**Rome**: The FS Italian railway group has announced an ambitious plan to invest €1.4 billion in transforming its Logistics Hub into a leading European freight forwarder, with a focus on sustainability, digitalisation, and a projected revenue growth of 8% by 2029.
The Italian railway group FS has unveiled an ambitious strategy aimed at positioning its Logistics Hub as a leading European freight forwarder capable of transforming operations within the transport sector. The plan entails an allocation of €1.4 billion towards the enhancement of both physical and digital assets, demonstrating a commitment to building a sustainable and multimodal transport system throughout Europe.
The strategic framework, outlined by CEO Stefano Antonio Donnarumma, is part of a broader strategic plan for 2025-2029, which was presented in December. Donnarumma stated, “The Logistics Hub is undergoing a profound transformation to better respond to market needs, increasing operational efficiency, business synergies, and maximising available assets.” This initiative reflects the group’s focus on customer-centric services, paving the way for a sustainable and integrated offering that aligns with international standards.
The plan anticipates an annual revenue growth of 8%, projecting a total revenue of €2 billion by the end of the period in 2029. The overall investment under the strategic plan will total €2.16 billion, with key areas of focus including digitalisation, sustainability, the development of terminals, and the procurement of modern electric locomotives and freight cars.
A significant aspect of this transformation will be a comprehensive overhaul of the existing fleet over the next five years aimed at meeting market demands with more advanced and varied equipment. This includes the acquisition of 110 electric locomotives for traction, 25 hybrid shunting locomotives or those powered by alternative fuels, over 2,000 new-generation freight cars, as well as 42 trucks, five mobile cranes, and eight portal cranes. Additionally, a new hybrid vessel will be introduced for ferry services across the Strait of Messina.
In terms of digital advancements, the plan outlines the introduction of a web platform that will serve as a single interface for clients, facilitating end-to-end transportation management. This platform aims to act as an aggregator, connecting supply and demand within the combined transport sector, optimising interactions with terminals and last-mile hubs.
The strategic investments are expected to fortify the current fleet, which comprises 650 locomotives, 14,000 freight cars, five ships, and 30 trucks, along with 21 terminals managed across Italy and Europe.
As the Logistics Hub of FS prepares for this significant evolution, it aims to emerge as a key player in the European railway transportation landscape. In conclusion, Donnarumma emphasised that, “To best face the various challenges related to the evolution of the railway transport sector in Europe, the 2025-2029 plan forecasts revenue growth at an annual rate of approximately 8%, which will reach €2 billion by 2029, alongside investments totalling €2.16 billion focused on digitalisation and sustainability, terminal development, strategic assets, and the acquisition of electric locomotives and next-generation freight cars.”
Source: Noah Wire Services
Subscribe to Industry Updates
