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Annual Report 2016 – 2017 | ANNUAL REPORT ANNUAL REPORT ANNUAL REPORT | 2016–2017 CONTENTS Accountable Officer’s Declaration 2 SECTION ONE: YEAR IN REVIEW 3 Vision, Mission, Values 4 Chair’s report 6 Chief Executive’s report 7 Manner of establishment and responsible Ministers 9 Services provided 10 Customer Network map 11 Performance reporting – non-financial 12 Patronage 14 Performance objectives, indicators and outputs 16 Customers 17 Service Delivery 22 Asset Management 25 Strategy and Program 28 Victorian rail network map 29 Performance reporting – financial 30 SECTION TWO: GOVERNANCE AND ORGANISATIONAL STRUCTURE 31 Organisational structure and corporate governance arrangements 32 Committee membership and roles 35 Risk management and insurance 38 Occupational health and safety 39 SECTION THREE: WORKFORCE DATA 45 Our people 46 SECTION FOUR: OTHER DISCLOSURES 51 Statement of corporate intent 59 Declaration in the financial statements 61 Independent auditor's report 64 Consolidated comprehensive operating statement 66 Consolidated balance sheet 67 Consolidated cash flow statement 68 Consolidated statement of changes in equity 69 1. About this report 70 2. Funding delivery of our services 73 3. The cost of delivering our services 75 4. Key assets available to support output delivery 83 5. Other assets and liabilities 89 6. How we financed our operations 97 7. Risks, contingencies, and valuation judgements 99 8. Other disclosures 114 Disclosure index 127 1 ACCOUNTABLE OFFICER’S DECLARATION 30 August 2017 The Hon Jacinta Allan MP Minister for Public Transport Level 20, 1 Spring Street Melbourne VIC 3000 And The Hon Tim Pallas MP Treasurer Level 4, 1 Treasury Place East Melbourne VIC 3002 Dear Ministers I have much pleasure in presenting the Annual Report of V/Line Corporation (and its subsidiary V/Line Pty Ltd) (V/Line) for the period 1 July 2016 to 30 June 2017. Yours faithfully Jennifer Dawson Chair 2 SECTION ONE YEAR IN REVIEW 3 PURPOSE, VISION, MISSION, VALUES At the commencement of the reporting period 2016-17, V/Line’s Purpose, Vision, Mission, Values, Strategic Priorities and Objectives were: Purpose To provide coach and rail passenger and rail freight services consistent with the Transport Integration Act’s vision statement and the transport system objectives. Vision Mission Values We Connect To deliver customer- • Safety underpins everything we do: focused, safe and safety is paramount efficient regional • Think customer: passenger transport the customer is central to everything we do and rail freight access • Act with integrity: we operate professionally and ethically • Raise the bar: we strive to improve ourselves and our business • Deliver as one V/Line: working as one-team V/Line’s strategic priorities and objectives 2016-17 were: Frequency Connecting Regional Support regional and rural communities through reliable Victoria transport services and community engagement Reliability Punctuality Health Safety ‘Destination Zero’ – Zero rail and coach incidents, and Environment zero harm to people and zero damage to the environment Build and maintain safe rail assets that deliver reliability, Asset Lifecycle punctuality and growth to meet our Service Agreement Management obligations Customer Service/ Deliver on our customer charter commitments and provide Operations punctual and reliable services Financial Provide financial and ICT resources through V/One and other Management systems to enable V/Line to achieve its objectives Organisational Capability Provide exceptional performance through organisational and Systems capability, our people, systems and stakeholder relationships 4 A review of these was undertaken subsequent to the reporting period. V/Line’s new Purpose, Vision, Mission and Values are: OUR OUR PURPOSE VISION To provide a A modern, connected and bright high-performing future for Victorians railway and coach service for all OUR OUR MISSION VALUES Connecting Victoria > Respectful by empowering our > Be our best people to be their > Accountable best > Integrity > Be bold 5 CHAIR’S REPORT It is my pleasure to present the V/Line The year was not without challenges, On behalf of the Board, I would like 2016-17 Annual Report. including an incident at Pirron Yallock to thank Mr Pinder and the Executive These past 12 months have been a near Colac where a truck collided team for their strong leadership. time of profound growth and change with a V/Line train. It was a reminder There were also changes to the Board for V/Line. Not only have customer that V/Line will never compromise on this year, with the tenure of Mr David numbers been at their highest on safety and we’ve made some Harris concluding on 30 June 2017. record, but we’re also delivering more significant changes to the way we Mr Harris was first appointed to the improvements than ever to keep up operate trains as a result. Board of Directors in December 2013 with demand. We’ve also been Following the incident, V/Line and his three-and-a-half years of working to continually improve our completed safety assessments on dedication and contribution has been performance across the network. This all level crossings across the regional greatly appreciated. We welcomed is one of our biggest challenges but rail network and a $15 million Ms Rachel Thomson onto the something everyone at V/Line is package of works is underway to Board as a Director on 1 July 2017. working to improve over the short upgrade 21 level crossings on the Ms Thomson resides in Geelong and and long term. Warrnambool line by installing boom has more than 20 years’ experience This year, we successfully introduced gates, flashing lights, bells and axle in senior roles in risk management 80 new services as part of the January counters. These level crossing and insurance both in Australia and timetable change and planned for an upgrades will be completed by the internationally. additional 151 services from August. end of this year and I would like to I would also like to express my sincere thank Warrnambool line customers Other notable achievements included appreciation to the whole V/Line for their patience while this important team for their continued dedication the delivery of 21 new VLocity work is underway. carriages to the network, the opening to delivering such an important of a new station at Caroline Springs, A highlight of the year was the service to the people of Victoria and substantial infrastructure upgrades appointment of Mr James Pinder representing the many communities and the continued commitment to as V/Line’s Chief Executive Officer. we serve. safety as part of the rollout of the Mr Pinder will lead V/Line into the I look forward to being a part of the Safer Country Crossings Program. future during this time of sustained evolution of V/Line as we embrace growth and continuous improvement. the challenges of Victoria’s rapid While our focus on customer His main focus will be on improving services remains strong, we’ve also growth and the increasing demands our on-time performance and on our regional rail network. taken a more concentrated approach delivering essential infrastructure to the Victorian freight network, improvements, while guiding the as V/Line delivers the Murray Basin team to modernise the V/Line Rail Project. Once completed, the business. project will transform the rail freight network and provide better services On behalf of the Board, I thank and greater choice to industries Mr Gary Liddle for his work as interim in the state’s north west. Chief Executive Officer while the Board conducted a recruitment Jenny Dawson It has been noted V/Line is the fastest process for a new Chief Executive Chair growing rail network in Australia Officer. The Board appreciated and this growth is set to continue. Mr Liddle’s strong leadership and On 27 June, we welcomed the State stability during this period of and Federal governments’ $1.57 transition. billion investment into regional public Thank you also to Ms Carol-Anne transport as part of the Regional Nelson, our acting Chief Operating Rail Revival, which will allow V/Line Officer for acting in the role of Chief to deliver more frequent and Executive Officer prior to Mr Pinder reliable services. commencing. 6 CHIEF EXECUTIVE’S REPORT Since taking up the role of Chief Each year we see more and In addition to the new VLocity Executive Officer at V/Line in more people choosing to travel carriages, there has been significant November 2016, the one thing that with V/Line, and as this growth investment in regional rail across has stood out to me more than continues, our team will be this state over the past 12 months. anything else is the quality of the working to ensure we keep Victorian and Federal governments people that work here. We have pace by providing a modern, are investing $1.57 billion, which more than 1,750 staff right across high-performing railway and will see major upgrades across the the state and I cannot speak highly coach service. network. This investment will help enough of their hard work, V/Line introduced a performance ensure we keep pace with demand dedication and commitment improvement program in 2017 and deliver more trains, more often to this organisation. and this will underpin our approach to the communities of regional To transform V/Line for the future, to running a reliable network. Victoria. it’s important we create an The results of this work are already We’re also very much part of environment where our people can showing, with 97.8 per cent of achieving the goals of the Regional be the very best they can be – and services delivered across the Network Development Plan all of us at V/Line will be working network, exceeding our reliability (RNDP), which is the long-term plan together to achieve this.
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