## D. Rail Control Solutions 

Bombardier Transportation’s Rail Control Solutions portfolio covers the whole range of mass transit solutions from manual to fully automatic systems, as well as communica- tion-based systems, and mainline solutions from conventional systems to Level 2 ERTMS. 

## Orders 

During the year ended January 31, 2004, Bombardier Transportation received two sig- nificant orders. An order valued at € 35 million ($55 million) for computer-based interlockings and automatic train protection was received from Normetro for the Metro do Porto in Portugal. Another order valued at € 26 million ($41 million) for traffic management systems, interlockings, and an automatic block was received from Italferr for the Pozzuolo-Treviglio Line in Italy. 

## Market and prospects 

Bombardier Transportation has expanded its definition of the rail control solutions market to include rail-related telecommunication, 

consistent with industry practice. The world- wide accessible market for rail control solutions and telecommunications amounts to € 5.6 bil- lion ($8.8 billion). The market is expected to grow at 3% to 5% annually over the next five years. Bombardier Transportation’s market share based on total orders received based on the broader market definition currently stands at 6%, unchanged from the previous year. 

With its newly-branded solution Bombardier * Interflo * and Cityflo * and its expertise as the supplier of the first and only existing Level 2 ERTMS in commercial operation, Bombardier Transportation is well positioned to expand its market share in Europe and to penetrate the growing Asian market. ERTMS will open new markets as it will replace large installed country-specific signalling systems and consti- tutes a prerequisite for European cross-border rail services. 

## Labour relations and workforce 

The total number of employees at the end of fiscal year 2004 was approximately 35,600, including 3,000 contractual employees. 

In Europe, Bombardier Transportation has ap- proximately 27,800 positions, 93% of which are covered by collective labour agreements. During fiscal year 2004, throughout Europe, 16 union agreements were negotiated for clerical and production employees, which cover 19,000 employees, and for which 11 union agreements are industry-wide and cover 14,000 employees. During fiscal year 2005, collective labour agreements will be negotiated for clerical and production employees, covering approximately 7,200 employees. This number does not reflect the impact of the previously discussed restructuring. 

In North America, Bombardier Transportation has approximately 7,000 positions, 52% of which are covered by collective labour agree- ments. During fiscal year 2004, seven collective agreements for clerical and production employ- ees were signed, covering 2,000 employees. During fiscal year 2005, collective agreements for clerical and production employees are up for renewal, covering approximately 1,700 employ- ees. This number does not reflect the impact of the previously discussed restructuring initiative. 

