Theoretical framework on Public Private Partnership and Service Concession Arrangement, before and after



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www.fnmgroup.it

Business Model
The company is listed on the Milan Stock Exchange. The share capital is held for 57.57% from the Lombardy region, for the 14.5% by the Ferrovie dello Stato, Aurelia S.p.A 3.078%. . The remaining free float is in the hands of a shareholding spread between individuals.

On January 2010, subsequent to the sale of a further share of 11%, DB Schenker Rail Italy S.r.l became the majority shareholder of Nord Cargo S.r.l. The Ferrovie Nord Milan Group continues to hold a share of 40%.


Chart 3: Ferrovie Nord Milan Group - Social Compages






Source: www.fnmgroup.it

FerrovieNord SpA is the group company that manages the network of regional property entrusted to railways in concession to the group. It was established in 1985, in the context of the transformation of the company3 Ferrovie Nord Milan Spa into a holding company. It was named Ferrovie Nord Milan and its purpose was the management and maintenance of the rail network and transport services.



Chart 4: Ferrovie Nord Milan Group - Shareholders

www.fnmgroup.it

In 2010 the Ferrovie Nord Milan Group continued the path of refocusing on its core business, represented by the local public transport, consolidating the experiment started on August 4, 2009 with the establishment of the new company Trenitalia-LeNORD, exclusively dedicated to regional railing. A project carried out by Regione Lombardia, FNM and Trenitalia S.p.A. with the objective of providing local citizens with an appropriate response to the increasingly growing demand for local public transport.


Chart 5: Ferrovie Nord Milan Group - Investments


Source: www.fnm.it
The positive results achieved by this new company, both in terms of service quality and profits, have shown the effectiveness of this new management model and set the stage to go to the next step: on May 3, 2011 the company Trenitalia-LeNORD became Trenord, with a significant increase in capital even more relevant thanks to the merger of LeNORD and conferral of Lombardy Regional Division of Trenitalia. The new company intends to pursue the business model that has characterized the recent industrial history of FNM, budgets and profit reinvestment in innovation, in order to ensure a service more and more at the level of the best European standards.

TRENORD opens a new age for regional rail transport and for the whole group which will be certainly defining new goals and new strategies. It's a challenge that the company is ready to harvest, strong of its 130 year history serving the Lombard territory and the capital strength that the company has been able to build, step by step, opening itself to the diversification and exploration of new market areas, but always loyal to its original mission.





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