The document summarizes public transportation in Italy, including: - Over 1,000 companies operate with 50,000 vehicles and carry 5.3 billion passengers annually, employing 110,000 people. - Italy has high levels of car ownership but public transportation accounts for 21.3% of passenger transport. - The average age of Italian buses is 12 years, much older than other European nations. - Fares in Italy are the lowest in Europe, though many regions have increased fares in recent years due to funding reductions. - Capital investment in new fleets and infrastructure has declined in recent years and additional funding is needed to update aging assets.

1. ITALIAN PUBLIC TRANSPORT
FUNDING
General manager ASSTRA – Emanuele Proia
Mollet del Vallès, 8th June 2016
1

2. PT AT A GLANCE (2014)
about 1,013 companies
about 50,000 vehicles
5.3 billion passengers (Boardings)
110,000 employees
Source: ASSTRA, Conto Nazionale Trasporti 2013-2014
2

3. Motorisation
Number of passenger cars per 1000 inhabitants
Country 1990 2012 2013
Change
1990/2013
Change
2012/2013
France 476 504 505 6% 0%
Germany 461 539 543 18% 1%
Italy 483 621 608 26% -2%
Spain 309 476 474 53% 0%
United Kingdom 361 464 468 30% 1%
EU-28 343 488 491 43% 1%
Source: EU – transport in figure – statistical pocket book 2015 pag 47
In Italy, the private car has an important impact on the mobility. Italy is the
third country with the highest motorisation levels globally, following
Luxembourg and the United States.
3

4. Modal split of Passenger Transport (pkm as %; 2013)
83,9% 84,4%
79,7%
79,6%
84,6%
81,7%
5,4% 5,7%
13,2% 13,0%
5,6%
9,2%
1,6% 1,6% 0,9% 1,4% 1,6% 1,7%
9,1% 8,4% 6,3% 6,0% 8,2% 7,4%
Francia Germania Italia Spagna Regno Unito EU-28
Auto privata Bus Metro e tram Ferrovie
Total
Public
Transport
15,6
Total
Public
Transport
21,4
Total
Public
Transport
21,3
Total
Public
Transport
15,4
Total
Public
Transport
19,3
Source: EU – transport in figure – statistical pocket book 2015 pag 47
Total
Public
Transport
16,1
France Germany Spain United
Kingdom
Italy
Passenger
car
Metro and
Tram Railway
Despite the high motorisation level Italy has, together with Spain, the
higher total public transport share, accounting for around 21,3%.
4

5. Average age of buses
Source France: UTP –Le Parc des Vehicules – Edition 2014 pag. 5
Germany: elaboration on ANFIA data. In Germany over 60% of the fleet are 9 years old
Italy: ASSTRA elaboration on CED data (Ministery of Transport)
Spain: elaboration on OBSERVATORIO MOVILIDAD METROPOLITANA data· Informe 2013 pag 38
United Kingdom: elaboration on UK Government data- Department of transport – Transport statistics Great Britain Annual bus statistics pag 2
Evolution of average age of buses (2002-2014; years)
In Italy, the average age of buses is approximately 12 years. A comparison with some large European
countries shows that there is a big gap.
Countries 2014
France 7,9
Germany 6,9
Italy 12,2
Spain 8
United Kingdom 7,7
5

6. Buses Fleet
Buses by level emission (2014; %)
EURO III
27%
EURO IV
6%
EURO VI
1%
ELETRIC
1%
EURO V
24%
EURO II
25%
EURO I
3%
EURO 0
5%
Buses pre Euro III
33%
Source : ASSTRA elaboration on CED data
6

7. Funding stream
The Italian case
State
National Fund
Public compensation
Fuel taxes
Regions
PT Operators
Regional
taxes
Municipalities
Directly generated resources
Public service contract
AdvertisingParkingLocal taxes Fares
Vehicle
rental
Agencies
Capital funding
Fiscal
system
State
Regions
Directly
generated
resources
Operating funding
Public
compensation
Tax
concessions
7

8. Others
Funding for Operating costs
In 2013 a new source funding
was established for operating
expenses: National Fund
Transportation
Excise
on
diesel
Excise
on
gasoline
National Fund
Transportation
Financing sources Legislative framework
Budgetary Plan2013
Public Transport
Fund
Art.21, c. 3, L. n. 98/2011 e art. 30, c.3, D.L. 201/2011
Budgetary Plan 2008
Art.1, c. 296, L. n. 244/2007 – excise on diesel
Art.1, c. 298, L. n. 244/2007 – excise on diesel
Law n.549/1995 Art.3, c. 12, L. n. 549/1995 – excise on gasoline
Before 2013 From 2013
8

9. Funding for Operating costs
National Transportation Fund (resources in milion)
€ 4.929,25 € 4.918,62 € 4.925,25 € 4.850,78
2013 2014 2015 2016 9

10. Funding for Operating costs:
Criteria for Regional Allocation of National Transportation Fund
90%
30%
60%
10%
10%
Gradual reduction of services in excess
and increase in quality and quantity of
high-demand services
Gradual increase of ratio fare revenue
operating costs
Definition of appropriate employment
level
Resources according
historical percentages
Resources subjected to
the achievement of the
objectives
From the year 2015 the percentage distributed on the basis of the achievement
of the objectives is increased, every two years, by two percentage points,
resulting in a reduction of the quota originally foreseen the extent of 90% of the
fund (Art. 2 DPCM 11 marzo 2013). 10

11. 2013 2014
4,929
(72.6%)
4,925
(72.5%)
1,862
(27.4%)
1,848
(27.2%)
Additional resources
FNT
6,773
Million €
6,791
Million €
Funding for Operating costs
11

12. Directly generated resources
Fares
114 114 115
118
121
123
127 128
137
148
164
167
100
103
111 111
115
117
115
117 117
122
124
132
136
109
113 113
117
119 119
122 123
130
136
148
151
90
100
110
120
130
140
150
160
170
180
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Biglietto a tempo Abbonamento mensile Tariffa media
Urban Fare Trends ( 2002- February 2014 ; Index 2002=100)
The reduction of public transfers was followed from a general trend of the
regions and local authorities to revise and increase in ticket prices
Single ticket Annual pass Average
[Source: ASSTRA elaboration]
12

13. SINGLE TICKET
(Fares - October 2015, €)
2,7
3,1
2,8
2,7
1,8 1,8
1,5
2,15
1,5
3,2
1,5 1,5 1,5 1,5
Berlino Amburgo Colonia Monaco Parigi Lione Madrid Barcellona Valencia Londra Roma Milano Napoli Torino
GERMANY AVERAGE 2,8€
FRANCE
AVERAGE
1,8€
SPAIN AVERAGE
1,7€
ITALY AVERAGE
1,5€
UNITED
KINGDOM
3,2€
Berlin Hamburg Cologne Munich Paris Lion Madrid Barcelona Valencia London Rome Milan Naples Turin
Source: ASSTRA data processing on PT operator websites
In any case the Italian fares are the lowest in Europe
13

14. MONTHLY PASS
(Fares - October 2015, €)
Source: ASSTRA data processing on PT operator websites
79,5
84
90,2
51,6
70
60,4
54,60 52,75
45,00
173,0
35 35
42
38
Berlino Amburgo Colonia Monaco Parigi Lione Madrid Barcellona Valencia Londra Roma Milano Napoli Torino
GERMANY AVERAGE 76,9€ FRANCE
AVERAGE
68,3€
SPAIN AVERAGE
52,7€
UNITED KINGDOM
173,0€
ITALY AVERAGE
36,6€
Berlin Hamburg Cologne Munich Paris Lion Madrid Barcelona Valencia London Rome Milan Naples Turin
14

15. ANNUAL PASS
(Fares – October 2015, €)
740
489
728
690
546
1.801
250
330
294 310
Berlino Monaco Parigi Lione Madrid Londra Roma Milano Napoli Torino
GERMANY
AVERAGE
668,8€
FRANCE
AVERAGE
721,6€
SPAIN
546€
UNITED
KINGDOM
1.801€
ITALY AVERAGE
283,5€
Berlin Munich Paris Lion Madrid London Rome Milan Naples Turin
Source: ASSTRA data processing on PT operator websites
15

16. 2.314
1.210
278 352
790
398
300
1997-2001 2002-2006 2007-2011 2012-2016 2017-2022
Capital investment for renew public transport fleet
(1997-2022; Milion, €)
Source : ASSTRA elaboration
In the last years, in Italy, the LPT sector has witnessed an overall decline in resources for
investment for renew fleet, moreover, between 2012-2016, the resources was cut of
about 700 milion € and used by the regions to the achievement of fiscal targets.
16

17. Capital investment for Public Transport infrastructures
In the last Economic and Finance Document (2016) resources are been
allocated for various metropolitan and tranway infrastructures
•Interconnection Rebaudengo – Turin railway link
•Turin underground
•Milan – Monza Underground M5
•Milan Line M4 Lorenteggio Linate
•Rome Underground Line C
•Naples – Line 6
•Naples - Line 1
•Circumetna (Catania)
•Palermo
•Tramway of Florence
•Light rail/Underground Bologna
TOTAL COST: 12.141 € MILLION
TOTAL RESOURCES: 10.374 € MILLION
% COVERAGE : 85%
PERIOD WORKS: 2016-2020
17

18. A plan for renew buses fleet
11,5
10,5
9,9
9,3
8,6
8,0
7,6
7,1
12,2
12,5
11,7
12,4
13,1
13,6
12,7
13,2
13,8
6
7
8
9
10
11
12
13
14
15
2014 2015 2016 2017 2018 2019 2020 2021 2022
Averageage
Goal scenario Trend scenario
European average age
Source: ASSTRA elaboration on CED (MIT) data
Trend scenario. Number stable fleet over the years; resources already allocated with actual
resources and they expense for 50% for the renewal of the bus fleet.
Goal scenario. For each year occur 4,200 registrations and contextual scrapping; the financial
sources needed for the plan are approximately 9.2 billion euro (60% public co-financing).
Goal scenario (8-year plan)
Total investment:920 million euro per year;
4,200 buses per year to buy
Total public resources: 552 million per year
Trend scenario (8-year plan)
Investments allocated with actual resources
18

19. News in the Public transport sector
Standard Cost
System ante standard
cost
Operating
resources
Capital
resources
Compensation
by service
contract
Compensation
for capital
investment
System post standard
cost
Operating
resources
Capital
resources
Standard cost = operating cost + capital cost + suitable cost
The Italian Ministry of Transport will use a formula for determining standard costs
and allocate resources (operating and capital) according to them.
19

20. News in the Public transport sector
Standard Cost Model
Regression
Model
Bus services
Railway
services
Model for
industrial
processes
Underground
services
Tramway
services
The standard costs don’t apply to the following public transport services: trolleybuses, cable
car, funicular, waterborne transport; for regional rail service infrastructure costs are
excluded.
20

21. News in the Public transport sector
Art.23 Decreto Madia - National Transportation Fund
10% 15% 20% 25% 30%10%
15%
20%
20%
20%
80%
70%
60% 55% 50%
FIRST YEAR SECOND YEAR THIRD YEAR FOURTH YEAR FIFTH YEAR AND
OVER
Resources according historical
percentages
Resources according Standard
costs
Resources according increase
fare revenues
According with the new law (art.23 Decreto Madia) the rules for the allocation of
National Fund resources will change.
21

22. News in the Public transport sector
Funding System
Funding Architecture in 2016
STATE
REGIONS
• It prepares program to allocate resources to the
regions;
• It Approves regional investment plans;
• It provides funding to the regions;
• It defines the criteria for allocating among the
regions.
OPERATORS
BUS MANUFACTURER
• They define regional renewal plans and level of
co-financing;
• They give resources to the companies / provinces
/ municipalities.
They buy transport fleet after public
competition
STATE
REGIONS
BUS MANUFACTURER
CENTRAL MARKET
Art. 1 c.866
Legge di stabilità 2016
Funding architecture from
2017
MUNICIPALITIES
OPERATORS
OPERATORS MUNICIPALITIES
22

23. THANK YOU FOR YOUR ATTENTION
proia@asstra.it
23