YEARBOOK 2010

Veolia Transport 36-38, avenue Kléber 75116 Paris Cedex, France Tel.: +33 (0)1 71 75 00 00

www.veolia-transport.com

VEOL_1104376_RA_TRANSPORT_COUV_GB.indd couv4-couv1 16/05/11 11:09:15 VEOL_1104376_RA_TRANSPORT_COUV_GB.indd couv2-couv3 16/05/11 11:09:15 SET THE STANDARD for managing safe and sustainable mobility solutions.

As the leading private operator of public passenger transportation and a global benchmark, helps public authorities manage their mobility services. Our industrial expertise in intelligent transportation systems means we can design, organize and manage sustainable mobility in the most complex urban and regional configurations. Our multimodal solutions, which include trains, metro systems, light rail, buses, coaches, bicycles, car-sharing, taxis, ferries and more, make travel easier while keeping costs under control. They ensure quality service in large cities and low-density areas alike, and offer diversity in transportation modes so that every destination is served. By adapting our services to changing lifestyles, we improve passenger comfort and the ease and reliability of travel, while contributing to regional economic growth that is respectful of the environment.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 1 24/05/11 10:55:45 Strong growth is expected in the rail transportation sector, due to the opening up of European markets and an increase in public-private partnership (PPP) projects in North America and Asia.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 2 24/05/11 10:55:45 Information technologies are the new tools for innovative and sustainable mobility, offering on-line payment, smartcard ticketing, real-time information, and more.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 3 24/05/11 10:55:45 A momentous year in 2010

March 3, 2011 is a date to be remembered in the annals of public transportation. It was on that day that a new company was born from the combination of Veolia Transport and , forming the world’s biggest operator of public transportation systems and services. But more than its size, the new company is remarkable for its vision; with the DNA inherited from its distinguished shareholders, Veolia Environnement and Caisse des Dépôts, it is equipped from Editorial the start with the ability to tackle the major transformations in its sector with confidence. Antoine Frérot, First among these are the transformations in passenger transportation. Satisfying Chairman and increasing demand for travel is no longer enough; understanding is needed —understanding of the new lifestyles of people in this rapidly changing world, Chief Executive Officer understanding of how the information technologies and the legitimate desire to safeguard the environment come together to form a new type of transportation. of Veolia Environnement It is out of this understanding that ambitious transportation solutions will arise, seamless and adapted to the diversity of urban lifestyles. These are solutions in which new mobility ecosystems will be superimposed on the sustainable development of cities and regions. With such a tall order, a passion for technological innovation must serve to protect our planet’s equilibriums and further its inhabitants’ aspirations. The new company is a direct heir of its parents’ capacities for understanding and of their expertise in these spheres.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 4 24/05/11 10:55:45 Veolia Transport in 2010 €5.77 billion IN REVENUE Transformations are also occurring in the markets. Besides more urbanization, we are seeing the consolidation of transportation players worldwide. The result is heightened competition, and it is important to reach the critical size needed to design tailor-made systems from basic mass-produced modules. 27 countries WHERE WE OPERATE Here, too, the new player inherits an impressive range of transportation modes, the advantage of experience gained in 28 countries around the world, and unrivaled strength in innovation and investment. It will put that power and intelligence to work for public authorities and transform their vision 80,756 of mobility into projects, and those projects into reality. EMPLOYEES WORLDWIDE A page was turned in Veolia Transport’s history in 2010, but a new chapter began with the creation of Veolia Transdev. This annual report is therefore deliberately brief. That is not because of a lack of events as 2010 saw many of our contracts 2.54 billion renewed, along with many industrial and commercial successes. TRIPS PER YEAR* It is because the shortest messages are usually the strongest. The financial discipline of the entire Veolia Environnement group and the dedication of the whole company returned very good results for Veolia Transport. So, rather than 38,137 a final tally, this document draws a picture of the future. It shows the fine work VEHICLES** done by our people through outstanding commercial successes and examples of totally customer-focused innovations. At the end of a year devoted to building Veolia Environnement’s new foundations, SERVING I want to express my warmest gratitude to all of Veolia Transport’s employees 5,000 for their unflagging energy, without which this new company could not have seen PUBLIC AUTHORITIES WORLDWIDE the light of day. They can now all count on the support of Veolia Environnement and Caisse des Dépôts in achieving our shared ambition: to set the global standard in sustainable mobility that meets the new expectations of passengers and regional authorities. 3.5 million METRIC TONS OF GROSS CO2 AVOIDED

* Excluding subcontracted service and , VE Airport, SuperShuttle, Israel. ** Scope does not include Eurolines, VE Airport, SuperShuttle, Israel. 5

VEOL_1104376_RA_TRANSPORT2010_GB.indd 5 24/05/11 10:55:45 Our locations

Europe (excluding France and Germany) 20,939 employees North America Current contracts include Barcelona, Bilbao, 15,472 Dublin, Norrköping, Limburg, Prague, etc. employees Current contracts include Baltimore, Boston, Las Vegas, Germany Miami, New Orleans, Phoenix, Toronto, Montreal, etc. 4,574 employees Current contracts include Lower Saxony, Bavaria, North Rhine-Westphalia, Rhineland-Palatinate, etc.

France 31,026 employees Current contracts include Béziers, Nancy, Nice, Rouen, Saint-Étienne, etc.

Middle East & North Africa South America 4,200 employees 1,037 employees Current contracts include Bogotá, Santiago, etc.

Asia-Pacific 3,508 employees Current contracts include Auckland, Hong Kong, Jiangsu, Mumbai, Perth, Seoul, Sydney, etc.

Veolia Transport has 80,756 employees and operations in 27 countries Australia / Belgium / Canada / Chile / China / Colombia / Croatia / Czech Republic / Finland / France / Germany / India / Ireland / Israel / Morocco / Netherlands / New Zealand / Norway / Poland / Serbia / Slovakia / Slovenia / South Korea / Spain / Sweden / Switzerland / United States.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 6 24/05/11 10:55:45 VEOLIA TRANSPORT’S PERFORMANCE

ECONOMIC QUALITY 35.1% +9.45% more journeys 75 ISO 9001 certificates. (compared with 2009). of the Mumbai metro in India obtained 15% of revenue generated by rail preoperational ISO 9001: 2008 certification. activity with a contribution of 20% 25% decrease in complaints about the expected in the medium term. Tempe, Arizona, bus service compared 19.4% with 2009 thanks to the Service Excellence Veolia Transport’s international coach Team (SET). transportation subsidiary, Eurolines, serves1,200 destinations on France: 44 networks awarded the FACE label (fundamentals, continuous 17.3% routes in Europe. 500 improvement, and excellence). France SuperShuttle serves airports in over 38 Northern Europe 50 cities in the United States, France ENVIRONMENT North America and Sweden. 14.6% Environmental Management System (EMS) Central Europe/Germany deployed in all the countries where Asia-Pacific OPERATIONAL Veolia Transport operates. 6.2% Rest of the world 4.7% SuperShuttle: 86% customers satisfied/ 23 ISO 14001 certifications. 2.7% Other activities very satisfied and 85% willing to 61% of our drivers have received training recommend. in eco-driving. REVENUE BREAKDOWN BY GEOGRAPHIC AREA 93% overall passenger satisfaction on Line 9 of the Seoul metro, South Korea. SAFETY +14% rise in ridership in 31% of training budget allocated to New Zealand compared with 2009 safety. (9 million trips a year). In Charleston, South Carolina, the DRIVE 99% on-time performance for program improved the Safety Culture Index 2010 revenue of ToD services in San Francisco, California. by 48%. Valence, France: increase 8% Objective: of Veolia Transport in ridership in one year. 100% systems in France will obtain quality certification by end-2012 and safety €5.77 billion certification by end-2013.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 7 24/05/11 10:55:48 Key events in 2010

NEW CONTRACTS France subsidiary, won the France and implement the ticketing operate, manage and for the bus system for Seven-year contract for contract for passenger Launch in the Oise service, multimodal maintain its bus system. the Sophia-Antipolis the management and and crew transportation department of a 12-year information, the bus station It will be the largest operating urban area in the South operation of the Bayonne to New York’s three public-private partnership and a mobility center. contract in this part of Arizona of France. urban area’s bus system. airports, and for the for the development of an and one of the biggest of its Continental Airlines integrated transportation United States kind in the United States. China United States employee shuttle system. Cityway (Veolia The city of Phoenix, Arizona, Seven-year operating Golden Touch, service to Newark Transport’s subsidiary) has chose Veolia Transportation, France contract for two of the Veolia Transport’s airport International a 66% – stake in the PPP which has been managing its Award of the five-year five sections of the transport-on-demand Airport. company that will design transit services for 38 years, to operating contract Macau city bus system.

KEY CONTRACT RENEWALS United States Germany and Berskens operated by In Boston, the transit authority renewed Regional passenger rail contracts Veolia Transport since 2003 the Massachusetts Bay Commuter Railroad were renewed in Mecklenburg- was extended until 2014. Company’s (MBCR) contract for another Vorpommern for two years, North two years. This is the largest commuter rail Rhine-Westphalia for four years Canada contract in North America. Veolia Transport and the city of Leipzig for one year. In Ontario, the Regional is the key player in this consortium, which Municipality of York renewed runs 489 trains and transports 40 million Netherlands the Bus Rapid Transit (BRT) passengers a year throughout the The operating contract for the contract for the Greater Toronto Massachusetts and Rhode Island area. Fast Ferries service between Vissingen Area for five years.

THE VEOLIA TRANSPORT-TRANSDEV MERGER STEP BY STEP January May 5 End July August 12 INDUSTRIAL PROJECT PUBLISHED MERGER AGREEMENT SIGNED “WHITE PAPERS” PUBLISHED EUROPEAN COMMISSION GRANTS PARTIAL Six months after the announcement in After consulting their respective employee These documents outlined the APPROVAL July 2009 of plans to combine Veolia representative bodies, Caisse des Dépôts and different integration projects The European Commission found that the Transport and Transdev, the industrial Veolia Environnement signed the definitive and described the new merger of the activities of Veolia Transport and project was published, stating the strategic merger agreement, confirming that the new company’s organization Transdev would not significantly impede effective vision and reasons for this transaction. This entity would be jointly owned (50/50), with principles and the division competition and approved the merger in the founding text explained the challenges, Veolia Environnement as the industrial of roles between corporate, European Union, except in France and the objectives and assets of the world’s future operator, and Caisse des Dépôts as the country and regional Netherlands, where closer examination public transportation leader. strategic long-term partner. functions. of the issues at stake was required.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 8 24/05/11 10:55:48 Germany of passenger transportation ROSENHEIM services in Germany. Innovation Operating contract for the LOWER SAXONY In May, Nice (France), VENAP, a consortium “E-Netz Rosenheim” regional Ten-year contract to operate successfully introduced comprising Veolia Transport rail service linking Munich and the S-Bahn in the Hanseatic BPass, a mobile phone and EDF, the contract for the southern Bavaria to Salzburg City of Bremen and Lower ticketing and passenger creation and operation of an and Kufstein in Austria. This Saxony. This is the first information solution. electric car-sharing service 12-year contract strengthens electric regional rapid transit In December, the Urban consisting of 210 vehicles and Veolia Transport’s position system entrusted to a Community of Nice awarded 70 “pods” (vehicle stations). as the leading private operator private operator in Germany.

Australia New Zealand Béziers Méditerranée metropolitan In Perth, as a result of its commitment to In Auckland, where the company’s many area was renewed for eight years environmental protection and customer initiatives to improve the quality of rail as a result of the quality of the service satisfaction, Veolia Transport was able to service boosted user satisfaction 85% in provided. extend its contract for the management 2010 and ridership 14%, Veolia Transport’s of public transportation on the south contract was renewed for two years. Sweden coast to 2020, and also won the The contract for E4 Trafic, the operating contract for the bus service France long-distance coach service along to the city’s northern suburbs in the Veolia Transport’s contract for the the country’s northern coast, Joondalup area until 2019. operation of the bus system for the was renewed.

December 14 December 30 March 3, 2011 “BLUE PAPERS” PUBLISHED COMPETITION AUTHORITIES FINALLY Augustin de Romanet, These documents officially presented the APPROVE MERGER CEO of Caisse des Dépôts, and new entity’s geographic organizational On December 10 and December 30, the Antoine Frérot, structure, which consists of seven regions Dutch and French competition authorities Chairman and CEO of (France, Benelux, North America, Germany respectively authorized the merger for the Veolia Environnement, and Central Europe, Northern Europe and transportation activities in their countries. officially announce the United Kingdom, Asia-Pacific, South), The authorizations meant that consultation the creation of Veolia Transdev. with country autonomy still at the core with employee representative bodies could be of its managerial model. initiated before the merger became effective.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 9 24/05/11 10:55:48 COMMITMENT 1 An efficient passenger transit system is achieved by establishing a dynamic balance between a territory (city, metropolitan area or region), the expectations of its inhabitants and the mobility solutions in place. Veolia Transport works with public authorities, drawing on the expertise it has acquired from experiences in 27 countries, to design, organize and operate multimodal systems that exist and evolve with the areas they serve. ALL TRANSIT SYSTEMS INTO THEIR REGIONAL INTEGRATECONTEXT

SUSTAINABLE MOBILITY MULTIMODALITY Given the environmental, economic and social challenges facing One thing is certain: to cater for ever-more complex demands, transportation will have to be mobility, it is no longer a matter of whether the travel organization increasingly multimodal. Veolia Transport’s expertise spans the entire range of public transit, model should be changed, but of how the conversion to more including dedicated right-of-way systems (train, metro, light rail, bus rapid transit, tram-train, etc.), sustainable mobility can be successfully implemented and fulfill two other passenger systems (bus, coach, ferry, water shuttle services, etc.), or shared individual modes objectives: to control direct and indirect transportation costs for public such as car-sharing, self-service bicycle rental, and on-demand transportation (taxis, services like authorities, and to offer the same quality of service to all populations, SuperShuttle, etc.). Veolia Transport’s know-how lies in the optimum operation of each transit whether they live in urban centers, the suburbs, or in rural, low-density mode as well as in the combining of different modes of urban and suburban transportation areas. This requires tailored, attractive, efficient public transportation to create a multimodal offer that takes the passenger from door to door. and diversified, modular travel options that accompany the development of regions and changing lifestyles. COMMUNITY CATCHMENT AREAS Since no two cities or regions are identical, every mobility CUSTOMIZED PARTNERSHIPS solution is unique. Whether for Nice, France, or the Limburg Private operators will be able to help public authorities fulfill their mobility objectives because they have region of the Netherlands, New Orleans, Louisiana, or the Gard the capacity to dedicate themselves to innovative and demanding contracts. Public service contracts region of France, our people help design and operate multimodal enable a public transportation system to be efficiently managed on behalf of a local public authority. systems intended to fit the needs of a community catchment This management model, initiated in France, is now spreading to other parts of the world. In the United States, area. To help public authorities convert their vision into a project after New Orleans, Veolia Transport won the public service contract for the management of urban transit and then their project into a reality, we support them all the way, systems in Savannah, Georgia (bus, light rail, ferries, transport on demand), under the second largest public from designing or redesigning the transit system to the daily service transportation management contract in the country. Public-private partnership concession contracts, management of a transportation service. for example the Seoul, South Korea, metro and the Rhônexpress airport shuttle service in Lyons, France, enable the construction and then the operation of large-scale transportation projects. In both cases, Veolia Transport’s contracts include commitments to meet service quality and performance targets.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 10 24/05/11 10:55:48 FRANCE, VALENCIENNES A transit system “jointly produced” with the locals Veolia Transport has been operating the Valenciennes public transit system since January 2010 and has optimized the bus and light FIGURES rail services in three stages. First, after analyzing SOUTH KOREA, SEOUL transit needs and travel modes, it was able to At Veolia Transport’s initiative, Mobility and quality of life in the city identify four mobility sectors in this complex urban area. Second, six months before launching the new $45 million was allotted The Veolia Observatory of Urban Lifestyles analyzes the aspirations of city system, it used a “mobility blog” to establish direct by the US Department of dwellers around the world in regard to their city’s image, their mobility online exchanges with the locals, involving the expectations and their environmental awareness. Seoul’s residents, for population in putting together the transportation Transportation to New example, cite the high quality transportation infrastructure as their main service. Third, using the same personalized source of satisfaction. However, traffic jams and pollution remain major approach of exchange and consultation, four Orleans for the extension concerns. A total of 75% of Seoulites are confident in their public authority’s mobility advisors were recruited and trained of its light rail system. ability to continue to invest and improve urban mobility. to accompany riders in all four sectors of the Transvilles transit system. Nice: 10% modal shift (switch from private vehicle INNOVATION to public transit). RHÔNEXPRESS, THE TRAM-TRAIN SOLUTION The transit authorities opted for a tram-train solution to link city center rail station to Lyons 12,000 riders a day are Saint-Exupéry airport. Rhônexpress has been running since the summer of 2010 and is the first dedicated rail line between a city and its airport in France. It transports 4,000 passengers a day in less expected from summer 2011 than 30 minutes. When running on rail tracks, its trains can reach a speed of up to 100 km/h and they to ride the Tzen, the first Bus can also run on existing light rail tracks. Veolia Transport is part of Rhônexpress, the company that won the concession for this 30-year contract and that has taken on all commercial risks. Rhônexpress Rapid Transit service linking was responsible for construction and is now responsible for operating this innovative system. two regional express train stations in the Paris region. 11

VEOL_1104376_RA_TRANSPORT2010_GB.indd 11 24/05/11 10:55:49 COMMITMENT 2 If public transit is to become the mobility solution of choice for everyone, then the system’s complexity must be imperceptible to users. Successful mode integration makes for a clear, simple and efficient travel experience. It is based on an abundance of interconnecting transportation modes, enhanced by innovative information and ticketing services covering the entire range of travel options. A SEAMLESS MOBILITY PROVIDECHAIN

REAL-TIME INFORMATION ALL THE LINKS IN THE CHAIN Personalized information to assist passengers before and during Private cars are no longer the best choice for most journeys, especially in urban areas. The key to successful their journey is essential to seamless intermodal transportation. mobility is a chain of public transit services capable of providing door-to-door travel. Users must be able To cater for the wide variety of passenger needs, Veolia Transport to leave their cars in park-and-ride facilities so they can take a train or bus that will drop them off close offers interactive solutions on every kind of medium, from paper to a bicycle rental, car-sharing or taxi service that will take them to their final destination. In an integrated maps to new digital solutions combining Internet and mobile transit system, each link in the chain plays an important role, particularly the connections and transit phone technologies. For example, in France, the Valence and hubs that make it easy to switch from one mode of transport to another. Once mode integration Greater Paris area transit systems offer a smartphone travel is a technical and commercial reality, it can then become a daily routine for passengers. assistance application that includes multimodal information (maps, schedules, trip planner, traffic information), and real-time GPS pedestrian guidance. CONTACTLESS TICKETING Online purchasing, post-payment, travel pass recharge and validation using a smartcard or a mobile phone are all time-savers for passengers. Likewise, MOBILITY CENTERS ticketing combined with information services makes using the transit systems Whether passengers are looking to travel within a city or across a region, they should have simpler for the user by removing the barriers between different travel modes easy access to the services they need. In France, the e-stores opened in Nancy and Rouen and pricing structures. It is also a way of optimizing customer relations. represent a unique way of purchasing or recharging travel passes online 24/7. At the mobility For all these reasons, over the last 10 years, Veolia Transport has invested center, all services are brought together on a single platform that is accessible by telephone in ticketing systems. Today it is rolling out contactless solutions using and wireless or fixed-line Internet (schedules, prices, trip planning, booking, payment, Near Field Communication (NFC) mobile technology, thus paving the way complaints, etc.). In the Netherlands, France and the United States, these contact centers for a universal travel pass. deliver information and services for all the modes of transport available within an area.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 12 24/05/11 10:55:49 NETHERLANDS, LIMBURG PROVINCE A pass covering all transit modes To make access to public transportation easier FIGURES for everyone, in 2006 Limburg Province selected Veolia Transport as its single operator for 10 years. A real-time passenger information system and 651 park-and-ride facilities a customer contact center were set up to optimize connections between the 235 buses, 150 taxis and managed by Veolia Transport 24 trains under operation. worldwide. Result: passenger numbers have risen 50% in the space of four years. An electronic pass will shortly downloads of the be made useable on all types of transport. 12,000 iPhone application in three

UNITED STATES months in the Greater Paris area. SuperShuttle on a smartphone 8% increase in ridership In San Diego or Houston, Phoenix or Tampa, Los Angeles or New York, using a shuttle service to travel between home or office and the airport has never been easier. With the on the Valence transit system iPhone and Android applications launched in 2010, users need only a smartphone to book in France in one year. their seat and then find their vehicle by using the “Where’s my van?” function. The SuperShuttle website has also been optimized for mobile phones. Marketing campaigns target customers who have downloaded a SuperShuttle mobile application, 86% of transit systems have offering SMS alerts and personalized services. a passenger information website.

INNOVATION BPASS, MOBILITY IN THE WEB 2.0 AGE In May 2010, the Nice transit system in southern France introduced BPass, an NFC mobile telephone service that combines contactless payment with real-time information. Using a new generation mobile phone, users can buy and validate their ticket, find out the arrival time of the next tram or bus, and even geolocate themselves. They can also download games, obtain practical information about the city, and pay for coffee or their museum entrance ticket. In short, they can benefit from a wide range of services developed in partnership with the public authority and other city service providers. This solution was designed, financed and rolled out by Veolia Transport as part of the “Nice, Europe’s first contactless city” project, and in July, BPass was awarded the Innovation Prize at the “Victoires de la modernisation de l’État 2010” (French government modernization awards).

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 13 24/05/11 10:55:49 COMMITMENT 3 Aiming to provide an excellent service to every passenger is what motivates staff at Veolia Transport as they go about their work. Placing passenger satisfaction at the heart of our concerns is an ambitious challenge when set against a background of changing business frameworks and increasing demands for mobility solutions that are simpler, more accessible and more personalized. This commitment demands that we listen and talk to passengers, then set up innovative initiatives that will bring about continuous improvements to the services we offer. HIGH-QUALITY SERVICE FOR GUARANTEE ALL PASSENGERS

LISTENING TO PASSENGERS CONNECTIVITY AND PROXIMITY The first component of a quality service is the journey itself: frequency, rapidity, Passengers in the digital age want to be able to manage their lives on the move, on-time performance and comfort. Passengers want a public transit service that whenever and wherever they are. Veolia Transport is rolling out ever-more passenger achieves the highest standards in all these areas. New expectations are also contact points, strengthening the attractiveness of public transit systems through emerging about how to make journeys more pleasant, and Veolia Transport is passenger contact centers, informative and commercial websites, and smartphone offering a number of new initiatives: Wi-Fi, catering service on trains (Sweden), apps. But no information channel or relationship management can equal a friendly and more staff at stations (Seoul metro) and in vehicles (Rhônexpress tram-train local service with a human face. Veolia Transport personnel in contact with customers in France). The first stage in designing these new services is an ongoing process are the engines of service quality, and our staff can get help in this vital role through of listening and talking to passengers—the people who know the most about the “Going for Green” program. Designed to reinforce a culture of customer-care what they need—using qualitative studies, focus groups and social networks. excellence among managers and staff, the program plays a vital role in building Whatever the channel, what is important is to find out what our passengers a passenger-focused culture. want and need that we do not yet offer. INNOVATION

MAKING PROGRESS Like every leading service company, Veolia Transport aims for continuous improvement. This commitment is evident in the ever-increasing number of certifications we hold. Many of our systems were certified in 2010, including Line 9 of the Seoul metro, the first metro system in South Korea to earn ISO 9001 and ISO 14001 certification, and the Mumbai metro, which achieved ISO 9001 certification as it prepares to launch Line 1. The company makes regular use of satisfaction surveys, using an extremely demanding methodology developed in association with Ipsos Loyalty and backed by follow-ups of areas of dissatisfaction: Veolia Transport’s exclusive LISTEN program means that passenger contacts and complaints are dealt with personally and efficiently and analyzed with our transit authority clients. 14 Veolia Transport

VEOL_1104376_RA_TRANSPORT2010_GB.indd 14 24/05/11 10:55:50 SOUTH KOREA, SEOUL Making time to meet passengers Veolia Transport has launched the Seoul metro’s first “Meet the Managers” initiative. It is a chance for 20 managers working on Line 9 to go out and meet passengers at the five busiest stations and listen to what they have to say. These events, which are held every two months, are a way of initiating a direct dialogue with passengers and improving the quality of the service that they receive.

FRANCE Musical journeys A million tracks can be downloaded and enjoyed by passengers on 50 transit systems in France, thanks to a deal between Veolia Transport and Universal Music. The objective for Veolia Transport is to use the music offer to boost the image, attractiveness and modernity of its systems. Passengers are all in favor, and the idea was awarded the 2010 UITP award in the Best Passenger Initiative category.

FIGURES 12 countries and over 15,000 staff follow the “Going for Green” principles. SOCIAL NETWORKS: NEW MEDIA countries and FOR TRANSIT SYSTEMS? 7 40 networks use LISTEN. Some 96% of people aged under 30 (50% of the world’s population) belong to a social network; in 2010, there were 400 million active users of Facebook and 200 million bloggers. Veolia Transport is investing in social media to improve Tempe, Arizona: 25% fewer the way it converses with its passengers. Twelve initiatives in six countries complaints thanks to SET*, were judged exemplary and are now used as benchmarks by Veolia Transport, including Orange County (USA), Dunkirk (France), Barcelona (Spain) and a systematic complaints InterConnex (Germany). analysis method.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 15 24/05/11 10:55:50 COMMITMENT 4 Veolia Transport is focused on ensuring that every one of its transit systems “sets the standard for managing safe and sustainable mobility solutions” and that its people in the field play a key role in achieving this goal. Our human resources policy is driven by skills development, ensuring that they have the tools they need to do so. OUR EMPLOYEES AT THE HEART PLACE OF OUR PROJECT

WEALTH IN DIVERSITY PASSENGER SAFETY The true wealth of Veolia Transport lies in the diversity of the Our personnel enjoy autonomy in their management choices across every one of our people who work for the company. Our employees are as diverse transit systems, bringing them closer to the needs of public authorities and passengers. as the passengers they help every day. In every country where we These local roots combine with a business project that involves every member of staff, operate, managerial principles and employee-employer dialogue all of whom share a vision of what makes an ideal service. The safety of all—staff and emphasize non-discrimination on the grounds of origin, culture, passengers alike—is one of the most essential of all values. Safety action plans have gender or age. The Mission Handicap campaign in France resulted in consistent year-on-year reductions in accidents and incidents involving is a good example of this determination to ensure a properly passengers. Like the DRIVE program in the United States, these initiatives are brought integrated working environment. The company aims to to life by the motivation and involvement of teams working at every level—from transform attitudes toward employees with disabilities within frontline staff to senior management. the company, and ensure that best practices in recruitment, training and work place adaptation are consistently applied. INVESTING IN TRAINING Our professional performance is backed by a training policy COLLECTIVE INTELLIGENCE that reaches out to include all the latest facets of the modern Veolia Transport is able to leverage added value by bringing together the know-how and experience gained transportation operator. Company-wide training is currently from operating in 27 different countries. International job mobility plays its part, as do the occasions when offered in eco-driving and environmental engineering. our teams meet up for seminars or as part of operational projects. Two years ago, the quality and quantity Other modules focus on customer relationships, acquiring of exchanges changed radically with the launch of Expert.net. This is a collaborative intelligence platform new technology skills, and new modes of transportation. that enables all our people to join in defining best practices in different areas and stimulate the introduction The 18 Campus Veolia sites worldwide play their part of innovations. Expert.net now offers 18 expertise and 100 know-how networks, available in every country in transmitting this know-how, offering staff training that where Veolia Transport is present. leads to individualized and more fulfilling career paths.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 16 24/05/11 10:55:50 VEOLIA ENVIRONNEMENT FOUNDATION Outreach initiatives Via the Veolia Environnement Foundation, which had a 2010 budget of €7.2 million, company staff have been supporting local initiatives that work for sustainable mobility. Examples in France include the creation of driving schools to help social and professional integration, help with equipment for a non-profit community automobile garage, and the launch of a drivers’ service using people trained in eco-driving. Staff at Veolia Transport also supported new initiatives in 2010 such as boring water wells in Ethiopia and Burkina Faso, rigging a sailboat for children suffering from cancer and leukemia, and purchasing equipment to be used on work integration projects in FIGURES environmental fields. 18 Campus Veolia training centers in 12 countries. FRANCE, ROANNE €44 million spent Helping disabled staff on training, equivalent A company that welcomes disabled staff needs to make certain they can enjoy lasting careers. With this aim, and helped by consultants working on behalf of Agefiph*, to 2.08% of Veolia Veolia Transport Roanne set in place a program to assist permanent members of staff Transport’s payroll. who are disabled. Two members of staff benefit from a workplace support service. The process starts by analyzing the person’s professional situation (interviews, psychological attitude to work and working conditions) and leads to a series of recommendations 48% improvement in (physical arrangement of the workspace, training project, etc.) with operational follow-up. the Safety Culture Index (SCI) * A French non-profit organization that specializes in providing assistance in the employment of disabled people. in US systems participating in the DRIVE program.

INNOVATION UNITED STATES: A SAFETY CULTURE ROOTED IN “DRIVE” The DRIVE program is built on simple common sense: frontline staff—drivers, mechanics, sales teams, office staff—are best able to identify safety issues. DRIVE aims to involve them in actively reducing dangerous working behavior and practices, with the goal of improving the Safety Culture Index, which is based on the number of accidents. The pilot program was launched at 16 sites in 2010 and will be extended to all transit systems in the United States during 2011. First results were spectacular, leading to better safety for passengers, staff and local people.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 17 24/05/11 10:55:50 COMMITMENT 5 Climate change, pollution, dwindling energy supplies, increased pressure on open spaces and natural resources: these challenges make it essential for us to alter the way that our mobility models are structured. Veolia Transport is working day-in day-out to make public transit a vector for sustainable growth, via its innovations and across-the-board adoption of responsible practices. CONCRETE AND MEASURABLE ACTIONS TO PRESERVE TAKE THE ENVIRONMENT

THE ENGINE OF INNOVATION RAISING PUBLIC AWARENESS Veolia Transport is backing innovation to create a true alternative to the The example our transit systems set is just the beginning of our commitment to supremacy of the automobile. New solutions such as car – and bike – sharing sustainable development. That commitment takes another step forward as we partner and park-and-ride facilities promote modal transfers in favor of public public authorities in their work to raise awareness of the issue among the general transportation. At the same time, our transit systems are taking delivery public. Examples of this work include campaigns to educate school students about of vehicles that run on carbon-free fuels (biogas, second-generation biofuels, green behavior, and offering passengers eco-trip planners available via multimodal hydrogen, etc.) and feature the latest pollution control systems. information websites and, more recently, mobile phones. On a broader scale, The company is at the forefront of experiments with hybrid and all-electric Veolia Transport also lobbies at the international level to raise awareness of the vehicles in Europe and the United States. It has built a number of green bus importance of access to mobility. Over the course of 2010, the company took part depots, such as at Saint-Brieuc, France. The Veolia Innovation Accelerator in the “Bridging the Gap” initiative, the Cancun climate summit and the Mumbai program is a mark of the importance that we place on clean-tech R&D. seminar.

ENVIRONMENTAL PERFORMANCE Veolia Transport’s Sustainable Development Charter contains eight measureable undertakings for 2011(1). The company’s Environmental Management System enables it to measure the impact each activity has FIGURES on the entire transport chain in order to drive forward a continuous improvement approach. This mindset is evident on the ground through initiatives such as “Aujourd’hui Vert Demain” and “Green Culture,” as well 39.6% of vehicles are clean(2) as training in eco-driving and the adoption of environmental best practices based on the 3Rs (reduce, reuse, recycle). To help public authorities optimize their public transportation offer, the company systematically (+34% on 2009). uses the Bilan Carbone® greenhouse gas emissions assessment tool from Ademe, the French Environment

and Energy Management Agency, as well as its own Eco-Efficient Travel Indicator™, which assesses transit (2) A “clean” vehicle is one that runs on water-diesel emulsion, biodiesel, bioethanol, biogas or electricity and/or is fitted with a pollution treatment system. system performance in terms of CO2 emissions, pollution, energy consumption and car journeys avoided. This therefore includes all vehicles that meet the Euro 4 and Euro 5 standards. (1) http://www.veolia-transport.com/en/vision/durable/. 2011 sustainable development charter commitment: 30%. 18 Veolia Transport

VEOL_1104376_RA_TRANSPORT2010_GB.indd 18 24/05/11 10:55:51 INDIA, MUMBAI Sustainable mobility and climate change Some 60% of the world’s population will be city dwellers by 2030. Cities’ transit policies will have an important role to play if this change is to be sustainable. How are they to be made part of global carbon financing schemes? The September 2010 Mumbai seminar examined Mumbai’s experience as a pilot city. It was organized by the Institut Veolia Environnement, Veolia Transport and their partners(1), and highlighted concrete areas for action and further research into ways to better integrate urban transit among the economic mechanisms used to fight climate change. (1) The Energy and Resource Institute (TERI), Transport Research Laboratory (TRL), Institute for Sustainable Development and International Relations (IDDRI). INNOVATION IRELAND, DUBLIN

One-click CO2 calculator Dublin City Council plans to develop a sustainable transit system, avoiding a million car journeys by 2016. As operator of the city’s light rail system, Veolia Transport has set up numerous initiatives to help meet this objective. The latest innovation saw an eco-calculator added to the system’s website, making it possible for citizens to measure the carbon footprint of their light rail journey compared to the same journey in a car. Users simply

enter their departure and arrival stops, and the amount of CO2 that they save by using the light rail system is calculated.

One month after its October 2010 launch, over 10,000 people had already used the Luas eco-calculator. LOS ANGELES: WORLD PREMIERE

5 times less CO2 is released on average during a light FOR THE ECOLINER rail journey than the same journey made in a private car. Ten state-of-the-art Ecoliner electric buses have been running with , a system in Los Angeles County. These are the first heavy-duty 100% – electric buses, and they offer very fast charging cycles. Capable of carrying 68 passengers for almost 50 km without needing to charge, it takes just 10 FRANCE, LA ROCHELLE minutes at the transit center to charge their lithium-ion New goals for car-sharing batteries to 95% of their capacity without the need for any action by drivers. The experiment is on one of the most heavily The Yelomobile fleet, La Rochelle’s self-service electric car-share service, has taken delivery of the latest C-Zero and Mia models. used routes and paves the way for a planned extension of this These new vehicles have an autonomy of 100 km, making it possible to meet the goal of extending the car-share service throughout the urban area in the near future. The launch of a multimodal transportation ticket and a densification zero – emissions technology to the entire Foothill Transit fleet, of the charging station network should lead user numbers to double over the next two years. which serves 15 million riders annually.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 19 24/05/11 10:55:51 COMMITMENT 6 Faced with strong growth in global demands for mobility, Veolia Transport is entering new markets as it seeks to expand its offer to passengers. These are often markets that are only now opening up to competition, such as long-distance and regional rail travel and international coach services. Working to embrace all forms of mobility, the company is also innovating at the fringes of mass transit, for instance by developing shared shuttle services at airports. NEW GROWTH SEIZEOPPORTUNITIES

EUROPEAN PASSENGER ROAD TRANSIT A NEW ERA IN RAIL TRAVEL A new market is opening to competition: international road routes Veolia Transport is one of Europe’s leading private passenger rail operators, operating operated by non-resident operators (an activity known as services in countries including Germany, the United States, France, New Zealand, “cabotage”). Permitted under EU law and incorporated into the Netherlands and Sweden. The fundamentals of the market in Europe are changing French law since 2009, this consists, for example, of stopping off as it opens up to competition. The first wave of liberalization was in 2010, with the at towns in a country that lies along an international coach route. authorization to pick up passengers at intermediate stops along international routes Eurolines Veolia Transport is planning to extend this activity to all (“cabotage”). Next in line for liberalization are national and regional lines and high- its international coach routes. The subsidiary is also making plans speed links. The company will be drawing on its experience in delegated management for the projected opening up to competition of internal express as well as forging new alliances, such as with Trenitalia, to work with transit authorities routes in France. as this new era in rail travel dawns.

AIRPORT SERVICES Despite financial and environmental pressures, air passenger numbers are predicted to double again INNOVATION by 2017. This strong growth means that the market for ground transit services taking passengers to and from airports will become increasingly vital. As partner to over 50 airports worldwide, Veolia Transport helps to improve the quality of shuttle services to airports using its spread of integrated mobility solutions. The number one service in the United States, the SuperShuttle shared-ride airport service also serves the three main airports around Paris and the airport in Stockholm, Sweden. The success of this transport-on-demand service is due to excellent customer service and the fact that the company shoulders 100% of the commercial risk.

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 20 24/05/11 10:55:51 GERMANY A key actor in the rail sector Veolia Transport is Germany’s number one private rail operator, managing regional passenger rail services on behalf of nine Länder. The company signed two major new contracts in 2010, further strengthening its position. In February, Veolia Transport’s German subsidiary was awarded the management contract for 13 new regional lines spread across three regions: Saxony, Bavaria and North Rhine-Westphalia. In December, the company won the tender to manage the E-Netz Rosenheim regional service linking Munich and southern Bavaria with Salzburg and Kufstein in Austria. Winning this contract means that the operator is now international, and will be able to offer its passengers a new range of services.

UNITED STATES, NEW YORK Right up to the plane Golden Touch, the leading airline crew transfer service in the United States, provides a regular crew and passenger transit service to all New York and New Jersey airports. In 2010, it won the trust of two major new partners: the New York Port Authority, for a shuttle service to the city’s three airports, and Continental Airlines New York, FIGURES for crew transport to Newark international airport. 8 million passengers and 3 million online reservations annually for SuperShuttle. 15% of Veolia Transport’s worldwide business is rail. EUROPE: VEOLIA AND TRENITALIA LOOK AHEAD TO THE SINGLE RAIL MARKET Over 500 international In late 2010, Veolia Transport and Italian rail operator Trenitalia signed an agreement that led Eurolines coach routes to the creation in January 2011 of a 50/50 joint venture to operate international rail services in Europe and Morocco. as Europe’s international market opens up. The first trains will offer a night service, starting in fall 2011, on the Paris-Florence-Rome and Paris-Milan-Venice lines. Starting in 2012, regional daytime services will be offered between France and Italy, and the new operator will tender 150 million passengers for contracts throughout Europe. Tickets will be sold above all over the Internet. annually on regional and high-speed routes. 21

VEOL_1104376_RA_TRANSPORT2010_GB.indd 21 24/05/11 10:55:51 MOBILITY to serve passengers and the sustainable development of cities and regions

Operation of services Int at airports Airport links, including the SuperShuttle shared-ride service Light rail Metro

Car-sharing service Self-service bicycles

Mobile telephony for ticketing and passenger information ■ Travel-pass purchase and validation ■ Real-time information and SMS alerts ■ Contactless ticketing ■ Smartphone apps: trip planner, schedules, etc. Transportation on demand, including paratransit for disabled people Bus Rapid Transit Mobility center ■ Information on schedules and fares ■ Reservations ■ Ticket sales ■ Complaints handling Coach

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 22 24/05/11 10:55:52 ns

Inter-city service

Ferry service

E-stores ■ Ticket sales ■ Travel-pass recharge

Urban bus system

Transit centers ■ Transfers between different transportation modes ■ Customer service and information ■ Services (ticket sales, etc.)

Rail services: commuter, regional and long distance

Taxi Park & ride

Infographie

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VEOL_1104376_RA_TRANSPORT2010_GB.indd 23 24/05/11 10:55:52 This document was prepared by the publications unit of the Veolia Environnement Communications Department.

Editing and coordination: Sophie Geng, Hélène Salmon. Illustrations: Laure Duquesne. Text: Guy-Patrick Azémar; English text: ALTO International. Design, artwork and production: Photo credits: PhotoAlto; Cyrus Cornut/Dolce Vita/Picturetank; Alamy/Hemis.fr; John Lund/Blend Images; Veolia Environnement photo library (Salah Benacer; Olivier Culmann/Tendance Floue; Rodolphe Escher; Olivier Guerrin; Stéphane Lavoué; LUAS Eco Calculator; Christophe Majani; Cyril Massenet; Mitteldeutsche Regiobahn-Joachim Donath/ BVG; Stuart Morley; François Moura/Andia; NordWestBahn; OCTA operation/Erik Zandhuis; Jean-François Pelegry; Jean-Marie Ramès; Didier Robcis/Interlinks Image; Dhiraj Singh-Polaris/interlinks Image; John Spaulding /Veolia Transportation; Bruno Stevens/Interlinks Image; Anna-Feliza Sy/Veolia Transportation). To respect the environment, this document was printed by a printer holding Infographics: Idé. the “Imprim’Vert®” label using plant-based inks on FSC™ certifi ed X-PER paper that holds elemental-chlorine free (ECF), pH neutral, and heavy metal absence Production manager: Jean-Claude Le Dunc. guarantees, and is made of fi bers sourced from well-managed forests. Printed by: Stipa.

24 Veolia Transport

VEOL_1104376_RA_TRANSPORT2010_GB.indd 24 24/05/11 10:55:52 YEARBOOK 2010

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