Bombardier Inc. Annual Report 2003-04 page 61 B. Total Transit Systems Market and prospects Orders Orders Market and prospects C. Services Bombardier Transportation provides a full  range of maintenance services.These services include total train maintenance, technical  support, spares and logistics management,  car re-engineering/heavy overhaul and com- ponent re-engineering/overhaul. Bombardier Transportation received orders for a total of $2.9 billion in both fiscal years 2004 and 2003. Market share is calculated based on total annual revenues compared to the total acces- sible market. The accessible services market is valued at approximately  € 16.0 billion ($25.3 bil- lion), including fleet maintenance carried out by private companies and new materials required by all operators. Due to market liberalization, the accessible market is expected to grow at an annual rate of 4% to 6% over the next five years. Bombardier Transportation is among the leading suppliers with a 7% market share, compared to 6% last fiscal year. The growth prospects in the services business are prom- ising due to the fact that operators are focusing on their core business and exploring the oppor- tunity of outsourcing maintenance.  There is an emerging trend towards out- sourcing maintenance to large single service providers rather than to many smaller service providers as part of international cross- border operation and increased deregulation. Bombardier Transportation has redefined  its market focus to meet this new trend. Bombardier Transportation’s installed fleet base provides significant opportunities for services.  Customer demand for transit solutions  providing a low overall price, fast project implementation, reduced risk for the public sector and a high-performance guarantee is expected to result in an increase in the total transit systems market. The annual average  of the total transit systems market was  $4.1 billion US ($5.7 billion) over the last five years, and is expected to grow by 5% to 7% over the next five years. Much of the growth is expected to come from Asia. As part of a consortium, along with  Granite Construction Company, Bombardier Transportation was awarded a design- build-equip contract by Transit Systems Development LLC for a 3.6-km extension to  the Las Vegas Resort Corridor Monorail system, currently being built by the same consortium. Bombardier Transportation will operate the  full system for the initial five-year period with two renewable five-year options. Bombardier Transportation’s share of the contract is $292 mil- lion and includes a five-year operations and maintenance contract valued at $114 million. Urbanization, growing economic wealth  and population, as well as the commitment  of countries worldwide to improve rail trans- portation systems, are all expected to drive future growth. The continued pressure on  public funding and government budgets is expected to increase interest in the private  rail market, and the trend toward driverless operation of transit systems is expected to continue. Bombardier Transportation remains the world leader in both these market seg- ments and is well positioned to benefit from these trends. In June 2003, Bombardier Transportation re- ceived an order from the Kung Sing Engineering Corporation for the supply of the electrical and mechanical (E&M) portion of the new Neihu Line in the City of Taipei, Taiwan. As the prime subcontractor, Bombardier Transportation is designing and supplying all of the E&M sys- tems and will also be responsible for retrofitting the automatic train control system on a total of 202 vehicles. The award of the Neihu Line design-build contract is valued at $1.3 billion. Bombardier Transportation’s share of the project is $729 million.  Bombardier Transportation determines its market share in this segment of the industry based on the total value of orders over the past five years, consistent with industry prac- tice. Bombardier Transportation’s average market share for this period, including the  value for system integration for the London Underground projects, is 30% compared to 20% last year. As previously discussed, Bombardier Transportation also received the Metronet orders for the London Underground through Total Transit Systems. Bombardier Transportation develops, designs, markets, supplies and operates complete transportation systems from high-capacity urban transit systems to automated people movers. Bombardier Transportation also pro- vides operations and maintenance services for fully-automated driverless systems. Total orders attributable to Total Transit Systems include only the system integration portion component of the total contract value. 