MAIN ROADS WESTERN AUSTRALIA 2005 ANNUAL REPORT 1 Main Roads Western Australia 2005 Annual Report
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MAIN ROADS WESTERN AUSTRALIA 2005 ANNUAL REPORT 1 Main Roads Western Australia 2005 Annual Report STATEMENT OF COMPLIANCE To the Honourable Alannah MacTiernan, MLA, Minister for Planning and Infrastructure In accordance with Section 66 of the Financial Administration and Audit Act 1985, I submit for your information and presentation to Parliament the Annual Report of the Commissioner of Main Roads for the year ended 30 June 2005. This Report has been prepared in accordance with the provisions of the Financial Administration and Audit Act 1985. Menno Henneveld COMMISSIONER OF MAIN ROADS 30 August 2005 CONTENTS Main Roads Western Australia 2005 Annual Report 2 PROFILE OF MAIN ROADS Main Roads Western Australia VISION is a major statutory authority To be recognised for excellence in customer service responsible for the State’s highways and world-class road access. and main roads which have a replacement value of $19.3 billion. PURPOSE It is one of eighteen agencies in the To provide safe and efficient road access that will Planning and Infrastructure Portfolio enhance community lifestyles and ensure economic created by the State Government prosperity. to integrate land-use and transport- planning. It is one of the largest VALUES geographically spread road agencies in the world, covering ROADS MATTER 2.5 million square kilometres, with Taking pride in managing the road network for the benefit of the community a matching diversity in climate and road-user needs. EMBRACING CHALLENGE Anticipating and taking up challenges EXTRAORDINARY CUSTOMER SERVICE Going to extraordinary lengths to understand and provide what is important to our customers WORKING TOGETHER Striving to enhance relationships and achieve excellence PROFESSIONALISM Providing high levels of expertise and experience in delivering services FAMILY Respecting and supporting our customers, the community and each other. CONTENTS 3 Main Roads Western Australia 2005 Annual Report ABOUT THIS REPORT This annual report communicates to Parliament, stakeholders, the community and employees our corporate intentions and activities that have progressed the Main Roads 2K7 Strategic Plan, Government goals and ongoing business during 2004-05. It demonstrates that Main Roads’ systems and processes ensure that it conducts its business with honesty, transparency and accountability by reporting on compliance with various legislative and Government policies. This includes presenting financial statements and performance indicators for the year ending 30 June 2005, with comparisons made to previous years. The structure of this report is based on Main Roads’ contribution to Government outcomes and reports on operations according to Main Roads’ program management areas. These six program management areas being: • Road Network Operations Management • Road-Use Efficiency Improvements • Road Infrastructure for Community Access • Road-Use Safety Improvements • Road Network Maintenance • Road Infrastructure for State Development. These program management areas are the way in which Main Roads delivers its road programs. The outcomes from these programs are directly aligned to Main Roads’ and Government’s strategic outcomes. Further information describing Program Management is at page 19. In order to reduce costs and minimise impacts on the environment, copies of the Annual Report are available at www.mainroads.wa.gov.au. The website also includes an audio version of the report. CONTENTS 5 Main Roads Western Australia 2005 Annual Report THE COMMISSIONER’S STATEMENT For Main Roads, 2004-05 was a year of development and consolidation in aligning with the new directions and priorities established in the Main Roads Strategic Plan 2003-2007. Significant progress was made with strategic initiatives outlined in the Corporate Business Plan 2004-05. Additionally, Main Roads made a number of significant improvements to the way in which its business is managed, ensuring more effective delivery of government and community desired outcomes. The introduction of Program Management ensured the organisation provided greater emphasis on program outcomes, with a particular emphasis on community outcomes. Main Roads achieved a record expenditure of $946M on programs and services. This expenditure related to achievement of the following Government outcomes: • $234M for improving the efficiency of the road network; • $43M on improved road safety; • $226M to maintain the integrity of the State’s $19.3B road network; • $225M for roads supporting economic and regional development; and • $218M for road network depreciation and other financial costs. Expenditure on the State Black Spot program returned on average $4.90 for every dollar invested and expenditure on infrastructure for State development returned on average $2.95 for every dollar invested. In total the investment of $946M and the efforts of 925 employees and numerous contractors has meant that the condition of the road network has improved; overall network efficiency maintained and road safety enhanced. The new Customer Service Strategy entitled “Excellence Inroads” was developed and implemented, generating a number of customer service initiatives. A new Customer Contact Centre was established during the year, providing greatly improved customer access. The introduction of a 24 hour, seven day service during the next year on 138 138 will further enhance customer service for all Main Roads callers. Main Roads has continued to develop and adopt innovative project delivery methodologies to establish the organisation as a leader in providing infrastructure that will ensure world class road access. The adoption of relationship contracting has been accepted at all levels. The Roe Highway Stage 7 alliance contract has already delivered considerable benefits in terms of enhanced relationships, community involvement, reduced conflict, containment of costs, timeliness of environmental approvals and innovations across a range of socio-environmental considerations. Considerable progress was also made in developing and implementing strategies to address key challenges in the areas of Network Operations, Occupational Safety and Health, Asset Management, Building and Expanding Capability and Innovation, details of which are included throughout this report. I am pleased with the outcome of 2004-05 and look forward to continuing further improvements in the future. I commend the attached report which sets out in some detail the environmental, social, safety and economic achievements of Main Roads during the past year. Menno Henneveld Commissioner Main Roads 30 August 2005 CONTENTS Main Roads Western Australia 2005 Annual Report The Future 6 The Future CHALLENGES Road authorities throughout the world are facing Community expectations are a number of similar challenges in providing and changing rapidly. Consumers have maintaining roads in the context of changing social, growing access to information about environmental and economic factors. Some of these challenges as they relate to Western Australia include: goods and services from around the • Rising community expectations that roads will world and the economy is becoming enhance the quality of life and well being of even more global. For the economy Western Australians including their safety and to thrive land transport must be efficiency effectively provided for and ongoing • Changing funding relationships between the public and private sectors impacting on availability of investment in our roads is an funds to Government for large infrastructure integral part of the production and projects distribution chain and is more • Changes in both State and Commonwealth funding important than ever. regimes, where road investment decisions are being CONTENTS Main Roads Western Australia 2005 Annual Report 7 The Future THE FUTURE ranked against other Government funding priorities service delivered to Main Roads customers, including health, education and social order and the stakeholders, the community and in how we interact need to revitalise other transport modes across with each other. Australia This will require development of a strategy to enhance • It is becoming increasingly difficult to deliver innovation and the integration of the values into every successful outcomes with traditional forms of aspect of the business through the corporate contract. This has been exacerbated by recent strategies and areas of strategic focus. shortages in skilled labour and materials in the construction market, necessitating the introduction COMMUNITY AND RELATIONSHIPS of more innovative contracting arrangements Main Roads’ Customer Service Strategy, Excellence • Adoption of new and emerging technologies Inroads, was launched in August 2004. The Strategy details how Main Roads is going to advance customer • Addressing the maintenance needs of an ageing focus over the next four years. Excellence Inroads is and expanding road network the vehicle for Main Roads to action the strategic • Increasing expectations that the environmental focus areas of Community and Relationships that have value of road reserves will be protected, that been identified in the 2K7 Strategic Plan. The environmental impacts associated with road works Excellence Inroads Strategy signifies the organisation’s are minimised and that the road network be renewed focus on pursuing customer service managed in a sustainable manner excellence and sets out a number of key projects aimed at building relationships with customers by • Growth in the road freight task, which is expected to understanding