Pictures of the Future    Spring 2006

A Partner for Megacities

Dr. Klaus Kleinfeld has been Chief Executive Officer of Siemens AG since January, 2005

Demographic experts estimate that by mid 2007, for the first time in human history, more people will live in cities than in the country. This trend is particularly clear when it comes to megacities. In fact, by 2015, these vast conurbations are due to add 70 million people to the 280 million who already inhabit them. One of the major reasons for this trend is that cities offer opportunities that are hard to find elsewhere. Take Tokyo, for example. Some 35 million people live in this megalopolis—more than in all of Canada. Tokyo alone accounts for 40 % of Japan’s gross domestic product (GDP). Bangkok plays a similar role. This city of 6.5 million accounts for 35 % of Thailand’s economy. Or think Paris—a city with a population equal to that of Belgium that generates 30 % of French GDP.

But there’s more to cities than jobs. Cities promise better access to medical care and education; they offer cultural diversity, the opportunity to live more comfortably, and a chance to tap into the knowledge, communications and commercial opportunities offered by efficient access to Internet services—in short, to experience the pulse of the times. All of this adds up to growing demand in urban areas for a range of infrastructures, be they transportation and communications systems, energy and water systems, advanced medical services, or the logistics systems that ensure delivery of industrial goods—areas in which Siemens is second to none.

Our innovative products, systems, solutions and services not only allow us to meet the challenges of growing urbanization, but offer a range of business opportunities. Siemens light rail systems, for instance, keep Bangkok moving (see Ticket to the Future); our power plants coupled with desalination facilities promise dependable supplies of potable water and electricity for rapidly growing cities like Abu Dhabi (see Desalination), and our building automation, security and telematic solutions ensure that major events like the FIFA World Cup soccer games run smoothly (see Stadiums).

What’s more, innovative infrastructure solutions can offer significant environmental advantages. In Singapore, for instance (see Portrait Singapore), Siemens systems are already transforming 40,000 &3sup; of sewage per day into clear, clean drinking water. And by 2012 the city plans to harvest one fifth of all its water from this source.

They say that small is beautiful, but in the U.S.A., the motto is often "The bigger, the better." That certainly describes the Citycenter project in Las Vegas, Nevada, where the MGM MIRAGE Group is partnering with Siemens to build a city within a city on a 66 acre parcel of the Las Vegas Strip (see Hotels). The project, which includes a hotel with 4,000 rooms, 1,650 luxury condominium apartments, and 50,000 m&2sup; of retail space for restaurants, stores and entertainment, is expected to be completed in a record 50 months with its grand opening taking place in November, 2009.

Getting the contract to supply state-of-the-art technologies for this project was challenging and exciting for two reasons. The customer has stipulated that, even in 2010, the technology we deliver today must still be among the most innovative available. Second, the MGM MIRAGE Group wants the project to be so environmentally friendly that it will meet U.S. Green Building Council requirements and thus qualify for substantial tax credits. Thanks to its commitment and hard work, the Siemens One Team has landed this order, which is valued at $100 million. Congratulations!

The projects I’ve mentioned are, of course, just an appetizer in comparison to the wide spectrum of articles you’ll find in this issue of Pictures of the Future. But when you read about them, I hope they’ll awaken the same feelings for you as they have for me—a desire to learn more!