VICROADS ANNUAL REPORT KEEPING VICTORIANS CONNECTED 2011 – 2012 Table of contents 1 Letter to the Minister 2 Chief Executive’s foreword 3 About VicRoads 5 Part one: Report on operations 6 Connection 12 Safety 17 Integration and sustainability 25 Service 29 Part two: Organisational capability and culture 35 Part three: Corporate governance and structure 40 Part four: Mandatory disclosures 46 Part five: Financial management 53 Part six: Financial statements 103 Disclosure index The Hon Terry Mulder MP Minister for Roads Level 16 121 Exhibition Street MELBOURNE VIC 3000 Dear Minister VicRoads 2011–12 Annual Report I have much pleasure in submitting to you, for your presentation to Parliament, the annual report of the Roads Corporation (VicRoads) for the period 1 July 2011 to 30 June 2012. Yours sincerely Gary Liddle Chief Executive 17 September 2012 VicRoads Annual Report 2011-2012 1 Chief Executive’s foreword It’s been another busy year for VicRoads Much of what we achieve at VicRoads is the result of working with others. Road safety is a key example of where we’ve continued our focus on what can be achieved in partnership with government delivering Victorians a sustainable road agencies, local communities and other stakeholders. system that is safe, efficient, reliable and In 2011, Victoria achieved its lowest ever road toll with integrated with the rest of the transport 287 fatalities, one fewer than in 2010. system. During the year, we also achieved some significant milestones in upgrading the road network including completing: One of the highlights for me in 2011–12 was the release of VicRoads Strategic Directions 2012–2014. • the Anglesea Road link (section 4A) for the This was a team effort with VicRoads’ Corporate Geelong Ring Road Management Group preparing an initial draft which • the duplication of the Bass Highway between was then improved through feedback from business King Road and Woolmer Road area managers and staff focus groups. • the Kings Road interchange at Taylors Lakes on In the Strategic Directions and more generally over the Calder Freeway • the past year, I have been particularly emphasising a new bridge over Moonee Ponds Creek on the three things - making customers the focus of our M80 Upgrade • business, contributing to an integrated transport the Kororoit Creek Road duplication in Altona system and creating a culture of innovation. Some • the Pound Road upgrade in Dandenong South. examples of these in 2011–12 are outlined below. Another key piece of work in 2011–12 has involved • In our registration and licensing business there planning for our future in terms of reviewing our has been a continued focus on improving structure, functions and processes. Changes will start capability and making our processes more being implemented in the second half of 2012. I efficient. The opening of the new contact centre appreciate the support that our people have shown in Ballarat was a major achievement and securing during this time. funding to build a new registration and licensing As always, I want to thank our staff and stakeholders system was also a significant milestone. across government, business and the community who • Floods in regional Victoria had a big impact on have worked together during 2011–12 to help keep the road network and affected many Victorians. Victorians connected. Our people once again rose to the challenge and got roads up and running, helping people to get I have no doubt that during 2012–13 our people will their lives back on track. The new Road Closures generate new opportunities and come up with new and Traffic Alerts web application particularly ideas about how we can continue to deliver great helped our customers to see what roads were service to our customers. closed and find detour information. • Our people have been working in partnership with others across government to contribute to the development of a metropolitan planning strategy and a Victorian freight and logistics plan, both of which will be launched in 2013 and Gary Liddle provide key inputs to VicRoads’ integrated Chief Executive planning. • VicRoads is coordinating the P-Drivers Project which is one of the largest and most complex scientific research studies into driver education in the world. At 30 June 2012, we had 8,670 participants involved in the trial. VicRoads Annual Report 2011-2012 2 About VicRoads VicRoads is a Victorian statutory • providing registration, licensing and accreditation authority that was established under the services for the transport system • developing and implementing effective Transport Act 1983 and continued under environmental policies, strategies and the Transport Integration Act 2010. Its management systems annual expenditure is over $2 billion. It is • providing technical, project management, consultancy and information services relating to subject to the general direction and the transport system control of the Minister for Roads. • providing and disseminating information to Victorians about the road system. Purpose Powers VicRoads’ purpose is to support economic prosperity and liveability by shaping the development and use of VicRoads’ powers are outlined in sections 88 and 89 Victoria’s road system as an integral part of the overall of the Transport Integration Act 2010. In general, transport system. VicRoads has the power to act as necessary or convenient to achieve its object and functions. VicRoads also has powers under a number of other Object acts and their associated regulations including: VicRoads’ primary object is outlined in section 86 of • Accident Towing Services Act 2007 the Transport Integration Act 2010 and includes: • EastLink Project Act 2004 • Melbourne City Link Act 1995 • working with others to ensure that the road • Road Management Act 2004 system operates as part of an integrated transport • Road Safety Act 1986. system that seeks to meet the needs of all transport system users • managing the road system in a way that supports Government priorities a sustainable Victoria by encouraging sustainable transport modes and seeking to improve the VicRoads develops strategies and actions in the environmental performance and minimise context of Government strategies and priorities. adverse environmental impacts from the road Strategies that will particularly impact on VicRoads system include: • contributing to social wellbeing by providing • : access to opportunities and supporting liveable Metropolitan planning strategy This will outline communities urban planning directions to ensure that the valued aspects of Melbourne are protected while • promoting economic prosperity through efficient allowing for future needs. The strategy will and reliable movement of persons and goods contribute to the overall vision for the State, • working with others to reduce deaths and injuries including links with regional Victoria. arising from road crashes. • Victorian freight and logistics plan: This will set out the preferred long-term principal freight Functions network to maximise the contribution of freight and logistics to the productivity and liveability of VicRoads’ functions are outlined in section 87 of the Victoria. Transport Integration Act 2010 and include: • Road safety strategy and action plan: These identify strategies and actions to further reduce • planning for the road system as part of an road deaths and serious injuries. integrated transport system • Victorian families statement: This is an approach • constructing and maintaining roads and roadsides to engaging with families about what is needed to • operating the road system by managing access improve the quality of family life. and controlling use • leading the development and implementation of Reducing red-tape for business and making strategic and operational policies and plans to regulations that are efficient, effective and transparent improve the safety of the road system for all users are also Government priorities. VicRoads administers a wide range of regulation and contributes to regulatory review and reform across Victoria and Australia. VicRoads Annual Report 2011-2012 3 At a national level, VicRoads is contributing to reform initiatives for heavy vehicles that have been agreed by the Council of Australian Governments. The reforms aim to improve national road freight productivity and safety, reduce costs for freight operators and find better ways to fund and price infrastructure that supports efficient freight movement. In delivering the Government’s transport priorities, VicRoads’ staff work in partnership with federal, state and local government agencies, businesses and their associations and communities. By working together we enhance Victoria’s liveability and opportunities for growth and prosperity. VicRoads’ strategic directions VicRoads develops three-year strategic directions that describe the vision, purpose and objectives of our organisation and what we need to focus on over a three-year period to achieve them. Initiatives to support the strategic directions are considered during VicRoads’ annual business planning process and are reflected in VicRoads’ annual corporate plan. Over the past three years, VicRoads’ programs and projects have been developed and delivered against VicRoads Strategic Directions 2010-2012 which focuses on: • providing reliable access and minimising congestion • improving road safety • making the transport system more sustainable • improving asset management • collecting, managing and using information to better support decision-making • improving customer service