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CIÉ Group Annual Report CIÉ Group Annual CIÉ Group Annual Report and Financial Statements 2017 CIÉ Group Annual Report Year Ended 31 December 2017 CIÉ Group Annual Report 2017 Contents Financial and Operating Highlights 1 Members of the Board 40 Environment 2 Board Committees 41 Board Members’ Statement 4 About the Board of Córas Iompair Éireann 42 Financial Review 8 Corporate Governance Statement 45 PSO Contract 14 Statement of Board’s Responsibilities 50 CIÉ Environment Review 15 Independent Auditor’s Report 51 Operations Review 18 Financial Statements 54 CIÉ Group Annual Report 2017 Financial and Operating Highlights CIÉ Group CIÉ Group Revenue Number of Employees 2017 €1,238.5m 2017 10,098 2016 €1,218.4m 2016 10,017 CIÉ Group Iarnród Éireann Customer Journeys Customer Journeys 2017 263.5m 2017 45.5m 2016 251.2m 2016 42.8m Highlights Bus Éireann (excluding Bus Átha Cliath Schools Transport) Customer Journeys Customer Journeys 2017 139.4m 2017 37.8m 2016 128.2m Board Members’ Statement 2016 39.7m Schools Transport Customer Journeys 2017 40.8m 2016 40.5m Review Financial Statements Córas Iompair Éireann would like to acknowledge funding on major projects by the Irish Government under the EU and by the Infrastructure and Capital Investment 2012-2016 Medium Term Exchequer framework. 1 CIÉ Group Annual Report 2017 Environment Carbon Emissions Car Usage in Ireland Irish citizens drive 30% more than our CIÉ continues to promote the use of fellow EU citizens and import 99% of our sustained public transport through its transport fuels (in 2017 5% of our road Operating Subsidiaries. CIÉ supports fuel was biofuel from wastes). the use of public transport that benefits the environment through lower carbon Other Benefits of Using emissions. CIÉ estimate that for every Public Transport car removed from the road and replaced ●● with public transport the fuel emissions Reduced stress; improve by over 80%. Ireland continues ●● Reduced traffic congestion; to have one of the highest usage of the ●● More quality time; private motor cars within Europe. ●● Reduces road accidents; Green House Gases (GHG) are classified ●● Reduces cost of travel; by how long they stay in the atmosphere. ●● Increases social activity; Carbon Dioxide (CO ) emitted today, stays 2 ●● Increases general health and fitness. in the atmosphere for 100 years i.e. its effects impact not only on us, but also on CIÉ welcomes the commitments our children’s children. contained the NDP 2018-2027 to electrification and the introduction of hybrid bus fleets. CIÉ will align its future fleet acquisition with these commitments. The more people that choose to travel with public transport, the better it is for the environment and society at large. 2 3 CIÉ Group Annual Report 2017 Emissions decrease through the use of public transport. Compare average Irish car vs CIÉ Companies’ CO2e per Passenger km Highlights Board Members’ Statement Car Dublin Bus Bus Éireann Irish Rail Irish Rail | DART 167g CO2e/km 24g CO2e/km 31g CO2e/km 24g CO2e/km 14g CO2e/km To reduce CIÉ’s environmental impact we work actively in Review optimising our fleet of vehicles, traffic planning and driving, which Financial Statements has a positive impact on both fuel consumption and emissions. 2 3 CIÉ Group Annual Report 2017 Board Members’ Statement CIÉ Group’s (“the Group”) objectives are to deliver reliable, safe, sustainable and accessible public transport services in as efficient a manner as possible, while meeting our customers’ needs. This focus also enables the Group to meet The Group also welcomes the National its goals of supporting the growth of the Development Plan (NDP), which Irish economy and social cohesion through complements the NPF. The NDP sets the provision of quality public transport a medium investment plan, which is services. In all matters, the Group works aligned to the priorities within the NPF. in collaboration with its shareholder, the The Group can play a significant role in Minister for Transport, Tourism and Sport, delivering essential aspects of the NDP, with the regulator, the National Transport CIÉ’s collaborative and close working Authority (“NTA”) and with the Commission relationship with the Minister, the DTTaS, for Railway Regulation (“CRR”). the NTA and the CRR will be critical enablers to the delivery of transport fleets In 2017 the CIÉ Group delivered 264 and infrastructure on time and on budget. million passenger journeys with a primary focus on delivering reliable and efficient 2017 saw the first tendering of public public transport safely. CIÉ is justifiably transport bus routes that historically were proud of its record in this regard. This level operated under Direct Award Contracts of patronage restores our customer base by Bus Éireann and Bus Átha Cliath. There to a level above that last reached in 2009. have been three separate competitive tenders through the Bus Market Opening Through its subsidiary companies, the process that equate to approximately Group operates the most comprehensive 10% of the Public Service routes operated public transport network within the State. by both companies. Bus Éireann were As such, working with the Department of successful in their bid for routes within the Transport, Tourism and Sport (“DTTaS”), Waterford area, while Bus Átha Cliath put the NTA and the CRR it has the unique forward a strong bid, it was unsuccessful capacity to manage a cost effective in winning the contract for the Outer delivery of high quality public transport Dublin Metropolitan Area routes. The solutions across Ireland. result of the third tender (Kildare and The Group welcomes the continued surrounding areas) has recently been improvement in the national economy announced and the Bus Éireann bid was and in particular, the National Planning unsuccessful on this occasion despite Framework (NPF) 2040. The NPF sets submitting a very strong proposal. out a long-term vision to 2040 and a The Group is pleased to present its 2017 regionally proportionate growth strategy Annual Report, which demonstrates CIÉ’s to cater for a growing population. The NPF role as an integral component of public has a strategic focus on “Environmentally transport within the island of Ireland. Sustainable Public Transport” and “Climate Customer journeys have increased by Action”. These two priorities complements 12 million (4.9%), to 264 million leading two of the core values of the CIÉ Group. to a €38 million (4.3%) increase in the Group’s revenue before subvention. 4 5 CIÉ Group Annual Report 2017 Bus Átha Cliath 2017 was a particularly challenging year Iarnród Éireann for Bus Éireann. Bus Éireann’s financial Bus Átha Cliath is Ireland’s largest public position had declined to the extent that a During 2017, Iarnród Éireann grew its transport provider. During 2017, Bus Átha fundamental and wide-ranging, change to service offering to deliver a 6.3% increase Cliath grew its service offering to deliver the organisation structure and business in passenger journeys. In 2017, Iarnród a 8.7% increase in passenger journeys. model was required to put the business Éireann provided an additional 3 million In 2017, Bus Átha Cliath provided an on a sustainable footing. passenger journeys, bringing its total additional 11 million passenger journeys, passenger journey numbers to 46 million bringing its total passenger journey A Transformation Plan incorporating per annum – a record year for the company. numbers to in excess of 139 million the changes required to help underpin Ireland’s return to economic growth has passengers. Bus Átha Cliath is at the core the businesses survival was developed. brought with it the challenges of traffic of the Dublin transport network, and The implementation of the Plan was congestion and achieving sustainable its effective operation is central to the finally agreed following a lengthy dispute. mobility for a growing population. In economy of the Greater Dublin Area. We regret the inconvenience to our Highlights customers that arose during that period. common with Bus Átha Cliath and Bus With the support of the NTA, Bus Átha Cliath Éireann, Iarnród Éireann recognises continued its investment in a modern fleet. We acknowledge the invaluable assistance its responsibility to offer a credible of the industrial relations machinery alternative to private transport for large Bus Átha Cliath was unsuccessful in its of the State in facilitating the process numbers of passengers, particularly tender for Outer Dublin Metropolitan through which the implementation of in urban areas. Iarnród Éireann also Area routes that account for 10% of Board Members’ Statement the Plan was agreed. has responsibility to make it attractive the total market size. Bus Átha Cliath is to transport bulk goods by rail rather committed to working with the NTA to Securing the survival of the business has than on the road network and needs to achieve the smooth transition of some of entailed sacrifices across all staff grades. ensure that Rosslare Europort provides its existing services to the new operator We thank the staff for their commitment an efficient and competitive service for as a result of Bus Market Opening. to implementing the agreement. Challenges remain to achieving the full shipping companies and their clients. implementation of the Plan. While we The Board and Management of Iarnród Bus Éireann remain confident that, with the essential Éireann are committed to achieving the on-going support of staff, all of the highest standards of safety and customer During 2017, Bus Éireann delivered necessary changes can be successfully service in responding to growing demand 38 million passenger journeys (excluding achieved, the risk remains that delay in for its services. Iarnród Éireann looks schools). This represents a fall of 2 million implementation undermines the long- forward to continued growth in patronage Review passengers (4.8%) when compared with the term sustainability of the business. over coming years. prior year. However, the extended period of industrial action represents a fall in 5.8% of The service disruption during the the number of service days within the year.
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