Cotral S.p.A. - The year of the turning-point

Thirty years on the roads of Lazio

COTRAL, THE YEAR OF THE TURNING-POINT

Productuvuty and revenue are in growth thanks to the efficiency process that is ni place

In 2006, Cotral was able to conclude a 20 million Euro efficiency process thanks to the synergetic work of the whole management. This reformation process should be completed during the next two years in line with the strategic assessments that have been studied with the shareholders and consequently as decided by the legislator with regard to the tenders scheduled for 2007, which will determine the need to separate the ownership of the company assets from the operating costs

.As a result of these structural operations, fruit of the work of the last few months that led to fundamental economies of management, the company will be concerned with finishing the work that has already been started. The customer satisfaction data will be presented in the next few days, the supplying of the 315 new buses will begin and new tender bids will be prepared for the acquisition of other vehicles. Following on from the 160 appointments implemented in 2006, the recruitment scheme for 2007/2008 has been announced, which should prevail in 300 more new drivers and ticket inspection staff, which, the company hopes, will also regard possible female candidates.

Indeed, as part of the framework for the further recruitment of drivers, with particular attention to young people, the procedures for the schemes are being assessed with the Work, Equal Opportunities and Youth Politics Councillor’s Office of the Lazio Region, which will allow a ‘pink number’ of young females who will become out-of-town bus drivers. Cotral’s Managing Director, Antonio Ricevuto then added: “We climbed onto a moving vehicle that produced economic losses every kilometre. Today we can say that the trend has been reversed. Thanks to the efficiency of the support processes, the costs are in steep decline. With the renewed loyalty of our workers, the productivity index returns to be on the increase and the company reorganisation also produces positive effects with regard to the revenue, which correctly presided, returns to growth."

"We take the effects of system inefficiencies for granted, which unfortunately determine negative relapses on our accounts: the petrol price increase with no financial and/or decontributory ‘parachute’; the difficult management of flow of funds to guarantee a continued service with the financial difficulties of the Lazio Region; an intermodal integration of public transport in Lazio that has not yet been implemented. Despite these effects and an awareness of the inefficiencies that we record on a daily basis, the results are satisfactory nonetheless. The path taken can however bring us to the levels of efficiency and sustainability that are needed in our sector, within reasonably viable timescales considering the implications to achieve objectives of this magnitude” Ricevuto concluded “and allow the development of the public transport service.”

The Managing Director, Ricevuto also illustrated some important effects supported by economic data: the decrement of costs for services by over 6 million Euro; the values of the sales system which start to grow again thanks to fines with contextual payment, which have already generated €204,000 up-to-date, added to those raised in 2006, but with deferred payment, which will bring more than 1 million Euro into the company’s accounts; the reorganisation of the maintenance sector; the restructuring of the network; the purchasing processes by means of support technology implementation; the increase of certificated activities.

n summary, these are the actions that will be completed:
Bus fleet increase. 315 more buses will be added to the 500 that are already in service, which will increase the fleet and the levels of safety, quality and comfort of the service provided. The fleet will therefore be renewed by over 50% and new technologies will be made available with consistent maintenance cost savings.
Buses under satellite. The trialling of the satellite control system is coming to a conclusion, which will be in place on the main part of the fleet in 2007 and will guarantee the monitoring of the qualitative and quantitative service. It is a small record for Lazio. Our engineers have actually been called upon to illustrate its characteristics in the USA as it transforms the buses into many moving sensors for the whole region. Every vehicle will be like an antenna on the roads that will render a wealth of precious information in terms of service regularity and in terms of maintenance operation support.
Electronic ticketing system. The objective will be achieved in the next 15-18 months. Starting from 2007, passengers of the out-of-town transport system will be able to enjoy all the benefits of the ‘intelligent cards’: quicker, more flexible procedures for subscription or renewal; easier controls and easier to obtain duplicates in case of loss.
Transport treaty. This is the incentive with which Cotral wants to involve passengers, employees and trade union organisations. An agreement is needed between these three entities to complete the company reformation. Each should carry out their part with a great sense of responsibility, looking to the future. Together, this should open to a season of social responsibility.
The functional reorganisation plan. Upon indication from the shareholders, Cotral has tasked a working group in order to study the best organisation to answer the needs of the transport market in line with its legislative evolution. This will involve a possible separation of the operating costs from the capital, so that the company will never find itself unprepared for possible tenders in which the legislator has not yet made an official decision.