and passengers in our transportation systems. Close to 5,000 of our employees were trained in this in 2008 and 15,000 others will receive this training within the next two years. Our business also has broad social implications, and we help our employees reach out beyond simply providing transportation services by encouraging local involvement, such as citizenship education and campaigns to combat incivility.

11 9 10 The world in 2008 One of the advantages of public transportation is that it helps in combating climate change. What contribution did you make in 2008? C. d. P.: This is at the very heart of our business: one of the best ways of combating greenhouse gas emissions is by a massive shift from car use to public transportation. Therefore, we must do everything we can to make our transportation offers as efficient and convincing as possible. We must also work to publicize the advantages of public transportation. For this, we attended major public forums on climate change during the year, in San Francisco, Cologne and Poznań. On all our systems combined, trips made on public transportation in 2008 on average represented half the emissions of the same trips by car. The cumulative results show 4.1 million metric tons of equivalent CO 2 avoided thanks to Veolia Transport. How do you think urban growth will affect mobility? C. d. P.: The growing complexity of regions necessitates a new approach in public transportation, with the interconnection of systems and large-scale intermodality. At the same time, solutions offered by new information technologies are rapidly being introduced. The Internet, mobile phones and smartcard ticketing will be efficient tools that encourage a personalized use of many mobility solutions: train, bicycle, light rail, ToD, etc. Public authorities will respond to this by offering fixed-price options for all the transit modes, and customers will be able to pick and choose based on a variety of criteria: speed, price, environmental footprint, etc. It s a new approach to travel, which will lead to a new mobility culture. It is in this context that the European Union laws now being drafted (directive on green purchasing, work on sustainable urban mobility, etc.) are giving public transportation a bigger role. What are Veolia Transport s responses? C. d. P.: As a stakeholder in the organization of regions, we advise local public authorities about intelligent systems and help them implement their travel policies. We also offer them a wide range of services: such as call centers, information systems, smartcard solutions and complaints handling. Our contract models are also changing to keep pace with the transformations in our business: as mobility specialists, we commit to improvements in ridership, quality of service and safety. And our clients are giving us more and more responsibilities, based clearly on our commitment to the environment and sustainable development. We are shaping the future together. Veolia Transport s Executive Committee Cyrille du Peloux, Chief Executive Officer Xavier Girre, Deputy Chief Executive Officer and Chief Financial Officer Antoine Hurel, Deputy Chief Executive Officer Francis Grass, Chief Executive Officer, France Francis Angotti, Chief Executive Officer, Asia-Pacific Mark Joseph, Chief Executive Officer, North America Tomas Wallin, Chief Executive Officer, Scandinavia Anne-Lise Voisin, Vice-President, Human Resources Marielle Villamaux, Vice-President, Strategic Marketing Philippe Payen, Vice-President, Strategy and Research ASIA MAKES PUBLIC TRANSPORTATION A PRIORITY The number of kilometers of metro track that will be built in China by 2015 could be higher than in the rest of the world put together. In South Korea, 25 cities plan to build 54 metro lines over a distance of 740 km. SEEKING SOLUTIONS FOR THE ENVIRONMENT Governments begin seeking environmental solutions. Awareness of the positive impact of public transportation on global warming grows. PUBLIC TRANSPORTATION RIDERSHIP INCREASES Higher fuel prices in the first quarter, environmental awareness, enhanced offers, better quality of service: public transportation ridership is up everywhere in the world. NEW RAIL MARKET Most of the European Union s member states are gearing up for the liberalization of the passenger rail market, on January 1, 2010.

12 Travel tools and modes to serve passengers Bus Rapid Transit 4 systems operated, in Bogotá, Las Vegas, Rouen and York-Toronto 268 km of routes 384 vehicles 1.5 million trips per weekday Light rail 13 systems operated 215 km of track 346 cars Highlights of 2008 North America and Latin America Coaches 10,135 vehicles Metros 113 km of track, 535 cars, close to 300 million passengers per year 2 lines under construction: Mumbai s Line 1 and Seoul s Line 9 Eurolines, inter national coach services 1,200 destinations in Europe 59 points of sale 9,000 travel agencies Shared-ride shuttles SuperShuttle 1,280 minivans 31 airports and 50 American cities served 6.9 million passengers in 2008 Trains 22,397 passenger trains (locomotives + cars) 382 million trips per year Commuter, regional and long-distance rail service in 8 countries: Australia, New Zealand, France, the Netherlands, the Czech Republic, Sweden, the United States and Germany Taxis 4 countries: the United States (1,716 vehicles in 2008), France, the Netherlands and Sweden Veolia Transport is both an operator and partner of taxi companies United states Phoenix, Seattle, Colorado Springs Los Angeles, New Orleans, Savannah Saint Xavier University, Chicago 1 4 United states Buses 19,712 city buses 92 electric buses and trolleybuses 138 vehicles exclusively serving airports, through People Travel Group Bicycles Self-service bicycles in France (in Saint-Étienne, Nice and Vannes); the United States and the United Kingdom Acquisition of Golden Touch Transportation, in New York, by SuperShuttle 3 Car-sharing In France, Proxiway offers approximately 100 vehicles for sharing, in Paris, La Rochelle and Narbonne Ferries 83 ferries, in France, Norway, the Netherlands and Sweden Close to 10 million trips per year Transportation on Demand (including paratransit vehicles) 3,312 vehicles of under 3.5 metric tons (GVWR*) 2,279 dedicated paratransit vehicles 9,772 wheelchair accessible buses 60 Transportation-on-Demand systems in France 50 paratransit systems in the United States Passenger information and mobility services 230 systems have a trip planner Information in real time and when service is disrupted 501 park-and-ride facilities i 1 Canada 2 Chile 3 Colombia 4 United States 2 * Gross Vehicle Weight Rating.

13 Europe and the Middle East Asia-Pacific Netherlands Haaglanden bus system (The Hague, Delft, Zoetermeer) Germany Bremen rapid express system (4 lines, 270 km); regional Niers-Rhein-Emscher system; regional Leipzig system 13 China Nanjing: Urban systems of 6 of the region s cities; 360 million trips per year in 2,000 buses driven by 6,500 employees Spain 7 Bilbao urban system France Veloway self-service bicycles, in Nice and Vannes Urban bus system in Royan, Épernay, La Rochelle, etc. Intercity system in the Oise and Indre-et-Loire regions; Vienne Beauvais and Lille airports India Mumbai: Line 1 of the metro, 11.4 km of track, 12 stations, 600,000 trips per day, opening in South Korea Seoul: Line 9 of the metro, opening in June 2009, 25 km of track, 750,000 trips per day Belgium 2 Croatia 3 Czech Republic 4 Finland 5 France 6 Germany 7 Ireland 8 Israel 9 Lebanon 10 Netherlands 11 Norway 12 Poland 13 Russia 14 Serbia 15 Slovakia 16 Slovenia 17 Spain 18 Sweden 19 Switzerland 20 United Kingdom 1 Australia 2 China 3 India 4 New Zealand 5 South Korea 4

14 Veolia Transport in Solid performance Our worldwide systems combined resulted in 4.1 million metric tons of equivalent CO 2 avoided in We use our Eco-Efficient Travel indicator to provide public authorities with a concrete measurement of the performance of their public transportation system compared with that of cars in terms of CO 2 emissions avoided, liters of fuel not used and the gain in space. 6 commitments for innovative, sustainable Victories and an alliance We will start operating Line 9 of the Seoul metro in June 2009 and Line 1 of the Mumbai metro in We will be managing six city bus systems in the Nanjing region of China. An alliance with RATP, the Paris transit operator, will enable us to step up our expansion in a very promising Asian market. 5.1% more trips On our worldwide systems combined, we made 2.63 billion trips in 2008, up 5.1% over 2007 (on a comparable basis). and safe mobility Setting an example in Germany Through constructive partnerships with German regional states, we became the country s leading private rail operator.

15 1 Integrate all transportation systems harmoniously into their regional context 2 Provide a seamless mobility chain 3 Guarantee high quality service for all passengers 4 Place our employees at the heart of our projects 5 Take concrete and measurable actions to preserve the environment 6 Seize new growth opportunities 13

16 14 1Integrate all transportation systems harmoniously into their regional context

17 15 A comprehensive view of the mobility chain Veolia Transport s expertise in land and water transportation systems and its involvement in regional development give it the capacity to design, build and operate efficient mobility solutions, whether on a city or regional scale. Road passenger transportation Veolia Transport is one of the world s leading coach and bus transit system operators. We run services in some 60 French cities and many other cities in Europe (Bilbao, Maastricht, etc.). We are also very active in the United States and Australia where we carry about 200 million passengers a year by coach and bus. Rapid transit systems Right-of-way rapid transit systems operate on reserved infrastructure offering a fast, comfortable service unhindered by road traffic. Trains are fast, safe and punctual and allow cities to breath. We operate commuter rail systems in Boston, Los Angeles and Miami in the United States, Melbourne in Australia, Auckland in New Zealand, and Bremen and Düsseldorf in Germany. In Europe, we have been expanding successfully over the last twelve years in Germany s regional rail sector, where we carried 47.5 million passengers in Metro systems facilitate access to all urban activities, for example in Seoul, South Korea, where we will start operating Line 9 in June In Mumbai, India, we will start operating Line 1 in A vital metro link for Seoul Veolia Transport has prepared the opening of the Seoul metro s Line 9, which will start operating in June It will alleviate traffic congestion in the city, which, with 22 million residents, is one of the most densely populated in the world. The line is 25 km long and will run from the district of Gangam in the southeast of the city to Kimpo Airport in the west. It is expected to carry more than 750,000 passengers a day by Southlink 9 Company Limited will be responsible for operating this line with 550 staff. The company is jointly owned for ten years by Veolia Transport (80%) and Korean firm Rotem, a subsidiary of Hyundai Motors (20%).

18 16 VEOLIA TRANSPORT Commitment 1 Light rail systems are an attractive, comfortable and modern form of transportation that is used to carry thousands of passengers in city centers, avoiding stress and traffic jams. Nice s light rail service is one of the best examples, as are the systems in Rouen and Saint-Étienne. Lastly, Bus Rapid Transit systems contribute to successful urban development and regional growth, for example the York-Toronto link in Canada, or the services in Bogotá (Colombia), Las Vegas (United States) and Rouen (France). Tailored services Our commitment to serving regions better has led us to accelerate the development of tailored services, such as Transportation on Demand (ToD). We manage more than 60 urban and rural ToD systems in France, including the Sarthe regional system (STAO). Our wide range of transportation services also includes taxis, which provide a quality of service akin to that of private transportation. In the United States, Netherlands, Sweden and France, we offer combinations of taxi and public transportation solutions for commuter, off-peak and night travel and for people with reduced mobility. We created Veloway, a business unit specifically for self-service bicycle rental. Veloway is a solution for short hops, such as the last kilometer, providing a link to public transportation, or for quick trips in the city center. Veloway also serves the needs of companies, university campuses and hospitals with very large sites. Veloway is now active in the United Kingdom via its subsidiary OyBike and in Chicago, where 65 self-service bicycles have been available for hire on Saint Xavier University s campus since fall In France, Veloway manages over 400 bicycles in Saint-Étienne and has been awarded contracts in Nice (1,750 bicycles and 175 drop-off/pick-up stations) and in Vannes (180 bicycles and about 20 stations). Veolia Transport is also developing a car-sharing system that cumulates the advantages of greater flexibility for the user, less pollution and cost control. Proxiway, the unit specialized in this service, offers various formulas in several cities for both private and professional use. In several districts of Paris, Mobizen provides an easy-access, no-subscription, no time-limit car-sharing deal. In La Rochelle, Liselec rents 53 self-service electric cars from seven drop-off/pick-up stations. Lastly, in Narbonne, 10 cars are available from three stations. Maritime transportation We operate ferry services in Norway, Sweden and the Netherlands. In France, we link the mainland to outlying territories for example, the Gulf of Morbihan islands by ferry. We also operate urban water shuttle services in Marseilles and Toulon, France, as well as in Gothenburg, Sweden. Veolia Transport operates the ferry service from Marseilles to Corsica as a public service. Passenger numbers grew 10% in 2008, following an intensive marketing and advertising campaign. This year, we increased our stake in SNCM, the company operating this ferry service, to 66%. Our United States taxi service celebrates its centenary VEOLIA TRANSPORT IS THE LEADING TAXI COMPANY, in Baltimore, Denver, Pittsburgh and Kansas City. In total, we operate more than 2,000 cars in the United States. The call centers that coordinate these taxi services received more than 7 million requests in Baltimore s Yellow Cab Company will celebrate its centenary in It is the oldest taxi service in the United States and played a crucial role in the development of some of the city s districts. It was also the first company to recruit women drivers, adopt radio communications and use hybrid vehicles.

19 17 Simple, efficient systems that blend effortlessly into local life Ever since 1875, we have been assisting public authorities with our unequalled knowledge of urban transit systems. Our activities in 28 countries attest to our wide-ranging experience of all kinds of cities: large, complex metropolises like Bogotá, tourist destinations like Las Vegas or smaller-scale cities like Royan, France, Trondheim, Norway, or Teplice in the Czech Republic. We are committed to designing transit systems that blend effortlessly into local life, as an essential part of urban planning. Well-coordinated and integrated city transit systems are an essential part of dealing with today s major urban issues, notably the curbing of urban sprawl and social segregation by repopulating city centers and fostering both social and functional diversity in cities. Clarity, Legibility, Efficiency Transportation systems must be designed and operated efficiently to ensure they are frequented by the public. With this in mind, we operate our systems in accordance with our three CLE principles: Clarity (of the transportation system), Legibility (of schedules and routes) and Efficiency (appropriate allocation of resources). We then look for the best technical operating conditions and offer high-added-value solutions in order to guarantee optimal quality of service. In Bilbao, Spain, we completely overhauled the bus service on the basis of our CLE principles (see box on page 18). In Salon-de-Provence, France, we suggested simplifying the bus routes and service frequency for easier memorization of the schedules and routes. Our recommendations included suggestions for the reorganization of the train station transit hub and the bus system s central transit hub. Our CLE proposals as well as our approach of explaining them clearly to elected representatives and technicians combined to help us win the contract in Lastly, we will be operating the Haaglanden bus service (The Hague, Delft, Zoetermeer) in the Netherlands from September Ridership is expected to increase there by 50% over the six-year contract period thanks to the implementation of the CLE principles. Increased ridership To increase the use of public transportation, we work upstream with local government decision-makers. The aim is to achieve The Lil Easy helps New Orleans residents THOUGH SOME OF THE NEW ORLEANS DISTRICTS worst hit by Hurricane Katrina are currently being redeveloped, their population density is not sufficient to cover the cost of a traditional bus service. Instead, Veolia Transport offers a fourteen-seat minibus service that runs every hour. Its route consists of three set stops for connections with other transportation facilities and 24 flexible stops that the passengers have to reserve by telephone at least one hour in advance. The bus only serves these stops if bookings have been made. The minibus service s name Lil Easy is a spin on the city s nickname, Big Easy.

20 18 VEOLIA TRANSPORT Commitment 1 a shared strategic vision of mobility and its development. In Germany, passenger numbers on the rail lines we operate have increased significantly. For example, ridership on Line S28 of the Düsseldorf rapid transit system increased from 500 passengers a day in 1999 when Veolia Transport took over management of the line, to nearly 20,000 in We have regulated the schedule to one train every 20 minutes on weekdays and achieved an on-time rate of 97%. In Bavaria, the number of passengers using the BOB (Upper Bavarian Railway) has increased by 200% in eight years. Ridership has also risen significantly in other countries. For example, in the Netherlands, the Limburg South Line carried 43% more passengers in 2008 compared with In Australia, ridership on the Melbourne commuter rail service has grown by 60% since 1999, including a 36% surge between 2005 and This success is principally due to heightened safety and better information services, with the advent of new SMS services that provide users with information on train times and disruptions. It is also due to improvements in network operation, in turn due to the modernization of infrastructure and rolling stock. In Dublin, Ireland, ridership on the city s light rail service increased 25% between 2005 and Passenger numbers for the North County Transit District in California grew 17% in This increase is largely due to the opening of the new Sprinter rail service north of San Diego. Measures to avoid overcrowding Ridership increases often surpass expert s forecasts and as a result the public transit systems of many cities suffer from overcrowding. Our experience of this type of situation encouraged us to develop a series of measures to optimize capacity management during rush hour. These measures include technical solutions to increase service frequency; active management of passenger flows; rearranging vehicle configuration; raising passenger awareness of the issue; introducing off-peak tariff incentives and collaborating with the public authorities to stagger demand, notably from schoolchildren. Improving Bilbao s Bilbobus service BILBAO IS SPAIN S FOURTH LARGEST CITY WITH NEARLY 1 MILLION RESIDENTS. Veolia Transport s proposals to improve the Bilbobus service convinced the city authorities. In 2008, we were awarded an eight-year management contract for the Bilbobus. We have now improved the bus routes and service frequency thanks to computerized management and a new communication system between bus drivers and the coordinators. All signage has been overhauled and a real-time passenger information service installed. The ticketing system will also be revised to make it more user-friendly and allow rapid passenger boarding and alighting.

21 19 FOCUS Successful launch of Nice s light rail service How a light rail service can revitalize an entire transit system In 2004, Veolia Transport was awarded a sevenyear public service management contract by the Nice-Côte d Azur urban authorities to fulfill three objectives: convert six separate transportation networks serving 24 communities into a single transit system, introduce a light rail service, and create seven Créabus Transportation-on-Demand routes to reinforce a traditional bus system comprising nearly 100 routes. The light rail system, which serves 21 stations along a 9 km stretch and came into service at the end of 2007, has provided the backbone for a coherent restructuring of the Ligne d Azur system. The procedure involved a lengthy consultation phase with neighborhood committees, personalized surveys of young, elderly and disabled people and the creation of an attractive Ligne d Azur brand identity before the light rail service successfully took up its place, blending well into the local environment. The first results are very encouraging: by the end of 2008, one year ahead of forecasts, over 75,000 passengers were using the line on a daily basis. Some 24% of passengers are new customers, probably attracted by the introduction of a fixed 1 fare for the entire network. The launch of the light rail service also revitalized the existing bus system, which was restructured for the occasion. Overall ridership on the Ligne d Azur network increased 34% in 2008 compared with 2007, with a 32% rise in people buying passes. The implementation of a series of services intended to facilitate passenger travel also contributed to this increase: a sales outlet; a call center handling Créabus ToD information requests as well as bookings and complaints; a Web site with an online trip planner; four park-and-ride facilities simplifying car-public transportation connections and an experimental smartcard ticketing system. In the satisfaction survey conducted at the end of 2008, 92% of passengers said they were satisfied with the service.

22 20 2Provide a seamless mobility chain

23 21 Successful intermodality With increasingly sprawling urban areas serviced by several different transportation modes, managing a continuous mobility chain is vital to ensure seamless transit systems and ease of travel. Achieving seamless intermodality involves providing passengers with a complete mobility chain, simplifying their trips and making transit hubs user-friendly. Transit hubs can also be used to attract non-users (people who shy away from using public transportation). We have identified five keys to successful intermodality: designing integrated transportation solutions; improving the existing offer with new services; making trips easier with multimodal information; implementing integrated fare systems and forming partnerships between operators. In order to put these principles into practice we have designed a method for analyzing intermodality that enables us to audit our transit systems and make action plan proposals to the transit authorities. Connecting all modes of transportation To facilitate intermodality, it is important to have control over several transportation means within any given urban area. For example, we operate both the light rail and the bus services in Rouen, Saint-Étienne, Nancy and Nice. In the United States, the Sprinter rail service in California is also organized so that its schedule is tightly synchronized with those of connecting buses, thus optimizing intermodality along the heavily congested corridor between Oceanside and Escondido. Veolia Transport is also one of the rare players to offer local public authorities a comprehensive solution that can cover the connection of urban and intercity transportation systems or even ferries and water shuttles. For example, the Toulon transit system operates not only bus services but also water shuttles in both summer and winter. The three water shuttle lines are fully integrated into the transit system, both as far as schedules and fares are concerned. In 2009, five new shuttles will be added to the existing fleet of nine. Some of the new shuttles will be equipped with diesel and electric engines in order to reduce CO 2 emissions as much as possible. Park-and-ride facilities in Nice VEOLIA TRANSPORT OFFERS A METHOD for operating park-and-ride facilities within a coordinated regional transportation system. Information plays a key role. In Nice, four new Parcazur car parks (about 1,500 spaces) were recently linked up with the light rail and bus services with a simple fare system that enables users to pay for both parking and travel. Within just one year, these park-and-ride facilities notched up an occupancy rate of over 95%.

24 22 VEOLIA TRANSPORT Commitment 2 User-friendly, attractive transit hubs Running intermodal transit hubs is becoming a full-fledged activity in itself. Hubs play an increasingly important role and offer a series of services and commodities, in addition to providing connections. Coach terminals, ideal hub locations In Torun, Poland, we created a coach terminal that is unique in that country because it was built with private funds and is operated by a private firm. The terminal is open 24/7 and is used by 15,000 passengers a day. Some 500 regional, national and international lines converge there, run by 45 regional and 25 international operators. At the terminal, customer services include travel information on dynamic screens, Internet access, an ATM, a travel agency, a restaurant, stores, a newsagent, a luggage checkroom and toilets. In France, we manage about 30 coach terminals in very different environments. In Beauvais, for example, Veolia Transport conducted a survey with Predit (the French surface transportation innovation research program) with the assistance of architects and urban planners on how to restore the coach terminal s role as a community living space. Proposals included redesigning the interior and exterior, a more comfortable waiting area, a store offering a variety of services and innovative travel information displays. Transit hubs that are easy to understand In Tilburg, in the Brabant region of the Netherlands, Veolia Transport assisted the transit authority in designing a hub that integrates three complementary transportation systems: trains, buses and taxis. At the hub, the physical logistics of the three modes of transportation are clearly organized, fulfilling both functional and urban planning objectives. In particular, passengers appreciate the ease with which they change from one transportation mode to another, the pedestrian access routes, the focus on accessibility and the overall clarity of the layout. Tilburg s success proves that heavy infrastructure is not necessarily required in a transit hub. What is needed is efficient connections between the different services and good integration into the urban environment. In France, in La Défense, Veolia Transport used the expertise of Cityway, a subsidiary specializing in passenger information systems, to develop a dynamic management software program for the platforms and passenger information. This tool has already been tried and tested in more than 10 coach terminals in France (Nevers, Rouen, Angoulême, Nancy, Rennes, etc.). It is especially useful at the La Défense hub, which handles over 90,000 bus and coach departures a year and is located in a particularly dense and restrictive urban environment. Veolia Transport voted Company of the Year in Jersey LIBERATION STATION, in Jersey is one of a new generation of transit hubs. We designed it in partnership with the transit authority, calling on our experience in countries around the world and our in-depth knowledge of customer expectations. The hub employs eight people to run the stores, provide real-time information services and guarantee security. Passenger numbers increased 11% in 2007 and reached the 3 million mark in 2008, rewarding efforts to integrate all the transit systems efficiently (tourism, regular services, school runs), offer cheap fares and promote the hub s commodities and services. Veolia Transport was voted Company of the Year in Jersey in 2008.

25 23 Personalized information services Regional complexity, multiple operators and a wide variety of coexisting transportation systems make personalized information services vital to facilitate travel. These services account for new forms of mobility consumption that are telephone and Internet based. In Melbourne, 35,000 people have subscribed to our SMS services offering real-time information about disruptions on the commuter train service. This free service is designed for people who travel on the same line at the same times every week so that they can be given information that is appropriate to their needs. We offer another service that answers any schedule requests by SMS 24/7 within 20 to 30 seconds. All the network s schedules are available this way via the passenger s mobile phone, without prior registration. We receive 4,000 to 5,000 requests every month. Creative advertising campaigns were used to launch these two SMS services, which contribute actively to increasing the overall satisfaction of system users: 82% of passengers say they would recommend them to friends and family. Mobility centers, a new facet of our business Whether they serve a city or an entire region, mobility centers smooth out the difficulties that intermodality can involve. In Germany, a Veolia Verkehr service center was set up for the passengers of seven rail systems. It is accessible 24 hours a day, provides information on schedules and fares, sells tickets and handles complaints. In 2008, its 15 employees answered 130,000 calls and 19,000 letters. They also sold 17,000 individual tickets and 1,000 group tickets. In Grenoble, France, Mobilité & Services offers guidance and advice on transportation services in the Isère département to 9,000 subscribers, 40,000 schoolchildren, the residents of the Grenoble area and many of the region s tourists. Its interactive vocal server sorts close to 8,000 monthly incoming calls and ensures a 95% response rate. Initially designed as an information and complaint-handling center, Mobilité & Services has evolved into a full-service mobility center. It takes ToD bookings and sells tickets by mail for the urban and inter-city transportation systems, including services to the nearby ski resorts.

26 24 VEOLIA TRANSPORT Commitment 2 Ticketing, a means of achieving flexibility As well as offering passengers greater freedom, ticketing systems can simplify management of revenue distribution by the transit authorities. They also make it easier to take into account mobility requirements and new services. Veolia Transport has contributed its expertise in designing and implementing contactless ticketing systems in Gironde, Champagne-Ardenne, Lorraine (see box below) and Alsace, France, in Baden- Württemberg, Germany, and Melbourne, Australia. In Rouen, Saint-Étienne and Nice, France, we installed upgradable systems designed to be interoperable with the TER regional express rail services and regional urban systems, as well as to offer real-time products and services. Mobile phone ticketing To further improve individual travel, the next generation of NFC mobile telephones in Europe will offer innovative services. They will enable passengers to buy transportation tickets and will behave like smartcard ticketing systems, offering passengers the possibility to capture information from electronic tags embedded in bus stops (for example, information on the time of the next bus). Veolia Transport is part of TreiZEN, the international pilot scheme conducted with French, Finnish, Swiss, German and Australian partners as well as 50 customers in the Bouches-du-Rhône area of France. We are also testing the system on two of our rail systems in Germany as well as on the Bordeaux area transit system, under the name B Pass, in partnership with the mobile phone operator Orange. B Pass is positioned as the simplest solution for access to public transportation, enabling users to pay for and validate their ticket and also immediately access all the useful information they require for their trip. SimpliCités, simplifying travel in Nancy AN INTEROPERABLE, CONTACTLESS TICKETING SYSTEM has been set up for the three urban transit systems and the TER regional express train service in the Greater Nancy area, France. The Nancy area authorities and the region s two other transit authorities have together deployed the SimpliCités card to integrate their transportation systems. This significant innovation is a direct consequence of the Lorraine Intermodality Charter that was signed by 16 transit authorities in Lorraine at the initiative of the Regional Council. The objective is to revitalize public transportation throughout the region. The launch campaign was awarded to Veolia Transport, which is the Greater Nancy area s long-standing transit system operator.

27 25 FOCUS Limburg Province s multimodal system How a multimodal system can boost ridership and user satisfaction? Veolia Transport has been operating the regional trains and urban and inter-city buses and taxis in Limburg Province, Netherlands, since The transit authority s objective was to transform the complex original structure, which used several operators, into a single integrated system. Our proposal comprised a three-fold solution: focusing on passenger requirements, creating a system with the rail service as its backbone, and completing the rail service with connecting bus lines and an extensive taxi service. The new entity employs close to 1,200 people and works in close partnership with the province s transit authority. The taxis provide fixed minibus routes serving low-density residential areas and ToD services for people who have difficulty using other transportation means. A single control center manages all the train, bus and taxi services. A call center handles about 95,000 calls a month and a Web site was launched so users could purchase and print their tickets on line. A real-time information service was also set up at 700 stops, in the buses, the stations and transit hubs. In addition, we put in place an ambitious marketing policy including sponsorship of local events (festivals, concerts, etc.) and partnerships with local shopping malls and tourist facilities. Our efforts were rewarded rapidly with a 43% increase in ridership in 2008 on the south-bound train line. As well as offering users a better service, improvements to the Limburg Province transit system have enhanced the performance of the public authority, thanks to better cost management, greater service regularity and increased ridership. User satisfaction rates are also particularly high. In fact, passengers awarded the urban bus service a score of 8.3 out of 10, which is the best in the Netherlands.

28 26 3 Guarantee high quality service for all passengers

29 27 Careful attention paid to each passenger s needs To ensure an increasing number of people use public transportation, we make passengers our core focus. In order to develop top-quality proposals, Veolia Transport structures its approach around three key factors: the transportation service, ancillary services and customer relations. New approaches to mobility, the use of technology, environmental awareness and an ageing population are modifying people s view of public transportation. As stakeholders in urban mobility, we are keenly attuned to any changes that will help adjust the city to the lifestyle of its residents. Through the Veolia Observatory of Urban Lifestyles and the study carried out by Veolia Environnement in 14 cities around the world, we have access to data for comparative analysis. This allows us to identify, depending on the city, the position mass transit plays in a given population s sense of happiness or frustration. Always committed to going the extra mile, we perform qualitative studies to develop new mobility solutions specifically for certain customer segments, such as those who are hesitant to use public transportation, new customers, the elderly, and so on. We use this research to rethink our transportation services and adapt our systems to changing lifestyles. For example, night schedules might be extended in response to passengers stated desire to be able to go home by bus late in the evening. Satisfaction up sharply in Dublin ONE OF THE PRIME OBJECTIVES OF THE DUBLIN LIGHT RAIL SYSTEM is to provide the best service possible to its passengers. Six criteria are regularly assessed using the Veolia Transport method: regularity, comfort, safety, accessibility, information and attention to needs. Each year, a customer satisfaction survey is performed on a sample of 1,000 passengers. Between 2005 and 2008, the level of satisfied customers rose 10 points from 66% to 76%. Over this same period, since the start of the system s commercial operation, ridership increased 25%.

30 28 VEOLIA TRANSPORT Commitment 3 In another example, in Cannes, France, a Midnight Bus service was introduced four months of the year with additional routes and increased frequency during the summer vacation period. Evening ridership on these services rose 30%. Satisfaction surveys Regularly measuring satisfaction levels is the prime source of information about a transit system and the improvements that need to be made. Veolia Transport has developed an exclusive method to perform in-depth analyses and implement efficient action plans. It is based on measurement tools used in sectors renowned for their stringent quality demands, such as telecommunications. In partnership with Ipsos, an international research institute, we have developed a tool to measure the essential aspects of customer satisfaction, weighted according to their importance. This analysis grid is then used to develop improvement plans, in collaboration with the transit authority, for the transit system and its associated services. Since 2007, six countries on two continents have been using this method on a regular basis. By consolidating the results, we are able to gain a better perspective of the performance of similarly sized networks operated by Veolia Transport. Complaints handling Complaints analysis is the second tool we use for listening to our customers. Here again, Veolia Transport is innovating by defining a standard and offering transit authorities the use of proprietary software for handling complaints and answering customers questions. Developed after close observation of reference sectors such as air transportation, it has been extended to include the expertise acquired on the systems in Boston, United States, and Melbourne, Australia, which are leaders in complaints handling. This software uses a range of tools: procedures, coding, the authoring of principles and standard response paragraphs, and multilingual software. The result is shorter turnarounds, more personalized responses and improved complaint tracking. Systematically rolled out in conjunction with customer relation training, the software enables the quality of service delivered by a transit system, as experienced by the customer, to be managed on a day-to-day basis. In this way, it meets the expectations of both municipalities and passengers. Introduced in 2008 in Ireland and France, its deployment will be stepped up in 2009 to California, Sweden and Germany. Thus, our institutional clients will all benefit fully from the advantages of pooling costs and expertise that we can provide. A new way to get to the airport: SuperShuttle THE 1,280 SUPERSHUTTLE PEOPLE MOVERS carried 7 million passengers in the United States in Operating in 50 cities and 31 airports, they pick up customers from their home, office or hotel to take them to the airport at unbeatable value for money. Customers book the service on the Internet or by telephoning the call centers based in Phoenix and Tampa, which then draw up the optimum route plans. This innovative business model is based on 10-year franchises signed with drivers who own their vehicle. A version for Europe is currently being developed.

31 29 Greater visibility in managing quality Leveraging its knowledge of passengers expectations, Veolia Transport moved its quality policy into a higher gear in Our quality policy is based on four levers: our personnel, customers, measurements and communications. A common procedure that nevertheless respects the local culture has been deployed in our main countries, with quality correspondents in each. The aim is to improve service quality through a simple and instructive pyramid approach. There are three stages that must be reached in succession through a notation system. The first stage involves obtaining the fundamentals of any quality approach (performing a customer satisfaction survey, internal communications, etc.). All systems falling under the approach s scope must have completed this stage by The second stage focuses on continuous improvement (customer complaint handling, quality measurements in the field, etc.). The goal for 2010: 80% of large systems, then all systems by The third stage is to achieve excellence. The aim: 70% of large systems within the scope by 2010, then all systems by Service certification Service certification is another aspect of our quality policy. Many systems gained certification in 2008, most notably the Dublin light rail for its entire activity (ISO 9001), the Sarthe, France, bus system for its paratransit service, the Nancy and Calais, France, systems for their ticket offices, etc. All the ISO 9001, ISO and NF Services certifications obtained in previous years were renewed. In France, 15 systems are NF Services certified (36% more than in 2007), and 12 systems are ISO 9001 certified (up 20%). At the end of 2008, 91 of our systems were ISO 9001/14001/18001 certified, 30% of the total number. The aim is to lift this figure to 70% within three years, and then to 90% within five years. Total quality for the Barcelona light rail system THE BARCELONA LIGHT RAIL SYSTEM provides service of exemplary quality. Its quality, safety and environment system (QSE) has triple certification: ISO 9001 (management of the company s management processes), ISO (impact of the light rail s activity on the environment) and OSHAS (occupational health and safety). The light rail system has also had its customer commitments certified under the European standard EN 13816, in particular with regard to key service aspects: on-time performance, regularity, customer contact, information, fare evasion and respect for the environment.