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Annual Report 2017-18 1 Authorised and published by the Victorian Government Department of Economic Development, Jobs, Transport and Resources 1 Spring Street, Melbourne, VIC 3000 September 2018 Print managed by Finsbury Green Printed on Pacesetter Laser Recycled (Fsc) Unless indicated otherwise, the work is made available under the terms of the Creative Commons Attribution 3.0 Australia Licence. To view a copy of this licence, visit creativecommons.org/licenses/by/3.0/au It is a condition of this Creative Commons Attribution 3.0 Licence that you must give credit to the original author which is the State of Victoria. If you would like to receive this publication in an accessible format, please telephone VicTrack on (03) 9619 1111. Cover image: One of the soon-to-be-repurposed retired W-Class trams at VicTrack's Newport workshops. Letter to the Ministers 14 September 2018 The Hon Jacinta Allan MP The Hon Timothy Pallas MP Level 20, 1 Spring Street Level 4, 1 Treasury Place Melbourne VIC 3000 East Melbourne VIC 3002 Dear Ministers I am pleased to submit to you for presentation to Parliament the VicTrack 2017-18 Annual Report for the period 1 July 2017 to 30 June 2018. Yours sincerely Geraldine Gray VicTrack Chair 3 4 Contents 2017-18 highlights 6 2017-18 performance 8 Our asset portfolio 9 Section 1: Year in review 10 Purpose, Vision, Mission, Values 11 Chair’s report 12 Chief Executive’s report 14 Manner of establishment & responsible Ministers 16 Performance reporting – Objectives & outputs 20 Performance reporting – Financial 46 Section 2: Governance & organisation 118 Corporate governance 119 Occupational health & safety 125 Section 3: Workforce data 128 Section 4: Other disclosures 134 Appendices 148 Disclosure index 149 Board members 152 5 2017-18 highlights We continued to work Partnering on major transport alongside the state’s valuable infrastructure projects transport initiatives, community We continued to share our expertise with other transport agencies overseeing major infrastructure property developments projects including the Level Crossing Removal Project, and telecommunications the Metro Tunnel, the Ballarat Line Upgrade and the High Capacity Metro Trains Project. Page 27 infrastructure upgrades to protect and grow the value of Modernising telecommunication the portfolio, and make travel services for our transport partners We delivered a number of critical network services and living better for Victorians. and projects that improve reliability and safety for our transport partners and commuters, including deploying Delivering transport projects for a digital public safety communications system for government PSOs at metropolitan railway stations, and migrating communication services at Yarra Trams depots to VicTrack continued to deliver more than $70 million of VicTrack’s Unified Communications platform. Page 24 projects on behalf of the government, including upgrades to metropolitan and regional stations, station car parks, bus improvement projects and community engagement Trialling cutting-edge technology to activities. Page 35 manage the state’s bridge assets We teamed up with Silicon Valley’s Palo Alto Research Improving mobile coverage for Center, VicRoads and other government and education V/Line passengers partners to commence a groundbreaking pilot project that will trial the use of leading-edge technology on the Passengers on five regional rail lines now have almost state’s bridge assets to help us move to a condition- full mobile network coverage during their journey thanks based maintenance regime. Page 24 to VicTrack completing the installation of mobile signal boosters on more than 75 per cent of V/Line’s VLocity fleet as part of the state government’s $18 million Repurposing retired trams Regional Rail Connectivity Project. Page 24 By chairing a Retired Trams Strategy Stakeholder Reference Group and managing a six-week expression- Creating vibrant metropolitan of-interest period, VicTrack played an important role transport precincts in guiding how Victoria’s fleet of retired trams will be protected and repurposed for future use by the Two of our most significant station precinct projects community. Page 36 were progressed during the year, with construction starting on the first of two buildings at Jewell Station and planning approval received for the redevelopment of the Hampton Station Precinct. Page 31 > DEDJTR's Matthew Dummett enjoys full mobile coverage thanks to the Regional Rail Connectivity Project 6 VicTrack Annual Report 2017-18 7 2017-18 performance Total operating Reinvested into the • $8.4m rail revenue generated state’s transport assets infrastructure • $20.8m telecommunications infrastructure • $5.7m environment • $0.1m heritage $145.8m $37.0 m • $1.6m bridges Telecommunications Received for public Freight-related revenue transport projects revenue $54.7m $218.0m $2.6m Billboard and carpark Property-related Other revenue portfolio revenue revenue (incl. licenses, land sales & rental) $6.4m $47. 8 m $34.3m 8 VicTrack Annual Report 2017-18 Our asset portfolio Total assets Track Rolling stock $36.7b $7.0 b $4.0b Stations, bridges, Signalling & Building & buildings & communications infrastructure WIP structures $7.5b $3.3b $5.9b Land (reserved Plant and equipment Melbourne for transport use) (including myki) Underground Rail Loop $5.4b $0.9b $2.7b 9 Section 1 Year in review Purpose Values VicTrack enhances Victoria’s transport assets to safely We operate according to Victorian Public Sector Values. connect people, places and opportunities. In addition to these, VicTrack also promotes the values of: Vision Respect We will show respect to each other by appreciating We share a common vision as part of Transport for differences and actively listening; being courteous and Victoria (TfV) “…to meet the aspirations of Victorians considerate; communicating openly and with empathy. for an integrated and sustainable transport system that contributes to an inclusive, prosperous and environmentally Achievement responsible state”. We will show achievement by being accountable for doing In realising this vision, we are working towards a transport what we say we will do; proactively solving problems; system that promotes: appreciating each other’s outcomes, progress and efforts. • social and economic inclusion Professionalism • economic prosperity We will show professionalism by delivering high-quality • environmental sustainability and timely work; communicating effectively and with positivity; being prepared. • integration of transport and land use • efficiency, coordination and reliability One Team • safety, health and wellbeing. We will show teamwork to each other by being collaborative, cooperative and inclusive; sharing Mission information, knowledge and expertise; supporting others to solve problems and achieve common goals. To protect and grow our transport assets and drive reinvestment to service Victorians now and into the future. 11 Chair’s report Our partnership with TfV has gone from strength to strength this year as we worked together on a number of initiatives relating to asset management, risk and workforce capability across the transport portfolio. We have worked hard to ensure that our $36 billion worth of assets are managed sustainably and remain fit-for- purpose across the whole asset life cycle. This has included implementing our Strategic Asset Management Plan. We have also developed best practice governance framework and assurance processes to support the implementation of the Department of Treasury and Finance’s Asset Management Accountability Framework (AMAF). We completed our inaugural AMAF attestation in 2017-18 and provided a statement of compliance and AMAF results to support TfV’s transport portfolio aggregation. In line with the implementation of VicTrack’s Risk Maturity Assessment, the Board endorsed a Risk Management Policy in December 2017 that sets out a blueprint for how we identify, manage, assess and plan for risk in our At the close of the financial business activities. The policy confirms our commitment to developing a risk-aware culture that informs and guides year, VicTrack remains a vital our decision making, ensures our systems are robust and contributor to Victoria’s overall adaptable, and maintains continuity in the business. transport agenda. Over the last Victoria’s transport construction boom has seen an unprecedented number of major infrastructure projects get 12 months we have provided underway, and VicTrack is working alongside our partner expert advice and service to our agencies to help deliver projects like the Metro Tunnel and the Level Crossing Removal Project. While this creates sector partners, collaborating opportunities for growth within the business, paradoxically on major transport initiatives it also sees us competing with these projects to attract and retain a highly skilled and experienced workforce. and supporting Transport To meet this challenge, we collaborated successfully with for Victoria (TfV) to deliver TfV throughout the year to foster purposeful, informed on the state’s growing and connected relationships across the transport portfolio. This includes our participation in the TfV Ways transport system and broader of Working committee, which provides a forum for government policies. transport agencies to share ideas and practices that support cross-portfolio programs. 12 VicTrack Annual Report 2017-18 We have also continued to support a number of important Together with fellow Directors Paula Allen and Michael TfV initiatives,
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