Our Business – Digital Sustainability ReportHitachi

In October 2018 the majority shareholder Hitachi Rail Italy Investments S.r.l. reached an agreement with the American fund Elliott for the purchase of the entire shareholding held by the fund, equal to approximately 31.8% of the share capital of Ansaldo STS. On the same date, Hitachi Rail Italy Investments S.r.l. (hereinafter “HRII”) communicated its decision to promote a voluntary take-over bid covering the totality of the Ansaldo STS’ ordinary shares.

Subsequently, in November 2018, HRII acknowledged that, consequently to the purchases made on the market, it held shareholdings exceeding 90% of the company’s share capital and that therefore it would have complied with the obligation to purchase, from those shareholders making a request, all the remaining outstanding ordinary shares of Ansaldo STS, pursuant to applicable legislation.

Thus, in January 2019, HRII communicated that by virtue of further purchases made on the market, as well as thanks to the requests to sell submitted by some shareholders, it held a shareholding of more than 95% of Ansaldo STS’ share capital; HRII announced that it would have proceeded with the purchase of all the remaining outstanding ordinary shares of Ansaldo STS, as provided by applicable legislation. Subsequently, at the end of January 2019, HRII held the entire share capital of Ansaldo STS and the shares were therefore delisted from the MTA market (so-called delisting).

On 31st January 2019 the Extraordinary Shareholders’ meeting of the Company resolved to change the company name that, starting from 1st April 2019, is Hitachi Rail STS S.p.A. The rebranding process involved not only the parent company but also all the subsidiaries.

Our business model

Hitachi Rail STS operates in both the Railway and Urban Transport Systems markets as:

a provider of “turnkey" solutions as a Prime Contractor (also managing the civil works and vehicles required to implement the project) and Integrated Transport Systems with its Signalling products;
or as an independent provider of technology and Signalling products or engineering expertise as the IT system engineer/technology integrator or, partial provider of other subsystems.

Hitachi Rail STS evolves its business model based on its vision of the future, as well as benefiting from being part of the Hitachi group, enabling it to pursue its growth objectives. At the start of 2018 the Company embarked on a journey of transformation, focusing on new technologies and acquiring skills, enabling it to develop additional specific expertise and adapt its business model to the evolving trends in the transport and mobility sector.

Multimodal Solutions provider development of the turnkey approach; implementation of Public Private Partnership and solutions integrated with new digital technologies
Signalling Next Generation signalling systems according to the leading technologies of the future (ERTMS / CBTC / Satellite), including highly innovative solutions designed for the management and maintenance of rail transportation infrastructure
Full Service provider approach to O&M more structured to provide a full service

By evolving its business model Hitachi Rail STS aims to ensure continuous growth, operating in the context of an increasingly competitive future scenario and pursuing sustainable growth and profitability that require the development of collaborations and partnerships.

Business segments

HIGH SPEED

Hitachi Rail STS pioneered the High Speed Railway Transportation era by commissioning the very first High Speed Signalling System (TVM) for the first LGV line in revenue service in 1981 in France (LGV Paris - Lyon). More recently, Hitachi Rail STS set another landmark putting into service the first High Speed line running on an ERTMS level 2 signalling system in 2005 (AV Rome - Naples) in Italy. These milestones confirm two facts: Hitachi Rail STS is present today in over 50% of all High Speed lines built around world (Japan excluded) and remains an unquestioned leader in ERTMS level 2, the most advance railway control system to date. Hitachi Rail STS has commissioned or is working on High Speed Lines in the following countries: Belgium, China, France, Germany, Italy, Morocco, South Korea, Spain, UK.
MAIN LINES AND FREIGHT

Hitachi Rail STS provides full-service capabilities to large railway networks like India, France, Italy and the US. It supplies systems for new lines being built in fast developing countries such as China and Australia. In Europe, the company is key to upgrading towards ERTMS, the new European Rail Traffic Management System, leading to the interoperability of differing country networks and newly-built High Speed lines. In the US and in Australia our advanced planning and control systems provide vital end-to-end solutions that address the needs of freight, mining and heavy haul operators. The signalling systems developed and commissioned by Hitachi Rail STS have over time set railway standards.
OPERATION AND MAINTENANCE

Hitachi Rail STS acts as a recognized provider of operations and maintenance (O&M) services for a wide range of transportation systems designed and delivered worldwide, including turnkey, signalling infrastructures, vehicles, buildings and facilities. Our O&M services are enhanced by an extensive experience in the planning, design, and construction of all major forms of transportation infrastructure, and by a concurrent engineering approach that guarantees a strong interaction between O&M provider and Design and Build (D&B) team from the early stage of the project and for the whole life of the system.
COMPUTER BASED INTERLOCKING

The most complete family of Computer-Based Interlockings for rail and transit is only available from Hitachi Rail STS. ACC, SEI and MicroLok® provide the perfect solution for networks and stations of all conditions, be it High Speed, Main Lines, Freight or Metros. Their integration with Centralized Traffic Control (CTC) and with Automatic Train Protection (ATP) systems has also been proved in High Speed applications. ACC provides complete route control in a single machine with ‘area controllers’ able to continue local operation in event of gross communication system failures. SEI provides mid-range interlocking needs and supports a full relay-based interface to controlled objects to provide for intelligent life cycle management. MicroLok II is Hitachi Rail STS’s ‘safe plc’. It provides low cost user-programmable safe system delivery through a distributed architecture that does not require a controlled environment and so can be deployed in lineside cases. Computer-based Interlockings by Hitachi Rail STS are currently in use all around the world, including the most demanding High Speed networks (France, Italy, Spain, UK, Belgium, China or South Korea); on Main Lines (US, Italy, France, Sweden, India, China, Bangladesh, Botswana, Malaysia or Australia among others); and also in metros.
EQUIPMENT & COMPONENTS

Hitachi Rail STS manufactures the most innovative and reliable equipment, such as track circuits, switch machines, signals and sensors for wayside data transmission: Eurobalise train, relays, hot box detectors, level crossing equipment, event recorders, the interlocking system MicroLok®, famous all over the world, equipment for monitoring the integrity of the train, etc.
METROS AND TRAMWAYS

For over a century, the world-wide family of Hitachi Rail STS companies has delivered industry-first solutions for rail transportation. Today, our sophisticated transit control systems build upon traditional signalling technology for a new generation of advanced systems in-step with evolving mass transit needs. Communication Based Train Control (CBTC) From a single-line metro installation to a metropolis network, CBTC’s fully integrated systems provide continuous high speed, two-way radio-based communication between wayside and vehicle. Carborne controllers determine vehicle position and enforce movement within authority limits. Communication between adjacent zone, interlocking and carborne controllers supports safe headway maintenance and maximises line capacity. Conventional Metro Track Circuit-Based Automatic Train Control (ATC) profile-based transit along with ATP, ATS and ATO subsystems enable driverless and semi-driverless operation for heavy and light rail transit. Proven, reliable technology in revenue service throughout the world provides built-in train detection. Light Rail / Light Rapid Transit (LRT) Our technology base enables us to propose a wide range of technical solutions to the needs of cost-conscious LRT customers. Requirements range from ‘drive-on-sight’ street-running low-floor systems with GPS based train positioning for information purposes, and traffic light priority schemes, through to fully signalled operations on dedicated rights of way providing ‘tram-train’ facilities at high platforms and with extended train protection requirements.
PLANNING, SUPERVISION AND TRAFFIC CONTROL

Whether Main Lines, High Speed or Mass Transit, Hitachi Rail STS offers the most technologically advanced solutions for Supervision and Traffic Control Centres all around the world. Our long and pioneering experience includes references in all continents. A special mention goes to the Optimizing Traffic Planner (OTP), an advanced planning engine that solves complex logistics problems under changing operating conditions to maximize capacity and increase average velocity. Computational agents respond in real time to updated CAD and field data, issuing new movement plans that account for current conditions and all operating rules and constraints. Applied off-line, OTP can minimise inherent conflict within a new timetable before the timetable is used in service. Applied on-line, OTP can product capacity gains of as much as 20% across a large freight oriented network. Applied to passenger oriented networks the gains are measured in terms of reduced delay minutes, reduced passenger compensation costs, reduced operating costs for both train operator and infrastructure manager, and capacity gains particularly where the timetable is recast to facilitate this benefit.

Focused on innovation

Hitachi Rail STS operates daily with the aim of improving quality of life by designing new transport systems which, every day, safely carry millions of people and materials without polluting, by developing increasingly compact and energy-efficiency hardware, by researching new green technologies and, above all, by optimizing consumption and avoiding waste.

Today the Hitachi Rail STS team within the Hitachi group can further develop its innovative approach, also by tapping the group’s references in the Big Data and Internet of Things field. It is now possible to come up with solutions that improve performance and services offered by combining different technologies.

RESEARCH AND DEVELOPMENT FOR CUTTING EDGE PRODUCTS AND SOLUTIONS

Over the years, its development of products and solutions (Development and Engineering) has enabled Hitachi Rail STS to seize a leading position in the Signalling Systems and Railway and Mass Transit Sectors.
The majority of investments regarded the on-board systems product line aimed at facilitating alignment to the ERTMS standards and improving the performance of CBTC applications; furthermore, the new platform for automation products was launched, aimed at promoting the digital development of technology.

SAFETY AND RELIABILITY

Hitachi Rail STS implements RAMS (Reliability, Availability, Maintainability and Safety) activities to ensure that it develops and delivers products, applications and systems that are safe, in compliance with Italian and international laws applicable to railway systems, reliable and in line with its customers’ needs and its internal quality standards. These activities are performed on all Hitachi Rail STS projects in which safety and reliability are relevant, which constitute over 90% of total business activities.

PRODUCTS AND SOLUTIONS THAT RESPECT THE ENVIRONMENT

Hitachi Rail STS’s unwavering commitment to providing its customers and end users (passengers and freight) with the best products and system solutions, the use of the best design methodologies and procedures and the best existing construction methods and processes contributes to increasing safety and reducing direct and indirect impacts on the environment.