M ETROPOLITAN C ITY OF M ILAN: M ODERNIZATION FOR THE W ORLD E XHIBITION
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1 TEXTINATION NEWSLINE M ETROPOLITAN C ITY OF M ILAN: M ODERNIZATION FOR THE W ORLD E XHIBITION MOBILITY IN TRANSITION / AS SMART CITY IN ITALY ESTABLISHED Mailand (gtai) - Milan is the center of the Italian economy and the metropolitan area of the city belongs to the most important economic regions in Europe. The second-largest and most modern city in Italy looks to the future. Major construction projects offer opportunities for German suppliers. The focus is on the Expo 2015, which began on May 1 st 2015 in Milan. Ahead of the World Expo major investments were initiated. The capital of the Lombardy Milan grows. This is projected to remain until 2030, although the population of Italy will decline. Currently 1.3 million people are living in Milan, in the metropolitan area there are more than 3.0 million. The reason for the increase in population is the economic strength of the region, which attracts Italians from all over the country and workers from around the world. For the next decade the city has initiated several major projects with which the metropolis wants to expand its offerings and modernize especially its infrastructure. Rosel Eckstein / pixelio.de Milan has already long been the preferred location for large domestic Italian companies and large foreign corporations: Almost a third of all foreign corporations have their Italian headquarters in Milan, including major German companies. There are also numerous small and medium Textination GmbH 1
2 enterprises (SMEs), which form the backbone of the Italian economy. With the location of the Italian Stock Exchange "Borsa Italiana" and banking giant Unicredit the city is also the center of the Italian financial world. International consulting companies, financial service providers and insurers complete the flourishing service sector. With fashion designers such as Armani, Dolce & Gabbana, Prada and Versace, as well as with high quality furniture manufacturers Milan is known worldwide for superior fashion and design. The Italian offer is often in the high-price segment, the demand from developed and emerging markets is great. With the Milan Fashion Week and the furniture fair "Salone del Mobile", the city is considered as the international stage for the two sectors. The good domestic demand supports the city's economy: The high purchasing power of the inhabitants of Milan attracts retailers and wholesalers from all over the world to Lombardy. For German entrepreneurs, the consumer goods industry finds good chances, the reason are comparative cost advantages. German discounters like Lidl and Penny record high growth rates in Italy In addition to domestic consumption, the demand for export is the second pillar of the city's economy. The province of Milan was able to export goods worth of EUR 37.4 billion in the year 2014, or 9.4% of the Italian exports. With this Milan ranks on place one of the country's provinces. The export strength of the Lombard capital is mainly due to the manufacturing sector. In the leading industrial city in the country many industries are represented, ranging from mechanical engineering over the steel industry to production of chemicals and pharmaceuticals. With a gross value added in the manufacturing sector of EUR 17.9 billion (2012) more than 8% of the goods manufactured in Italy came from the province of Milan. The gross value added of the manufacturing industry is approximately at the same level as of Portugal, Greece and Hungary. Basic Information Mailand Indicator Population (million) Area (sq. km) GDP /head / EURO 46,600 50,250 Population density 7,272 7,688 Chris / pixelio.de klaas hartz / pixelio.de Textination GmbH 2
3 sqm per capita Green space per capita sqm per inhabitant Percentage of households with access to electricity (%) Electricity consumption per capita (kwh / inhabitant / year) 1) 1,196 1,000 Length of public transport (km/qkm) 2) Waste per inhabitant (kg / inhabitant / year) (2013) Proportion of population with access to drinking water (%) Water consumption water consumption (liters per day 1) Only households; 2) length of lines for subways, buses and trolley buses and trams Sources: ISTAT, Eurostat, municipality of Milan The long economic crisis in Italy has left its marks in Milan. Since 2008 many companies have gone bankrupt. The rigor need to economize of the public sector has led to strong investment reductions at national, regional and local levels. Milan and Lombardy overcame the crisis in a better shape in the past five years as the rest of the country: In 2014 Lombardy with the economic powerhouse Milan was estimated to grow by 0.2%, while the total Italian economy shrank by 0.4%. Andreas Hermsdorf / pixelio.de Rainer Sturm / pixelio.de Domsen / pixelio.de Textination GmbH 3
4 Impulse through the World Expo For the World Expo 2015, which takes place from May 1 st October 31 st 2015, Milan expects more than 20 million visitors. Against this background there are strong investments in the infrastructure of the city, also in the subway network. In the greater Milan region also new motorways and country roads arise, the investment volume is EUR 10 billion. At the same time the Milanese, frustrated by congested streets and limited parking, are using an increasing number of new transport facilities. In the past three years a boom in car-sharing services developed, they are using smartphone apps and partially electric cars. In the city at least eight providers for that are active. Nowhere in Italy the charging network for electric cars better is developed than in the Milan area. There is also no lack of concepts to combine mobility with other smart solutions. For example light electric vehicles in the so-called 30 digital areas (Isole Digitali) can be found, where visitors can get information about the city, can use free WIFI and charge their digital devices. In addition Milan has the most successful bicycle sharing service in Italy. The "BikeMi" bicycles were introduced in 2008 and are used already more than 10,000 times a day. During the Expo, more than 1000 electric bikes will be added. Tim Reckmann / pixelio.de Oliver Weber / pixelio.de Textination GmbH 4
5 Rainer Sturm / pixelio.de Star architects transform the cityscape While the number of highconstruction projects fell sharply in the rest of Italy in recent years, Milan has become a large construction site. The major projects offer opportunities for German suppliers too, which are known in Italy for quality and sustainability. According to the consulting firm Nomisma in the Milan area there are more than 1,200 real estate projects, worth EUR 22 billion, in planning or under construction. The renewal of the urban area Porta Nuova has already transformed the cityscape. Skyscrapers like the Unicredit headquarter and residential towers like the Bosco Verticale (vertical forest) are among the most modern and innovative buildings in Italy. End of 2014 the Bosco Verticale with its more than 700 trees and 20,000 plants won the international High Building Award. Also the great flagship project Citylife, where star architects such as Libeskind, Hadid and Isozaki are involved, contributes to the modernization of north-west Milan. In addition, a museum of contemporary art is in planning. The entire project is scheduled for completion in Moreover in the immediate vicinity of the exhibition grounds, the first zero-emission area of Milan, Casina Merlata arises. For the World Expo the "Expo Village" has been built, by 2020 these buildings will be converted to a total area of square meters for homes, offices and a shopping center. In addition a park with an area of 200,000 square meters is planned. The urban landscape does not change through large-scale projects only. The municipality of Milan has provided approximately EUR 100 million for the period to develop about 700 small projects. Squares, parks and fountains will be restored, the streets repaved, bike routes expanded and sidewalks renewed. Also the electricity, gas and water supply as well as the telecommunications infrastructure will be improved as a part of the World Exhibition. Lupo / pixelio.de Textination GmbH 5
6 Selected Projects Project name Investment (Mio. Euro) Project status Remark World Expo 1,700 Completion Urban development Porta Nuove Urban development project City- life Urban Development Project Cascina Merlata 2,500 Completion ,100 Completion ,200 Completion Pedemontana Lombarda 4,118 Completion High Speed Line Milan- Brescia-Verona Expansion of the railway connection Chiasso-Seregno with the Gotthard Pass Construction of Metro Line M4 Milan (Lorenteggio-Lina Improvement of water supply systems, water purification and sanitation 2,747 Completion ,410 Completion ,800 Completion Completion Digital Areas Use of electric bicycles Source: own research The annual study icity Report of icity Lab on the state of development of smart cities in Italy confirmed, that Milan is located in the country comparison far forward, in the past year even at no.1. In 2013 Milan was ranked only on 3rd place - behind Trent and Bologna. In the European cities comparison however, Milan is placed in the midfield only. It is known from other studies that the city has a backlog on the environment, particularly regarding air quality. Internet adsresses: Region Lombardy Internet: Municipality of Milan Internet: Milan Chamber of Commerce Internet: Promos agency of the Milan Chamber of Commerce Internet: Invest in Lombardy Internet: Weltausstellung Expo 2015 Internet: Source: Robert Scheid, Germany Trade & Invest Translation: Textination-Team Textination GmbH 6
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