High Speed Trains increase Competitiveness

High-speed rail transport has been steadily growing in Europe
during the last 20 years. All conditions are present for this
growth to keep on at an equivalent or higher pace in the
future.

With a forecast of approximately 12 billion Euros of
investment in the Swedish network in the period 2004-2015, Sweden
wants to develop a railwaysystem allowing higher speed for
passenger traffic.

By 2030, the following routes are planned to be opened and /
or upgraded:


- New high speed line (East Link) between Stockholm and
Linkoping


- New / upgraded link on the West Coast


- Upgrade of tracks from Stockholm to the West and North

As far as rolling stock investment is concerned, the most
promising market is for Very High Speed Trains (300-350 km/h).
The primary market includes about seven million rail passengers,
mainly travelling from Stockholm to the Öresund region and
Gothenburg. These are mostly business trips and leisure travels.


There is a market for High Speed Trains (200-250km/h) with 3
million potential passengers business-travelling in the region
Gävle-Mjölby.


Last but not least, there is a need for Regional High Speed
Trains as well to transport about one million people to and from
work every day, mainly in the regions Mälardalen,
Östergötland och Skåne.

However, the most critical issue in term of high speed rail
transport remains the infrastructure. In order to upgrade a
conventional line and allow a maximum speed of 200-250 km/h,
significant investment has to be carried out on items such as
level crossings (to be removed), track layout (to be improved),
power supply (to be reinforced) and signalling (to be improved as
well).

A very high speed train system (300-350 km/h) represents a
greater investment, such that private investors are not capable
of implementing it alone. Political authorities must participate
financially. Governmental donations for land development are
possible. The investors need facilities to land acquisition as
well as support in spreading information on the positive effects
for people and regions.

Ridership often exceeds the most optimistic forecasts

And in fact it definitely has a positive economic impact.
Experience shows that shortly after a new line is opened,
ridership often exceeds the most optimistic forecasts as the
system generates new kinds of users such as people commuting
between cities within 1 hour, which is too far away for any other
transport means.

In France for instance, the city of Le Mans, 180 km from Paris
but only 55 mn by TGV, attracted new inhabitants when the high
speed line opened, previously living in the Paris area, now
commuting to the capital and enjoying a better quality of life
than in the suburbs of the capital.

Furthermore, as the trains are modern and fully equipped with
e.g. internet and telephone lines, the time passengers spend on
the train can be used effectively and even counted as working
time. Regions grow and get closer together.This might help to get
people into work and thereby to strengthen the countries
economy.

Customised and mastered High Speed and Very High Speed
Solutions

Whatever type of high speed application is specified, ALSTOM
proposes rolling stock solutions matching all Customer needs.

With the Pendolino, which is operated in 11 countries
throughout Europe (including Finland) and soon in China, ALSTOM
is the leader on the high speed trains market. As of today, 226
train sets (1556 cars) have been sold. The fleet runs at 200-250
km/h. The Pendolino is a wide, internationally well-proven
product family, combining technological innovation and passenger
comfort. The Pendolino is available as tilting or non-tilting
version.

ALSTOM has also a unique experience in very high speed trains.
The first TGV (train à grande vitesse) was delivered in
1978. Since this date, 536 train sets (5319 cars) have been sold.
The fleet runs at 300 to 320 km/h today and is operated in 9
countries. The TGV also exists as a double-decker version (TGV
Duplex). It is in traffic since 1996. The TGV holds the world
speed record on rail since 1994 (515 km/h in a test).

With the new AGV, ALSTOM applies the EMU concept to the TGV
traction equipment previously concentrated in the end
cars is now distributed in the underframe of passenger coaches.
This third generation of Very High Speed Trains meets diversified
traffic needs and runs from 270 to 350 km/h. The AGV offers more
comfort and capacity and is more reliable and available than
former trains. It builds on a modular concept. The operation
costs including energy consumption and the
acquisition costs per seat are reduced.

Train conquers Market

What is the best solution for the Scandinavian Triangle ? In
Sweden, a decision on the maximum speed on new lines is to be
taken in 2007. But the choice depends also on other factors:
infrastructure investment, geography of the line and distance
between the stops.

Whatever the decision is, it is a fact that if the operators
implement an attractive system, trains can compete effectively
with car or plane. With a departure every hour for a 1h25mn trip
from Paris to Brussels, the Thalys trains quickly attracted most
of the air traffic, in such a way that today you cannot fly any
longer between these cities. It is a major investment which gives
a great benefit to everybody: profits for the operators through
increased ridership, improved travel conditions for the
passengers through more comfortable trains and shorter travel
times, economic growth for the regions and, last but not least,
benefits for nature when people prefer to take the train instead
of car or plane.

The Speaker: Hugues Menissier


Hugues Menissier has been working within the ALSTOM Group for 15
years. He began in the Power Generation sector where he was in
charge of the purchase for export projects in Europe and Asia.
Then in 1994 he joined the Transport sector as Project Sourcing
Manager in the La Rochelle factory, on a strategic Diesel
Multiple Unit project. In 1997, he moved to ALSTOM Transport's
headquarters in Paris where he was in charge of Market
Intelligence for the rolling stock worldwide. Recently, he joined
the North Europe organisation as Rolling Stock Marketing
Manager.

The Speaker: Hugues Menissier

Hugues Menissier has been working within the ALSTOM Group for
15 years. He began in the Power Generation sector where he was in
charge of the purchase for export projects in Europe and Asia.
Then in 1994 he joined the Transport sector as Project Sourcing
Manager in the La Rochelle factory, on a strategic Diesel
Multiple Unit project. In 1997, he moved to ALSTOM Transport's
headquarters in Paris where he was in charge of Market
Intelligence for the rolling stock worldwide. Recently, he joined
the North Europe organisation as Rolling Stock Marketing
Manager.

The Company: ALSTOM Transport

With more than 35 product lines and a presence in more than 60
countries, ALSTOM Transport offers complete products and services
for new rolling stock, signaling, and electrical and mechanical
infrastructure as well as maintenance and rehabilitation services
to four distinct types of customers: urban transit authorities
and operators; intercity passenger rail operators and rolling
stock owners; rail freight operators; and intercity railway
infrastructure owners. ALSTOM Transport, with sales of 5,1
billion euros in financial year 2004-2005, is among the world's
leading suppliers to the railway industry.