page 35 Bombardier Inc. Annual Report 2003-04 spending by public agencies and continued growth of the services sector. boost the efficiency of European rail traffic sys- tems by easing cross-border traffic, leading to increased capacities, higher speeds and lower operating costs. project. As a partner in the Metronet consortia and a turnkey supplier to the project, Bombardier Transportation’s portion of the work is worth some £3.4 billion or $7.9 billion over 15 years. The sheer magnitude of the London project—and its vital importance to the future of urban transport in one of the world’s great cities—further underscores the group’s leadership role and the confidence it has earned in the global marketplace. Meanwhile, Bombardier Transportation has maintained its commitment to the development of new technologies that will provide customers with added value in terms of lower operating costs and improved asset utilization. For instance, at the 55th International Association of Public Transport (UITP) World Congress in Madrid in May 2003, the group unveiled its new Fully Integrated Composite Assembly System (Bombardier * FICAS $^{*}$) technology. The FICAS technology uti- lizes thin, modularized “sandwich” materials and composite assembly techniques that enable design engineers to reduce the thickness of a vehicle sidewall by some 75%. The benefits include more inner space, which translates into higher capacity—up to 10% more passengers for a given exterior vehicle dimension—and lower vehicle weight, hence less energy consumption. An advanced version of Bombardier’s proven  C20 Stockholm Metro vehicle, incorporating FICAS technology, entered commercial service later in 2003.  Then there’s the Bombardier * Mitrac * energy- saving solution, based on high-performance dou- ble-layer capacitors, which can reduce the energy consumption of a light rail system by up to 30%. With the Mitrac energy saver solution, Bombardier Transportation engineers overcame the chal- lenge of incorporating an energy recycling system into a low-floor light rail system.  The group also has pioneered the first com- mercial applications of the state-of-the-art Level 2 European Rail Traffic Management System  (ERTMS), which established a punctuality record of close to 100% during a pilot project in Switzer- land. The new ERTMS standard will considerably * Trademarks(s) of Bombardier Inc. or its subsidiaries. ** AVE is a trademark of RENFE. Noteworthy contract wins on the services side included long-term vehicle maintenance agree- ments with the Massachusetts Bay Transportation Authority and the Southern California Regional Railway Authority in the United States. In February 2004, subsequent to fiscal year end, a consortium comprised of Bombardier Transportation and Patentes Talgo was selected by Spanish National Railways (RENFE) to maintain its fleet of 16  AVE ** S 102 very high-speed trains for a period of  14 years. Bombardier’s share of that contract  is valued at approximately $208 million. Work  also got underway during fiscal year 2004 on the  early stages of the massive London Underground Bombardier Transportation booked new orders worth a total of $15.7 billion in fiscal year 2004. Significant new contracts reflected both the breadth of the group’s portfolio and its worldwide geographic reach. Included were a $729-million contract for a fully automated rapid transit sys- tem in Taipei; an order from Deutsche Bahn for 233 double-deck cars valued at $495 million; an order from Austrian Railways (ÖBB) for 240 elec- trical multiple unit cars valued at $248 million; a $191-million order from the Brussels Transport Authority (STIB) for 46 trams plus overhaul serv- ices; a $170-million order from Italian State Railways (Trenitalia) for 48 electric passenger loco- motives; an order from Swiss Federal Railways (SBB) for 18 multi-system freight locomotives  valued at $103 million; and a $40-million order from the Ministry of Railways of the People’s Republic of China for 38 high-grade intercity  passenger cars.  Forecasters expect the worldwide accessible rail market to continue growing by 3-5% annually over the next five years. Moreover, the services and total transit systems markets—which are among Bombardier Transportation’s strengths—are expected to outstrip that pace. With the major restructuring now being implemented, the group will be even better positioned to capitalize on attractive long-term growth prospects. A relentless focus on costs, productivity and improved project management should translate into enhanced earnings power, as Bombardier Transportation forges ahead with delivery of its $31.4-billion year-end backlog while pursuing  profitable new business. Outlook