Alstom aims projects in transport

Since the 1950s in Brazil, the French company, Alstom, won tradition in the country as a supplier of trains, signaling and railroad equipment. The activity that was once the main activity of the company in the country today, however, is just behind the divisions of power. In the fiscal year ended in March 2012, Alstom Transport accounted for approximately 15% of the consolidated revenue of the company, while equipment for hydroelectric and wind power generation, accounted for more than half of the $ 1.3 billion and the Grid division, of equipment for power transmission, for a quarter.

With new projects to be tendered in the country, the company sees a turning point for the rail division, which should gain increasing importance. In terms of evolution, it is an important moment, because Brazil was traditionally a market of Metro, and now we are entering in new lines, said to Valor, the world CEO of Alstom Transport, Henri Poupart-Lafarge.

The executive admits that the attention is concentrated on the High Speed Rail (TAV). The project, to be bid in September, will connect São Paulo, Campinas and Rio and has a total estimated cost of $ 17.8 billion. Lafarge, however, says the company does not want to bet all his chips in one project. Our priority is to keep the pace of business, with LRV, metro still growing and regional trains in the future.

The LRV model is promising for medium-sized cities and the regional trains have no projects defined yet [there are studies being conducted in several States], Lafarge said. Alstom looks with special attention to LRV projects in Porto Maravilha, in Rio, in Santos and in Goiania. The LRV of Brasilia, which was delayed by problems in the bidding, is also on the radar in their rematch. In addition to similar models in neighboring countries such as Ecuador and Colombia, which are served by Brazilian units – a factory in São Paulo and another about to be inaugurated in Rio, the only ones of Alstom Transport in Latin America.

In mature countries, he said, the LRV accounts for one third of the market and Alstom Transport can have a quarter of its revenue in the country with this product line, in five years, he reckons. The company is sure to win major projects LRV, by the experience that it has in the segment and presence in the country for decades, said Lafarge.

As TAV, he knows he will face stiff competition in the first round of bidding (operation and supply of technology). Groups of at least seven countries have shown interest. The company seeks investors and possibly a second operator, from Brazil. It already has partnership with SNCF, also French.

The definitions will be closed in two months and then close studies to elaborate the proposal, said Michel Boccaccio, who took command of Alstom Transport in Latin America in January. For him, if he wins, it will represent a significant change in terms of our size in the country. And it will require new investment and possibly a new plant.

Lafarge said it does not see the business environment in Brazil better or worse than other countries. Transportation projects are always complex. The country, besides being important for the company, its fifth market, behind France, Germany, Italy and Russia, has more advanced projects than in other emerging nations. China has high-speed train, but built by the government, Russia has designed a project, but not in an advanced stage, he compared. This reinforces the condition of unique opportunity provided in the country.