Business Overview 2008 - Veolia

Business Overview 2008

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€6.059 billion in revenue for 2008

28 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 CO2 avoided

1 Our Vision

2 Our major challenges

6 Interview with Cyrille du Peloux

10 Veolia Transport in 2008

12 6 commitments for innovative, sustainable and safe mobility

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

2. Provide a seamless mobility chain 20

3. Guarantee high quality service for all passengers 26

4. Place our employees at the heart of our projects 32

5. Take concrete and measurable actions to preserve the environment 38

6. Seize new growth opportunities 44


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1

Set the standardfor 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 defi ne 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 environ-

mental impacts of our activities, while making the safety of our

passengers, employees and the broader community our priority.

VEOL_0902374_RA_transport_monteGB.indd 1 19/05/09 15:16:12

> 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 CO2 and costs families less.

2 VEOLIA TRANSPORT

Our major challenges


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.


> Off er the public optimum fl exibility 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.

4 VEOLIA TRANSPORT

Our major challenges


> Help public authorities cope with increasing ridership and growing transportation needs

We support public authorities by off ering

them the advantages of a company that is

open to new contract models and new activities

(airport management, mobility centers,

real time passenger information).

5


“The ongoing dedication of our people to serving passengers is our best guarantee of success.”

Interview with Cyrille du Peloux, Chief Executive Offi cer of Veolia Transport.

What were the highlights of 2008 for Veolia Transport?Cyrille du Peloux : Despite the diffi cult 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 fi rst 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.

6 VEOLIA TRANSPORT

Interview


7


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,

fi elds 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

benefi t from the modal shift being caused by road congestion

and will, no doubt, become the most effi cient 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 2009. 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 diff erentiating factors. Today, we are

moving forward with our shared objective of being

“the standard for managing safe and sustainable mobility

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 off er 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 eff orts

to preserve resources are eff ects 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.

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.


Veolia Transport’s Executive Committee

Cyrille du Peloux, Chief Executive Offi cer

Xavier Girre, Deputy Chief Executive Offi cer and

Chief Financial Offi cer

Antoine Hurel, Deputy Chief Executive Offi cer

Francis Grass, Chief Executive Offi cer, France

Francis Angotti, Chief Executive Offi cer, Asia-Pacifi c

Mark Joseph, Chief Executive Offi cer, North America

Tomas Wallin, Chief Executive Offi cer, Scandinavia

Anne-Lise Voisin, Vice-President, Human Resources

Marielle Villamaux, Vice-President, Strategic Marketing

Philippe Payen, Vice-President, Strategy and Research

9

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 off ers

as effi cient 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 CO2 avoided thanks to Veolia Transport.

How do you think urban growth will aff ect 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 off ered by new information technologies are rapidly

being introduced. The Internet, mobile phones and smartcard

ticketing will be effi cient tools that encourage a personalized

use of many mobility solutions: train, bicycle, light rail, ToD, etc.

Public authorities will respond to this by off ering fi xed-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 off er 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.

10

The world in 2008

PUBLIC TRANSPORTATION RIDERSHIP INCREASES

Higher fuel prices in the fi rst

quarter, environmental

awareness, enhanced off ers,

better quality of service:

public transportation ridership

is up everywhere in the world.

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.

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.

VEOL_0902374_Rabat_extGB.indd 9-10 20/05/09 13:06:33

2

3

4

1

United states

Acquisition of Golden

Touch Transportation,

in New York,

by SuperShuttle

United states

• Phoenix, Seattle, Colorado

Springs

• Los Angeles, New Orleans,

Savannah

• Saint Xavier University,

Chicago

▪ 10,135 vehicles

Coaches

▪ 19,712 city buses

▪ 92 electric buses and trolleybuses

▪ 138 vehicles exclusively serving

airports, through People Travel

Group

Buses

▪ In France, Proxiway offers

approximately 100 vehicles

for sharing, in Paris, La Rochelle

and Narbonne

Car-sharing

▪ 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

Transportation on Demand (including paratransit vehicles)

▪ 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

Metros

▪ 13 systems operated

▪ 215 km of track

▪ 346 cars

▪ 1,280 minivans

▪ 31 airports and 50 American

cities served

▪ 6.9 million passengers in 2008

Shared-ride shuttles SuperShuttle

▪ 1,200 destinations in Europe

▪ 59 points of sale

▪ 9,000 travel agencies

Eurolines, inter national coach services

▪ Self-service bicycles in France

(in Saint-Étienne, Nice and Vannes);

the United States and

the United Kingdom

Bicycles

▪ 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

Taxis

▪ 4 systems operated, in Bogotá,

Las Vegas, Rouen and York-Toronto

▪ 268 km of routes

▪ 384 vehicles

▪ 1.5 million trips per weekday

Bus Rapid Transit

▪ 83 ferries, in France, Norway,

the Netherlands and Sweden

▪ Close to 10 million trips per year

Ferries

▪ 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

Trains

* Gross Vehicle Weight Rating.

Highlights of 2008Travel tools and modes to serve passengers

North America and Latin America

1 – Canada 2 – Chile 3 – Colombia 4 – United States

▪ 230 systems have a trip planner

▪ Information in real time and

when service is disrupted

▪ 501 park-and-ride facilities

Passenger information and mobility services i

Light rail

VEOL_0902374_Rabat_intGB.indd 10 19/05/09 14:56:49

Asia-Pacifi c

1

2

5

3

4

1

6

4

5

7

8

9

11

1012

3

20

13

14

15

18

19

16

Spain

Bilbao urban

system

Germany

Bremen rapid express

system (4 lines,

270 km); regional

Niers-Rhein-Emscher

system; regional

Leipzig system

Netherlands

Haaglanden bus

system (The Hague,

Delft, Zoetermeer)

South Korea

Seoul: Line 9 of the metro,

opening in June 2009,

25 km of track,

750,000 trips per day

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

India

Mumbai: Line 1 of

the metro, 11.4 km

of track, 12 stations,

600,000 trips per day,

opening in 2010

1 – Australia 2 – China 3 – India 4 – New Zealand 5 – South Korea

17

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

1 – 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

2

Europe and the Middle East

VEOL_0902374_Rabat_intGB.indd 11 19/05/09 14:56:49

11 12

Solid performanceOur worldwide systems combined resulted in 4.1 million metric tons of equivalent CO2 avoided in 2008. We use our Eco-Effi cient 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 CO2 emissions

avoided, liters of fuel not used and the gain in space.

Veolia Transport in 2008

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 2010. 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.

Setting an example in GermanyThrough constructive partnerships with German regional states,

we became the country’s leading private rail operator.

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).

11 12

6 commitmentsfor innovative, sustainable

and safe mobility

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1 Integrate all transportation systems harmoniously into their regional context

2 Provide a seamless mobility chain3 Guarantee high quality service for all

passengers4 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


14

1Integrate all transportation systems harmoniously into their regional context


15

A comprehensive view of the mobility chainVeolia Transport’s expertise in land and water transportation systems and its involvement in

regional development give it the capacity to design, build and operate effi cient mobility solutions,

whether on a city or regional scale.

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 2009. 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 south-east of the city to Kimpo Airport in the west. It is expected to carry more than 750,000 passengers a day by 2013. 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%).

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 off ering a fast,

comfortable service unhindered by road

traffi c. 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 2008.

Metro systems facilitate access to all urban

activities, for example in Seoul, South Korea,

where we will start operating Line 9 in June

2009.

In Mumbai, India, we will start operating

Line 1 in 2010.


1616 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 traffi c 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 off er 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 specifi cally

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 2008.

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 fl exibility for

the user, less pollution and cost control.

Proxiway, the unit specialized in this

service, off ers 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 servicecelebrates 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 2008. Baltimore’s Yellow Cab Company will celebrate its centenary in 2009. 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 fi rst company to recruit women drivers, adopt radio communications and use hybrid vehicles.


1717

Simple, effi cient systems that blend eff ortlessly into local lifeEver 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

eff ortlessly 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, Effi ciency

Transportation systems must be designed

and operated effi ciently 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 Effi ciency (appropriate

allocation of resources). We then look for

the best technical operating conditions and

off er 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 2008. Lastly,

we will be operating the Haaglanden bus

service (The Hague, Delft, Zoetermeer)

in the Netherlands from September 2009.

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

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 trans-portation facilities and 24 fl exible 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.”

The Lil’ Easy

helpsNew Orleans’ residents


1818 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 signifi cantly. 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

2008. 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

signifi cantly in other countries. For example,

in the Netherlands, the Limburg South Line

carried 43% more passengers in 2008

compared with 2007.

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.

In Australia, ridership on the Melbourne

commuter rail service has grown by 60%

since 1999, including a 36% surge between

2005 and 2008. 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 2008.

Passenger numbers for the North County

Transit District in California grew 17%

in 2008. 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 suff er 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 fl ows;

rearranging vehicle confi guration; raising

passenger awareness of the issue;

introducing off -peak tariff incentives and

collaborating with the public authorities

to stagger demand, notably from

schoolchildren.


19

FOCUS → Successful launch of Nice’s light rail service

HowHow

a light rail service can revitalize an entire transit system

In 2004, Veolia Transport was awarded a seven-year public service management contract by the Nice-Côte d’Azur urban authorities to fulfill three objectives: convert six separate transporta-tion networks serving 24 communities into a single transit system, introduce a light rail service, and create seven Créabus Transporta-tion-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 commit-tees, 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 fi rst 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 fi xed €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 imple-mentation 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 facili-ties 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 satisfi ed with the service.


2Provide a seamless mobility chain

20


21

Successful intermodalityWith increasingly sprawling urban areas serviced by several diff erent transportation modes, managing a continuous mobility chain is vital to ensure seamless transit systems and ease of travel.

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%.

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 identifi ed fi ve keys

to successful intermodality: designing

integrated transportation solutions;

improving the existing off er 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 off er 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, fi ve new shuttles will be

added to the existing fl eet of nine. Some of

the new shuttles will be equipped with diesel

and electric engines in order to reduce CO2

emissions as much as possible.


22 VEOLIA TRANSPORT

Commitment 2

User-friendly, attractive transit hubsRunning intermodal transit hubs is becoming a full-fl edged activity in itself. Hubs play

an increasingly important role and off er 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 fi rm.

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 diff erent 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 off ering

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, fulfi lling 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

effi cient connections between the diff erent

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 JerseyLIBERATION 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 expecta-tions. 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 effi ciently (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.


23

Personalized information servicesRegional 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 off ering 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 off er 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 diffi culties

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”

off ers 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.


24 VEOLIA TRANSPORT

Commitment 2

Ticketing, a means of achieving fl exibilityAs well as off ering 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 off er real-time products and services.

Mobile phone ticketing

To further improve individual travel,

the next generation of NFC mobile

telephones in Europe will off er innovative

services. They will enable passengers to

buy transportation tickets and will behave

like smartcard ticketing systems, off ering

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 NancyAN 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 signifi cant 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.


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 2006. The transit authority’s objective was to transform the complex original struc-ture, which used several operators, into a sin-gle 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 exten-sive 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 spon-sorship of local events (festivals, concerts, etc.) and partnerships with local shopping malls and tourist facilities. Our eff orts were rewarded rapidly with a 43% increase in ridership in 2008 on the south-bound train line. As well as off ering 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 rider-ship. User satisfaction rates are also particu-larly high. In fact, passengers awarded the urban bus service a score of 8.3 out of 10, which is the best in the Netherlands.


Guarantee high quality service for all passengers

3

26


27

Careful attention paid to each passenger’s needsTo 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.

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%.

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

specifi cally 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.


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

effi cient 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 defi ning a standard and off ering 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

benefi t fully from the advantages of

pooling costs and expertise that

we can provide.

A new way to get to the airport:

SuperShuttleTHE 1,280 SUPERSHUTTLE PEOPLE MOVERS carried 7 million passengers in the United States in 2008. Operating in 50 cities and 31 airports, they pick up customers from their home, offi ce 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.


29

Greater visibility in managing qualityLeveraging its knowledge of passengers expectations, Veolia Transport moved its quality policy

into a higher gear in 2008.

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 fi rst 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 2010. The second stage focuses

on continuous improvement (customer

complaint handling, quality

measurements in the fi eld, etc.).

The goal for 2010: 80% of large systems,

then all systems by 2012. The third stage

is to achieve excellence. The aim: 70%

of large systems within the scope by 2010,

then all systems by 2012.

Service certifi cation

Service certifi cation is another aspect of

our quality policy. Many systems gained

certifi cation 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

offi ces, etc. All the ISO 9001, ISO 14001

and NF Services certifi cations obtained

in previous years were renewed. In France,

15 systems are NF Services certifi ed (36%

more than in 2007), and 12 systems are

ISO 9001 certifi ed (up 20%). At the end

of 2008, 91 of our systems were

ISO 9001/14001/18001 certifi ed, 30%

of the total number. The aim is to lift this

fi gure to 70% within three years, and

then to 90% within fi ve years.

THE BARCELONA LIGHT RAIL SYSTEM provides service of exemplary quality. Its quality, safety and envi-ronment system (QSE) has triple certifi cation: ISO 9001 (management of the company’s management processes), ISO 14001 (impact of the light rail’s activity on the environment) and OSHAS 18001 (occupa-tional health and safety). The light rail system has also had its customer commitments certifi ed 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.

Total quality for the Barcelona light rail system


30 VEOLIA TRANSPORT

Commitment 3

Relationships with our passengers based on dialogueOur employees play an essential role in ensuring customer satisfaction. They have been trained

for this specifi c purpose and are encouraged by local initiatives.

We are highly committed to all

approaches involving discussion with

our customers. In Germany, we consult

our regional rail network passengers

through line committees. In Melbourne

and in Dublin, our managers regularly

perform site visits to meet their customer-

passengers under “Meet the Managers”

operations (see box). In France, we run

“local quality” meetings to ensure our

quality commitments are performing

to expectations, or, as in Nice, we

participate in neighborhood committees

with our transit authority client.

Recognition for frontline teams in contact

with customers

Our employees are in a position to make

customers’ travel pleasurable through

the relationships they build with them.

Customers do not just expect satisfactory

transit and associated services, they

also expect courteous relations with our

personnel. Welcoming each passenger,

taking their needs into account, informing

and reassuring them in the event of

any unforeseen circumstances, doing

everything possible to provide the best

solution in the event of an incident: the

“Going for Green” program is designed

to improve the service quality perceived

by passengers (read Focus on page 31).

Currently being developed across all

our systems worldwide, it structures

the entire company’s overall approach

to quality relations, and is having a very

positive impact. It goes hand in hand with

numerous local initiatives. For example,

to promote a positive attitude toward

passengers, the Dublin light rail personnel

are assessed on how well they provide

their service, including punctuality

at work, wearing their uniform, etc.

In Melbourne, the “Exceed” program

provides recognition for those employees

who make a concerted eff ort to do more

then is actually required of them.

It is based on naming those employees

who adopt a particularly strong

passenger-focused attitude. Their names

are put forward by their colleagues and

not by their managers. In this way, each

employee helps boost the visibility

of positive experiences with customers.

Since the program was introduced

in 2006, 6,000 nominations have been

submitted. The employees’ names are

printed in the internal newsletter and

they are rewarded at quarterly meetings.

Melbourne’s managers

know how to listen“MEET THE MANAGERS” OPERATIONS are an opportunity for passengers on Melbourne’s commuter trains to meet the net-work’s managers. Twice a year since 2007, an informal and friendly booth is set up in each of the city’s fi ve main stations. Customers are invited by a customer-service agent to put their questions to the relevant manager. The marketing team then compiles a list of the questions so that the company can respond accordingly. In 2008, this process resulted in more customer service agents in the main station, increased serv-ices in the early evening, as well as additional rails to hold onto in the trains, more waste bins in stations, improved train and station cleaning, and more.


31

FOCUS → The “Going for Green” excellence program in customer relations

How to improve

passenger satisfaction and motivate employees?

“Going for Green” is a structured program including a one-day training course to develop employees’ customer relation skills; a perform-ance measurement system based on surveys and performance indicators; and an internal communications system to underpin the customer culture approach throughout the contract.“Going for Green” is based on a universal color code, namely the green, amber and red of traffi c signals. These colors are used to rate the various day-to-day situations encountered and to indicate to employees what type of conduct and attitude they should adopt to improve their customer relations management.Green: the customer is in a situation of trust. Orange: the customer is confronted with an unforeseen circumstance: he or she will rapidly need information to be reassured and reduce his or her stress or impatience. Red: the passenger is in a difficult situation: it is essential to take immediate action to show the customer that the situation is under control. Good customer

relations management means that all indicators are on green.By the end of 2008, nearly 5,000 employees had already been trained in five countries: the success of “Going for Green” depends on a high level of management involvement, the program’s integration in the quality approach, coordination between internal training and the adaptation of role playing and situational exercises to the local context.In 2008, two modules were added to the “Going for Green” program: a “Customer relations center” module that was tested in our Super-Shuttle call center in Phoenix, United States, and a “Management” module tested at the “Pôle 78” center in the Paris region, France. In 2009, we will continue to roll out the “Going for Green” program by adding Australia, South Korea, New Zealand, the Netherlands, the Czech Republic and Slovakia with the support of Campus Veolia Environnement and local teams. The aim is to have 15,000 Veolia Transport employees trained in this program within two years.

Dublin

(Ireland)

NordWestBahn

(Germany)

Stockholm

(Sweden)

Las Vegas

(United States)

Denver

(United States)

Nancy

(France)

Fewer complaints

–40%

–44%

–46%

–34% (on employee attitude)

–44% (on delays)

–

–

Improved passenger satisfaction

+16 points (on employees and customer service)

+9%

+39% (in the number of compliments)

–

90% of customers state drivers do all they can

to find a solution

+10%

Improved employee motivation

Lower than expected turnover

2.7% drop in onboard employee absenteeism

for illness

–

Fewer disciplinary reports

–

High employee satisfaction/Training

84%

93% of employees have improved their ability to

handle delicate situations

–

97% of employees qualify the program as practical

–

95% of employees qualify the program as excellent

↗


Place our employees at the heart of our projects

4

32


33

A shared VisionIn all countries where we operate, our vision unites us under the same service ideal and gives

our personnel an essential role in relation to our customers: they represent the company

at the day-to-day level and are the authors of its success in the fi eld.

THE “TOGETHER WE CARE” PROGRAM concerns all our employees in the United States. It is based on four key values to be shared by everyone. Each is introduced with an example of exemplary conduct. The commit-ment to customers is illustrated by a locomotive engineer in Boston, whose exceptional composure helped limit the consequences of a serious accident. The sense of responsibility is underscored by the assistance provided by our drivers to students following a tragic gun rampage at the University of Illinois. Respect for others and the planet is exemplifi ed by the way our personnel responded after Hurricane Katrina ravaged New Orleans. Employee motivation is highlighted by the courage of the managers of the Chico bus drivers, who for fi ve days organized the evacuation of residents threatened by forest fi res in California in 2008.

To ensure all our resources are applied

to the same common end, we have set

out the Veolia Transport Vision: “Set

the standard for managing safe and

sustainable mobility solutions.” To ensure

that each of our employees worldwide

shares this vision in as concrete a manner

as possible, we encourage each system

to illustrate our vision with exemplary

projects. In this way, they can bring

the vision to life, day after day, in

a tangible way in the fi eld.

Dedicated teams

We also seek to involve our personnel

by giving recognition to initiatives and

improving their working conditions.

In Laval, France, for example, an internal

charter restates for the employees the

quality commitments made to customers.

It emphasizes the system’s quality policy,

internal communications, and the

inclusion of quality commitments

and their defi nitions.

The importance of social dialogue

In 2008, 702 collective-bargaining

agreements were signed by Veolia

Transport, 8% more than in 2007.

We fi rmly believe that consultation

with trade unions provides us with

a competitive edge in the eyes of our

clients, in particular when dealing

with the smooth passage for staff

from the status of public or semi-public

organization employee to that of

a private company employee. In Bilbao,

Spain, the bus system suff ered from

regular strikes, but positive and sustained

discussions with the trade unions led

to a pre-agreement being signed even

before Veolia Transport began managing

the system at the end of 2008. The result

was a smooth start to the contract for

all concerned.

“Together we Care”

Four key values


34 VEOLIA TRANSPORT

Commitment 4

Safety for all: a priorityVeolia Transport applies Veolia Environnement’s comprehensive approach to safety, to which it has

added the additional dimension of passenger safety.

In 2008, Veolia Environnement introduced

a global safety campaign. This program

is a commitment by the company, its

managers and all its employees

worldwide to subscribe to a common

commitment to safety-focused actions.

Veolia Transport unreservedly supports

this approach, focusing on situations that

are specifi c to its activity by analyzing

all the procedures implemented in the

various countries. Actions are designed to

boost prevention in four areas: accidents

involving passenger vehicles, employee

workplace accidents, the risk of terrorism

and acts of vandalism, and damage to the

environment. Safety managers have been

appointed at three levels: local, national

and corporate. A certain number of

numerical indicators have also been set

in place to track the results of the actions

implemented. These include the “Acciline”

software program that collates all

statistical data and then mines it to defi ne

workplace accident typologies. The system

provides real-time tracking of safety

performance, and the ability to undertake

corrective action customized to each

operations center.

Safer everyday behavior

In the United States, under the “World

Class Safety” program, we have improved

our personnel’s safety awareness and

empowerment. All 14,600 employees have

been issued with an instructional kit and

a best practices guide. A new “Safety is

my Priority” program, launched in 2008,

is designed to improve all kinds of

behavior in employees’ day-to-day work

that could have an impact on safety.

A study has shown that for 300 given

behaviours, there was an average of 29

accidents, including one serious accident.

Driver empowerment

Again in the United States, 1,500 Veolia

Transport buses have been fi tted with

the DriveCam camera system that videos

sudden braking situations. It is used both

as a training and accident prevention tool,

as well as to motivate drivers to adopt

responsible driving habits. A similar

system is due to be rolled out in France,

Ireland and Sweden. All incidents are

logged, whether a vehicle is involved

or not, whether they occur during working

hours or during travel to and from

the workplace.

Million Milersrecognized for their performance

IN LAS VEGAS, Veolia Transport is encouraging drivers to adopt safe driving practices. Throughout their career, they build up “miles”. To access the privileged Million Miler status, they must not have had an avoidable accident for twelve years. If they do have an accident, they then have to wait one year before they can again clock up “miles”. Each year, there is a reception specifically for the new Million Milers. Their photo is included in the Hall of Fame at the company’s headquarters and they receive a token of recognition symbolizing a million miles. Recognized by their peers as the most experienced drivers, the Million Milers are now teaching safety culture to the younger drivers.


35

Improved access to knowledge and trainingVeolia Transport is committed to improving the transmission of knowledge and skills from experienced

employees to young recruits, as well as facilitating the sharing of best practices internationally.

Every year, Veolia Transport recruits

candidates under apprenticeship or

upskilling contracts or under a validation

of work experience plan. All those who

succeed in obtaining their diploma are

off ered unlimited-term contracts in our

company.

Campus Veolia

At the 15 or so Campus Veolia sites around

the world, our employees are entitled to

training ranging from vocational certifi cates

(e.g., Customer Service Agent and Road

an internal document called “Mobi’guide,”

which is a straightforward compilation of

essential recommendations for the conduct

to be adopted.

Welcoming all forms of diversity

We facilitate the integration of our

employees irrespective of age or

nationality. In Australia, Veolia Transport

was singled out by the Federal

Government as an exemplary company

for its age-positive employment practices.

Again in Australia, where we have 4,153

employees, a succession system has been

developed to make sure the company’s

history and expertise are passed on to

the next generation.“Expert.net”

Making experience-sharing easier

VEOLIA TRANSPORT has pooled all its expertise networks under the “Expert.net” concept. It is based on four main points: improved access to good initiatives, facilitating communication between experts, managing communities of practices, and publishing an online directory of expertise. This organization improves the company’s ability to set itself apart from its competitors by promoting its exclusive expertise. Twelve expertise networks have been identified, in phase with the company’s strategic challenges, including “Client studies and knowledges,” “Ticketing” and “Ferry operation and mainte-nance,” to name just three. Each has made recommendations regarding methods used or the rollout of innovations. Once approved by the Executive Committee, these recommendations will be dissemi-nated across the entire company for implementation. “Expert.net” is therefore helping bring Veolia Transport’s vision to life at the day-to-day level.

Driver) to a Master’s degree (e.g.,

Environmental Services Management and

Engineering). In Poland, we organize training

courses to help improve the quality

of service. More than 1,500 employees,

of whom 85% are drivers, have completed

this course; a further 1,350 will attend

in 2009. In France, in 2008, several groups

of drivers attended courses on driving,

maintenance and all ground operations

at the Campus. A specifi c course in services

for people with reduced mobility has also

been created. Additionally, we distributed


36 VEOLIA TRANSPORT

Commitment 4

Focusing on social tiesAs it connects diff erent districts, public transportation is both a social link and a place for social

contact. Many of our drivers are involved in outreach work.

In Melbourne, Australia, Veolia Transport is

one of the sponsors of Whitelion, a non-profi t

organization that uses art programs to

support young people who are disconnected

from the community. In Sweden, at

Christmas, our personnel were given the

choice between a game for their child or

the donation of an equivalent amount to

a non-profi t for the protection of children’s

rights: 1,600 of the 7,500 employees opted

to make a donation. In France, we are now

measuring the positive impact from these

local initiatives, which we have been running

for some years. One example is the “I’m

a sport in public transportation” campaign

in Seine-Saint-Denis, near Paris which

encouraged a respect for vehicles and the

wider environment. In Vierzon and Calais, we

launched a bus decoration campaign to help

build respect for public transportation

vehicles. In the Rhône-Alpes Region, a rugby

program is aimed at helping young people

understand the value of respect and mutual

support.

Promoting courtesy

Irrespective of the fi nancial implications for

our business activity, poor behavior aff ects

the safety of our passengers and employees.

It is also a major issue for municipalities and

transit authorities. All the programs we have

implemented with local partners focus on

prevention, education and enforcement. It is

the combination of these three elements that

determines a program’s success. In Barcelona,

Spain, a program targeting twelve-to-sixteen-

year-olds includes joint discussion groups

about positive and negative attitudes

experienced in public transportation, a visit

to a light rail depot and a competition inviting

young people to come up with solutions.

More than 500 junior high students took part

in 2008 and 95% of their teachers were

pleased with the results. In Rouen, France, the

“City Raid Aventure” is a kind of treasure hunt

that teaches children about the institutions

in their city. In 2008, 500 young people took

part, establishing close ties with our drivers.

Melbourne,

good advicefrom Dr. Merton

AS COMMUTER TRAIN SERVICES expand in Melbourne, Australia, passengers are keen to see Veolia Transport take position on rules of good conduct for passengers. The result is the creation of the fi ctional Dr. Martin Merton, who provides expert advice on how to behave when traveling in a train. The ironic humor avoids any moralizing: “If you don’t give up your seat to a senior citizen, don’t be surprised if they sit on your lap,” “To prevent smells, eat your hamburger in its box,” and so on. An important aspect of this campaign is the Web site where passengers can add their experience with bad behavior and write their own “good advice.”


37

FOCUS → Taking over SNCM’s business

The quality of social dialogue was a prime concern for Veolia Transport when it took over SNCM and this has had very positive effects on the company’s turnaround. It has allowed the development of a highly proactive sales policy that has boosted existing passenger loyalty and attracted 48% new passengers. With 1.14 million passengers in 2008, up 10%, and a return to breakeven, SNCM is now in a better position to continue to provide a sea link between Marseilles and Corsica, France.In 2005, when the French Government wanted to withdraw from SNCM, a state-owned company providing ferry services between France, Corsica and North Africa, Veolia Transport studied the takeover proposal with the various political, business and social stakeholders. This led to the company’s

privatization in 2006, with its equity split between Butler Capital Partners (38%), Veolia Transport (28%), the State (25%) and the employees (9%). We devoted 2007 to imple-menting a restructuring plan negotiated with all the trade unions involved and approved on two occasions by an employee vote. The redundancy program continued throughout 2008 and was 90% complete by the end of December. At the same time, the plan to open up the company’s share capital to the employees was oversubscribed at the end of 2008; employee s now ow n 9% of t hei r company, and more than 50% of the employees opted to become shareholders. Again in 2008, Veolia Transport’s stake in SNCM was raised to 66% following the withdrawal of Butler Capital Partners.

How to turn around

a maritime company through a shared project?


Take concrete and measurable actions to preserve the environment

5

38


39

A meaningful measurement of our environmental performanceA person transported by an effi cient bus system emits only half the amount of greenhouse

gases compared with car travel. He or she also uses less public space, generates fewer pollutants

and consumes less fuel.

Reducing pollution

emissions from buses

TO MEET THE GOALS set in its Environmental Management System, Veolia Transport is reducing the pollution emissions of its vehicle fl eet. The results achieved for the reference sample(1) have improved year on year. In 2008, we reduced our carbon monoxide (CO) emissions by 17%, hydrocarbon (HC) emissions by 23% and particle emissions by 25%. The targets set in 2005 for the end of the three-year plan (in 2008) have been achieved: 8% reduction for CO, 14% for HC and 15% for particles. These excellent results are in large part due to the company’s strong policy of acquiring latest-generation vehicles (Euro 5 standard) for which the technical specifi cations in terms of local pollution are substantially higher than the regulations.

(1) Reference sample: 80% of the road vehicle fl eet in 2005 (the targets were set out in the 2005-2008 three-year plan).

One of the surest ways to preserve the

environment and reduce greenhouse gas

emissions is to attract the public to use

mass transit. Veolia Transport is committed

to continuously improving the

attractiveness of the systems it operates

and to off er solutions that will get people

out of their cars and into public

transportation.

Environmental management

The Environmental Management System

(EMS) introduced right across Veolia

Environnement includes around

100 indicators that provide a completely

transparent view of the impact of our

activities. These indicators help us set

targets and formulate plans to improve

our performance. Rolled out at all of the

889 Veolia Transport sites, the EMS

incorporates the provisions of international

standards (ISO 14001 and the Global

Reporting Initiative).

The Eco-Effi cient Travel™ indicator:

emissions avoided and fuel savings

Based on our EMS and a method validated

by Ernst & Young, we developed an indicator


40 VEOLIA TRANSPORT

Commitment 5

that measures public transportation’s

performance per passenger compared to

private cars in terms of the CO2 emissions

and air pollution avoided. It also calculates

the fuel not consumed, the fi nancial savings

for passengers and the amount of public

space freed up. In 2008, this assessment

was made for 96% of trips and 77%

of kilometers traveled. It puts at 4.1 million

metric tons equivalent CO2 the amount of

greenhouse gas emissions Veolia Transport

avoided in 2008. Overall, trips made in

public transportation represented on

average half the emissions that would be

generated by equivalent trips in private cars.

Approximately 1.5 million liters of fuel were

also saved. In Stockholm, Sweden, the total

number of trips on the metro avoided the

emission of 355,000 metric tons equivalent

CO2, which is 32 times less than if the

passengers had used their cars. The

Trondheim, Norway, light rail system does

not emit any CO2, as it is entirely powered by

hydroelectricity, a totally renewable source

of energy.

A decision-aid tool

Over and above providing a snapshot of

a system’s environmental performance, the

Eco-Effi cient Travel™ indicator is an eff ective

decision-aid tool. We perform assessments

for each route, which we forward to the

transit authority so that together we can

implement an improvement plan during

the term of our contract. If an assessment

reveals a ratio of car CO2 avoided/public

transportation CO2 emitted that is lower

than or close to 1, an appraisal of the route’s

organization is triggered. Solutions may

include improving quality of service to boost

ridership, maintaining the route for social

service considerations, redeploying the

service to a route with higher potential, use

of vehicles of a more appropriate size, and so

on. We also include the Eco-Effi cient Travel™

method in our tenders for urban and

intercity transportation, and use it to

compare the environmental impact of rail

and road freight transportation. The

Eco-Effi cient Travel™ indicator has been

recognized by the United Nations

Development Program (UNDP), which refers

to it in its Climate Neutral Network portal

designed to disseminate best practices.

Monitoring our own performance

Internal application of our EMS requires that

all employees focus on environmental

improvement goals. For example, 12% of our

sites have been audited and the wash water

consumption for 24% of our vehicle fl eet

has been reduced 70% by recycling the

water used. Today, nearly 25% of our vehicle

fl eet is green; our goal is to double this

fi gure within fi ve years.

Rail freight:

serving the environment

GIVEN THAT ROAD TRAFFIC accounts for 92% of greenhouse gases generated by freight transportation in France, rail off ers signifi cant advantages. This fact has been fully taken on board by a French cement company, the global leader in its fi eld, prompting it to opt for sea and rail transportation, with road being used only for the fi nal distribution. Veolia Cargo worked with the company to organize its logistics and now transports by rail more than 100,000 metric tons per year between the port of Bordeaux and the Toulouse cement plant. For the 840 metric tons hauled daily, total CO

2 emissions are just 132 metric

tons per year compared to 4,000 metric tons for the equivalent transportation by road.


41

Virtuous energy management solutionsVeolia Transport has performed several experiments as part of an extensive energy consumption

and emission management research program.

For several years, we have been training

our employees in “eco-driving” habits.

Our ANGO system defi nes optimum driving

for a given trip and uses light indicators

to let drivers know whether their driving

complies with the ideal plan. Initial

readings showing substantial fuel savings;

and have confi rmed the system’s relevance.

Waste oil, gas, diester, electricity, etc.

To reduce our vehicles’ pollution emissions,

we are developing a new type of fuel

containing 30% ester derived from used

cooking oil. Trialed in Le Mans, France,

in partnership with ADEME (the French

Environment and Energy Management

Agency), it cuts CO2 emissions by 25%,

while being fully compatible with both

older and more recent engines. Starting

in 2009, this fuel will be produced by

Veolia Environmental Services in Limay,

Paris region. In particular, it will be used

for part of our vehicle fl eet in this region.

In Linköping, Sweden, 61 vehicles operated

by Veolia Transport run on biogas from

the anaerobic digestion of waste and

wastewater sludge. In suburban Helsinki,

Finland, we operate a fl eet of 88 vehicles

running on diester (NExBTL). This synthetic

diesel produced from animal fat (locally

supplied) and vegetable oil has proven

popular with the city of Helsinki and has

gained support from the European Union.

In Dunkirk, France, we have started testing

a new fuel that is a mixture of hydrogen

and compressed natural gas called

“Hythane.” A fi rst in France, it is being

developed in partnership with the

municipality of Dunkirk, ADEME, Irisbus

and GDF-Suez. In Sydney, Australia,

we have been awarded Clean Fleet

accreditation for our maintenance program

designed to improve air quality. In the

United States, Yellow Cab, our taxi

subsidiary in Baltimore, has purchased its

fi rst 25 Toyota Prius hybrid vehicles. Lastly,

we operate a fl eet of 50 self-service electric

vehicles in La Rochelle, France, where we

are also trialing three electric minibuses.

Tempe,an exemplarygreen depot

IN TEMPE, near Phoenix, Arizona (United States), Veolia Transport has developed a green depot to improve energy effi ciency. Financed by the cities of Tempe and Scottsdale, it has been certified Gold and Silver LEED (Leadership in Energy and Environmental Design). Its bus wash water recovery system recycles 80% of the water used. The under-floor air conditioning consumes far less energy than conventional ceiling-mounted systems. Most of the fleet runs on liquefied natural gas or compressed natural gas. Lastly, bamboo furniture is used in the offi ces, and all lights are operated automatically by motion sensors.


42 VEOLIA TRANSPORT

Commitment 5

Learn to travel betterWe are developing awareness campaigns to encourage the use of public transportation and reduce

the carbon footprint.

The “Autopatch” campaign aims to wean

people off their car dependency and get

them using public transportation.

A humorous use of the medical notion

of a patch, Autopatch is presented as if

it were a pharmaceutical product to reduce

automobile dependency. Designed to reach

out to all audiences without arousing any

feelings of guilt, this campaign was fi rst

tested in Chambéry, France. Drivers are cared

for by “nurses,” who off er them a free

one-week bus trial. They can also undergo

a complete diagnosis of their mobility needs

to rationalize their travel habits.

This campaign won an award (Cap’Com)

for public communication.

“Keep Co2L” (CO2 Light)

Through the “Keep Co2L” campaign, we

provide our transportation systems and

transit authority clients with the opportunity

to publish their Eco-Effi cient Travel™ results

via a variety of channels reaching passengers:

an eco-calculator on the Web site;

eco-calculations on tickets, schedules and

information screens; posters inside vehicles

and stations, etc. The aim is to generate

passenger awareness of the positive

impact of mass transit on environmental

preservation. Eurolines, the largest coach

network in Europe, also provides

users with a CO2 calculator on its

www.ecogreen.eurolines.fr Web site

enabling users to compare the CO2

between coach, plane and car travel.

Sustainable mobility explained to children

SINCE THE START OF THE 2008 SCHOOL YEAR, our employees have been visiting schools, initially in France and the United Kingdom, to generate awareness in grade and junior high school students of the positive impact of public trans-portation on environmental and pollution issues. A CD-ROM has been produced for the speakers to master the notion of sustainable mobility and get the children involved by discussing the relevant ideas. It also includes entertaining “Ecolo-Labo” (sort of “green lab”) experiments to help the children understand the environmental issues at stake. Initial feedback has been very positive.


43

FOCUS → The climate change debate

We are committed to demonstrating a pio-neering spirit toward climate change to our municipal partners. At the end of April 2008, Veolia Transport became the fi rst private transit operator to become a member of the California Climate Action Registry (CCAR), a voluntary registry for reporting greenhouse gas emissions. We have undertaken to publish our CO

2

emissions, certified by an external auditing authority. This approach ties in with California’s policy of combating climate change. Veolia Transport is also involved in promoting the fi nancial benefi ts from reducing greenhouse gas emissions, by speaking at numerous interna-tional conferences (Carbon Forum America in San Francisco in February 2008, ICET in Beijing i n Apr i l 2008, Ca rbon Ex po i n Colog ne in May 2008, Poznań in December 2008, etc.). Veolia Transport is a major contributor to the Passenger Technical Committee of the OEET ( T r a n s p o r t at i o n E n e r g y E nv i r o n m e nt

Observatory) set up following the Grenelle de l’Environnement, environnemental Round Table in France. The aim of this observatory is to display CO

2 emissions on transportation tickets

compared to emissions for a similar trip by car, in order to speed up passenger awareness. In 2009, Veolia Transport will step up these eff orts to influence public opinion by holding three seminars jointly with the International Associa-tion of Public Transport (UITP), the Gesellschaft für technische Zusammenarbeit (GTZ) and the Transport Research Laboratory (TRL). One of these seminars will be held at the Paris head-quarters of Veolia Environnement. These meet-ings will bring together experts in the aim of making transportation an important item on the agenda for international negotiations and ensuring that a shared message is put to the UN Climate Change Conference scheduled to be held in Copenhagen, Denmark, in December 2009.

Why enter the

public debate and demonstrate

commitment?


6Seize new growth opportunities

44


45

A variety of contract typesThe basis of our mission is consultancy, trust and long-term relationships,

under rapidly changing types of contractual arrangements.

IN THE UNITED STATES, 20 Los Angeles communities grouped together to establish their own public trans-portation system. They have outsourced the role of transit authority to Veolia Transport. It is a fully private service, but still controlled by the municipalities. Its role is to prepare the strategic decisions, approved by an Executive Board made up of city council members, and to choose the operator that will run the system. After a tender process, operation was contracted to a private operator.

First introduced in France, the private

management of public services enables

us to work in the public interest by providing

our effi ciency and expertise. The public

authority retains control of its

transportation policy, while the private

operator undertakes to meet specifi c

performance-based commitments assessed

using appropriate indicators. In France,

90% of urban and intercity transportation

systems (the Paris region excluded)

are operated by private companies.

This model is increasingly being used in

other countries around the world in the

form of public-private partnerships (PPPs).

We were recently awarded a PPP contract

to operate the Sprinter in California, our fi rst

regional rail reference in the United States.

Similarly, our Märkische Regiobahn contract

for the operation of two regional rail lines

between Berlin and Brandenburg state

is a signifi cant milestone, as this state

had previously never used a tender process.

A long-term relationship

We also work under long-term concession

contracts, similar to PPP contracts, alongside

our partners in construction, rolling stock

supplies and fi nance. With an average term

of 30 years, they are ideal for establishing

long-term relationships based on an

optimum distribution of responsibilities

between the government authorities

and the private sector for the development

and management of transportation

infrastructure. In Seoul, South Korea,

for example, we were awarded operation

of the city’s metro Line 9, whereas the fi rst

eight lines are operated by a public

company. We have also developed this

type of partnership contract in Barcelona,

Mumbai, Rouen and in the Rhône

département, France. In such confi gurations,

we are involved in the overall project

and play a lead role in the transportation

system’s operation and maintenance.

Foothill Transit:acting as the transit authority


46 VEOLIA TRANSPORT

Commitment 6

New high-potential activitiesVeolia Transport is expanding into passenger transportation activities with high potential for future

growth, especially airport management.

At Nîmes Airport, France (250,000

passenger movements per year), we are

in charge of overall operations at the

airport and of coordinating relations

between the various stakeholders (the

government, airlines, suppliers,

passengers, handling agents, etc.).

In June 2008, we also started managing

Beauvais Airport, France (2.4 million

passenger movements) in partnership

with the Oise Chamber of Commerce and

Industry under a fi fteen-year PPP contract.

After winning the contract at the end of

2008 to manage Lille-Lesquin Airport,

(1 million passenger movements per year)

France, in a consortium with the Greater

Lille Chamber of Commerce and Industry

and Sanef, Veolia Transport will be

focusing on implementing these two new

contracts in 2009. Veolia Environnement

is also a service provider in around

20 airports worldwide, mainly regional.

Our services cover two main areas:

mobility services (airside to the planes

or parking bays, and landside between

the airport and downtown); and the

management of multi-services (security,

maintenance, car park management,

runway operations, baggage handling,

passenger services, etc.).

Services to the corporate

and government sectors

In all regions of France, Veolia Transport

puts together corporate travel plans to

assist with employee travel in the regions

where it operates. In January 2008, we

signed a transportation contract with the

German Army covering the entire country.

The contract involves troop transportation

throughout Germany. Travel is organized

with a series of private bus companies

using highly effi cient reservation

management systems, enabling rapid

response to transportation demands

for which there is little forewarning.

At the end of the fi rst year and the

provision of around 18,000 trips, the

Bundeswehr declared the service to have

been very satisfactory. In France, the

DGA (the French Army’s General

Delegation for Ordnance) and Dassault

Aviation have contracted Veolia Transport

Executives for Transportation-on-Demand

services for their employees in the Paris

region. In Australia, Veolia Transport was

awarded its fi rst contract with the mining

industry to operate a bus service to

transport workers between their residence

and the construction site for the extension

of BHP Billiton’s Worsley Alumina smelter.

The contract involves the operation of a

fl eet of 42 vehicles.

Leslys,

express rail link between Lyons and its airport

IN LYONS, the new Leslys express rail link between Part-Dieu station and Saint-Exupéry Airport illustrates the type of contractual arrangements we want to develop and the new services we can provide for airports. Through its 28.2% interest in a consortium of eight partners awarded a concession contract, Veolia Transport is responsible for the operation of this link. Construction of the new line offi cially began in November 2008 and it is scheduled to enter service in August 2010. This 22-kilometer link will operate year-round at a service speed of 50 km per hour, and a frequency of one train every fi fteen minutes, from the fi rst to the last fl ight.


47

Alliances in promising marketsIn addition to gaining a foothold in Asia’s rapidly expanding transportation market, Veolia Transport

is expecting new markets to open up in Europe.

The Asian urban transportation market

is estimated to be worth several hundred

billion euros, with authorities putting mass

transit ahead of public transport

infrastructure projects. Faced with very stiff

competition, Veolia Transport needs to

respond swiftly and robustly to calls for

tender.

Nanjing, fi rst entry in the Chinese market

In September 2008, Veolia Transport signed

an agreement with Nanjing Zhongbei for

the creation of a joint venture to operate

the transportation systems of six Chinese

cities (each with a population of from

500,000 to 1.5 million) in Jiangsu and

Anhui provinces. Veolia Transport will own

49% of this company for a period of thirty

years. The city of Nanjing is the main

shareholder in our partner, which

specializes in mass transit and real

estate development. The six networks total

6,500 employees and a fl eet of

2,000 vehicles transporting more than

350 million riders a year. Our contribution

through this joint venture will involve

the modernization of the transportation

service and its adaptation to the needs

of residents in this zone of rapid economic

growth, located close to Shanghai.

Synergy with RATP for growth in Asia

Veolia Transport and the Paris transit

operator’s RATP Développement have

created a 50-50 jointly owned company

focused on boosting growth potential

in Asia. There is obvious mutual benefi t in

working with RATP, which has an excellent

image and renowned expertise in large-

scale projects. This new structure has been

established for an initial twenty-year

period. Veolia Transport will contribute

its contracts in China, India and South

Korea, totaling annual revenue of around

€100 million, while RATP Développement

will contribute equity. The joint company

will grow as a result of the highly dynamic

commercial prospection carried out

by joint teams. Veolia Transport will chair

the company for three years, while RATP

Développement will be responsible for

its executive management.

A rail partnership with Air France in Europe

Veolia Transport has joined forces with

Air France to examine international

transportation opportunities that will open

up in Europe starting January 1, 2010, and

to jointly manage high-speed rail links.

This partnership agreement will enable

the two companies’ teams to carry out

preliminary feasibility studies into the

choice of international lines, the service

concept and the scale of operations.

The excellent progress made on rolling

stock design, service provision, fare

structure and operational procedures

points to a binding decision being made

by the end of 2009.

Mumbai,the metro option

VEOLIA TRANSPORT signed a contract with the concession holder at the end of 2008 to prepare for the introduction and operation for fi ve years of the future Line 1 of the Mumbai, India, metro. Scheduled to enter service in 2010, the line will require the recruitment and training of more than 500 employees. Covering a distance of 11.4 km, it will stop at 12 stations and carry 600,000 passengers per day, cutting their travel time from 90 to 21 minutes. For Veolia Transport, this contract will provide invaluable experience in a high-density urban zone: with a population of 20 million and a density of 27,000 people per square kilometer, Greater Mumbai is now one of the world’s largest cities.


48 VEOLIA TRANSPORT

Commitment 6

Industrial transportation solutionsThe European rail freight market is rapidly opening up, and Veolia Cargo has become a major

stakeholder with a fl eet of more than 200 locomotives. We work with industrial companies

very early on in the planning stages of their rail logistics and the confi guration of their

transportation plan in order to provide the best possible service at the most economical price.

Regular service along major European

trade corridors

We started transporting containers for

inter-modal operator Hupac in December

2008 between Brescia, Italy, and the port

of Rotterdam, Netherlands. Six trains a

week travel a route that passes successively

over the Italian, Swiss, German and Dutch

networks, mainly using electric traction.

It is the fi rst time that a private company

has been in a position to provide the fully

integrated operation of trains through a

signifi cant number of countries with a level

of reliability comparable to road

transportation. This new contract puts

Veolia Cargo in a good position for bidding

on contracts along the main European

trade corridors.

Global rail logistics service

Veolia Cargo operates complex

transportation plans for several types of

products and clients. In addition to

the basic traction activity, it provides

the services of a rail logistics specialist.

The partnership with transportation

organizer Eurorail has been expanded

under a partnership with the Norwegian

paper company Norske Skog. A new rail

service to transport reels of paper has been

set up in France between Golbey (eastern

France) and Le Boulou (southwestern

France). This was recently expanded to

include a service between Golbey and

Off enburg, Germany. The trucks

are marshaled to transport steel and

containers from Bettembourg, Luxemburg,

and Antwerp, Belgium. This transfer from

road to rail signifi cantly boosts the volume

of freight transported, with 13 turnarounds

a week. This service is also in line with our

partners’ commitment to sustainable

development as the north-south links use

only electric locomotives.

Saipol, a contract focused on

alternative energy sourcesVEOLIA CARGO has started up a new rapeseed grain, oil and seedcake transportation service for Saipol located near Nogent-sur-Seine, France. Every year, the production plant there transforms more than 1 million metric tons of rapeseed into oil for biodiesel and cake for animal feed. The volume of seed transported by rail has been doubled to cut road transportation in the region to a minimum. In addition to expanding Veolia Cargo’s geographic coverage in France, this new contract provides Veolia Transport with the opportunity to contribute to the development of alternative sources of energy.


49

FOCUS → Expansion of the NordWestBahn network

NordWestBahn is a joint company owned by Veolia Transport (64% of the share capital) and the two municipalities of Osnabrück (26%) and Oldenburg (10%). The company won its first call for tender in 1998, to operate a regional rail network of four lines between Osnabrück, Oldenburg, Wilhemshaven, Esens and Bremen. In 2001, NordWestBahn was awarded an addi-tional contract for fi ve lines, followed in 2006 by three lines around Essen and Dortmund. A line slated to become the future regional rapid express line, or S-Bahn, for Bremen was added to the network at the end of 2007. Further developments were to come in 2008 for Nord-WestBahn. The company won a sixteen-year contract to operate a regional network of four lines serving Düsseldorf, Duisburg and Ober-hausen that will come into eff ect in December 2009. Lastly, it has been awarded the entire S-Bahn rail network between Bremen and

Lower Saxony states, eff ective from December 2010. It is the first fully electrified regional express network in Germany to be entirely outsourced to a private company following a tender process. Ambitious commitments have been made, notably a security presence in each car from 9.00 pm. In ten years, NordWestBahn has become the leading private regional rail network in Germany, with more than 16 mil-lion passengers transported each year over an 840-km network, with 340 employees and a fleet of 70 railcars. It continues to improve service quality and network effi ciency through its long-term partnership with the transit authorities and the state governments. All the expertise acquired in regional rail passenger services will prove useful once the interna-tional rail passenger network is opened up in Europe on January 1, 2010.

How to become the

leading private rail operator in Germany?


Veolia Transport in pictures


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Veolia Transport

38, avenue Kléber – 75116 Paris – Tel. + 33 1 71 75 00 00

This document was prepared by the Publications Section of Veolia Environnement’s Corporate Communications Department.

Photo credits: Larry Fisher/Masterfi le – Steven Puetzer/Iconica – UpperCut Images – Veolia Environnement

and Veolia Transport photo libraries (Christophe Majani d’Inguimbert); Salah Benacer; Rodolphe Escher; Jean-François Pelegry;

Olivier Culmann/Tendance Floue; Jean-Philippe Mesguen; Guillaume Daveau/Minale Design Strategy; Samuel Bigot/Andia;

©Delsasso/Visus Ltd; Stuart McAlister/Connex Jersey; Didier Cocatrix; Chris Kapa; Nicolas Vercellino; Emmanuel Evitoux;

Image Zoo/Generation U; Fred Christophorides).

Design, artwork and production:

Text: Luc-Michel Gorre

This document was printed using plant-based inks on FSC™ certifi ed Satimat paper and on Satimat Green paper, made of 60%

recycled fi bers and 40% FSC™ virgin fi bers. Satimat Green paper is FSC™, PCF, ISO 14001 and ISO 9001 certifi ed.

The FSC™ (Forest Stewardship Council) is an international non-profi t organization constructively encouraging socially,

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a label on products sourced from certifi ed forests.


Veolia Transport

36-38, avenue Kléber

75116 Paris, France

Tel.: 33(0)1 71 75 00 00

www.veolia-transport.com


Documents

Business Overview 2008 - Veolia