Rome – Ferrovie dello Stato (FS) Italiane is navigating a period of significant investment and operational challenges, according to statements made by CEO Stefano Antonio Donnarumma on . The company is contending with deliberate acts of sabotage targeting the rail network while simultaneously pursuing ambitious expansion plans, including substantial investment under Italy’s National Recovery and Resilience Plan (PNRR).
Donnarumma addressed the recent sabotage incidents, characterizing them as targeted attacks designed to maximize disruption. “The events of these days are particularly impactful because points on the network and times are chosen that evidently demonstrate expertise and knowledge of the system to create and cause the greatest possible inconvenience,” he said. “This has happened in certain cases in a glaring manner.”
The timing of these disruptions is particularly sensitive, as Italy prepares to host the Olympic Games. Donnarumma emphasized the extensive preparations undertaken by FS in anticipation of the event. “These Olympics are very important for everyone,” he stated, adding that FS had deployed a fleet of 500 buses to accommodate 100,000 passengers, efforts that have been undermined by the sabotage.
Despite the challenges, FS is pressing ahead with its investment strategy. Donnarumma dismissed reports of escalating costs for ongoing projects as inflated figures originating from contractor requests. He clarified that while companies may be seeking increases of up to 20 billion euros, the actual anticipated cost increases are likely within a range of 1.8 to 1.9 billion euros – a figure he described as manageable given the company’s overall investment of 20 billion euros annually.
“The company is healthy and solid, it can manage on its own two feet,” Donnarumma asserted. He outlined the financial health of the FS Group, stating current revenues range from 17 to 18 billion euros, with an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of around 2.5 billion euros. He projected that by , revenues will exceed 20 billion euros and EBITDA will surpass 3.5 billion euros. Net debt currently stands at 14 billion euros, a figure Donnarumma attributed to FS acting as a financial conduit for the state.
FS’s total asset value is estimated between 50 and 70 billion euros, according to Donnarumma.
Donnarumma: “ a Record Year for FS Investments”
Donnarumma highlighted as a record year for investment, totaling 18.5 billion euros, with 11.5 billion euros specifically allocated to the railway network. “This is a record never before reached in the history of the railways,” he stated. This represents a significant increase compared to previous years, where average annual investment in maintenance and safety typically hovered around 4 billion euros. According to Donnarumma, FS spent at least 7 billion euros more in than the average of the previous decade.
This surge in investment is directly linked to the implementation of the PNRR, Italy’s post-pandemic recovery plan. Donnarumma noted that 7 billion euros of the investment was allocated to projects scheduled for completion by the summer of , as outlined in the PNRR.
FS is also experiencing substantial growth in its workforce. The group currently employs approximately 100,000 people and anticipates further expansion, despite losing around 5,000 employees annually to retirement. Last year, FS hired 8,000 new employees, demonstrating its continued role as a significant generator of employment and economic activity within Italy. “The railways continue to be a great generator of wealth for the country,” Donnarumma said. He concluded by stating that FS’s 18.5 billion euros in investments generate an estimated 50 billion euro impact on Italy’s GDP.
The FS Group’s strategic plan, updated for the period –, outlines further investment goals, with a projected 177 billion euros allocated through . This ongoing commitment to infrastructure development underscores FS’s central role in Italy’s economic future, even as it confronts immediate challenges to the security and reliability of its network.
