A Tram with a Touch of Class

At the headquarters of ATM every corner tells a story of the Milanese public transport system. In the waiting room, you sit on tram benches while a video screen shows the evolution of the company, a narrative that stands somewhere between the celebration of tradition and the praise of innovation. Since April 2017, the Executive Director is Arrigo Giana, 51. He is a Bocconi alumnus who graduated in Business Economics with a thesis on financial restructuring. "Bocconi was a stimulating environment. There was a growing desire for internationalization. Maybe, that's where my drive for change comes from".

You had already worked at ATM from 2000 to 2013, right?
"Yes, I came from DHL International, an Anglo-Saxon multinational and a very different environment. That's the reason why, initially, I felt like an alien. In those years, though, ATM was undergoing the process that has eventually led it to turn into a Ltd company. This process has enabled ATM to become the benchmark for Italian local public transport companies. We want people to think of public transport as something classy".

ATM has recently announced a € 2 billion investment plan over ten years. How much will be directed towards smart mobility initiatives?
"About 50%. The Municipality of Milan has signed the Together 4 Climate agreement with 40 other metropolises around the world. All these cities are committed to addressing climate change by completely electrifying their public transport fleets by the year 2030. In Milan, about 30% of the billion that will be spent in electric mobility will go to the construction of new depots and the renewal of the old ones".

How much do a diesel, an hybrid and an electric bus cost?
"A 12-metre diesel bus costs € 220,000 and the same amount again over a 10-year life cycle. A hybrid bus, which is the intermediate solution that we will adopt while renewing the depots, costs about € 250,000. Today, an electric bus costs more than twice as much, but it has a far cheaper life cycle".

Does smart mobility mean choosing sustainable energy sources?
"We pay attention to the overall environmental impact. Since 2018, we have been buying certified renewable energy only. We produce energy ourselves with solar panels, but this is a small share of our electrical energy requirements. Today we spend € 60 million a year. That will double with an all-electric fleet".
Is ATM heading towards the elimination of the paper ticket?
"The attractiveness of the public transport system lies in its easy accessibility. Although a regional law obliges us to sell a number of paper tickets, in the coming months our passengers will be able to use their credit card as a ticket by simply scanning it at check-in and check-out. The system will calculate the fare at the end of the trip. Ticket inspectors will read the card and, in case of fare evasion, a fine will be charged on it".
How much evasion is there?
"In the subway it is below 2%, in line with the rest of the world. Surface transport is more vulnerable, though".

Is there a security problem?
"According to data, crime rates are steadily declining. Yet there is a general perception of insecurity that we must address. We are therefore increasing the presence of inspectors and security personnel by almost 50%, a huge economic effort. One night every two weeks I travel on the 90-91 line to check out how things go. Things are better than you may think".

ATM operates the Copenhagen metro through a subsidiary. Is there any good practice that we can import from abroad?
"No Danish municipal administrator would entrust public transport to a loss-making company. The public transport there is ruled by clear contracts and business competition. If these market principles were applied in every Italian city, service quality would be better and costs would be lower".