LYON TURIN RAILWAY LINK: AN EUROPEAN INFRASTRUCTURE

Marco Menna, TELT SAS Responsible of Institutional Relations Göteborg – 11th of May 2015

1

A KEY LINK FOR THE MEDITERRANEAN CORRIDOR

AND FOR THE EUROPEAN NETWORK

The railway network as an instrument of territorial connection and social cohesion A rail network is not only the way to meet traffic demand: it is also an instrument of territorial connection and social cohesion. The Core Network constitutes the real backbone of the european single market.

Gotthard

Brenner

Mont Cenis

Cavour in 1846, long before the unification of , Camillo Benso Conte di Cavour: proposed the rail network as “Des chemins de fer en Italie” Revue Nouvelle - , 1846. an instrument of national unification. PASSENGERS: The Lyon-Turin in the European Metro Line

Moscow

Istanbul

CITIES AS STATIONS - CORRIDORS AS LINES The new infrastructures cuts travelling time in half for European citizens

IT WILL CHANGE THE GEOGRAPHY AND THE WAY TO CONSIDER DISTANCES (REDUCED)

GEOGRAPHY GEOGRAPHY TRAVEL TIME OF DISTANCES OF TIME LYON TURIN RAILWAY

100 km x 100 km 100 min x 100 min Time reduced by half (R. Koolas) GOODS: The Mediterranean Corridor

ECONOMIC EXCHANGES: 2011 € 150 Billion

IT-ENGLAND 2014 € 132 Billion EXPORTS in 2014: (peak of the crisis) +6,6%

Main exported items: Vehicles; Other machineries for general purposes; Clothing; Metals; Plastic products; Medicines and pharmaceutical preparations; Electric power.

IT-SPAIN EXPORTS in 2014: +4,6%

The import-export trade along the Lyon-Turin corridor (yellow area) amounts to about 132 billion Euros (2014) and it’s equal to 40% of the Italian exchange with all the other 27 countries of the European Union. The annual total of exports surpasses the value of imports. Source: Italian Trade Agency There is a market for rail traffic, but the old Fréjus railway does not match the demand

Alpinfo 2012 - arc B The Alpine Convention strategy: measures to limit negative effects of transport, including the emission of greenhouse gases

Mt

9 Mt

4 63 . 29% 37 .

64%

Transport mode 9% roads 40.3 Mt railways

Traffic volumes in Alpinfo B segment (Ventimiglia to Trieste) more than doubled between 1984 and 2012 Freight traffic between France and Italy makes up most of the total, but the railway is able to catch only a little part of it: 9% OF THE TOTAL, compared with 29% on the German destination and 64% on the Swiss one (2012 data). IN THE ITALY-FRANCE CORRIDOR FREIGHT FLOWS ARE PRESENTLY CONFINED TO ROAD TRANSPORT or deviated to other routes, causing congestion and generating additional costs. In all the Alpine crossings base tunnels are being built

O O

O O Fréjus – 57 km

Brenner – 55 km Gotthard – 57 km Loetschberg – 35 km

All major Alpine crossing rail tunnels, like the Fréjus, are now being replaced by modern infrastructures built at a lower altitude (Loetschberg, Gotthard, Ceneri, Koralm, Brenner, Semmering). The train is competitive when it is able to maintain a suitable and regular speed: the only way to get it going in the plains, where there are mountains, is to construct "base tunnels" through the mountains at the lowest possible altitude. The old line is out of business.

HISTORY TRAFORIALPINE ALPINI TUNNELS IN ORDINE (TRAIN AND DI APERTURAROAD) STANDARD Pendenza RAIL LunghezzaLENGTH GRADIENT ALTITUDEQuota MOTORWAYAUTOSTRADA FERROVIA masssima 2050 [km] [‰] [m s.l.m] 2025 BBT Brennero 55 749 (imbocco lato Italia) 2023 LTF - NL Torino Lione 57 474 (imbocco lato Italia) 2022 Koralm 32,9 ≤12,5 2022 Semmering 27,3 442 (imbocco di Klagenfurt) 2017 NFTA Gottardo 57 300 (imbocco di Biasca) 2007 NFTA Loetschberg 34,6 637 (imbocco di Raron) 2000 Gottardo 1980 Frejus 1980 Brennero 1972 San Bernardino 1967 Monte Bianco 1965 Gran San Bernardo 1950 1950

1913 Loetschberg 15 1217 1906 Sempione 19 700 1900 1882 Gottardo 15 25÷33 1.151 1871 Frejus 13,6 1.258 1867 Brennero 28,8* 1.371 1854 Semmering Bahn 1850 * more consecutive galleries

The Cavour tunnel (i.e. the Fréjus tunnel, built by the political leader of Piedmont, later of the newly established State of Italy) is among the oldest of the Alps: designed in 1856 - opened to traffic in 1871), among the highest (1258 meters), the most penalizing (gradients of up to 32 ‰) and narrowest (341 cm width of the tracks, against the standard of 355). The requirement of additional locomotives imposed by the slope, the reduced module rail (maximum length 550 m maximum load 1150 tons) and the constraints of the tunnel are the cause of 50% higher transport costs, as compared to its competitors. The old line is out of business. Implementation of 1st phase: The Cross-border Section The Lyon-Turin Base Tunnel: 57 km

Access tunnel in Saint Martin la Access tunnel in Porte (2400 m) Villarodin/Bourget/Modane (4000 m) Start of works: March 2003 Exploration from the Start of works: July 2002 End of works: May 2010 base of SMP access End of works: November 2007 tunnel (9 000 m) La Maddalena exploratory tunnel Start of works: October 2014 (7500 m) Start of works: 2012 - End of works: 2016 Indagini al piede Discenderia SMP (9 000) Start of works: October 2014

Access tunnel in La Praz (2480 m) Start of works: November 2005 End of works: January 2009

45 Km IN FRANCE - 12 Km IN ITALY In France 3 access tunnels already made (9 km) and ongoing work at Saint Martin la Porte In Italy 1 exploratory tunnel (7.5 km) under construction in Chiomonte (state of drilling: 3 km) Base Tunnel: construction slots

civil works, equipment and technological buildings Base Tunnel: construction phases

Compliance with the technical infrastructure parameters of the TEN-T guidelines: electrification; track gauges; ERTMS-ETCS; train length; axle load; line speed……

By-passes connect the tubes every 333 m

civil works, equipment and technological buildings Base Tunnel: construction phases

7% of the total drilling has been accomplished

130 m

Completed Over 3 km Completed Completed

winze and geognostic gallery The cost of the project : 8,6 billion euros (€ 2012)

40% 57,9 % 42,1 %

UNIT COST LENGTH COST (€/mln / km) (km) (for each tube) CENERI 15,4 83,8 BRENNER 55,0 83,7 NEW FRÉJUS 57,0 86,0 LOETSCHBERG 35,0 87,0 GOTHARD 57,0 96,2

PROJECTS ARE SIMILAR FROM THE ECONOMIC POINT OF VIEW (parameter cost/km) The Cost Benefit Analysis (CBA) of the New Line Turin Lyon

2012 - Overall results of the project, calculated according to the economic parameters defined by State guidelines of both France and Italy. The CBA key results are calculated under three scenarios derived from the EU Study “The 2009 Ageing Report” The Cost Benefit Analysis (CBA) of the New Line Turin Lyon

2014 - The Cost-Benefit Analysis updated in accordance with the construction decision

The ACB analysis has been updated to 2014 in order to reflect some important facts occurred after 2011, that substantial change the reference scenarios: a) the evolution of the design process b) a different implementation of the project according to stages of construction, i.e. the new timing of some major components of the project with respect to the time schedule foreseen in 2011.

The change of the project (“initial stage of construction”) has improved the socio- economic impact of 53% in terms of Net Present Value.

Approach I2 Approach I2 Updating of the socio-economic analysis and Cost Benefit Analysis of the New Railway Line between Turin and Lyon following the new 2011 2014 phasing of construction – CERTeT Bocconi 2014 NPV tot 11 533 17.696 NPV: Net Present Value - TIR: Internal rate of return TIR 4,68% 5,63 Figures are in euro 2010, constant prices CBA: The environmental value of rail

Between Italy and France nearly 3.5 million trucks per year (1.5 million trucks through Ventimiglia; 0.8 million through Mont Blanc; 1 million through Fréjus; 0.2 million through other minor crossings) for about 40 million tons: the opening of the base tunnel Lyon-Turin will cause the shift from road to rail of at least 600,000 trucks/year. Heavy vehicle transit through is about 1.25 million trucks per year for about 14.4 million tons transported by road: the goal associated to the opening of the Gotthard rail base tunnel is to reduce this figure up to 650,000 trucks/year

Cumulative total (T eq CO2) Total / year (T eq CO2) 20 000 000 2 000 000

10 000 000 1 000 000

0 0 2042 2044 2050 2052 2058 2060 2066 2068 2034 2036 2038 2040 2046 2048 2054 2056 2062 2064 2070 2072 2022 2024 2026 2028 2030 2032 2014 2016 2018 2020 -1 000 000 -10 000 000 -2 000 000 -20 000 000 2012 e prima -3 000 000 -30 000 000 -4 000 000 -40 000 000 -5 000 000 -50 000 000 -6 000 000 -60 000 000 -7 000 000 -70 000 000 Totale cumulato -8 000 000 Totale annuo -80 000 000 -9 000 000 -90 000 000 -10 000 000

An annual reduction of greenhouse gas emissions equal to ≈ 3 Mln equivalent tons of CO2 is foreseen, approximately the amount of emissions of a city of 300.000 inhabitants.

The CO2 balance of the project will be positive in 23 years from the beginning of works and the positive net effect will last for the whole life of the infrastructure (presumably, for centuries) The territory is respected and valued

The Susa Valley today

18 The territory is respected and valued

STATE ROAD 24

STATE ROAD 25 TRUCK TERMINAL MOTORWAY A32

HISTORICAL RAILWAY MOTORWAY JUNCTION

3 KM IN THE SURFACE, ON AREAS ALREADY COMPROMISED

The work site will occupy 8 hectares of land presently not being used and 7 hectares already compromised, which will be turned back over to nature The territory is respected and valued

Braide

Farm parc San Giuliano

Used free areas

Free areas

Farm parc

Traduerivi

The work site will occupy 8 hectares of land presently not used and 7 hectares already compromised, that will be naturalized back The territory is respected and valued

The new International Susa Railway Station: designed by Kengo Kuma In analogy with the Susa International Railway Station

The new Saint Jean de Maurienne International Railway Station Chiomonte: view of the site Chiomonte: Environmental Monitoring Plan

20,000

monitoring stations measurements

External stations in 15 km range parameters

The Health Impact assessment will integrate the environmental monitoring plan. Stations inside the yard criticalities Today, the collected data don’t show environmental changes and are in line with the previous scenario Saint Martin la Porte: view of the site

1 October 2014: Order of Service for the start of work in Saint Martin La Porte.

11 February 2015: Start of the excavation at the second branch of the descendery.

Construction costs and financing € 8,6 billion, in constant values 2012 (PD approved)

Financing of studies Financing of the main and reconnaissance works Certification of costs works of the Cross-Border Section under way by

UNIT COST LENGTH COST (€/mln / km) (km) (for each tube) CENERI 15,4 83,8 BRENNER 55,0 83,7 57,0 86,0 LOETSCHBERG 35,0 87,0 GOTHARD 57,0 96,2 26 February 2015 - Request for EuropeanPROJECTS contribution ARE EQUIVALENT. FROM THE ECONOMIC POINT OF VIEW 3.06(parameter billion euros cost/km) of planned expenditure for the period 2014-2020 (40% EU cofinancing). Legality protocols and the fight against mafia infiltration

28 June 2011

THE GITAV GROUP TO PREVENT AND FIGHT AGAINST ORGANIZED CRIME WITHIN THE TURIN-LYON PROJECT

10 September 2012

The PROTOCOL OF LEGALITY: Constant interface with the GITAV LTF SAS LTF more precautionary anti-mafia measures signed with trade unions in Turin on September 2012 Anti-mafia Information with no threshold limit

Prior notification to the Prefecture of all ENTERPRISES, PERSONS and EQUIPEMENTS operating in our sites

Traceability of financial flows 24 February 2015

THE FRANCO-ITALIAN AGREEMENT OF 2015: A body of rules regulating procurement as a tool to fight against mafia infiltration (Art. 2) The first anti-mafia international agreement in Europe

TELT SAS TELT for the construction of a public infrastructure (regardless of national boundaries) Legality protocols and the fight against mafia infiltration: first results

From 2012 up to now: 486 ANTIMAFIA INFORMATION REQUESTS FOR COMPANIES THAT HAVE WORKED, OR ARE WORKING, IN THE MADDALENA SITE. (received in all n. 4 "disqualifying“ information for the first period of activity, one of which was cancelled by the next release)

clearance

interdiction

+ CHECKS ON AFFILIATED UNDERTAKINGS: All subsidiaries / associates / owners or holders of the share capital.

TOTAL REQUESTS: 623 The New Railway Line Turin-Lyon – NLTL: BASIC DATA

269,8 km to Turin from Lyon

70 % in France 30 % in Italy

Base Tunnel: 57 km 45 km in France 12 km in Italy

surface tunnel In Italy the project is the result of a debate with local communities

ESTABLISHMENT OF THE POLITICAL BOARD AT France PALAZZO CHIGI WHICH HAS MET 7 TIMES UNTIL PRESENT AND WHICH INCLUDES ALL Italy CONCERNED MINISTRIES, THE REGION, THE PROVINCE, THE CITY OF TURIN, RAILWAY

COMPANIES AND LOCAL COMMUNITIES. TURIN ESTABLISHMENT OF THE TECHNICAL OBSERVATORY, GATHERING EXPERTS OF ALL CONCERNED INSTITUTIONS, WITH THE AIM TO 1 – CCIA,A e FEDERPIEMONTE project - 1996 2 –ALPETUNNEL project - 1997 DEFINE THE NEW PROJECT: 3 – ATS – Provincia project - 1997 4 –Provincia project - 2000 236 MEETINGS FROM 12 DECEMBER 2006 5 –RFI-LTF project - march 2003 UNTIL TODAY 6 –Regione (Grosseto) proposal - 2003 7 –RFI (Cso Marche) proposal– 2003

300 HEARINGS OF EXPERTS, 8 – RFI project - 2004 INCLUDING 65 INTERNATIONAL ONES 9 – Osservatorio – Mixed variant 10 – Osservatorio – Studying Alternatives 10 WORKING GROUPS 11 – Osservatorio – The new Preliminary Project

The new project of the Turin-Lyon is radically different from the one 9 PAPERS SUMMARIZING ALL STUDIES* of 2005 (left bank of the Dora river), contested by the Valle di Susa. The Observatory worked with all the communities involved and determined a new route (right bank of the Dora river), after * The last book entitled: “Contributions to the decision-making evaluating 11 ALTERNATIVES. approach to major infrastructures” is being printed. On February 23rd, 2015: BIRTH OF THE NEW PUBLIC PROMOTER

TELT sas Tunnel Euralpin Lyon Turin sas 16 march 2015 - Appeal for peacemaking

It is a point of no return…

….overcoming conflicts

….a new phase of dialogue

…intimidation and any form of violence against people and things cannot be the answer

Employment Opportunities… …development of the territory

…..conflict-solving under the control of institutions CAN WE RELY ON A LEGACY FROM THE NINETEENTH CENTURY FOR OUR FUTURE?

IN 140 YEARS TRAINS AND TECHNOLOGY HAVE CHANGED.... 2015

1871

... ONLY THE TUNNEL HAS REMAINED THE SAME

THANK YOU FOR YOUR ATTENTION!